PNMAC Capital Management LLC

ITEM 5: FEES AND COMPENSATION

      Compensation earned by the Adviser for the provision of advisory services to clients will generally be
      comprised of management fees based on a percentage of assets under management for such client, as well
      as a performance-based fee, as discussed below. Such fees are individually negotiated with such client and
      will be described in the investment management agreement entered into with such client. Management fees
      are generally assessed monthly or quarterly in arrears and are either billed to clients or deducted from client
      assets depending on the specific terms of the Adviser’s agreement with such client. Certain clients, including
      PMT, may also be charged a termination fee under certain circumstances.

      PMT is a publicly traded REIT for which the Adviser provides investment advisory services pursuant to an
      investment management agreement. The advisory fees payable to PMT are set forth in PMT’s periodic reports
      filed with the SEC, which are publicly available. The fees and expenses payable by PMT are established by
      contract and are not individually negotiated.

      Clients may bear administrative, operating and other expenses to the extent set forth in their respective

Pennymac Capital Management, LLC                                                                      Part 2A of Form ADV

      investment management agreements with the Adviser.

ITEM 7: TYPES OF CLIENTS

      The Adviser provides discretionary investment advice to PMT, a publicly traded REIT, and expects to provide
      investment advice to separately managed accounts held by institutional investors or trusts.

      The Adviser has not currently established a minimum investment amount for clients.