Alesco Advisors LLC an ESL Company

Fees and Compensation (Item 5)

statement. The expense ratio (the percentage of fees charged annually on an individual security) is available
in the fund’s prospectus (also, Alesco can provide this information to the client upon request). Alesco does
not recommend the use of “load funds.”

Alesco does not accept compensation for the sale of securities or other investment products, including asset-
based sales charges or service fees from the sale of mutual funds.

Alesco provides financial planning services for individuals who are not currently investment management
clients. For these services, Alesco receives a fixed financial planning fee.

                                                                              Part 2A of Form ADV: Firm Brochure

Types of Clients (Item 7)

Alesco has a stated account minimum of $3 million (for the purposes of this minimum, an account may be
defined as a “client relationship,” which could consist of multiple accounts). In certain instances, Alesco
makes exceptions for smaller relationships that Alesco feels may have the potential to achieve this minimum
value. As stated in Item 5, clients participating in a wrap program or a model program have a minimum
account size far less than the $3 million minimum. Alesco negotiates this minimum size with the wrap
program sponsors. For greater detail on this, see Item 5.

For a more complete discussion regarding the different types of clients to whom Alesco generally provides
investment advice, see Item 4 in this document.

                                                                                       Part 2A of Form ADV: Firm Brochure
                                                        Methods of Analysis, Investment Strategies and Risk of Loss (Item 8)

                  Methods of Analysis, Investment Strategies and Risk of Loss (Item 8)

Alesco invests its clients’ assets in accordance with each client’s needs. Alesco considers the investment
time horizon of the client, the client’s ability to assume risk, the client’s need for income, the taxable nature of
the client’s assets, and other factors to assist the client in formulating an asset allocation strategy. The
implementation of the asset allocation involves buying and selling investment securities. This involves risk of
loss that the client should be prepared to bear.

The specific selection of investments is based on internal analysis of competing investment products. Alesco
utilizes fundamental analysis and asset allocation theories, including quantitative modeling, to formulate
investment decisions.

Though Alesco may invest in a multitude of securities, index-based and systematic mutual funds and
exchange traded funds (ETFs) are the most commonly recommended types of securities for accounts where
Alesco serves as the discretionary investment manager. These types of securities seek investment results
that correspond generally to the price and yield performance, before fees and expenses of a specific index or
market segment. As with any equity and fixed income security, investment return and principal value of an
investment will fluctuate so that a client’s shares, when sold or redeemed, may be worth more or less than the
original cost.

The primary risk associated with portfolios managed by Alesco is market risk. This is the risk that the overall
market declines. This includes the equity market, the bond market, and the markets for other asset classes
which may be used in a client’s portfolio.

A risk specifically associated with index mutual funds and ETFs is tracking error. Tracking error occurs when
an index mutual fund or ETF does not match the corresponding index return. This may be the result of the
expense ratio charged on the index mutual fund or ETF (see Item 5 for a discussion on fund expense ratios), or
numerous other factors. Alesco closely monitors each recommended mutual fund and ETF for tracking error
and may choose to replace the security with a similar fund with lower tracking error.

Individual ETFs and index funds are unable to significantly outperform the target index. By their very nature, it
should not be the goal of the ETF or index fund manager to beat the index, but rather to replicate the index
return. Alesco aims to optimize the client portfolio’s overall risk-adjusted return via diversified investment
exposure across multiple assets classes.

For some clients, depending on individual circumstances, Alesco invests in funds that own private assets.
Such investments are also subject to illiquidity risk, where investors’ ability to access their capital when needed
may be restricted. Operational risks may be greater for private investments, and they may lack diversification
compared to publicly traded investments. Valuing private investments may involve subjective judgments and
may not accurately reflect their true market value. Private investments typically offer limited disclosure and
transparency compared to publicly traded securities and often charge management fees, performance fees,
and other expenses which impact an investor’s return.

                                                                                     Part 2A of Form ADV: Firm Brochure