Loomis Sayles & Company LP

Fees and Compensation
Standard Fees

Loomis Sayles’ advisory fees are set forth in each client’s advisory agreement. In general, Loomis
Sayles’ advisory fees are based on its standard fee schedule in effect at the time the advisory agreement
is entered into. Advisory fees are negotiated with many clients, however, and may therefore vary from
the standard fee schedule. For comparable services, other investment advisers may charge higher or
lower fees than those charged by Loomis Sayles.

Loomis Sayles’ current standard fee schedule is set forth at the end of this section. Advisory fees
under this schedule are calculated as a percentage of assets under management and may be subject to
a specified minimum annual fee and/or a specified minimum account size. The standard fee schedule
may be modified from time to time. The client’s advisory agreement generally dictates if Loomis
Sayles’ values or the client’s custodian’s values will be used for fee calculations. Where Loomis Sayles’
values are used in determining the fee calculation, certain securities may be fair valued in accordance
with the firm’s Securities Pricing Policies and Procedures.

Most advisory fees are generally paid quarterly in arrears and billed to the client, although there are
some exceptions. Certain clients pay fees monthly, semi-annually or annually, and a few clients pay
fees up to three months in advance. Prepaid advisory fees covering any period after a client’s advisory
agreement is terminated are refunded to the client after pro rating the fee for the partial period.
Loomis Sayles does not deduct fees from client accounts, although Loomis Sayles advises some
investment funds from which fees are deducted by the relevant custodian.

Performance Fees

Loomis Sayles may agree to charge a performance fee (i.e., a fee based on a share of the income, capital
gains or capital appreciation in the client’s account or a portion of the client’s account) where such fee
arrangements are acceptable to the client and permitted under applicable laws and regulations. Please
see “Performance-Based Fees and Side-by-Side Management” below for more information about
performance fees.

Custodial Services

Generally, clients select their own custodians for account assets and pay all fees charged by the
custodian. Certain clients, however, have elected to utilize a custodian bank that does not charge the
client for custodial services. In these instances, the fees of the custodian are paid by Loomis Sayles,
and Loomis Sayles charges the client a higher advisory fee than it might otherwise charge. This
arrangement is not available to new clients.

Brokerage and Other Costs

Clients incur brokerage and other transaction costs which are in addition to any advisory fees. Please
see “Brokerage Practices” for more information about these costs.

Affiliated and Other Funds

Loomis Sayles or its affiliates may recommend to clients, or Loomis Sayles may invest for client
accounts in, various investment funds that are sponsored, advised or subadvised by Loomis Sayles or
its affiliates and in which Loomis Sayles, its affiliates or their personnel may have an ownership or
management interest and for which Loomis Sayles and/or its affiliates collect asset-based or other
fees. Such investment funds may include, but are not limited to, mutual funds, hedge funds,
collateralized fixed income pools, collective investment trusts and other public or private investment
companies. Broker-dealers affiliated with Loomis Sayles (“Affiliated Broker-Dealers”) may act as
principal underwriter, distributor, dealer or placement agent or perform a similar function, and/or a
Loomis Sayles affiliate may provide other services such as administrative or transfer agent services for
such funds. Please see “Other Financial Industry Activities and Affiliations” for more information.

Fees for Managed Account Program Clients

Loomis Sayles is retained by certain clients under Managed Account Programs (also known as wrap
fee programs) offered by a third party sponsor, where the sponsor may: (1) recommend retention of
Loomis Sayles as investment adviser; (2) pay Loomis Sayles’s investment advisory fee on behalf of the
client; (3) monitor and evaluate Loomis Sayles’s performance; (4) execute the client's portfolio
transactions without commission charge (in the case of transactions with such broker/dealer
sponsors); and (5) provide custodial services for the client's assets, or provide any combination of
these or other services, all for a single fee paid by the client to the Program Sponsor. Loomis Sayles is
compensated in one of two ways. In most programs, the client pays a single fee to the sponsor, of
which a percentage is payable to Loomis Sayles for its investment advisory services. Fees, investment
minimums, and other features of these programs vary, and are described in each Program Sponsor’s
disclosure brochure. In other programs, Loomis Sayles enters into separate agreements with clients.
Clients pay compensation separately to Loomis Sayles as well as to the Program Sponsor for its
services, which may include preparing an investment policy statement, considering an appropriate
asset allocation, and providing account statements, among others.

