FountainCap Research & Investment Hong Kong Co Limited

Item 5 – Fees and Compensation

 Item   Describe how you are compensated for your advisory services. Provide your fee
 5.A    schedule. Disclose whether the fees are negotiable.

        Note: If you are an SEC-registered adviser, you do not need to include this
        information in a brochure that is delivered only to qualified purchasers as defined in
        section 2(a)(51)(A) of the Investment Company Act of 1940.
        Fund Fees
        FountainCap is compensated by Fund Investors in the form of a management fee that is
        payable monthly in arrears (the “Fund Management Fee”). The Fund Management Fee
        accrues monthly and is calculated based on the aggregate Net Asset Value of each Share
        Class. Depending on the Share Class selected, the Fund Management Fee ranges from 1.0%
        p.a. to 2.0% p.a. of the Net Asset Value of the shares the Fund Investor holds.

        Shares held by directors, members and employees of FountainCap are not subject to the
        Fund Management Fee.

        All expenses and the Fund Management Fees are paid at the master fund level, resulting in
        these costs (including those specifically allocable to the FountainCap Funds) being paid pro
        rata by the feeder funds in accordance with their investments in the master fund (and,
        accordingly, pro rata among the Fund Investors in accordance with their respective
        investments in the FountainCap Funds – other than in the case of Fund Investors paying
        reduced or no Fund Management Fees).

        Advisory Fees
        In connection with the advisory services provided to other clients, FountainCap will receive
        compensation that is negotiated on an account-by-account basis, which is typically based
        on a percentage of the account’s assets under management and/or a percentage of the
        investment results. Fee arrangements may be incentive or performance based and may be
        either inclusive or exclusive of fees assessed by other investment advisers to a fund.

        Fees and other compensation are negotiable in certain circumstances and arrangements with
        any particular investor or Advisory Client may vary.

        FountainCap generally charges management or advisory fees on a monthly, quarterly or
        annual basis in arrears, depending on the agreement between FountainCap and the Advisory
        Clients. However, in very limited cases, for certain Advisory Clients, FountainCap may
        charge fees on a quarterly basis in advance pursuant to the provisions of the individually
        negotiated agreement. If the management or advisory agreement is terminated before the
        end of the billing period, the refund of pre-paid management or advisory fees will be
        prorated and adjusted for contributions and withdrawals made during the quarter.

Item   Describe whether you deduct fees from clients’ assets or bill clients for fees incurred.
5.B    If clients may select either method, disclose this fact. Explain how often you bill clients
       or deduct your fees.
       FountainCap is compensated by clients in the form of fees that are payable
       monthly/quarterly/annually depending on the applicable agreed payment schedules. The
       fees from the FountainCap Funds are deducted from Fund Investors’ assets, while
       FountainCap will bill all other Advisory Clients for the fee incurred on the basis agreed upon
       in the applicable investment management agreement or sub-advisory agreement.

Item   Describe any other types of fees or expenses clients may pay in connection with your
5.C    advisory services, such as custodian fees or mutual fund expenses. Disclose that
       clients will incur brokerage and other transaction costs, and direct clients to the
       section(s) of your brochure that discuss brokerage.

       In addition to the fees payable to FountainCap, the Advisory Clients (and therefore, as
       applicable, the investors) will pay a variety of eligible expenses related to each Fund and/or
       Advisory Client’s investments and operations, including, without limitation (i) all general
       investment expenses, including brokerage and other transaction costs; (ii) set up expenses
       of the relevant Fund or investment vehicle, all administrative, custodian, legal, accounting,
       auditing, recordkeeping, regulatory filing and tax form preparation expenses; (iii) fees
       payable to its directors, including reasonable travel (business class airfare, meals, lodging,
       and other transportation) and other expenses of members of its advisory board and/or (iv)
       fees, costs, and expenses of third-party service providers that provide such services pursuant
       to the applicable Governing Documents.

       The Advisory Clients will not generally pay any of FountainCap’s internal expenses (such
       as salaries, bonuses, travel or office rent), except as set forth herein.

       The expenses to be paid by the Advisory Clients (and therefore, as applicable, the investors)
       are set forth in detail in the applicable Governing Documents. Thus, although the foregoing
       is a brief summary of the types of expenses the Advisory Clients (and therefore, as
       applicable, investors) will generally bear, it is not an exhaustive or complete list. Advisory
       Clients, including investors and prospective investors should therefore review the
       applicable Governing Documents carefully because such documents, and not this Brochure,
       describe the exact expenses the Advisory Clients (and, as applicable, the investors) will
       bear.

       In connection with the investment advisory services FountainCap provides, it will bear all
       of its own normal and recurring operating expenses and overhead costs, except that
       certain research and research-related expenses may be obtained through the permitted use
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