J Stern & Co LLC

5.      ITEM 5: FEES AND COMPENSATION

Management Fee

The management fees applicable to each SMA are set forth in detail in the corresponding
Investment Management Agreement for each client. Stern is paid an investment management fee
per annum of the net asset value of clients’ assets. Our fees generally range from 0.65% (for
charities) to our standard 1.00% (excluding any applicable value added tax). There is no standard
fee schedule, fees are negotiable and other fee structures (including performance fees) are available.
Minimum account size in a SMA format is $5m for the World Stars, US Stars and Euro Stars
strategies, and $8m for the Multi-Asset Income and the Emerging Market Corporate Debt
strategies. We normally charge our fees quarterly in arrears. There are no additional charges payable
to the Firm, but additional fees may be payable to each client’s custodian.

With the LP Fund, the management fees range from 0.65% (for charities) to 0.90% for investments
of less than $5m and 0.75% for investors who invest more than $5m. Minimum account size in
the LP Fund is $200k. There are additional costs and charges payable. We seek to limit these to
0.10%. Fees and charges are accrued on a daily basis in the fund (and deducted from the published
net asset value) and are generally paid monthly in arrears. More details are contained in the offering
memorandum for the fund.

7.      ITEM 7: TYPES OF CLIENTS

Our clients are high net worth individuals, family offices, trusts, charities, institutions and other
sophisticated investors.