NS Partners Ltd

FEES AND COMPENSATION
NS Partners charges clients for investment advisory services based on a percentage of assets under
management. Compensation is payable generally in arrears and on a quarterly basis. Typically, the
Investment Management Agreement between NS Partners and a particular client will specify how the
firm’s fees will be paid. Fees are not deducted from client accounts automatically; clients may choose
whether to pay fees separately or have them deducted from the account on a specified date. However,
certain accounts such as mutual funds calculate advisory fees based upon average daily assets.
NS Partners may impose investment minimums on certain types of accounts.
All client contracts will include a fee schedule agreed to by the client and NS Partners. Typically, clients
are charged according to the standard fee schedules for standard mandates, subject to negotiation with
each client and subject to contractual restrictions relating to existing clients. Performance fees may be
negotiated.
Investment management fees do not include fees that a separate client account pays to other third-party
service providers, such as custodial, third-party money manager, consultant, brokerage and exchange
fees.
Single market, mutual funds and other mandates (including non-U.S. clients), may fall outside of the
core fee scales. These can be individually negotiated dependent upon mandate type, complexity of
investment guidelines and size of portfolio. For sub-advisory agreements, the fee may depend on the
fees charged in the underlying funds.

FEE BILLING
Investment management fees are typically billed quarterly, in arrears. Payment in full is expected within
30 days of receipt of the invoice. Fees may be deducted from a segregated account if the client has
provided written instruction to their custodian to accept invoices directly from NS Partners.
Fees payable by a Fund will also be invoiced but in some circumstances, payment may be instructed to
be paid through a redemption of capital within the Fund.

OTHER FEES
Custodians may charge transaction fees on purchases or sales of certain securities and pooled fund units.
Transactions are also subject to commissions transaction costs as outlined under the “Transaction Costs”
section.

PAST DUE ACCOUNTS
NS Partners reserves the right to charge interest on overdue accounts at a rate of 2% per month
(24% per annum).

TYPES OF CLIENTS
NS Partners provides asset management services to various client types, including, but not limited to:
         •      Pension and profit sharing plans
         •      Endowments and foundations
         •      Corporations and business entities
         •      Trusts, estates and charitable organizations
         •      Banks and thrift institutions
         •      Investment companies

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NS PARTNERS LTD

         •      Comingled Investment Vehicles
         •      Sovereign Wealth Funds
Generally, for separately managed accounts, the minimum investment is $25 million. For clients for
whom the minimum investment is not attainable there may be pooled vehicles available. Minimum
investment amount for the NS Partners Trust is disclosed in the offering documents. NS Partners has the
discretion to waive the account minimum.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS
Investment Analysis
NS Partners uses a fundamental approach with macroeconomic and liquidity analysis as the framework
for portfolio construction. Liquidity analysis dictates risk appetite at regional, sector and total portfolio
levels. Company performance is evaluated within an EVA® framework to identify those companies poised
for durable growth, with a distinct competitive advantage, high or improving return on invested capital
and greater potential for positive earnings surprise. The team evaluates the history of the company in
managing its spread between the rate of return on invested capital and its cost of capital and assessing
any catalysts which could cause a change in this relationship in the future. Typically, the process looks
back approximately five years and tries to anticipate the next two to three. Main assessment and
valuation criteria are ROIC/WACC and EV/IC. The initial screen is conducted using Bloomberg following
which regional managers produce more detailed analysis on those companies that screened well. This
analysis is performed using street research and corporate data as well as other sources, including
company meetings with senior management and possibly other companies in the supply chain. In
addition to the investment managers’ research based company analysis, the portfolio managers will
conduct meetings with representatives from companies in whom we have an existing or prospective
interest. Meetings may be held remotely, in the relevant company’s locality or at NS Partners’ offices.
The investment strategies used are mainly long-term purchases (securities held for more than a year)
with some short-term purchases (securities held for less than a year). In addition, NS Partners may utilize:
         •      exchange traded funds or country funds
         •      convertible securities and preferred stock
         •      futures contracts on stock market indices
         •      participatory notes (P-Notes)
         •      forward and spot currency contracts incidental to settlement of independent securities
                transactions, and forward currency contracts to protect portfolio values against currency
                risks
Investing in international securities involves certain risks and increased volatility not associated with
investing solely in the US. These risks include currency fluctuations, economic or financial instability, the
lack of timely or reliable financial information or unfavorable political or legal developments.
These risks are magnified in emerging markets. The emerging market equity strategies may invest in
securities issued by smaller companies, which typically involve greater risks than investing in larger
companies. The strategies may invest in limited geographic areas and/or sectors which may result in
greater market volatility.
The value of investments and any income from them may fall as well as rise and investors may not get
back the amount originally invested. In addition, the value of investments may increase or decrease as a
result of changes in exchange rates between currencies.
NS Partners uses an integrated investment approach based on company research, sector trends,
macroeconomic and liquidity and risk analysis. Investment strategy is set in line with the investment

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NS PARTNERS LTD

policy of the client as established in the Investment Management or Sub-Adviser Agreement. The
portfolio managers, all based in London, take a team-based approach to the management of all accounts.
Individual members of the team are responsible for designated geographical regions. Decisions on
investment style and strategy are taken collectively for all accounts with similar mandates to ensure they
are managed consistently and in line with the individual client investment objectives and restrictions.
Asset allocation and “house” policy is determined at regular investment team meetings and monitored
and implemented by the portfolio managers in accordance with the client’s investment objectives and
restrictions. Portfolio managers analyze stock specific price movements, company news, and
macroeconomic data continuously to ensure they are able to maintain their investment strategy. The co-
CIOs are responsible for ensuring that portfolio managers continue to implement the appropriate
strategy for their clients; thereby meeting the overall investment objective of the client. Ongoing
oversight ensures that the investment strategy is set and implemented in a timely manner. NS Partners
utilizes a number of meetings to determine investment strategy.
The key meetings are:
         •      Weekly Investment Policy Committee — economic update, liquidity conditions, monitoring
                of strategy and performance, sector allocation, performance and performance attribution
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