Dupont Capital Management Corp

Item 5. Fees and Compensation.

How DuPont Capital is Compensated

The management fees charged by DuPont Capital vary based on the services provided and any laws
and regulations that apply to a particular client. The U.S. pension plans of DuPont Capital’s parent
company and its subsidiaries are charged at cost as required under the Employee Retirement
Income Security Act of 1974 (“ERISA”), as amended. Fees for other clients are generally calculated
as a percentage of assets under management.

All fees are subject to the requirements of the Advisers Act.

Management fees for private equity accounts are generally based on total committed capital for a
number of years, after which management fees are based on the lower of market value or
committed capital. In addition, there is generally a carried interest charge whereby DuPont Capital
receives a percentage of profits once investors have received distributions equal to their capital
contributions plus an agreed-upon internal rate of return.

Since fees are typically based on the value of assets under management, there is an inherent
incentive for managers to over-value assets, particularly those that are more difficult to value, e.g.,
illiquid, thinly traded, and private markets assets. This risk is mitigated by DuPont Capital’s use of
external pricing sources, including the financial statements of private markets investments as
provided by the general partners of those investments. In some cases, DuPont Capital’s fees are
calculated based on asset values provided by clients’ independent custodians. Additionally, DuPont
Capital has a Fair Valuation Committee in place to help ensure that securities are appropriately
priced.

For its private equity fund-of-funds products, DuPont Capital bills its advisory fees quarterly in
advance. With private equity, investors are not able to redeem from the funds so the concept of
refunds of advance payments due to termination by the investor does not apply.

Other Information on DuPont Capital’s Fees

At the discretion of DuPont Capital, fees may be negotiated.

Generally, DuPont Capital does not deduct its fees directly from client accounts. Exceptions apply for
Private Equity:

     •   For administrative efficiency, when management fees are due to DuPont Capital for a
         specific private fund at a time when that fund is making a distribution to investors, DuPont
         Capital typically deducts its management fees from such distributions.

     •   Carried interest charges are deducted from fund assets rather than (i) being credited to
         investor accounts and then deducted from those accounts or (ii) being invoiced to each
         investor.

Other Costs Incurred by Clients

In addition to DuPont Capital’s fees, clients will incur other costs:

     •   Private equity investors pay, through a reduction of the investor’s capital account balance
         in the fund-of-funds, carried interest to DuPont Capital. These investors also bear a
         proportionate share of the organizational costs of the fund-of-funds and certain other
         expenses as disclosed in each fund’s private placement memorandum and operating
         agreement. Fund-of-funds investors also bear a portion of (1) management fees and carried
         interest payable to the managers of the funds in which the fund-of-funds invest and (2) the
         expenses of the funds in which the fund-of-funds invest.

     •

    •    Clients also bear the costs of services for which they contract directly, with or without the
         knowledge of DuPont Capital. For example, a client may elect to pay for a stock screening
         service to identify securities that it requests DuPont Capital to exclude from its portfolio,
         custodial services for its separate accounts, or prime brokerage arrangements.

Item 7. Types of Clients.

DuPont Capital generally provides portfolio management services to defined benefit and defined
contribution retirement plans, and pooled investment vehicles. DuPont Capital manages assets for a
wide variety of investors within its pooled vehicles, including, but not limited to, trusts, foundations,
and endowments.