NWQ Investment Management Company LLC

ITEM 5          FEES AND COMPENSATION

Fee Schedules

Advisory Fees for Institutional Accounts
Advisory fees for Institutional Accounts are generally determined based upon the following
schedules. However, fees and minimum account size may fall outside of the stated ranges,
or may be negotiated.

Equity/Balanced Strategies

Large Cap Value and Large Cap Value Balanced
First $25 million         0.60%
Next $25 million          0.50%
Over $50 million          0.40%
Minimum Account Size:     $20 million

Special Equity and Special Balanced
First $25 million           0.75%
Next $25 million            0.70%
Over $50 million            0.65%
Minimum Account Size:       $20 million

Small/Mid Cap Value
First $25 million            0.75%
Next $25 million             0.70%
Over $50 million             0.65%
Minimum Account Size:        $5 million

Small Cap Value
First $25 million            0.85%
Next $25 million             0.80%
Over $50 million             0.75%
Minimum Account Size:        $5 million

Global Unconstrained
All Assets                1.00%
or
0.65% plus 15% performance fee
Minimum Account Size:     $20 million

Global Value
All Assets                   0.70%
Minimum Account Size:        $5 million

Global Equity Income and Global Equity Income ADR
All Assets                0.70%
Minimum Account Size:     $5 million

International Value
First $25 million           0.70%
Next $25 million            0.60%
Over $50 million            0.50%
Minimum Account Size:       $10 million

International Value (ADR)
First $25 million           0.85%
Next $25 million            0.75%
Over $50 million            0.65%
Minimum Account Size:       $2 million

Japan Equity
First $25 million           0.70%
Next $25 million            0.60%

Over $50 million            0.50%
Minimum Account Size:       $10 million

Fixed Income Strategies

Core, Intermediate and Short Term Fixed Income
First $10 million         0.40%
Balance                   0.30%
Minimum Account Size:     $5 million

Corporate Credit
First $50 million           0.60%
Balance                     0.50%
Minimum Account Size:       $20 million

Flexible Income
First $50 million           0.65%
Balance                     0.55%
Minimum Account Size:       $20 million

Preferred Income
First $25 million           0.55%
Next $75 million            0.45%
Balance                     0.35%
Minimum Account Size:       $5 million

General Information

NWQ’s advisory fees are typically based on a percentage of the market value of the assets
under its management. For eligible client accounts, performance-based fees may be
negotiated in appropriate circumstances. Performance-based fees may create an incentive
for NWQ to favor such performance-based fee accounts or make investments that are
riskier or more speculative than would be the case in the absence of a performance-based
fee. In these instances, NWQ’s compensation may be larger than it would otherwise have
been because the fee will be based on account performance instead of, or in addition to a
percentage of assets under management. For more information on how NWQ addresses
this conflict, please refer to Item 6. NWQ generally does not charge fixed fees.

Fees may vary from the applicable schedules above based on factors such as client type, asset
class, pre-existing relationship, service levels, portfolio complexity, number of accounts,
account size or other special circumstances or requirements and are negotiable in some cases.
Some existing clients may pay higher or lower fees than new clients. NWQ, in determining
its fees, may give consideration to certain services provided to the client by a third party.
Certain accounts of NWQ’s employees or any of its affiliates’ employees, former employees,
or their family members may be managed by NWQ without an advisory fee. Related accounts
may be aggregated for fee calculation purposes in certain circumstances.

When NWQ calculates fees, valuations of account assets are determined in accordance with
NWQ’s Valuation Policy and Procedures, which generally rely on third party pricing
services, but may permit the use of other valuation methodologies in certain circumstances.
NWQ may determine valuations that differ from what is reflected in a client’s custodial
statement.

Advisory Fees for the Funds

Fees for advisory services for the Funds are separately negotiated between NWQ and the
third-party or affiliated investment adviser and/or Fund. Fees may be performance-based
or based on a percentage of assets under management. These fees are disclosed in the
relevant Offering Documents.

Advisory Fees for Managed Account Programs

For Managed Accounts offered through wrap fee programs, NWQ’s fee is determined by
the agreement between the Program Sponsor and NWQ. The annual fee paid by the client
to the Program Sponsor in a Managed Account Program will typically range from 1.5%-
3% of the client’s annual assets under management. The Program Sponsor typically pays
NWQ an annual fee for its investment advisory services of up to .70% of the assets NWQ
manages under the Managed Account Program, charged on a monthly or quarterly basis.
Fees vary by program based on the size of the program, services, particular investment
strategy, any pre-existing business relationship with NWQ or its affiliates and other factors.
For dual contract accounts, NWQ and Program Sponsors each charge their fees separately.

Fees charged to dual contract accounts are individually negotiated between NWQ and the
client and are charged on a monthly or quarterly basis.

