Equity Investment Corporation

FEES AND COMPENSATION (ITEM 5)
EIC’s management fees range from .30% to 1% per annum of assets managed or advised. All
management fees (other than those indicated in the current EIC Value Fund Prospectus and SAI)
are subject to negotiation.

Fees for Separate Accounts
When entering into an Investment Advisory Agreement or Investment Sub-Advisory Agreement to
provide portfolio management services through a Separate Account, EIC will charge each such
Separate Account a management fee at a fixed percentage of the assets managed, according to the
size and type of the account as well as other considerations, such as account servicing needs,
administrative requirements, and overall relationship size.

The specific way management fees are charged by EIC is established in a client’s agreement.
Generally, management fees are billed on a quarterly basis, and clients are billed in advance each
calendar quarter. Clients may either elect to be billed directly for management fees or authorize EIC
to invoice the custodian for payment of fees directly from their accounts in accordance with the
Schedule of Fees in the Investment Advisory Agreement. If so agreed, management fees may be
prorated for each capital contribution and withdrawal of 10% or more of account value made during
the applicable calendar quarter. Accounts initiated or terminated during a calendar quarter will be
charged a prorated management fee. Upon termination of any account, any prepaid, unearned
management fees will be promptly refunded, and any earned, unpaid management fees will be due
and payable.

Subject to the terms of each client agreement, billable assets are calculated as either:

    •   The average amount of assets under management each quarter based on the value of the assets
        on the last trading day of each month during the quarter, or

    •   The assets under management on the last day of the quarter.

Certain clients who participate in automated account billing services connected with various broker-
dealers may choose to be billed using the rates and minimums shown above but based on their
broker-dealer’s method of determining the billable assets for the quarter.

Several clients are invested solely in the EIC Value Fund (“Fund”), in which case no management fee
is charged since a management fee, disclosed in the Fund’s Prospectus and SAI, is already embedded
in the Fund.

EIC’s management fees are exclusive of brokerage commissions, transaction fees, and other related
costs and expenses. Clients may incur certain charges imposed by custodians, broker-dealers, and
other third parties such as custodial fees, deferred sales charges, odd-lot differentials, transfer taxes,
wire transfer fees, electronic fund fees, and other fees and taxes on accounts and securities
transactions.
EQUITY INVESTMENT CORPORATION                                                                 5|Page

In specific client circumstances or with certain strategies, EIC may purchase mutual funds or
exchange-traded funds (“ETFs”) that it does not manage. Mutual funds and ETFs also charge
management fees, which are disclosed in a fund’s prospectus. Such charges, fees, and commissions
are exclusive of, and in addition to, EIC’s management fee. EIC does not receive any portion of these
charges, fees, and commissions. Clients should therefore be aware that they will be paying a higher
overall fee on these assets.

Wrap Account Program Fees
Wrap account program (“Wrap Program”) sponsors typically charge their clients an annualized fee
as a percent of assets under management. Where EIC serves as a sub-adviser to another registered
investment advisory organization or non-affiliated broker-dealer who sponsors a Wrap Program, EIC
receives a portion of the Wrap Program fees paid by the investor to the sponsoring firm for advisory
services to their account. The management fee paid to EIC as sub-adviser to these Wrap Programs
can vary and is negotiated with the sponsoring firm. The schedule of wrap fees is set forth in each
Wrap Program sponsor’s Client Brochure related to the program.

Unified Managed Account Program (“UMA Program”) Fees
EIC charges a management fee to each UMA Program sponsor with whom we enter into an
agreement. The sponsor contracts with EIC to use EIC’s investment model to assist the sponsor in
managing its client accounts. EIC and the sponsor typically negotiate the management fee. The
management fee can vary depending on several factors, including the administrative services EIC
provides and the total assets under management.

Most Favored Nation Clauses for Certain Registered Investment Advisers
Certain registered investment adviser program sponsors have negotiated “most favored nation”
clauses in their Sub-Advisory Agreements. These clauses require EIC to decrease the fees charged
to the “most favored nation” client if EIC enters into a Sub-Advisory Agreement at a lower fee rate
with another similar client. The applicability of a “most favored nation” clause can depend on the
degree of similarity between clients, including the amount of assets under management, the
administrative services provided, and the particular investment strategy selected by each client.
However, EIC does not agree to “most favored nation” clauses in all circumstances where clients
are similarly situated.

