Pictet Asset Management Sa

ITEM 5 FEES AND COMPENSATION

    A. Advisory Fees and Compensation

Each of the SEC Pictet AM Firms charge an investment management fee expressed as a percentage of the market
value of the assets that they manage. The fee is negotiated with each client. Fee schedules can include declining
rates for larger portfolios and, in certain cases, performance-based fees (described in Item 6).

    B. Billing Practices and Fee Payment Method

Fees are payable monthly or quarterly in arrears. When an account opens or closes during a billing period, the
SEC Pictet AM Firm charges a prorated fee for the portion of the period during which the account is managed.

For the SEC Pictet AM Firms, fees are generally calculated based on the client’s custodian statements, and for SEC
clients, 100% of fees are based on their custodian statements.

Differences between Pictet Asset Management system valuations and custodian valuations can result in
differences in advisory fees.

    C. Other Fees and Client-Incurred Expenses

The SEC Pictet AM Firms’ advisory fees exclude all transaction-related and third-party expenses. Clients typically
pay the following third-party expenses:

    •   brokerage commissions;
    •   transaction fees;
    •   custodian charges;
    •   fund-level management fees (third-party funds and exchange-traded funds);
    •   other fund-related fees, including but not limited to servicing fees and other ancillary charges;
    •   transfer taxes;
    •   wire and electronic transfer costs;
    •   taxes and commissions related to securities transactions; and
    •   any other fees charged by third parties.

Where client assets are invested in third-party funds, those funds charge fees as described in their prospectuses.
The SEC Pictet AM Firms consider these expenses when selecting funds.

Fees Related to Investment in In-House Funds

In some instances, the SEC Pictet AM Firms invest client assets in Pictet AM in-house funds, subject to client
investment guidelines and eligibility criteria, which also charge management fees. In addition to the advisory fee
paid to the relevant SEC Pictet AM Firm, the funds in which clients participate bear “service fees” for
administration and shareholder servicing, which are paid from fund assets to an affiliated management company.
These fees are separate from, and in addition to, the advisory fees described above and reduce overall investment
returns.

For the SEC Pictet AM Firms, if an in-house fund already charges a management fee, the relevant SEC Pictet AM
Firm excludes the value of the client’s investment in that fund when calculating its management fee unless
otherwise agreed in writing. Where no management fee exists at the fund level, the SEC Pictet AM Firms
calculates its management fee based on the total assets under management.

For the US ETFs where the relevant SEC Pictet AM Firm is appointed as sub-adviser, the relevant SEC Pictet AM
Firm receives management fees as disclosed in the respective ETF prospectus.

    D. Termination of Advisory Agreements

Each advisory agreement permits either party to terminate the agreement on written notice on a mutually
acceptable period of notice, which is usually not more than 30 days.

    E. Compensation for Sale of Securities or Other Investment Products

The SEC Pictet AM Firms each receive the following additional compensation:

    •   Referral compensation from Pictet AM entities that enter into agreements with clients introduced by the
        relevant SEC Pictet AM Firm. There are no additional fees charged to the client to remunerate the
        relevant SEC Pictet AM Firm.

    •   Remuneration for distribution of Pictet AM non-US regulated funds whereby:

          ‒ Pictet AM SA receives such remuneration from Pictet AM Europe and Pictet AM Hong Kong, which
            receive the management fee directly from the funds.

          ‒ Pictet AM Ltd receives such remuneration from Pictet AM Europe, Pictet AM Hong Kong and Pictet
            AM SA, which receive the management fee directly from the funds.

          ‒ Pictet AM US receives such remuneration from Pictet AM Europe, Pictet AM SA, which receive the
            management fee directly from the funds.

          ‒ Pictet AM Singapore receives such remuneration from Pictet AM Europe, Pictet AM SA, Pictet AM
            Hong Kong, which receive the management fee directly from the funds.

    •   Delegated investment management compensation from Pictet AM Europe or Pictet AM SA where they
        have partially or totally delegated to another SEC Pictet AM Firm investment management of one or more
        non-US regulated funds. In this context, the relevant SEC Pictet AM Firm receives a part of the
        management fee received directly from the fund by Pictet AM Europe or Pictet AM SA.

The SEC Pictet AM Firms market advisory services through internal Sales or Business Development teams and, in
some cases, through similar functions in other Pictet Group entities. Personnel in these areas receive salary,
revenue-linked and qualitative bonuses, and in some instances profit share. The SEC Pictet AM Firms apply
remuneration controls to ensure referral-related compensation does not incentivise behaviour inconsistent with
fiduciary or regulatory obligations, including scoring mechanisms that reduce bonuses for poor compliance.

Conflicts Arising from Fee Differentials

Fee levels differ among clients because fees are negotiated individually. Higher-fee accounts create an incentive to
prioritise such accounts when trading or allocating investment opportunities. The SEC Pictet AM Firms address
such conflicts through:

    •   fair and consistent allocation of investment opportunities between different client accounts in the same
        strategy, subject to client restrictions, instructions and cash-flows;
    •   pre-allocation of all orders;
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