J Stern & Co LLP

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 0.70% (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 is $5m for the World Stars
strategy and the US Stars strategy and $8m for the Multi-Asset Income and Emerging Market Debt
strategies

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                                      J. STERN & CO.

With SMAs there are no additional charges payable to the Firm, but additional fees will be payable to
each client’s custodian. We normally charge our fees quarterly in arrears.

The investment funds that we manage are designed to be slightly better value in terms of management
fees for the same size of investment. The management fees range from 0.65% (for charities) to 0.90%
for investments of $1m or more and 1.2% for investors who cannot invest as much as $5m into a
SMA.

With the investment funds there are additional costs and charges payable. We seek to limit these to
0.30%. Fees and charges are accrued on a daily basis in the funds (and deducted from their published
net asset value) and we are generally paid monthly in arrears. More details are contained
in the offering memorandums for each fund.

7.       ITEM 7: TYPES OF CLIENTS

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