Fractal Investments LLC

Item 5 Fees and Compensation

ADVISORY FEES

The following information describes how Fractal is compensated for the services we provide to
our clients. The specific manner in which fees are charged and the compensation we receive may
differ between clients depending upon the individual Investment Management Agreement with
each client. Fractal reserves the right to negotiate our compensation with clients depending on the
investment strategy employed and the services provided, or waive all or a portion of our fees, in
our sole discretion.

Investment Management Fees. In consideration for providing investment management services
and pursuant to the terms of the Investment Management Agreement with the client, Fractal
charges clients an annualized asset-based fee between 0.40% and 0.95% based on the investment
strategy, and the client’s assets under management (“AUM”), as valued by the custodian. Specific
separate account fee structures, and the timing of payments are determined through negotiation
with the client. While advisory fees are generally negotiable, our typical current annual advisory
fees for each investment strategy are described below.

                 Investment Strategy          Advisory Fees
                 Energy Infrastructure           0.75%
                 Interest Rate Sensitive         0.65%
                 Inflation Sensitive             0.65%
                 Special Situations              0.75%
                 Asset Strategy                  0.95%

Fees for separate accounts are generally billed directly to Institutional Separate Account clients,
or automatically deducted from Private Client Separate Account clients, on a monthly basis, in
arrears, but in each case will be agreed with the client in the Investment Management Agreement.

Additional Fees and Expenses. Clients will incur transaction charges and/or brokerage fees when
purchasing or selling securities. These charges and fees are typically imposed by the broker-dealer
through which account transactions are executed. For more information on our brokerage
practices, please refer to Item 12 - Brokerage Practices of this Brochure.

The fees that clients pay to our firm for investment advisory services are separate and distinct from
the fees and expenses charged by mutual funds and/or exchange traded funds (described in each
fund’s prospectus) to their shareholders. The fees charged directly by mutual funds and exchange
traded funds will typically include a management fee and other fund expenses. Fractal does not
receive any portion of the fees and expenses charged by mutual funds and/or exchange traded
funds.

The custodian for an account will also charge fees in order to custody the assets of a client. Those
fees are likewise distinct from the fees that Fractal charges and are born by the client.

Fractal Investments LLC
Form ADV Part 2A                                                                                   4

To fully understand the total costs associated with their investment portfolio, clients should review
all the fees charged by their custodian, our firm, broker/dealers, mutual funds, exchange traded
funds, private funds, and others, and the tax implications of any investment strategy.

Termination. Investment Management Agreements with our clients may generally be terminated
by either party upon thirty (30) days’ written notice. Upon termination of our status as the client’s
investment adviser, Fractal will not take any further action with respect to the client’s account(s)
unless specifically notified by the client in writing. Clients will be responsible for instructing their
broker-dealer and monitoring their account for the final disposition of assets.

Upon receipt of a proper notice of termination from the client, as described in the Investment
Management Agreement, any earned fees will be billed and payable on a pro-rata basis, from the
first date of the month through the date of termination.

Services to Investors Related to Fractal. Fractal provides portfolio management services to
certain Fractal principals, employees and their family members (“Fractal Affiliated Persons”)
without charge, or for fees that are lower than the fees available to other clients.

Commissions. Fractal does not receive brokerage commissions from the sale of securities or other
investment products. Our compensation for advising on securities and similar investments is
limited to the advisory fees described above.

TYPES OF CLIENTS

Fractal offers investment advisory services to institutions such as insurance companies, registered
and exempt investment companies, pensions, endowments and family offices. We also offer
Private Client Separate Accounts to individuals, consistent with the client’s selected investment
objective.

ACCOUNT REQUIREMENTS

Fractal generally requires a minimum account balance for our discretionary investment
management services, but we retain the discretion to waive an account minimum or to charge a
minimum fee in lieu of requiring an account minimum, regardless of the account size. The
following information lists the minimum account size necessary to open and maintain each type
of client account.
Fractal Investments LLC
Form ADV Part 2A                                                                                      5

Institutional Separate Accounts: a minimum account balance of $5,000,000
Private Client Separate Accounts: a minimum account balance of $100,000