NFJ Investment Group LLC

ITEM 5 FEES and COMPENSATION

 Separate Accounts
 NFJ’s investment management fees for separate accounts are generally set forth in the client’s investment
 management agreement (the “Agreement”). Agreements generally provide that either NFJ or the client
 may terminate the Agreement by giving advance written notice to the other party. In certain cases, the
 client may terminate the Agreement at any time, for any reason without penalty, upon written notice, and
 in particular, the client may terminate the Agreement within 5 business days after entering into the
 Agreement without penalty. However, generally, the client has the right to cancel NFJ’s services upon 30
 days’ written notice during which period NFJ’s investment management fees are earned and retained.
 Except as otherwise agreed, upon termination, clients are responsible for payment of the pro-rata portion
 of fees through the termination date. In the event a client has paid fees in advance for the quarter and
 terminates prior to the end of such quarter, NFJ will refund the client the portion of fees paid from the date
 of termination to the end of such quarter.
 In general, NFJ’s fees are based on its standard fee schedule that is in effect at the time the Agreement is
 entered into. Investment management fees may also be negotiated with clients and therefore may vary
 from the standard fee schedule. For comparable services, other investment advisers may charge higher
 or lower fees than those charged by NFJ. The standard fee schedule may be modified from time to time
 and existing client relationships may have a different fee schedule; however, some of the Agreements
 entered into by NFJ with institutional clients allow NFJ to apply a revised fee schedule to such clients’
 accounts after giving written notice of such fee schedule revisions.
 Investment management fees under NFJ’s current standard fee 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.
 Fees are generally charged quarterly in arrears based on the ending market value of the account (including,
 without limitation, cash and cash equivalents and accrued dividends and interest) as of the last business
 day of the quarter. As a result, clients may pay investment management fees with respect to cash and
 cash equivalents both to NFJ as well as to the adviser of any cash management vehicle utilized by the
 client in connection with the client’s account. Fees may also be charged quarterly in advance based on the
 market value of the account at the beginning of the quarter. In the event that an account is opened on a
 date other than the first day of a calendar quarter, the client will be charged fees for the first quarter on a
 pro-rata basis from the date of inception of the account to the last day of the quarter. Unless otherwise
 specifically agreed to with a client, the ending market value of an account for purposes of calculating fees
 will be determined by NFJ applying the same valuation procedures and methods which it uniformly uses
 in its quarterly appraisals of investment management accounts.

NFJ has preferred minimum account sizes, based on the characteristics of the account and/or investment
strategy. Preferred minimum account sizes vary, and are listed, by strategy, herein. In its sole discretion,
NFJ may accept accounts with amounts of assets lower than the indicated preferred minimum. In such
cases, the fees charged for investment advisory services may be higher than those fees indicated herein.
NFJ may terminate client accounts with assets that fall below the minimum indicated.
NFJ’s current standard fee schedules for new separate accounts are as follows: Unless otherwise
indicated, fees and minimums are shown in U.S. Dollars.

Dividend Value and Large-Cap Value
0.60% - first $25,000,000
0.50% - next $50,000,000
0.40% - next $100,000,000
0.35% - on the balance of assets
Minimum account size: $25 Million

Mid-Cap Value 100 and All-Cap Value
0.75% - first $25,000,000
0.55% - next $25,000,000
0.40% - next $50,000,000
0.35% - on the balance of assets
Minimum account size: $25 Million

Small-Cap Value
0.90% - first $25,000,000
0.85% - next $25,000,000
0.75% - on the balance of assets
Minimum account size: $25 Million

International Value
0.75% - first $25,000,000
0.70% - next $25,000,000
0.60% - next $50,000,000
0.45% - on the balance of assets
Minimum account size: $25 Million

Emerging Markets Value
0.90% - first $50,000,000
0.85% - next $50,000,000
0.80% - next $100,000,000
0.70% - on the balance of assets
Minimum account size: $25 Million

Global Infrastructure Income
0.90% - first $50,000,000
0.85% - next $50,000,000
0.80% - next $100,000,000
0.70% - on the balance of assets
Minimum account size: $25 Million

Global Sustainability

0.80% on assets

Minimum account size: $25 Million

Managed Account/Wrap-Fee Programs Sub-Advisory Fees
Generally, the Program Sponsor will pay a portion of the wrap-fee received from the Wrap Program client
to NFJ’s affiliate, Virtus Capital Advisers (“VCA”) or to NFJ for investment management services provided
to the Wrap Program Sponsor/wrap client. When NFJ acts as a sub-adviser to VCA with respect to
managed/wrap accounts or Direct Client accounts, NFJ will be compensated for the investment
management services it provides to VCA out of the fees VCA receives.
NFJ’s and VCA’s compensation from the Wrap Program Sponsors and Direct Clients vary, but it is generally
between 0.33% and 0.50% of assets under management in the respective Wrap Program or Direct Client
account. Generally, fees are payable quarterly in advance.
Wrap-fee clients typically receive a brochure detailing the wrap-fee program from the Program Sponsor
prior to their selection of NFJ as adviser or sub-adviser. Fees and features of each program offered by the
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ITEM 7      TYPES OF CLIENTS

NFJ may provide portfolio management services to a variety of clients including:

   •     individuals
   •     high net worth individuals
   •     corporations
   •     corporate pension and profit-sharing plans
   •     public pension and profit-sharing plans
   •     retirement plans
   •     Taft-Hartley plans
   •     charitable institutions, religious organizations, foundations, endowments
   •     investment companies and other commingled vehicles
   •     trusts
   •     governmental entities
   •     wrap-fee programs

Certain Wrap-Fee Program investors and shareholders in investment companies will not be
deemed advisory clients of NFJ.