As a fiduciary, Loomis Sayles seeks to place trades in a manner that is consistent with its obligation to
seek most favorable price and execution under the circumstances (“best execution”). Based on our
trading experience over time, best execution is typically provided by third party dealers for the
municipal bond and other fixed income strategies utilized by Loomis Sayles. As a result, Loomis Sayles
executes virtually all trades away from the Program Sponsor or the Program Sponsor’s broker-dealer

affiliate. In such cases, clients generally incur transaction costs that are in addition to the Managed
Account Program fee. These costs, which are in the form of markups or markdowns that are
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Types of Clients

Loomis Sayles provides investment advisory or subadvisory services to a wide variety of institutional
clients, including public funds, endowments, pension plans, Taft-Hartley plans, corporations,
foundations, and insurance companies. Loomis Sayles also serves as advisor or subadviser to a variety
of investment funds which may include, but are not limited to, U.S. and offshore mutual funds, hedge
funds, collective investment trusts, New Hampshire investment trusts, collateralized pools and other
public or private investment companies. Some of these investment funds may be sponsored or
established by Loomis Sayles or its affiliates or in which Loomis Sayles, its affiliates or their personnel
may have an ownership or management interest. Loomis Sayles also provides investment advisory
services in connection with certain Managed Account Programs. As described above under “Advisory
Services,” Loomis Sayles offers discretionary investment advice to separately managed account or
“wrap fee” programs and platforms sponsored by investment advisers, broker-dealers and other
financial service firms, either directly to the Program Sponsor or the Participants depending on the
program. Loomis Sayles also provides discretionary and non-discretionary investment advice to
Program Sponsors and/or overlay managers through model investment portfolios.

Account Requirements

For separate accounts, Loomis Sayles generally requires a minimum dollar value of assets for
establishing or maintaining a client’s account and/or charges a specified minimum annual fee (see the
“Standard Fee Schedule” above). The account minimums or minimum annual fees may, however, be
subject to waiver or negotiation. Funds, other investment pools and Managed Account Program
accounts have their own investment requirements.

Loomis Sayles will not accept an account from any investor whose investment objectives or guidelines
are inconsistent with Loomis Sayles’ philosophy and investment approach.

    Methods of Analysis, Investment Strategies and Risk of Loss
Methods of Analysis, Sources of Information and Investment Strategies

The overall investment philosophy of Loomis Sayles is based on the premise that our disciplined,
research-based investment strategies can identify market inefficiencies that can lead to consistent
outperformance of benchmarks.

Fixed Income - General

We believe that bond markets are not efficient, often mispricing risk and overreacting to news,
corporate and market events, and technical supply and demand factors. These inefficiencies may
provide investors the opportunity to generate risk-adjusted performance in excess of traditional
market benchmarks. We believe that the combination of fundamental and quantitative research offers
the best approach to identifying attractive investment opportunities. Successful strategy development,
portfolio construction and investment implementation are best achieved through our specialized and

disciplined team collaboration. In addition, a consistent application of our value-driven investment
approach enables us to capitalize on the unique opportunities of any set of market conditions.

We believe intensive bottom-up investment analysis combined with a clear macroeconomic and
market perspective is the best way to deliver excellent performance. Our portfolios are constructed
by small, focused portfolio management teams supported by extensive economic, market, sector,
issuer, security, trading and quantitative analysis.

Macro Strategies Team. An analysis of the global macroeconomic outlook is an essential element
of our investment process. We develop our top-down perspective through the research efforts of our
Macro Strategies team. The team provides deep research and views on global economies and markets,
with base, upside and downside forecasts for most every major asset class as well as currencies and
rates. Members of the Macro Strategies team are in near constant communication with investment
teams to share insights, discuss portfolio positioning and develop the market outlooks. Sovereign
Analysts on the team follow and assign credit ratings to countries across the globe as well as follow
the “VCT” process developed within macro strategies, which stands for “valuation, cyclical and
technicals.” For each country under coverage, analysts seek to determine the macro variables that are
driving relative value. They do this through a combination of quantitative and qualitative metrics.
Classic cyclical analysis of the macroeconomic environment helps determine why there might be a
deviation from fair value and the possible catalysts for mean reversion. Technicals are analyzed to
understand what factors, including positioning or investor expectations might be impacting markets.
In addition, analysts often travel to visit central banks and other local institutions to uncover deeper
perspectives.

Through collaboration with the Applied Integrated Quant (Applied IQ) team, the forecasts from the
Macro Strategies team can be overlaid on our investment teams’ portfolios to examine potential
portfolio return but also serve as a forward-looking view on portfolio risk to complement the typically
backward-looking bias of any purely quantitative risk framework. In this way, the Macro Strategies
team’s efforts are a critical input to our investment teams as they serve as one common framework
for both relative value and risk.

Sector Teams. Deep perspectives on sector opportunities and risks are developed by sector teams
through the collaborative effort of research analysts, traders, strategists and portfolio managers.
Research analysts share views on countries, sectors, industries, issuers and issues. The traders add
market intelligence on pricing, positioning and liquidity, providing product teams (described below)
with a broad view of potential opportunities. The teams serve as a key partner and input to our Macro
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