Marathon Asset Management Limited

Item 5 – Fees and compensation

The firm’s fees for providing discretionary investment services vary and depend on a range of
factors including the type of account or product, the asset class being managed, the location of
the client and the investment management strategy employed. The firm generally offers two fee
structures for clients: (i) an advisory fee based on a percentage of the market value of assets under
management according to a fixed fee scale (otherwise known as an asset-based management fee);
or (ii) a lower asset-based management fee plus an incentive fee based on whether the firm out-
performs a relevant benchmark (otherwise known as a performance-based management fee) in
accordance with Rule 205-3 under the Investment Advisers Act of 1940. The firm expects all US
clients to be qualified purchasers and offers a standard fee model for a separately managed
account as follows:

i)     - 0.9% per annum (“pa”) on the first US$50 million of assets under management;
       - 0.7% pa on the next US$50 million; and
       - 0.5% pa thereafter; or

ii)    a base management fee plus an incentive fee of 20% of the outperformance of the
       benchmark in accordance with Rule 205-3. Management fees are payable regardless of
       performance.

For certain products the firm offers an incentive fee in accordance with Rule 205-3 (see further
details in Item 6) or can charge a different standard fee rate (e.g. a different fee rate exists for the
Emerging Markets strategy).

The firm can negotiate fees with clients. Not all clients pay the same with fees being dependent
upon the client relationship; level of client service required; potential growth and/or the product
involved (e.g. different rates are chargeable and negotiated for certain funds or where the firm
provides services to a separately managed account). The firm in its sole discretion can waive or
reduce the advisory fees for directors, shareholders or employees of the firm or for other limited
circumstances.    All fund investors should carefully review the applicable fund's offering
documents for more information regarding fees and charges.

General arrangements for payment of fees

Fees for separate account relationships are typically payable quarterly in arrears as of the close of
business on the last valuation date in each calendar quarter (typically the last working day in the
UK).

                                                                                    ADV Part 2A

Upon termination, the management fee is calculated on a pro-rata basis for any partial quarter.
Where incentive fees are payable, these are typically invoiced in arrears on an annual basis.
Generally, management fees charged by the firm’s funds are automatically deducted from the
investor’s account within the fund on a monthly basis by redemption of units.

Management fees for separate accounts are pro-rated for each capital contribution and
withdrawal made during the applicable calendar quarter with the exception of de minimis
contributions and withdrawals (as either stipulated in a client investment agreement or with the
firm’s internal procedure, currently set at US$1,000,000). Accounts initiated or terminated during
a calendar quarter are charged a pro-rated fee. The firm’s standard agreement for separately
managed accounts allows termination at any time by either party with thirty days’ notice in
writing to the other. These terms may vary from client to client. Upon termination of any account
any earned, unpaid fees become due and payable.

Other fees that clients may incur

For both funds and separate accounts, the firm’s fees are exclusive of brokerage and other
transaction costs incurred in buying and selling investments which will be borne by the client.
Note the firm pays for research commissions – see Item 12 for further details. Please refer to the
applicable fund's offering documents for more information regarding any fees or potential
charges related to funds (e.g. for how and when a fund may apply an anti-dilution levy to protect
existing investors against the dilution of value).

The firm’s separate account clients appoint their own custodians to hold their assets and to
perform various associated services. The firm does not provide custody services. As such clients
may incur certain charges imposed by their custodians and other third parties such as custodial
fees, transaction charges, foreign exchange charges, and other fees and taxes on custody accounts
and securities transactions that are outside the control of the firm. Such charges, fees and
commissions are exclusive of and in addition to the firm’s management fees, and the firm does
not receive any portion of these taxes, fees, and costs.

In relation to the firm’s US domiciled funds, custody charges are ordinarily paid for by the firm
out of its management fees (Note: the firm’s Emerging Markets funds pay these charges directly).
These funds will, however, incur audit fees, and certain other out-of-pocket expenses as more
fully described in the relevant fund's offering documents. Arrangements for additional costs in
the firm’s non-US domiciled funds may be different from those described in the preceding
paragraph. In all cases, a detailed description is provided in the funds’ offering documents.

                                                                                        ADV Part 2A

Where cash balances are invested in money market funds by the fund administrators, such funds
may also charge management fees and have other expenses that the Marathon fund will bear and
as a consequence will then impact the underlying investor. Item 12 further describes the factors
that the firm considers in selecting broker-dealers for client transactions and determining the
reasonableness of their compensation for trade execution and brokerage (e.g., sales and
commissions).

Item 7 – Types of clients

The firm provides discretionary investment management services to corporate pension plans,
charitable institutions, foundations, educational institutions, endowments, state and government
entities including sovereign funds, registered mutual funds, pooled investment vehicles such as
non-US funds including undertakings for collective investment in transferable securities,
alternative investment funds plus other institutional investors and corporations. The minimum
initial investment into the firm’s funds is US$10 million ($5 million for the stand-alone Emerging
Markets funds) and over US$100m into a separately managed account. Occasionally, internal
investors will be permitted to invest in certain non-US funds; subject to restrictions.