First Citizens Asset Management Inc

Item 5. FEES AND COMPENSATION

The Program fees charged by FCAM (the “Fee” or “Fees”) are generally asset-based, expressed as an
annual percentage of the assets in the account. The Fees cover a range of available services including
investment management, ongoing monitoring of Third-Party Managers, services provided by the IAR
(including periodic reviews of client accounts), execution costs and reporting of transactions with or
through FCIS, custody of securities, the trade execution, and services provided by the platform provider
associated with a particular service. The Fees vary by service and are set forth below.
Fees can be negotiated depending upon circumstances including, but not limited to, account composition
and complexity, other client, employee, or family relationships, which may result in different Fees being
charged for client accounts similar in composition and objectives. The Fee Schedule is assessed for
each account, and FCAM does not aggregate other accounts for the client (Householding) when
determining the Fee.
A. Sub-Advisory Services
FCIS will generally compensate FCAM directly out of fees that it receives from clients. FCAM will
generally receive a fee in the range of 0.04% to .50% of the assets under management in the client
account. Fees will be deducted directly from the client’s account and may be negotiable.
B. Retail Services (As previously stated, FCAM does not accept new retail clients)
For Retail Services, clients are billed for the Fee in advance based upon the assets under management
on either a monthly or quarterly basis, depending upon the program chosen. The timing of such billing is
determined, in part, by the particular investment program recommended by the IAR and chosen by the
client. Details of Fees, as well as the timing of such Fees, are discussed and disclosed in the client
agreement prior to opening an account.
                                  FCAM SMA Program Fee Schedule
                               Account Size                 Maximum Fee
                            $50,000 - $100,000                 2.00%
                            $100,001 - $200,000                1.75%
                            $200,001 - $500,000                1.25%
                           $500,001 AND ABOVE                  1.00%

FIRST CITIZENS ASSET MANAGEMENT, INC. FIRM BROCHURE
                                    FCAM UMA Program Schedule
                                                          Maximum Annual Fee
                    Market Value
                                              Equity & Balanced            Fixed Income

                 $100,000 - $249,999                 2.75%                     1.85%
                 $250,000 - $499,999                 2.75%                     1.80%
                 $500,000 - $999,999                 2.00%                     1.50%
               $1,000,000 - $1,999,999               2.00%                     1.25%
               $2,000,000 - $4,999,999               1.50%                     1.00%
              Amounts Over $5,000,000                1.00%                     0.85%

Clients should consider that depending upon the level of the wrap fee charges, the amount of portfolio
activity in their accounts, the value of services that are provided under these programs, and other factors,
the wrap fee may or may not exceed the aggregate cost of services if they were to be provided separately.
C. Investment Advisory Services to Municipalities and Institutions
FCAM provides discretionary and non-discretionary advisory management services to state and local
municipal entities, including investing proceeds of and/or funds used to satisfy obligations under
municipal offerings within U.S. Government and agency securities. Fees are negotiated.
Other Fees and Expenses
Note that mutual funds, including exchange traded funds and similar investment products, in which client
assets are invested by FCAM or by others, impose separate investment management fees and other
operating expenses, described in the fund’s prospectus, for which the client will be charged separately
from the fee paid to FCAM for its services.
Clients have the option to purchase investments, including shares of mutual funds and ETFs, outside of
the FCAM programs directly from mutual fund issuers, their principal underwriters, or a distributor without
purchasing the services of the Wrap Fee Program or paying the Fee on such shares (but subject to any
applicable sales charges). Certain mutual funds are offered to the public without a sales charge. In the
case of mutual funds offered with a sales charge, the prevailing sales charge (as described in the mutual
fund prospectus) may be more or less than the applicable Fee. However, FCAM clients may not then
receive the benefit of the IAR’s investment advice related to such outside investments. If you elect to
have your IAR, in his or her separate capacity as a registered representative of a licensed broker-dealer
(if applicable), implement the recommendations of FCAM with respect to such outside investments, your
IAR at his or her discretion may waive or reduce the Fee charged by the amount of the commissions
received as a registered representative. Any reduction of the investment advisory fee will not exceed
100% of the commission received as a registered representative. Note that with or without such waiver
or reduction of the investment advisory fees, this practice presents a conflict of interest because it gives
the IAR an incentive to recommend investment products based on the compensation received, rather
than on a client’s needs.
FCAM utilizes money market funds as temporary investment vehicles for clients as permitted by law and
subject to applicable restrictions. The use of money market funds in “sweep” arrangements, for temporary
investment purposes or otherwise, results in FCAM earning advisory, distribution or other fees described
...

Item 7. TYPES OF CLIENTS

A. Sub-Advisory Services Clients
FCAM provides sub-advisory services to FCIS and indirectly provides investment advice to individuals,
trusts, estates, charitable organizations, corporations or similar business entities, and other clients of
FCIS. FCAM does not enter into direct advisory relationships with FCIS clients.

FIRST CITIZENS ASSET MANAGEMENT, INC. FIRM BROCHURE
B. Retail Services Clients
FCAM’s Retail Services include individuals, trusts, estates, charitable organizations, corporations, or
similar business entities. Clients are required to execute a written agreement with FCAM specifying the
advisory services desired to establish a client arrangement with FCAM.
FCAM is not currently accepting new Retail Services Clients.
Generally, FCAM’s minimum account size is $100,000 for the SMA and UMA Programs, although these
minimums may be waived based on considerations such as the account’s relationship to established
clients and other factors. Generally, FCAM’s minimum account size is $50,000 for the Wrap Program.
C. Municipalities and Institutional Clients
FCAM provides discretionary advisory management services to state and local municipal and other
governmental entities, including investing proceeds of and/or funds used to satisfy obligations under
municipal offerings within U.S. Government and agency securities. Such advisory services are offered
pursuant to the exemption pursuant to Exchange Act Section 15B(e)(4)(C), which exempts from the
definition of municipal adviser any investment adviser registered under the Advisers Act, or persons
associated with such investment advisers who are providing investment advice pursuant to an advisory
agreement within the scope of the Advisers Act.