Nationwide Asset Management LLC

Item 5 – Fees and Compensation

Generally, fees are calculated as a percentage of assets under management and paid quarterly.
All fees are subject to negotiation. Because the firm does not actively solicit clients and all
portfolios are customized, it does not maintain a fee schedule by strategy. Affiliated clients
of the firm may rely on an inter-company cost sharing agreement for the payment of fees.
Affiliated clients of the firm may be charged less fees than unaffiliated clients.

Investment advisory services generally may be terminated by either party upon thirty days’
written notice. Upon termination, any unearned fee will be refunded to the client in accord
with the terms of the agreement with the client.

Nationwide Asset Management may delegate the investment management responsibilities to
one or more sub-advisors that may be related persons. Nationwide Asset Management will be
responsible for the advisory fee paid to such sub-advisors and the client’s fee will not be
increased to cover such costs. Additional layered expenses may be incurred by the client to
the extent its portfolio is invested in third party mutual funds as such funds have imbedded
advisory fees and expenses. Nationwide Asset Management may utilize investment vehicles
within a portfolio that either it or an affiliate already charges an advisory fee. To the extent
such vehicles are used, clients have the potential for a double billing of fees on that portion of
their account.

The firm’s portfolio strategies, fees and account minimums are subject to negotiation.
Lower fees for comparable services may be available from other sources. Fee schedules
vary depending on the strategies used by and size of an account and are specific to each
client. Clients have the ability to impose reasonable restrictions on investing in certain
securities or asset types.

Nationwide Asset Management’s fees are exclusive of brokerage commissions, transaction
fees, and other related costs and expenses which shall be incurred by the client. Clients may
incur certain charges imposed by custodians, brokers, third party investment and other
third parties such as fees charged by managers, custodial fees, deferred sales charges, odd-
lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and
taxes on brokerage accounts and securities transactions. Mutual funds and exchange traded
funds also charge internal management fees, which are disclosed in a fund’s prospectus.
Such charges, fees and commissions are exclusive of and in addition to Nationwide Asset
Management’s fee.

Item 12 further describes the factors that Nationwide Asset Management considers in
selecting or recommending broker-dealers for client transactions and determining the
reasonableness of their compensation (e.g., commissions).

Item 7 – Types of Clients

Nationwide Asset Management provides portfolio management services to affiliated
companies, affiliated private funds, an affiliated corporate pension, VEBA and profit-
sharing plans, an affiliated foundation, affiliated registered mutual funds, an affiliated
pooled investment vehicle, and an affiliated trust company.

Most of Nationwide Asset Management’s clients are affiliated.