Park Avenue Institutional Advisers LLC

5. Fees and Compensation

  Institutional Separately Managed Accounts

  Fees for PAIA services are computed and billed quarterly based on the total value of each
  client’s account (calculated by PAIA pursuant to its valuation procedures) and are typically
  payable in arrears as of a predetermined date. The investment advisory contract may be
  cancelled by the client at any time, subject to any notice or other requirements set forth in the
  relevant contract. To the extent an advisory contract requires, or a client elects, to pay advisory
  fees in advance, such fees will be pro-rated for the period, based upon the average daily assets
  under management for the period, and refunded upon early termination of the investment
  advisory contract. PAIA basic fees for services are as follows:

  Fee Schedule for Investment Grade and Strategic Income
  0.50% per year on the first $200 million
  0.40% per year for the remaining balance
  Minimum account size: $50 million

  Although PAIA is not currently pursuing external separate account mandates, the fees and
  services for separately managed account mandates will be individually negotiated depending
  on factors such as asset class, portfolio complexity, client type, and account size or other
  special circumstances. Fees for management of Guardian Assets can vary from the fees charged
  to other clients. Fees and expenses paid by the registered investment companies are set forth
  in each registered investment company’s prospectus and SAI. In addition to investment
  advisory and management fees, separately managed account mandates also bear other types of
  expenses, such as custody and audit fees, commissions, and transaction costs. Brokerage
  expenses and related trading costs are discussed more fully in Item 12.

  Shared Expenses

  Certain costs and expenses are incurred for the benefit of, or are shared by, multiple clients,
  which can include Guardian Assets (“Shared Expenses”). Pursuant to its expense allocation
  policy and procedures, PAIA seeks to allocate Shared Expenses in a manner that is fair and
  equitable to such clients. In most cases, Shared Expenses are allocated pro rata based on assets
  under management or, where a Shared Expense relates to a particular investment, amount
  invested; however, PAIA can allocate certain Shared Expenses differently, if PAIA believes
  that doing so is appropriate under the circumstances. PAIA faces conflicts of interest in
  determining which clients benefit from a Shared Expense, and in allocating the burden of
  Shared Expenses, where PAIA (i) has differing pecuniary interests in relevant clients (e.g.,
  performance related fees or where the client represents Guardian Assets), (ii) has agreed to cap
  expenses for one or more clients or (iii) where a client’s Governing Documents prohibit that
  client from bearing a particular expense (in such cases, PAIA would, itself bear the expense,
  or a portion of the expense).

7. Types of Clients

   PAIA provides investment advisory services to registered open-end management investment
   companies and to Guardian and certain of its affiliates primarily through external subadvisors.
   as described in Item 4 above.