Management Fees for the EIC Value Fund
The EIC Value Fund (“Fund”) pays a management fee to EIC as the adviser at a specified annual
percentage rate of average daily net assets. Additional information about the management fee
charged to the Fund is available in the current Fund Prospectus and SAI, which are publicly available
at www.eicvalue.com, on the EDGAR Database on the SEC’s website (www.sec.gov), or by calling
the Fund at 855-430-6487 or writing the Fund at:

EIC Value Fund
FundVantage Trust
c/o BNY Mellon Investment Servicing
P.O. Box 53445

EQUITY INVESTMENT CORPORATION                                                            6|Page
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TYPES OF CLIENTS (ITEM 7)
EIC provides portfolio management services to individuals, high net worth individuals, trusts,
corporations, defined benefit and defined contribution plans, Taft-Hartley plans, not-for-profit
institutions, foundations, endowments, government entities, insurance companies, investment
companies (mutual funds), clients of Wrap Program sponsors, and clients of UMA Program sponsors.
Minimum account size varies depending on the level of account servicing and communication
desired by the client.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES, AND RISKS (ITEM 8)

Equity Decision-Making Process
We follow a fundamental, “absolute value” investment approach, typically resulting in the
ownership of high-quality, well-managed companies with relatively stable earnings and cash flow,
high returns on equity and capital, and low levels of debt.

Investment ideas are generated in several different ways. For instance, we sometimes screen the
Russell 3000 universe (Russell 1000 universe for Large-Cap Value and Russell Midcap universe for
Mid-Cap Value) using the S&P Capital IQPRO database. We narrow down the universe by looking for
companies generating high returns on equity and sustainable earnings growth. With respect to our
ESG portfolios, we may use a third-party research service, as well as our own internal research, to
exclude securities that violate investors’ specified environmental, social, and governance guidelines.

Additional ideas are sometimes uncovered through traditional news sources, non-opinionated
research, and reviewing competitors’ holdings, as well as examining companies whose share prices
have recently been under significant pressure.

A description of the four parts of our investment process follows:

   1. Valuation Models and Price Discipline
Valuation is a critical part of our decision-making process. Our valuation models help us avoid paying
too much attention to price and not enough attention to economic value.

Once a potential investment candidate is identified, the first step in the process is to determine
whether the company is selling at a discount to its economic value as an ongoing business, based
upon valuation models developed in-house. We value a business as though we were owner-
operators over a long period of time seeking to earn a premium above inflation on both our

EQUITY INVESTMENT CORPORATION                                                             7|Page

acquisition capital and the reinvested capital required for growth.

Two key inputs to our valuation models are earnings growth and return on equity (“ROE”). We also
look at return on invested capital since ROE is sometimes manipulated by corporate management.
We start with historical numbers, preferring to see them over a full business cycle. Because the
future may be different than the past, we build a margin of safety into our investment decisions by
applying a haircut to our ROE and earnings growth assumptions to generate a conservative value for
the companies, which we use as a proxy for our buy price. The “normal” value, a proxy for our sell
price, is produced from the normal ROE and earnings per share (EPS) growth figures. A low-quality
company with a relatively volatile earnings stream requires a bigger haircut—a bigger margin of
safety—than does a higher quality company with a stable earnings history.

Importantly, the valuation models serve primarily as a framework for asking questions regarding our
valuation assumptions, as contrasted against the assumptions implicit in the market’s current price
for a company. Though it seems intuitively obvious, we prefer to invest in companies that – given
our assumptions – are creating capital and increasing in value as the time horizon increases rather
than companies that are not. In contrast, investment approaches relying on such traditional
valuation metrics as, say, price-to-earnings, price-to-book, price-to-cash flow, and dividend yield are
not sophisticated enough to incorporate such nuances as the importance of time horizon in the
capital-creation process.

    2. Value Trap Avoidance
As a value manager, we search for opportunities among investments that the market perceives
as entailing heightened risks, as demonstrated by relatively low valuations. This pool of
investment candidates typically offers us many opportunities that we believe are attractively
priced and relatively safe. Unfortunately, the pool is also heavily populated by value traps, which
we define as investments that look attractively priced based on conventional valuation metrics
but have characteristics that may cause them to stay cheap or get cheaper.

After we have determined that a company is selling at a meaningful discount to its value as an
ongoing concern, we use a comprehensive set of analytics to help us monitor company
fundamentals. These tools facilitate financial statement and ratio analysis, through which we
examine how components of the financial statements interrelate over time. The analysis is
useful for efficiently understanding important financial characteristics of a business, as well as
helping us identify potential structural problems, whether financial, operational, managerial,
or franchise related. This step is particularly important to our process because it can be
performed by our investment team in a time-efficient manner, allowing us to identify
companies with problems that are either not being adequately addressed by management or,
in our view, cannot be fixed, thus allowing our team to concentrate research time on
candidates more likely to be purchased. The objective of this exercise is to focus on well-
managed, structurally sound companies and to eliminate from consideration those with
characteristics unlikely to satisfy our investment criteria.

EQUITY INVESTMENT CORPORATION                                                              8|Page
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