PT Asset Management LLC

Item 5.           Fees and Compensation

General

All fees, other than fees in respect of PTAM’s Funds, are subject to negotiation.

The specific way fees are charged by PTAM is established in a Client’s written agreement through an
investment advisory agreement with PTAM. PTAM will generally bill its fees on a monthly or quarterly
basis, in arrears as may be negotiated and set forth in the underlying Client’s written agreement with
PTAM. A Client may be billed directly for PTAM’s advisory fees or may authorize PTAM to debit its
fees from the Client’s account. Accounts initiated or terminated during a fee period will be charged a
prorated fee. PTAM does not charge fees in advance.

PTAM’s fees are exclusive of brokerage commissions, transaction fees, solicitor fees, and other related
investment costs and expenses which are incurred by and are the responsibility of the Client. Clients
also may incur and be responsible for certain charges imposed by custodians, brokers, and other third
parties such as fees charged by administrators, custodial fees, deferred sales charges, odd-lot
differentials, transfer taxes, wire transfer and electronic fund fees, other fees and taxes on brokerage
accounts and securities transactions, and professional fees (if any). See Item 12 for Brokerage
Practices. Funds are also charged other costs and expenses, which are disclosed in the applicable
prospectus. Such charges, fees and commissions are exclusive of and in addition to PTAM’s fees, and
PTAM does not receive any portion thereof.

For certain of its Clients, PTAM has discretion to value Client investments in such manner as we deem
fair and equitable (including the authority to override third party valuations). By doing so, PTAM faces
a conflict of interest because its fees are based on such investment valuations. To address this conflict
of interest, PTAM conducts pricing reviews, under the supervision of the Trading and Oversight
Committee, whose responsibility includes ensuring that the prices reflect fair value.

PTAM may compensate its representatives or other representatives from PTAM’s affiliates based on
total assets raised; however, the compensation paid will be from PTAM’s fees, not additional fees
charged to the Client. PTAM representatives may accept compensation for the sale of securities or
other investment products which presents a conflict of interest by providing an incentive to recommend
investment products based on the compensation received, rather than based on a Client’s needs.

Mutual Funds and Exchange Traded Fund

In addition to a management fee, the Funds incur operating expenses in connection with the
management of the Funds. As a result, Fund investors will still pay management fees and other,
“indirect” fees and expenses as charged by each Fund in which they are invested. Please refer to the
prospectus of the Funds for a description of applicable fees and expenses (information available at
www.ptam.com).

Separately Managed Accounts

SMAs are valued on the last business day of each month. Management fees are calculated as a
percentage of market value of the SMA Client’s account according to the current monthly appraisal at
a rate agreed upon in the investment management agreement.

Item 7.           Types of Clients

PTAM provides investment and portfolio management and advisory services to high-net-worth
individuals, registered mutual funds, an ETF in the U.S., and other institutional investors. PTAM also
sub-advises a UCITS ETF. Certain of PTAM’s principals and employees, and PTAM’s affiliates and
their principals and employees, also invest in PTAM’s Funds, and are eligible to maintain SMAs
managed by PTAM. For Funds, PTAM’s investment and portfolio management and advisory services
are provided directly to the Funds, and not to the underlying investors in the Funds.

Although the minimum account size or minimum initial investment may be negotiated and is subject to
change (including waiver by PTAM) without notice, the minimum account size to open an SMA is
$10,000,000. The minimum initial investment size for the Funds is available in the Funds’ prospectus.