Asset Allocation & Management Company LLC

Item 5 – Fees and Compensation (continued)

schedules on a case-by-case basis. AAM is typically paid based on assets under
management (“AUM”). Our fee schedules typically provide for “breakpoints” at which
the percentage is reduced if AUM exceeds certain agreed upon amounts. AAM’s fees
are exclusive of transaction fees and other related costs and expenses which are incurred
by clients. Fees are billed quarterly, preferably in advance, based upon the market value
or market value + accrued of assets on the month-end preceding the quarter. For
example, the first quarter fee is calculated using 12/31 portfolio values. Investment
advisory clients can terminate their advisory contract at any time with prior notice
ranging from 30 to 90 days. Notices must be in writing, delivered via email or sent by
registered or certified mail to the attention of AAM’s Chief Executive Officer. Fees are
pro-rated for partial quarters and unearned pre-paid fees are returned to the client upon
termination of the client advisory agreement.

As discussed in Item 15, each client selects its own custodian. Custodial fees charged by
the client’s custodian are paid directly by the client to the custodian and such fees are
negotiated between the client and its selected custodian.

As part of our investment advisory services to you, in some cases we invest, or
recommend that you invest in mutual funds, and/or exchange-traded funds (ETFs). The
fees that you pay to AAM for investment advisory services are separate and distinct
from the fees and expenses charged by mutual funds or ETFs (described in each fund's
prospectus) to their shareholders. These fees will generally include a management fee
and other fund expenses. You will also incur transaction charges and/or brokerage fees
when purchasing or selling securities. These charges and fees are typically imposed by
the broker-dealer or custodian through whom your account transactions are executed.
AAM does not share in any portion of the brokerage fees/transaction charges imposed
by the broker-dealer or custodian. To fully understand the total cost you will incur, you
should review all the fees charged by mutual funds, ETFs, our Firm, and others.

In addition to the management fee, clients may incur fees related to investment
accounting services and investment management services. Accounting service fees are
bundled or unbundled depending on the size and complexity of the mandate and can
range from 0.5 to 2 basis points calculated as a percentage of assets under management.
In all cases, accounting services are guided by a separate investment accounting
schedule or agreement. Clients may be allocated Securities Valuation Office (“SVO”)
fees with nominal administration fees included. Clients will incur brokerage and custody
transaction costs based on trades placed in their portfolios. See Item 12 in this brochure
for greater detail on brokerage practices. AAM or employees of AAM do not accept
compensation for the sale of any security or investment product.

The annual fees for Convertible, High Yield, Commercial Mortgage Loans, Securian
Private Placement and Active Equity management generally range from 0.15% to
1.25% of market value or customized incentive fee billed under the terms described
above. Performance based fee arrangements are also available.

FORM ADV
UNIFORM APPLICATION FOR INVESTMENT ADVISER REGISTRATION
Part 2A – December 31, 2025

Item 7 – Types of Clients

AAM provides discretionary and non-discretionary investment advice to insurance
companies across all business segments of the industry including Property & Casualty,
Life, Health and Captive insurers generally subject to a minimum account size of $1
million. AAM provides discretionary investment advice to high net worth individuals,
subject to a minimum account size of $20 million.