Nippon Value Investors KK

Item 5. Fees and Compensation

Investment Management Fees

NVI provides discretionary investment management services to privately offered commingled funds
(the “Japan Funds”) that are primarily invested in Japanese listed equity securities. The Nippon Value
Investors Japanese Equity Trust, one of the Japan Funds, is available for investment by US domiciled

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investors (the “US Japan Fund”) and the other Japan Fund is available for investment by non-US
investors (the “UCITS Trust Fund”). NVI also provides discretionary investment management
services with certain clients on separate account basis.

The fee scale applicable to Unitholders in the US Japan Fund is as follows:

         First $25,000,000                         1.00%
         Next $25,000,000                          0.90%
         Thereafter                                0.80%

Fees paid by each Unitholder invested in the Japan Funds are based upon the market value of the Units
held by the Unitholder rather than the value of the Japan Funds themselves. Fees are not generally
negotiable. However, NVI may rebate fees or apply reduced fees to certain Unitholders based on factors
such as the size of the investment, aggregate assets invested, the nature and duration of the relationship,
the timing of the investment, or other strategic considerations determined by NVI. NVI may charge
lesser fees to separate account clients based upon their relationship with NVI, the size of the investment,
the timing of the investment, and other factors deemed relevant by NVI. Fees are normally payable
monthly in arrears, although the actual timing of fee payments will depend on the underlying legal
domicile of a fund and the terms of their operating agreements. Fees for Unitholders in the US Japan
Fund are normally paid via the redemption of part of the Units held by each Unitholder monthly.
Unitholders in the US Japan Fund will incur brokerage and other transaction costs as described in
‘Brokerage Practices’ and may incur extraordinary legal expenses (as described below). No other
additional fees or expenses are charged to Unitholders.

Brokerage and Transaction Costs

The Japan Funds pay their own direct trading expenses. Direct trading expenses include brokerage
commissions related to trade execution, “bid-ask” spreads, mark-ups, clearing fees, exchange fees,
registration and transfer fees, regulatory and governmental charges and duties and other transactional
fees and expenses relating their invetments. The Japan Funds is obligated to pay all income, dividend
withholdings, capital gains and other taxes related to their underlying investments. In addition, the
Japan Funds may have to reimburse NVI or the third party service providers to the Japan Funds for
extraordinary legal expenses (i.e., expenses incurred to protect or promote the investment rights or
obligations of the Japan Funds).

Expenses

NVI pays all routine legal, audit and accounting fees related to the Japan Funds. NVI pays any fees
payable to the Custodians, Trustees, Fund Administrators, Managers, Auditors, Tax Advisors and other
similar service providers of the Japan Funds. NVI will pays all costs in connection with the organisation
and the formation of the Japan Funds and pays all costs associated with the ongoing issuance of the
Units of these Japan Funds.The Japan Funds are not required to raise a minimum amount to defray these
costs and expenses. The Japan Funds are not required to reimburse NVI in the event that the investment
management fees are insufficient to cover the expenses borne by NVI.

Separate Accounts

Separate account clients are generally invoiced on a quarterly basis in arrears for the investment
management services that NVI provides. NVI would not ordinarily anticipate opening any new separate
accounts with the exception of temporary accounts used to facilitate investment into or withdrawals out
of its Japan Funds or in rare exceptions, for a prospective investor interested in investing amounts over
approximately US$50 million. A fee scale for a separate account is available on written request.

Separate account clients pay their own direct trading expenses. Direct trading expenses include
brokerage commissions, bid-ask spreads, mark-ups, clearing fees, exchange fees, stock loan expenses,

Nippon Value Investors KK – ADV Part 2A Brochure

registration and transfer fees, regulatory and governmental charges and duties, and other fees and
expenses. Clients invested in separate accounts must pay all income and other taxes related to their
underlying investments. In addition, Separate account clients may have to reimburse NVI for legal
expenses that NVI determines are not routine (e.g., extraordinary legal expenses such as those incurred
in connection with litigation to protect or promote the investment rights or obligations of the investors
invested in separate accounts and legal or accounting expenses in connection with reclaiming foreign
withholding taxes) and that are not borne by NVI.

Separate account clients pay their own legal, audit and accounting fees as well as annual audit fees and
tax return expenses (if any). Separate account clients pay any fees payable to their separately appointed
Custodians, Trustees, Fund Administrators, Managers, Auditors, Tax Advisors and other similar service
providers.

