Chiron Investment Management LLC

ITEM 5: FEES AND COMPENSATION

A. Advisory Fees and Compensation

The specific manner in which Chiron charges advisory fees for client portfolios is set out in a client’s
written investment management agreement with Chiron.

Registered Investment Company Fees

Registered investment company fees are separately negotiated between Chiron and the Board of Trustees
or Directors of a Fund. The fees are based on a percentage of assets under management. Chiron may
agree, either on a voluntary basis or by contract, to waive a portion of its investment management fee,
such as to limit overall Fund expenses to a specific total expense ratio. Registered investment company
fees, and the terms of any waiver, are disclosed in the applicable Fund prospectus.

Chiron currently assesses an annual management fee of approximately 95 basis points for its registered
investment company client, FS Chiron Capital Allocation Fund. For FS Chiron Real Development Fund,
Chiron serves as a co-investment adviser, with FS Fund Advisor, LLC; the total annual management fee
paid to FS Fund Advisor, LLC is 95 basis points, of which half, or 47.5 basis points, is paid to Chiron.
These fees are accrued daily and paid monthly, in arrears.

Investment management agreements between Chiron and registered investment company clients may be
terminated at any time on specified notice, without the payment of any penalty, by the Board of Trustees
or Directors of the investment company. The agreements automatically terminate in the event of their
assignment.

Negotiated Fees

From time to time, Chiron may enter into negotiated fee arrangements that, in light of a particular
investor’s special circumstances or other factors, may result in fee schedules that differ from the standard
fee schedules. Such circumstances may include, without limitation: pre-existing relationship; service
levels; special investment guidelines; Chiron’s level of assets at time of investment; whether a new

account is expected to grow rapidly; the number of different accounts and total assets under management
for that client (and its affiliates); and other circumstances or factors that Chiron deems relevant.

B. Deduction of Fees

If a client requests that Chiron automatically deduct management fees from its account(s), Chiron will bill
the client's custodian directly in accordance with Rule 206(4)-2 (the Custody Rule) under the Investment
Advisers Act of 1940 (the Advisers Act). At this time, Chiron does not have any such clients or fee
payment arrangements in place.

C. Additional Fees Charged

Chiron also will use “soft dollars” generated by client transactions to pay for brokerage (i.e., effecting
securities transactions) and research products and services (i.e., advice, analysis and reports) for clients,
consistent with Chiron’s best execution and soft dollar policy and with Section 28(e) of the Securities
Exchange Act of 1934, as amended (Section 28(e)). See Item 12-Brokerage Practices for more
information on Chiron’s use of soft dollars.

Investors in Funds will bear all of the expenses set forth above, plus the following additional expenses to
the extent permitted under the applicable prospectus or offering documents: third party fund administrator
fees and expenses; pricing costs; fund accounting and recordkeeping expenses; acquired fund fees and
expenses, legal, accounting, audit and tax preparation expenses; expenses of shareholder/investor
meetings; corporate licensing fees; organizational and offering expenses; costs of filing reports with
regulatory bodies; costs of the maintenance of insurance premiums; and any extraordinary expenses
(including, without limitation, extraordinary litigation expenses and extraordinary consulting expenses).
Depending on the intermediary through which mutual fund shares are acquired, investors in Chiron-
managed mutual funds may also bear distribution and/or servicing fees.

ITEM 7: TYPES OF CLIENTS

Chiron currently provides investment advisory services to U.S. registered open-end mutual funds. These
products have various minimum investment requirements. See the applicable offering documents for
each Fund for further details.

ITEM 8: METHODS OF ANAYLSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

The following summary of investment objectives, principal investment strategies and material risks are
necessarily limited and are presented for general information purposes in accordance with regulatory
requirements. Consequently, these summaries are in all instances qualified and superseded by the
descriptions of objectives, strategies and risks, portfolio reports and other communications which are
provided to each client.

