Guggenheim Investments Loan Advisors LLC

Item 5 – Fees and Compensation

Management Fees

For SMAs, GILA generally expects to be paid a monthly or quarterly management fee, based on the assets
under management (“AUM”) or net asset value (“NAV”) (as defined in a client’s IMA) of all assets held in a
client’s account. The management fee is equal to a mutually agreed upon annual fee rate multiplied by the
SMA’s AUM or NAV as of each calendar month-end or quarter-end, and typically pro-rated for periods of less
than a complete month and prior to any reduction for such management fee. The management fee is calculated
and accrued monthly and is payable quarterly in arrears. An SMA’s management fee may be calculated and
accrued according to different payment and calculation terms specified in a client’s IMA. Fees will be
negotiated in different amounts with each client based upon the type of service provided, size of the account,
and relationship between the client and GILA.

GILA may offer several different products with varying fees, which will be determined with each SMA
client. Standard management fees for investment advisory services provided to SMA clients will generally range
up to 1.00 percent annually of AUM or NAV. However, some of GILA’s fees can be higher than this, and, as
described above, SMA fees are generally negotiable.

Private Funds pay a management fee either monthly or quarterly, in advance or in arrears, as set forth in the
Fund’s offering and/or governing documents and relevant client or investor agreement and/or Side Letters.
Fee arrangements negotiated in Side Letters generally are not disclosed to other GILA clients to the extent
permitted by applicable law. Where a Private Fund’s offering documents calculates management fees based on
the amount of an investor’s commitments or the amount of investor capital contributions, the amount of
management fees generally will not be reduced based on reductions in investment value, except where specified
by the relevant offering documents. In certain cases, management fees are offset by various fees, as set forth in
the Fund’s offering documents and are generally payable during ramp up and wind down periods and term
extensions unless otherwise agreed with investors. CLOs typically pay a “base management fee” and a
“subordinated management fee,” each as a percentage of the gross value of assets held by the CLO, which can
include capital borrowed from leverage providers, pursuant to the CLO’s offering documents. Fees for the
CLOs are disclosed in the collateral management agreement, to which the relevant CLO is a party, and in the
relevant offering documents.

Management fees for SMAs and Funds, described in the relevant IMA or a Fund’s offering documents,
generally accrue beginning on the effective date on which GILA commenced investment activities in the
relevant SMA or Fund. In general, the SMA or Fund advised by GILA pays the management fee to GILA
within 30 calendar days from the receipt of an invoice and 30 calendar days from the expiration of the term if
such date is not the end of the calendar quarter. However, in some circumstances, fees are payable monthly or
payable in advance. Should an SMA client or Fund terminate an advisory arrangement, fees will be charged
until the mutually agreed upon termination date, or as otherwise agreed. Advisory arrangements are generally
terminated by providing written notice to GILA. If fees have been paid in advance, in the event of a withdrawal,
the client typically would receive a pro rata rebate of the allocable portion of the fee not earned by GILA during
the period.

Certain SMAs or Private Funds have negotiated fees that vary depending on the types of assets held in the
account. Such a fee structure creates conflicts of interest for GILA. Specifically, GILA will generally have an

incentive to invest these accounts in asset types that generate a higher management fee, even though such asset
types are often riskier or more speculative than asset types that generate a lower management fee. This incentive
will be greater on or before the dates as of when such fees are calculated. For certain SMAs that are non-
discretionary, GILA can negotiate fees that arise only from the assets that the client has agreed to purchase. In
such cases, GILA will have an incentive to recommend more or higher fee-generating assets to the non-
discretionary client.

Pursuant to any advisory or other service agreements GILA may, in the future, enter into with affiliates, GILA
will generally receive a fee from the affiliate, which will be agreed between GILA and the affiliate from time to
time for the services provided to the affiliate, which may include performance or incentive fees. Any fees
associated with such services with be borne by the affiliate.

Performance Fees

As set forth under “Item 6 – Performance-Based Fees and Side-By-Side Management – Performance-Based
Fees,” GILA generally expects to charge SMA clients a performance or incentive fee constituting a percentage
of profits or gains in addition to the management fees mentioned above. GILA charges certain Private Funds
performance or incentive fees constituting a percentage of profits or gains in addition to the management fees
mentioned above.

Additional Fees

GILA and its affiliates receive fees, commissions, remuneration, or profits made in some transactions involving
affiliated entities in addition to any management and performance fees. For more information on transactions
involving affiliated entities, please see “Item 11– Code of Ethics, Participation or Interest in Client Transactions
and Personal Trading.”

Expenses

Expenses borne by the Private Funds are set forth in the relevant Private Fund’s offering documents, and
generally include payment (or reimbursement to GILA) for the costs, expenses and liabilities relating to the
following: (i) the Private Fund’s organization and initial offering of its interests/shares, (ii) the Private Fund’s
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Item 7 - Types of Clients

GILA will provide investment advisory services to a variety of different types of clients, including institutional
investors through SMAs and Funds. GILA may serve as (sub-)asset or collateral manager for or (sub-)adviser
to CLO issuers, and may serve in such capacity for other non-registered structured products.