NVI is also the delegated investment manager for the UCITS Trust Fund. U.S. persons are not permitted to
invest in this fund. As a result, the UCITS Trust Fund is outside the scope of this document.

NVI also provides non-discretionary investment management service for the ETF on the TSE. U.S. persons are
not permitted to invest into the ETF which is not registered with the US SEC. As a result, the ETF is outside the
scope of this document.

Item 7. Types of Clients

Each of the Japan Funds, and not the underlying Unitholders in the Japan Funds, is currently considered
a Client pursuant to the Investment Advisers Act of 1940. NVI makes investments on behalf of the
Japan Funds for the benefit of the underlying Unitholders in each respective Fund. Units in the US
Japan Fund are sold only to Unitholders that qualify as “accredited investors” and “qualified
purchasers” as defined under applicable US federal securities laws. An investment in Units of a Fund
or separate account involves the risk of loss. NVI, in its capacity as investment manager, is responsible
for reviewing and managing the holdings, and for making appropriate recommendations to satisfy each
investment objective. Further information is available in the Agreement and Declaration of Trust,
Private Offering Memorandum and Subscription Agreement of the US Japan Fund and the Prospectus
and Application Form of the UCITS Trust Fund (referred to collectively as the “Governing
Documents”) and the Investment Management Agreement (or equivalent) in place between NVI and
any separate account client(s).

Conditions for Managing Accounts

Subject to the Governing Documents, the minimum initial subscription for Units in the US Japan Fund
is US$1 million. NVI may, in its sole discretion, accept or reject, in whole or in part, any initial or
additional investment or impose conditions or restrictions on such investment, such as increasing or
decreasing the amount of the minimum investment or requiring a Unitholder to establish a temporary
account with the custodian of the US Japan Fund and wire funds to that account prior to an applicable
dealing day. Unitholders may redeem all or part of their Units in a US Japan Fund on any dealing day
by providing NVI with written notice at least six (6) Business Days prior to the dealing day upon which
the redemption is to be effective. Certain documentation must also be returned at least four (4) Business
Days prior to such dealing day. Additional information is available in the offering memorandum of the
US Japan Fund.

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Unitholders in the UCITS Trust Fund may subscribe for units and/or to redeem on the first Business
day of each month, and the Business Day on or immediately after the 15th calendar day of each month.
U.S. investors are not permitted to invest in the UCITS Trust Fund.

Transition Accounts

NVI may direct Unitholders making cash contributions to or redemptions from the US Japan Fund to
use transition accounts. Transition Accounts are temporary custody accounts that are opened under the
US Japan Funds’ general legal structure, used to minimize the impact of large subscriptions and
withdrawals on Unitholders by requiring the incoming or outgoing Unitholder to bear their own market
risk and dealing costs. A withdrawal transition account structure may be used by NVI to liquidate a
security that becomes subject to a legal restriction on ownership or transfer (a “restricted security
withdrawal transition account”). Custodian and fund administrator for the US Japan Fund, maintains
the accounting books and records and separately values each type of transition account using the same
rules and procedures used in valuing the Fund. NVI retains sole discretion for the management of the
transition accounts including cash balances. Prospective investors should refer to the specific provisions
of the US Japan Fund’s Governing Documents for a complete discussion of transaction accounts and
the risks involved.

NVI will generally consider opening a separate account for a prospective investor interested in investing
amounts over US$50 million. NVI will, however, open Transition Accounts or Security Holding
Accounts used to facilitate investment in to or withdrawals out of its Funds.

Sideletter Agreements

NVI generally will consider entering into a sideletter agreement only when rules governing the
investment by a specific Unitholder (such as state law or the governing documents related to such
Unitholder) in the Japan Funds requires a specific variation, provided that such change is not expected
to materially impact NVI, other service providers to the Japan Funds or other Unitholders. It is NVI’s
policy not to agree to any sideletter or other similar agreements that grant any Unitholder or group of
Unitholders preferential rights with respect to the payment or timing of redemptions, indemnification
from NVI, the law governing NVI’s and each Unitholder’s responsibilities under the governing
documents for the Japan Funds, or access to data on Japan Fund’s holdings or trading activity. NVI
will provide a summary of all sideletter agreements currently in effect upon the written request of a
current or prospective Unitholder. NVI provides a summary of all current sideletter agreements on an
annual basis when it distributes the audited financial statements of each Fund.