Coeli Frontier Markets AB

Fees and Compensation
For services provided to the Client, Coeli charges the Client an investment management fees based
on a percentage of the market value of the assets under management. Fees are negotiated with each
Client and are outlined in the relevant investment service agreements. Coeli invoices fees on a
quarterly basis, in arrears.

In conjunction with portfolio transactions Coeli pays a fee (commission) to the counterparty
executing a transaction. This cost is borne by the Client’s portfolio as a transaction charge.
Coeli may direct brokerage on behalf of Clients. Clients are hereby informed that such direction may
result in higher commissions and spreads, less favorable prices, and exclusion from block trades. Coeli
has no brokerage affiliate.

Performance Based Fees and Side-by-Side Management
Coeli may charge performance based fees for a specific asset class of the above-mentioned Fund.
Coeli does not charge such fees for other investment services. This may be subject to change in the
future.

Types of Clients
The Company provides model portfolio services and discretionary investment management services
exclusively to Institutional Clients. Minimum investment is typically 1.000.000, 00 USD.
Coeli does not market its services to Retail Clients. Retail Clients may, however, invest in shares in
the Fund. The Fund is not open to U.S. investors.

Methods of Analysis, Investment Strategies and Risk of Loss
Coeli’s investment management services are based on the strategy of the Coeli Frontier Markets fund.
The Fund is a pure play Global Frontier Markets strategy, investing in listed equities with a large
operational exposure to countries in the MSCI Frontier Markets index or countries not classified in
any MSCI index. Coeli’s investment process comprises of both a top-down review and fundamental
bottom-up analysis.

Top-down review
By their very nature, Frontier Markets are in an early phase of development, generally lacking strong
institutions. Countries will develop at different paces and some will not develop at all. The course of
this development will impact a company’s ability to operate. So while we are focused on bottom-up
issues, we believe it is critical to have a thorough understanding of the political, financial and social
environment in which the company operates.

We gather evidence from country visits, our extensive international network as well as local analysts
and economists. In addition to this, we actively track development of a whole range of indicators.

Bottom-up analysis
Our bottom up analysis focuses on the following issues.

Business case
The Frontier Markets investment case is based on ongoing structural shifts in these early stage
markets from favorable demographics, increasing productivity and higher levels of wealth. In
assessing the business case we spend a lot of time understanding how the company will benefit from
these structural developments.

Management
While there are many attractive opportunities within Frontier Markets, there can be significant risks for
minority shareholders. Many businesses are owner-managed and there is often a conflict between the
majority and minority shareholders.

Financial health
In many respects the quality of management is reflected in historical financial results. We firmly
believe that the key to improve enterprise value (and shareholder returns) over time is a company’s
ability to reinvest high returns on capital.

Valuation
We believe that the most significant risk in these markets is not having an adequate margin of safety
in valuation. How these companies are weighted in the portfolio is driven by their respective
discounts to what we perceive to be fair value.

Risks
With our strategy, there is the risk that you could lose a significant amount of money. Those risks are
discussed in more detail below. Before you invest with Coeli, you should decide that you are able to
handle this risk.

There are specific risks associated with investing in Frontier Markets. We could be wrong in our
assessment of the relative attractiveness of Frontier Markets over a given period of time. Likewise,
with respect to securities selection, Coeli could be wrong with respect to its estimate of the intrinsic
value/expected growth of a security or how long it will take for this intrinsic value/expected growth
to be reflected in its market price.

The main risks of investing in Frontier Markets come from:

    o   foreign currency considerations (transaction fees, conversion rates and restrictions on
        conversion/repatriation);

    o economic and political instability;

    o less government regulation and supervision;

    o limited liquidity and increased volatility in the securities markets, and
    o less developed custody and settlement mechanisms.
Frontier Markets securities are usually denominated in foreign currencies (in other words, currencies
that are different from the base currencies of our Client accounts). This means Coeli will have to
exchange currencies it decides to buy and sell securities or when the Portfolio receives a distribution
of income. The Portfolio will pay fees for these foreign currency exchange transactions and the
conversion rates affect the value (including unrealized gains or losses) of the securities in and income
received.

Correspondingly, Clients who receive Non-Discretionary Services will have to exchange currencies
when trading securities according to model portfolio recommendations. The Clients will have to pay
for these transactions and the conversation rates will affect the value of the securities in and income
received.

On rare occasions, the government of a Frontier Market country will impose restrictions on the
conversion or movement of its currency outside the country. If this happens, the Clients may not be
able to realize the value of client investments in that country until the restrictions are removed.

Economic and political conditions tend to be more volatile in Frontier Markets and can affect the
value of the Clients’ investments. With respect to any Frontier Market country, there is the possibility
that the government could, in effect, “take” the value of the Client’s investments in that country
either through nationalization, expropriation of or confiscatory taxation.

Political changes, government regulation, social instability or diplomatic developments (including war)
also could affect adversely the value of the Client’s investments. In addition, it may be difficult to
obtain and enforce a judgment in a court in a Frontier market country.

Securities markets, broker-dealers, and issuers in Frontier Markets generally are subject to less
government supervision and regulation than in developed countries. Further, Frontier Market
companies may not be subject to the same accounting, auditing, and financial reporting requirements
as companies in developed countries. In particular, valuation of assets, depreciation, exchange
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