Pyrford International Ltd

Fees and Compensation

The specific way fees are charged by Pyrford is established in a client’s written investment management
agreement. Management fees are pro-rated for each capital contribution and withdrawal made during
the applicable calendar quarter (with the exception of de minimis contributions and withdrawals).
Accounts initiated or terminated during a calendar quarter will be charged a prorated fee. Upon
termination of any account, any unpaid fees will be due and payable.

Investment management fees payable to Pyrford depend on the nature of the product and vehicle used
by a client. The normal range of these fees is 0.4% to 1.25% per annum. Fees are based on an
account’s net asset value and payable monthly or quarterly in arrears. Where possible and in
accordance with the requirements of applicable law, the fees are subject to negotiation and approval of
the client. We may also agree to be a paid a performance fee.

Clients will also incur expenses such as brokerage commissions, transaction fees, and other market
costs, which are paid to trading counterparties and are directly related to investment activity that we
undertake. Please see the ‘Brokerage Practices section for more information on brokerage
arrangements,

Clients may incur certain operating charges imposed by custodians, third party investment and other
third parties such as deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
Mutual funds and exchange traded funds also charge internal management fees, bid-offer spreads, and
exit and entry charges which are disclosed in the fund’s prospectus.

Such charges, fees and commissions are exclusive of and in addition to management fees and we do
not receive any portion of these commissions, fees, and costs.

Performance-Based Fees and Side-By-Side Management

At the request of a client, we may agree to charge a performance fee as far as such fee arrangements
are permitted under applicable laws and regulations, including Rule 205-3 under the Investment
Advisers Act of 1940, as amended. All such fees are subject to individualized negotiation with a client.
We include realised and unrealised capital gains and losses when measuring a client’s' assets for the
calculation of performance-based fees.

Performance-based fee arrangements may create an incentive for us to favour high fee-paying
accounts over other accounts in the allocation of investment opportunities. Similarly, the investment
team may also manage accounts or funds (including Pyrford’s own funds) which have different
objectives, fees, and benchmarks.

To manage these risks, we have adopted and implemented policies and procedures which we believe
are reasonably designed to mitigate the potential conflicts associated with managing portfolios for
multiple clients. Please see information on our trade aggregation and allocation practices. We also
oversee investment guidelines for our investment strategies and individual client accounts through the
administration of trading rules and the periodic review of accounts to confirm portfolio compliance.

While we seek to treat all accounts fairly and equitably over time, all accounts within the same
investment strategy or accounts within similar investment strategies will not necessarily be managed in
the same manner at all times. Different client guidelines, investment restrictions, cash requirements, or
other constraints can lead to a combination of different investment practices, portfolio holdings, or
performance results.

Types of Clients

Pyrford provides professional advisory services on a discretionary and non-discretionary basis for
institutional clients which include pension and other employee benefit plans, trusts, endowments and
foundations, investment companies (including mutual funds), insurance companies, corporations, and
other private pooled vehicles.

Methods of Analysis, Investment Strategies and Risk of Loss
Investment Philosophy

We believe that a long-only, fundamental, quality and value-based approach utilising a long-term
outlook with the ability to move allocations flexibly and appropriately between the key asset classes –
global equities, cash, and sovereign debt - will provide a rewarding and stable real return stream for our
clients. Avoidance of downside and low absolute volatility is the key ‘plank’ around which this philosophy
is based.

Over the long-term we believe that equities provide the best real returns. However, there can be lengthy
periods where any asset class can deliver poor returns. Being willing to be different from a peer group
and general market consensus is an implicit but vital part of this approach.

Access to so-called alternative investments is best achieved by gaining exposure to the appropriate
listed equities. This is based on the view that equity markets provide four key advantages:

    ▪   Liquidity.

    ▪   Low transaction costs.

    ▪   Continuous price quote and full transparency.

    ▪   Positive yield.

Investment Approach

Pyrford is an investment manager with one objective – providing long-term returns for its clients with
low absolute volatility and downside protection. Capital preservation is at the centre of our philosophy
and process.

The investment team adheres to a disciplined investment process which is driven entirely by earnings
growth and valuations (equity markets) and potential movements in yield curves (Government bond
markets). All analysis is over a forward-looking five-year period.

Top-down country analysis plays an important part in the portfolio construction process and the team’s
fundamental research on economies and markets allows them to identify and avoid overvalued markets.

We recognise that both equity and sovereign bond markets can experience long periods of over and
under valuation and our goal is to identify these periods and exploit the inevitable correction to ‘fair
value.’ This involves extensive and detailed fundamental research allied with a long-term view.

Material Risks

The list of risk factors below are the principal risks involved in portfolios managed by Pyrford or the
securities in those portfolios.

Stock Market Risks

The values of securities in a portfolio are subject to fluctuations in the stock market. Stocks are more
volatile than debt securities. You may lose value if the value of the portfolios investments goes down.

Sector Risks

To the extent the portfolio invests its assets in a particular sector; the portfolio’s performance may be
more susceptible to any economic, business, or other developments that generally affect that sector.

Management Risks

The portfolio manager’s judgments about the attractiveness, value, level of expected volatility and
potential appreciation of a portfolio’s investments may prove to be incorrect. Accordingly, no guarantee
exists that the investment techniques used by the portfolio manager will produce the desired results.

Foreign Securities Risks

Investing in foreign securities may involve additional risks, including currency-rate fluctuations, political
and economic instability, differences in financial reporting standards, and less-strict regulation of the
securities markets and possible imposition of foreign withholding taxes. Furthermore, a portfolio may
incur higher costs and expenses when making foreign investments, which will affect the portfolio’s total
return.

Emerging Markets Risks

Investments in emerging markets can involve risks in addition to and greater than those associated with
investing in more developed foreign markets, which may make emerging market securities more volatile
and potentially less liquid than securities issued in more developed markets.

Company Size Risks

Generally, the smaller the market capitalization of a company the fewer the number of shares traded
daily, the less liquid its stock and the more volatile its price. Companies with smaller market
capitalisations also tend to have unproven track records, a limited product or service base and limited
access to capital. These factors also increase risks and make these companies more likely to fail than
companies with larger market capitalisations.

Currency Risks

To the extent that a portfolio invests directly in foreign (non-US) currencies or in securities denominated
in, or that trade in, foreign (non-US) currencies, it is subject to the risk that those currencies will decline
in value relative to the US dollar or, in the case of hedging positions, that the US dollar will decline in
value to the currency being hedged.

Sovereign Debt Risks

Sovereign debt instruments are subject to the risk that a governmental entity may be unable to pay
interest or repay principal on its sovereign debt due to cash flow problems, insufficient foreign currency
reserves or political concerns. Financial markets have experienced increased volatility due to the
uncertainty surrounding the sovereign debt of certain European countries.

Interest Rate Risks

Prices of fixed income securities rise and fall in response to changes in the interest rate paid by similar
securities. Generally, when interest rates rise prices of fixed income securities fall, interest rate changes
have a greater effect on the price of fixed income securities with longer maturities.