Chiron provides investment advisory services to Funds, as noted in Item 4-Types of Advisory Services.
Information about each Fund’s investment objectives, strategies and risks are described in their respective
offering documents, including prospectuses; these Fund disclosure documents also supersede the
following descriptions.

Investing in securities involves the risk of loss of money and clients investing their money with Chiron
should be prepared to bear that loss. None of the Pooled Accounts or Funds for which Chiron provides
portfolio management services is a deposit in a bank, nor are those Pooled Accounts or Funds insured or
guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency.

A. Methods of Analysis and Investment Strategies

Chiron’s investment process emphasizes active management and combines fundamental and quantitative
investment research, or Quantamental. Chiron’s research process is an actively managed framework that
allows it to quantify fundamental factors, systematize the approach and apply judgment to asset allocation
and security selection. Chiron looks to discern what action managements are taking and what reactions
this elicits from investors. The asset allocation frame work is structured to seek to anticipate the
conditions that lead to market drawdowns, while also anticipating the conditions that lead to rising
markets.

The security selection framework is built on two fundamental behavior pillars: earnings quality, which is
a measurement of cash flow, profitability, and growth; and dispute: a measurement of investor reaction to
management behavior. Chiron utilizes two proprietary tools, the Chiron Domain Indicator and the Chiron
Dispersion Indicator, to help identify the investment environment within which to allocate capital. These
tools, or indicators, in combination help Chiron to establish an anchor for portfolio construction. By
combining these proprietary tools with fundamental judgment, Chiron believes it can understand the
conditions that lead to successful investment outcomes.

The Chiron Domain Indicator is a quantitative measure of fundamental factors that helps Chiron to detect
what action managements are taking and how investors are rewarding or penalizing those actions. The
output of the Domain Indicator informs which ‘domain’ is being rewarded in the market. Depending on
the ‘domain’, the market rewards characteristics of value, growth or growth at a reasonable price. Chiron
believes this is consistent across capital structure. Chiron believes that value and growth domains create
similar characteristics in stocks and bonds. Chiron’s selection process is agnostic to growth or value;
however, it desires to emphasize the correct attribute when the market is willing to reward it.

The Chiron Dispersion Indicator is a quantitative measure of valuation. The output of the Dispersion
Indicator compares the valuation of both the cheapest and most expensive stocks compared to the market
average. Chiron believes that this creates a ‘bond-like’ measurement spread for equities. During times of
market distress and volatility, the market values companies in a different way. Chiron applies the
Dispersion Indicator to its equity universe across geographies.

The Indicators, in combination, serve as an anchor for Chiron’s investment process; they provide a
starting point to aid Chiron in determining where to allocate capital globally. Chiron believes when it can
recognize what conditions are being rewarded, it can assess the degree to which valuations are
differentiated.

B. Strategies

Chiron provides the following investment strategies:

FS Chiron Capital Allocation Fund: this strategy seeks total return which consists of capital growth and
income.

The Fund seeks to achieve its investment objective by allocating its assets among equity, fixed income,
precious metals and cash investments, of issuers in markets around the globe. Subject to identified
allocation targets, the combination of a client’s investments will vary from time to time, both with respect
to the types of securities and markets, in response to changing market and economic trends. Chiron may
allocate a substantial portion of the assets to non-U.S. securities, including emerging market issuers. An
emerging market country is any country determined by Chiron to have an emerging market economy.
Chiron may also invest in non-U.S. currencies, cash equivalents or bank deposits. Chiron seeks
diversification across markets, industries and issuers as one of its strategies is to reduce volatility. In
making investment decisions, Chiron tries to identify long-term trends and changes that could benefit
particular markets and/or industries and securities relative to other markets, industries and securities.

Chiron may use derivatives, including options, futures, swaps and currency forward contracts, to attempt
to both increase the return of an account and hedge (protect) the value of an account’s assets. Chiron may
use options to create long or short equity exposure without investing directly in equity securities, while it
may use futures to create long or short equity, fixed income or U.S. Treasury exposure without investing
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