Guggenheim Investment Advisors LLC

ITEM 5 - FEES AND COMPENSATION

Management and Advisory Fees. Fees may be negotiated with clients and are calculated monthly and
billed quarterly in arrears. Management and advisory fees for Hedging Strategy clients are based on notional
amount, equaling the total value of the assets in specified transactions as outlined in a client’s investment
advisory agreement, or assets under management, and in some instances the difference between the
specified transaction notional amount and assets under management. Specified Transactions are further
defined in “Item 8 – Methods of Analysis, Investment Strategies and Risk of Loss” below. Management
and advisory fees for Wealth Management clients are calculated monthly and billed quarterly in arrears and
are based on the average capital base which equals the total asset value as of the beginning of the period
plus or minus any additions to or withdrawals from the account during the period as outlined in a client’s
investment advisory agreement.

Brokerage and custody fees are also discussed herein at “Item 12 – Brokerage Practices” and “Item 15 -

ITEM 7 - TYPES OF CLIENTS

GIA provides investment advisory services to GIA Wealth Management clients which include certain high
net worth individuals and entities. GIA also provides investment advisory services to Hedging Strategy
clients which include insurance companies and other entities. GIA generally requires a minimum account
size of $25 million, subject to reduction at GIA’s discretion.