New York Life Investment Management LLC

ITEM 5: FEES AND COMPENSATION

FEES

Clients are billed for advisory services according to the fee schedule agreed to by the client and
included in their investment management agreement, in the case of a RIC, or governing documents.
Generally, a management fee (the “Management Fee”) is payable either monthly or quarterly in
arrears, based on the value of assets under management at the end of the period or an average.
Where we are responsible for valuing a client’s portfolio for fee billing or investment performance
purposes, we generally use pricing information provided by an independent pricing vendor. In the
event that a vendor is unable to provide a price for a security, or provides a price that we do not
believe is accurate, we will apply fair valuation procedures, as applicable, to determine a value for
the security. When this occurs, we could have an incentive to apply a value to a security that could
be higher than a valuation that would otherwise be applied by a pricing vendor or an independent
third party, as a higher valuation would contribute to better investment returns and a higher asset
base on which our Management Fee would be based. All advisory agreements may be terminated
by the client upon assignment or by either party upon prior written notice, according to the
termination provisions outlined in the investment management agreement. If a contract is
terminated, all Management Fees are subject to pro-rata adjustment, based upon the date of
termination.

In certain cases, NYLIM will agree with a client to a fixed Management Fee. The rate of a fixed
Management Fee will depend on, among other things, the size of an account, whether the client has
other assets managed by NYLIM, and the other terms agreed upon by the client and NYLIM. The
Management Fee typically will be charged monthly or quarterly, as of the last day of each calendar
month or quarter, based on the average assets under management for the month or quarter, before
reduction for the Management Fee as of such date. The Management Fee shall be appropriately
pro-rated for any termination of the Account Agreement as of a date other than a calendar month-
end or quarter-end.

Multi-Asset Solutions Team

The fees associated with funds and strategies are typically based on a percentage of assets under
management, as disclosed in each fund’s governing documents, offering materials or investment
advisory agreements. Fees for custom separate account management services are negotiable and
typically range from 0.10% to 0.45% of assets under management based on account size, objective,
and other parameters.

Managed Accounts Group

With respect to our Managed Accounts, clients pay a third-party sponsor a single “wrap” fee. Other
than execution charges for certain transactions as described below, the wrap fee typically covers

asset management, execution, custody, performance monitoring, and administrative services. In
some wrap programs, our Management Fee is included in the wrap fee. We also participate in wrap
programs where the client pays our Management Fee separately from the wrap fee charged by the
sponsor in certain circumstances.

For our services, the sponsor or client, as applicable, pays us an annual Management Fee ranging
from 0.25% to 0.80% of assets under management. Our annual fee varies from program to program
depending on the sponsor, the investment strategy, the type of account, the services provided, and
the amount of assets in the program. Upon receiving our fee from the sponsor, we pay a portion of
our fee to each subadviser that provides subadvisory services for program participants.

Managed Accounts Management Fees are generally charged and payable quarterly in advance, or
in arrears, as determined by the sponsor, based on a percentage of the value of assets under
management at the end of the quarter. In certain cases, fees are paid less frequently than quarterly
but not more than six months in advance. The compensation schedules for the Managed Accounts
are dictated by the sponsor’s billing practices. Please see the applicable sponsor’s Form ADV, Part
2A brochure for more information on the sponsor’s billing practices.

For clients that invest through the Managed Accounts, the wrap fee charged by the sponsor
typically covers commissions and certain transaction costs on trades executed through the sponsor
(or its affiliates). As a result, we anticipate that client transactions ordinarily will be executed
through the sponsor (or its affiliates), consistent with the sponsor’s obligation to seek best
execution of transactions for client accounts. The Firm, or the subadviser we retain, however, will
submit transactions for client accounts to be executed through a broker-dealer other than the
sponsor (or its affiliates) when the Firm or the subadviser, as applicable, reasonably believes doing
so will allow it to seek best execution. This includes, for example, (i) situations where a more
favorable execution offered by another broker-dealer appears likely to offset any added transaction
or other charges of trading through that broker-dealer or (ii) the sponsor’s (or its affiliates) inability
to provide execution or best execution for a given transaction through their pre-determined
execution channels. Transactions for clients in the convertible securities and municipal bond
strategies will generally be executed through a broker-dealer other than the sponsor (or its
affiliates). When a transaction is executed through another broker-dealer, clients will incur any
applicable transaction costs, such as commissions, markups, markdowns, and dealer spreads,
which are in addition to the wrap fee.

COMPENSATION

There will be instances where registered representatives of our affiliated broker-dealer NYLIFE
Distributors LLC (“NYLIFE Distributors”), who in certain cases are employees of the Firm,
recommend that an advisory client, or prospective advisory client, invest in (a) a NYLI Fund or
...

ITEM 7: TYPES OF CLIENTS

As discussed in detail in the “Advisory Business” section above, NYLIM provides a broad array
of investment advisory services to institutional clients, investment companies, other pooled
investment vehicles, individuals through wrap/managed account programs sponsored by affiliated
and unaffiliated entities, retirement accounts (pensions, profit sharing plans and other retirement
plans), insurance companies and corporations and other institutions.

Multi-Asset Solutions Team

The minimum investment in a registered fund managed by MAS is generally disclosed in the
relevant disclosure contained in the fund’s prospectus and/or SAI. The minimum for custom
separate account management services is negotiable and varies based on the stated investment
guidelines of the custom separate account.

Managed Accounts Group

The minimum initial account size for our Managed Accounts is typically $100,000. This minimum,
however, will generally be lower in the case of the UMAs, DMAs and Multi-Asset Income Models.