Mellon Investments Corporation

Item 5: Fees and Compensation

Separate Accounts

We provide investment advisory separate account services for a fee. This fee is typically charged
as a percentage of your assets under our management. Although this fee is typically expressed as
an annual percentage, it is calculated based on the market value of the account at month end,
quarter end or based on an average and generally invoiced on a monthly or quarterly basis in
arrears. The Firm adjusts management fees for significant cash flows during the billing period on
a pro-rata basis.

Your investment advisory agreement in most instances provides that you will incur fees and
expenses, in addition to our advisory fees, such as custody, brokerage and other transaction costs,
administrative and other expenses. Examples of other costs and expenses include, among others,
markups, mark-downs and other amounts included in the price of a security, odd-lot differentials,
transfer taxes, wire transfer fees, electronic fund fees, index licensing and data fees. Please review
your investment advisory agreement for further information on how we charge and collect fees.
Please see Item 12 of this Brochure for more information on our brokerage practices.

Pooled Investment Vehicles

Collective Investment Funds

Where suitable and appropriate and if otherwise consistent with a client’s investment objective
and subject to direction from the client, the Firm invests client assets in the collective investment
funds established by the Firm’s affiliate, The Bank of New York Mellon (the “Bank”). Such
accounts indirectly bear the fees and expenses imposed by the Bank collective investment funds
as an investor in such funds and, as a result, bear higher expenses than if the account had invested
directly in the securities held by the collective investment fund.

In addition, for certain index- and model-driven collective investment funds, transaction costs
associated with client specific contributions to and/or withdrawals from the collective investment
fund are borne solely by the client and can reduce a client’s returns. Certain collective investment
funds engage in securities lending. Fees are generally negotiable with each investor in the gross of
fee unit classes offered. As a result, some clients invested in the Bank’s collective investment funds
pay fees that differ from the fees paid by other invested clients. Please refer to the respective fund’s
Schedule A disclosure document for more information on such costs and expenses.

Sub-Advisory Fees

The Firm also serves as adviser or sub-adviser to investment companies, managed accounts, pooled
investment vehicles or other entities that are unaffiliated with the Firm. For these investment
advisory and/or sub-advisory services, the Firm receives compensation based upon a percentage
of assets under management.

We also act as a sub-adviser to certain funds advised by certain affiliates of the Firm, including in
our capacity as dual officers of such affiliates. Please see Item 6 of this Brochure for more
information on our dual officer arrangements.

Wrap Fee Programs

As described above, in a Wrap Fee Program, the Sponsor charges the client an inclusive wrap fee
that covers various costs relating to the management of the client’s account. Accordingly, clients
do not pay a fee directly to the Firm and instead, the Sponsor pays the Firm a portion of the wrap
fee for our services.

Tax Overlay

The Firm receives a maximum annual fee of 0.10% for the Tax Overlay services described more
fully in Item 4, “Programs Sponsored by Third Parties”. This fee is separate from, and in addition
to, any program fee for a Wrap Fee program to which Tax Overlay added.

The Firm’s fee for Tax Overlay services does not include fees or expenses which may be associated
with the underlying pooled investment vehicles (such as mutual funds and exchange-traded funds)
held by the respective vehicles. Such fees include management fees and operational expenses such
as transfer agent, distribution (12b-1), shareholder servicing, networking, recordkeeping fees and
any transaction costs associated with the underlying investments. Your account will bear these
fees and expenses as an investor in such pooled investment vehicles and, as a result, you may bear
higher expenses than if you invested directly in the securities held by the pooled investment
vehicle.

When selecting the share class of a mutual fund used in the Products, the Firm has a conflict of
interest to the extent that its selection of a particular share class results in greater compensation to
the Firm’s affiliates. The Firm addresses this conflict through a combination of disclosure to
Clients and through policies or procedures designed to prevent the Firm from considering the fees
received by affiliates when selecting a fund or share class.

Minimum Fees

The Firm in some instances charges a minimum annual fee for our investment advisory services.
Additionally, in some cases, separate accounts are subject to minimum account sizes. The
minimum annual fees typically range from $50,000 to $200,000 for separately managed accounts
and vary depending upon the strategy. We reserve the right to waive any minimum account size
or minimum fee requirements. Minimum annual fees are negotiated with clients and, therefore,
can vary from client to client.

Terminations

Agreements relating to the provision of services provided by the Firm generally are terminable at
any time by either the client or us subject to a mutually acceptable period of notice, which is usually
approximately 30 days. For a withdrawal or termination, the Firm considers the actual date of
withdrawal of funds to be a fee-earning day. The Firm does not consider the date of receipt of
funds to be a fee-earning day except in the case of an initial funding on a new account. Market
values are sourced from the Firm’s internal accounting systems unless specifically directed
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Item 7: Types of Clients

We provide investment advisory services to individuals, proprietary accounts, banks or thrift
institutions and other institutional clients, including, without limitation, corporate pension
(Defined Benefit and Defined Contribution) and profit sharing plans, Taft-Hartley plans,
Voluntary Employee Beneficiary Associations, trusts, estates, sovereign wealth funds,
supranational organizations, central banks, charitable institutions, foundations, endowments,
financial intermediaries, broker-dealers, other financial institutions, hedge funds, municipalities,
insurance companies, variable annuities, state and local governments, religious organizations,
Wrap Fee programs, U.S. registered investment companies, collective investment vehicles,
exchange-traded funds, other non-U.S. regulated funds, separate accounts and other U.S. and
international institutional accounts.

Account Requirements:

The Firm generally requires clients to execute a written investment management agreement with
us, granting us authority to manage their assets. However, as discussed in Item 4 of this Brochure,
retention of our investment advisory services is obtained through various vehicles and
arrangements. Please see Item 5 of this Brochure for more information on how we charge fees.