In addition, fees paid to NWQ for wrap fee programs are typically less than partially
bundled or unbundled arrangements. In a partially bundled arrangement, the client typically
pays a fee to the Program Sponsor for trade execution through the Program Sponsor,
custody and consulting services, and a separate fee to NWQ for the management of its
account.

Deduction of Fees
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ITEM 7         TYPES OF CLIENTS

NWQ provides investment advisory or sub-advisory services to Institutional Accounts,
Managed Accounts, and Funds, as defined in Item 4, above.

NWQ provides investment advisory services to a wide variety of retail and high net worth
individual and Institutional Account clients, including corporate and multi-employer plans,
charitable organizations, educational institutions, trust accounts, estates, corporations or
other business entities, banks and thrift institutions, insurance companies, governments and
municipalities.

Additionally, NWQ provides investment sub-advisory services to affiliated and
unaffiliated open-end and closed-end investment companies registered under the Company
Act, as amended, CITs, and UCITS Funds.

NWQ provides services to Institutional Account clients under direct advisory and sub-
advisory mandates. In addition, NWQ provides investment advisory services to
institutional and individual clients through Managed Accounts sponsored by the Program
Sponsors. Although most services are provided on a discretionary basis, NWQ also
provides certain services on a non-discretionary and model portfolio basis.

Institutional Accounts

NWQ provides investment advisory services to institutions and high net worth individuals
through separate accounts. NWQ’s investment advisory services are provided based on the
stated objectives and guidelines of a client account. NWQ generally offers its separate
account services for fees based on assets under management as described in Item 5.

Funds

NWQ provides investment advisory and sub-advisory services to the Funds in accordance
with the terms of the prospectus, trust agreement or other governing documentation, as
applicable (together, the “Offering Documents”).

Managed Account Programs

NWQ provides investment advisory services to Managed Accounts through wrap fee and
dual contract Managed Account Programs. In traditional wrap fee programs, NWQ
provides its advisory services pursuant to an advisory agreement with the wrap fee Program
Sponsor. Wrap fee programs typically include comprehensive custody, financial advisory
and certain trading (provided by the Program Sponsor) and investment advisory services
(provided by the manager) for a bundled fee payable to the sponsor (“wrap”).

In a dual contract program, NWQ provides its advisory services pursuant to an advisory
agreement directly with the client. A client may separately arrange with one or more third
parties for custody, financial advisory and certain trading services to be provided on a

partially-bundled or unbundled basis. In a partially-bundled program, certain of such
services (typically custody, financial advisory, and certain trading) are provided in a
bundled fee arrangement. In an unbundled arrangement, such services are contracted,
provided and paid for separately.

For fully bundled wrap programs, the minimum account size is typically $100,000,
although the specific minimum account size varies by program and may be as low as
$50,000. For partially bundled programs, the minimum account size may be as low as
$100,000. NWQ may raise, lower or waive the minimum account size in certain
circumstances.

For Managed Accounts, NWQ is appointed to act as an investment adviser through a
process generally administered or assisted by the Program Sponsor. Under these
arrangements, participating clients, generally with assistance from the Program Sponsor,
may select NWQ to provide investment advisory services for their account (or a portion
thereof). NWQ generally relies on the Program Sponsor to determine the suitability of an
NWQ strategy for a prospective client. NWQ reserves the right to decline to manage any
Managed Account. Managed Account agreements may be terminated, generally, at the
written request of the client, the Program Sponsor or NWQ. In the event of termination, the
investment management fee will be pro-rated.

Once appointed to serve as investment adviser to a Managed Account, NWQ provides
investment advisory services based upon information provided to NWQ generally by the
Program Sponsor.

NWQ generally maintains investment discretion as to which securities shall be purchased
or sold in a Managed Account in a manner consistent with written information received
regarding the client’s selected management style, investment objectives, policies and
restrictions (if any) and the capabilities of the client’s selected custodian.

NWQ seeks to commence management of a Managed Account as soon as practicable after
review of the account documentation, acceptance of its appointment as investment adviser
and contribution of assets to the client’s account. The time required to commence
management may vary depending on the time required to complete these steps, the efficiency
of the Program Sponsor and/or other third parties, and the time required to establish an
appropriate portfolio.

Clients should review the terms and conditions of their particular Managed Account Program
to understand its policy regarding the investment of cash balances. Such account balances
are frequently invested in money market funds managed by affiliates of the Program
Sponsor. Investment of clients’ funds in money market funds can result in the payment of
additional investment advisory fees to the money market fund manager that may be an
affiliate of the Program Sponsor.

From time to time, the Program Sponsor may instruct NWQ to suspend investment
management services for a Managed Account for a period of time. NWQ may charge

standard fees for a portion of such time to reflect the administrative costs associated with
implementing such instructions.

NWQ and its affiliates have multiple business relationships with Program Sponsors and their
affiliates, including, but not limited to, brokerage and research services and product
distribution arrangements.

The services provided to Managed Accounts may differ among the various Managed
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