Prudent Man Advisors LLC

Item 5: Fees and Compensation

A. Fees

The Fee for Public Trust and PMA vary by adviser. Below, we break out the relevant information
for each specific adviser.

I.       Public Trust Fees

Local Government Investment Pool (LGIP) fees (for all series except Term):

Fees will be tiered or at a fixed rate depending on the agreement for the specific LGIP. Fees
can be charged up to an annual rate of 30 basis points (0.30%), which typically includes both
advisory and administrative services. The fee rate may be substantially lower and is typically
between 10 and 20 basis points. Fee rates are based on a number of factors including historical
client relationship, market conditions at the time of the initial client contract, product type,
investment strategy, investment restrictions, and scope of services.

LGIP account fees are accrued either daily or monthly and calculated using one of the following
methodologies as approved by the LGIP Boards or Treasurer of the State:

          Current day’s shares outstanding: The current day’s shares outstanding will be
           multiplied by the applicable fee rate(s) and divided by 365 days (366 days in the event
           of a leap year) to equal the daily fee accrual. For weekend days and holidays, the
           shares outstanding for the previous business day will be utilized for the calculation of
           the fees. Monthly invoice calculations will include holidays and weekends that fall
           within the month.

          Current day’s settled shares outstanding: The applicable fee rate is calculated by taking
           the fee rate(s) divided by 365 days (366 days in the event of a leap year) and rounded
           to ten decimal places. The current day’s settled shares outstanding will be multiplied
           by the applicable fee rate(s) to equal the daily fee accrual. For weekend days and
           holidays, the settled shares outstanding for the previous business day will be utilized
           for the calculation of the fees. Monthly invoice calculations will include holidays and
           weekends that fall within the month.

          Prior day’s net assets: The applicable fee rate is calculated by taking the fee rate(s)
           divided by 365 days (366 days in the event of a leap year) and rounded to ten decimal
           places. The prior day’s net assets will be multiplied by the applicable fee rate(s) to
           equal the daily fee accrual. For weekend days and holidays, the net assets for the
           previous business day will be utilized for the calculation of the fees. (i.e., Saturday’s
           and Sunday’s accruals will utilize Thursday’s Net Assets.) Monthly invoice calculations
           will include holidays and weekends that fall within the month.

          Daily ending market value: The ending market value of the daily holdings of the current
           business day will be multiplied by the applicable fee rate(s) and divided by 365 days

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        (366 days in the event of a leap year) to equal the daily fee accrual. For weekend days
        and holidays, the market value for the previous business day will be utilized for the
        calculation of the fees. Monthly invoice calculations will include holidays and weekends
        that fall within the month.

       Bi-monthly ending market value: The ending market value of the daily holdings on the
        fifteenth and last calendar days will be multiplied by the applicable fee rate(s) and
        divided by 365 days (366 days in the event of a leap year) and multiplied by the
        number of days in the semi-monthly period to equal the monthly accrual. If the
        fifteenth or the last calendar day falls on a holiday or weekend, then the prior business
        day will be utilized as the basis for the fee calculation. If the first day of the month is
        a holiday or weekend day, the ending market value from the preceding business day
        will be utilized to calculate the daily accrual amount(s). Monthly invoice calculations
        will include holidays and weekends that fall within the month.

Fees paid to Public Trust for the LGIPs cover portfolio management, fund accounting,
administrative and transfer agency services as well as certain auxiliary expenses including but
not limited to legal, audit, custodian/treasury, and board expenditures (where applicable). All
fees are payable monthly in arrears by the client to Public Trust, the administrator, or the lead
participant. PTMA LGIP clients are invoiced for fees, with the invoice typically approved by at
least one Board Member or the administrator prior to payment being rendered. Certain
agreements between Public Trust and an LGIP’s Governing Board can allow for fees to be
waived. Fees can be voluntarily waived or abated at any time, or from time-to-time, at the
discretion of Public Trust or the client. Periodic fee waivers may be required to adjust the fund’s
yield performance based on various market conditions. In some cases, waived fees may be
recouped by written agreement between Public Trust and the Governing Board or the
Administrator. Fees will be paid and initiated by Public Trust via Automated Clearing House
(ACH), wire, or paid directly by the Board via check or wire.

LGIP Term Series Fees (Including Term Series II):

Each Term Series or Term Series II portfolio pays an advisory and management fee to the
adviser of up to 25 basis points (.25%) annualized on the amount of the Participant’s
investment in the portfolio. For Term Series portfolios, an additional fee, not to exceed 10
basis points (.10%) annualized, is charged on any assets of the portfolio that require
management and administration of collateral, letters of credit, and other third party
guarantees or reciprocal programs, exclusive of insurance costs and any third-party placement
fees.
...

Item 7: Types of Clients

As discussed above in Item 4, PTMA IA provides investment advisory and/or sub-advisory
services through Separately Managed Accounts (SMAs) and Local Government Investment
Pools (LGIPs). SMA clients are primarily institutional investors, including state and municipal
governmental entities; nonprofit organizations such as hospitals, schools, colleges, and
cultural institutions that have issued tax‑exempt debt; insurance companies; banks;
corporations; corporate pension and profit‑sharing plans; trusts; charitable organizations;
foundations;     endowments;    associations;   self‑insurance   entities   serving   public‑sector
members; and other post‑employment benefit (OPEB) accounts; and other investment
advisers. PTMA IA also has certain natural person clients, including high‑net‑worth and other
individuals.

Through its LGIPs, PTMA IA offers various types of portfolios including Stable NAV, Floating
NAV, and Term Series, all described in further detail in Item 8. Participants that are eligible to
invest through an LGIP consist of eligible municipal entities, including school districts,
community colleges, counties, municipalities, and other units of local government.

Minimum account sizes for SMAs are described in Item 5; however, PTMA IA reserves the right
to waive minimum balance requirements and evaluates prospective institutional relationships
based on multiple factors, including account size and client objectives. Moreover, for other
types of accounts, PTMA IA may elect to require a minimum account size for new client
relationships.

Eligibility criteria and minimum investment requirements for LGIPs vary by pool and are
detailed in the applicable LGIP Information Statement.

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