Income Research Management

ITEM 5. FEES AND COMPENSATION
Separate Accounts

We manage assets for clients in separately managed accounts (“Separate Accounts”). We work with our clients
to provide investment advice that meets their goals and objectives. Any client-imposed limitations or guideline
restrictions are defined and outlined in the client’s investment documentation and updated as necessary. When
clients provide us with their own investment policy statements, we review the language to ensure it reflects our
investment management responsibility. When necessary, the language is adjusted and approved by both the
client and IR+M before management of the accounts begins. The management fee we charge for advisory
services we provide depends on many factors including client type, portfolio type, investment strategy,
portfolio size, client service needs, existence of a pre-existing relationship, and other factors.

Notwithstanding the foregoing, IR+M may be limited in its ability to negotiate certain separately managed
account fee schedules for future clients (or otherwise revise fee schedules for certain existing clients), in part
due to the terms of its existing client contracts, some of which require equivalent pricing. Pursuant to those
agreements, IR+M is generally required to offer such client the same fee schedule that it offers to other similarly
situated clients (e.g., clients that have a similar or smaller account size, are pursuing the same or substantially
the same investment mandate and strategy, and/or are receiving from IR+M substantially the same services as
the client with the equivalent pricing provision, among other factors that may be evaluated by IR+M on a case-
by-case basis in reaching such a determination).

Generally, we calculate management fees based on the agreed annual rate for assets under management in that
client account or portfolio. Some clients have directed us to calculate their management fees based on account
values provided by its custodian. In these cases, we rely on the valuation provided by the custodian. If a client
adds or withdraws any funds to or from an account, the quarterly revenue shall be adjusted for such cash flows
on a pro-rata basis.

To determine asset values under management for calculating management fees, we generally use a third-party
pricing service. In the absence of a third-party price, we generally use broker-dealer prices for individual
securities. Our investment team evaluates the prices received from these methods against general market levels
and trading activity that make markets in these and similar securities. If the investment team disagrees with the
valuation provided by any third-party pricing service, we retain the right to override the price. Our Chief
Compliance Officer (“CCO”), or the CCO’s delegate, authorizes all price overrides. Please refer to Item 12 for
a description of our brokerage practices.

All management fee schedules are negotiable, and we will waive minimum account sizes for Separate Accounts
at our discretion.

If applicable, we will consider performance-based fees based on the objectives of the mandate and overall
client relationship. Please refer to Item 6 below for further information regarding performance-based fees.

Our Separate Account management fees for the strategies listed below are normally based on the following
annual rates and generally impose a $50 million minimum investment requirement:

Core, Core Plus, Intermediate, Long, Corporate-Only, Mortgage Back Security-Only Portfolios
Accounts $50 million to $100 million:                      Accounts over $100 million:
0.30% on the first $50 million                             0.25% on the first $100 million
0.25% on the next $50 million                              0.20% on the next $100 million
0.20% on the next $100 million                             0.15% on amounts over $200 million
0.15% on amounts over $200 million

Short Duration Portfolios                                  Short Diversified Income Portfolios
0.25% on the first $50 million                             0.35% on the first $100 million
0.15% on the next $50 million                              0.30% on the next $100 million
0.10% on amounts over $100 million                         0.20% on amounts over $200 million

Government Opportunity, Agency Portfolios                   Treasury Only, TIPS Portfolios
0.15% on the first $50 million                              0.10% on the first $50 million
0.10% pm amounts over $50mm                                 0.05% on amounts over $50 million

Crossover Portfolios                                        Extended Cash Portfolios
0.35% on the first $100 million                             0.20% on the first $50 million
0.30% on the next $100 million                              0.15% on the next $50 million
0.20% on amounts over $200 million                          0.10% on amounts over $100 million

Our Separate Account management fees for the strategies listed below are normally based on the following
annual rates and generally impose a $75 million minimum investment requirement:

Convertible Bond Portfolios                               Liability Driven Investment (“LDI”) Portfolios
0.35% on the first $100 million                            0.35% on the first $100 million
0.25% on the next $100 million                             0.30% on the next $100 million
0.20% on amounts over $200 million                         0.20% on amounts over $200 million

Our Separate Account management fees for the strategy listed below are normally based on the following
annual rates and generally impose a $10 million minimum investment requirement:

Municipal Bond Portfolios
0.25% on the first $25 million
0.20% on the next $75 million
0.15% on amounts over $100 million

IR+M Private Investment Funds

For Private Fund investors, we document the management fee in the private fund investor’s subscription
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ITEM 7. TYPES OF CLIENTS
We provide investment management services to individuals and institutions. These include, high net worth
individuals and families, pooled investment vehicles including private funds and CITs for qualified retirement
plans, corporations, pension and profit-sharing plans, insurance companies, Taft-Hartley plans, charitable
organizations, foundations, endowments, religious institutions, public/government related clients, registered
investment companies including mutual funds and ETFs, private investment funds, trusts, estates, and other
U.S. and international entities.