City of London Investment Management Co Ltd

Item 5 – Fees and Compensation

Separate Accounts

The specific manner in which fees are calculated and charged by CLIM is established in each
separate account client’s investment management agreement. CLIM will generally bill its fees on
a monthly or quarterly basis in arrears based on the account value at the close of each month.
Ordinarily, management fees will be prorated for each contribution and withdrawal made during
the applicable month. Accounts initiated or terminated during a month will be charged a
prorated fee. Upon termination of any account, any prepaid, unearned fees will be refunded,
and any earned, unpaid fees will be due and payable. CLIM offers flat and tiered fee schedules to
clients in multiple types of accounts or multiple strategies. Fees for each strategy are generally
as set forth below. FEES ARE NEGOTIABLE.

Emerging Markets Equity Closed-End Fund Strategy (including Special Situations Closed-End Fund
Strategy and Emerging Markets Ex-China Equity Closed-End Fund Strategy)
1.00% (100 basis points) per annum on the total assets of the Account.

Frontier Markets Equity Closed-End Fund Strategy
1.25% (125 basis points) per annum on the total assets of the Account.

International Equity Closed-End Fund Strategy (including Global Equity, World Equity, World ex
US Equity and EAFE Equity Closed-End Fund Strategies)
0.65% per annum on the first US $50m of account assets; 0.60% per annum on the next US $50m
of account assets; 0.55% per annum on account assets above US $100m.

Listed Private Equity Closed-End Fund Strategy
0.90% (90 basis points) per annum on the total assets of the Account.

Opportunistic Value Closed-End Fund Strategy
0.80% (80 basis points) per annum on the total assets of the Account.

Tactical Income Closed-End Fund Strategy
0.85% (85 basis points) per annum on the total assets of the Account.

China “A” Share Equity Closed-End Fund Strategy
1.50% (150 basis points) per annum on the total assets of the Account.

Municipal Bond Closed-End Fund Strategy
0.45% (45 basis points) per annum on the total assets of the Account.

Set-up and operating costs for a separate account will depend on the specific custodian
appointed by the client and the client pays these costs. Clients will also incur brokerage and
transaction costs as discussed further under “Brokerage Practices.”

CLIM Funds

The investment management fee for a CLIM Fund is dependent on the following factors:
   • Investment strategy;
   • Benchmark; and
   • Type of investor/overall investor relationship.

The offering memorandum (“Offering Memorandum”) for each CLIM Fund sets forth the specific
fees to be charged to investors. Administration and custody fees are paid by CLIM, as the
investment manager, unless otherwise agreed. The CLIM Fund will bear all expenses incurred in
connection with the acquisition, ownership, transfer, or realization of investments (including, but
not limited to, transfer and withholding taxes, stamp duties, brokerage commissions, and other
settlement charges, and corporate actions, tax reclamation, transaction and holding fees and
charges), and any indemnification and related expenses as set forth in each CLIM Fund’s
Declaration of Trust and Offering Memorandum. In addition, for certain CLIM Funds, CLIM bears
the cost of professional fees and expenses, which include the services of the CLIM Fund’s
independent auditors, tax preparers, and legal counsel. Investors in a CLIM Fund may incur wire
transfer and electronic fund transfer fees, and other fees and taxes on brokerage accounts and
securities transactions.

CLIM has entered into certain “side letter” arrangements with respect to investments in a CLIM
Fund, including side letter arrangements in which CLIM agrees to charge a discounted
management fee that differs from the fee structure stated in the Offering Memorandum. CLIM
has entered into an intercompany agreement with its affiliate, KIM, in which CLIM does not
charge investment management fees for the portion of assets attributable to any KIM clients who
are investors in the CLIM Funds. FEES ARE NEGOTIABLE.

All Accounts

CLIM strategies typically invest in closed-end, open-end and exchange-traded funds (each, a
“Third Party Fund”) which also charge internal management fees, which are disclosed in a Third
Party Fund’s prospectus. Such charges, fees and commissions are exclusive of and in addition to
CLIM’s fee, and the Firm shall not receive any portion of these commissions, fees, and costs. To
the extent that CLIM invests client assets in a CLIM Fund, the Firm ensures that clients are not
double-charged.

CLIM has different fee schedules for products and services offered in jurisdictions outside of the
United States. CLIM will not generally be required to provide notice to, or obtain the consent of,
one client when waiving, reducing or varying fees or modifying other contractual terms with any
other client. However, some clients wish to negotiate most favored nation (“MFN”) clauses in
their side letters or investment management agreements with CLIM. These MFN clauses often
require CLIM to notify the client if we subsequently enter into a side letter or an investment
management agreement with another client that offers more favorable pricing or other
contractual terms than those currently offered to the MFN client. The applicability of an MFN
clause will depend on the degree of similarity between clients, including, but not limited to, the
type of client, account structure, tax status, scope of investment discretion, amount of assets
under management, fee structure and particular investment strategy.

Further descriptions of the factors that CLIM considers in selecting or recommending broker-
dealers for client transactions and determining the reasonableness of their compensation (e.g.,
commissions) are found in “Brokerage Practices.”

Item 7 – Types of Clients

CLIM generally provides portfolio management services to institutional clients including:
investment companies, pooled investment vehicles, pension and profit sharing plans, charitable
organizations, state or municipal government entities, foreign funds such as UCITS, and other US
and international institutions.

The CLIM Funds generally are restricted to investors who are “accredited investors” and
“qualified purchasers”, as such terms are defined in the relevant CLIM Fund Offering
Memorandum, the Securities Act of 1933, as amended, and the Investment Company Act of 1940.

For separate accounts, CLIM generally requires a minimum investment amount for each of the
strategies it manages. Such minimum investment amounts will vary depending on the particular
investment strategy and type of account. CLIM in its sole discretion can waive the minimum
investment requirements.