Richard Bernstein Advisors LLC

ITEM 5 – FEES AND COMPENSATION

The extent and nature of advisory services that RBA provides will vary depending upon the
specific arrangements it makes with each client. As a result, RBA’s fees will differ among its
client accounts due to a number of factors, such as the investment strategy employed by the
account, the level of service provided to the account, the size of the account, relationships to
other accounts, the historical or projected nature of trading for the account, and the extent of
supplemental client services to be provided to the account.

A. Fees and Compensation.

Separately Managed Accounts

RBA receives an annual management fee from each SMA client ranging up to 1.25% per
annum, depending on the investment strategy. In addition to an asset-based management fee,
RBA is entitled to receive performance-based compensation from certain SMA clients.
Performance-based compensation may be structured in a variety of ways, generally ranging up
to 20% of net profits achieved over a high water mark and/or hurdle. Any performance
compensation arrangements comply with Section 205 of the Investment Advisers Act of 1940,
as amended (the “Advisers Act”), and the rules thereunder. The services rendered to each SMA
will be pursuant to a written management contract generally terminable by either party on 30
days' (or less, depending on the contract) prior written notice. Fees are negotiable and may
differ from the above range. Accounts managed with the same investment strategy may not
have the same fee structure. For dual contract and sub-advisory relationships, RBA will
receive a portion of the fee paid to the primary advisor which generally will be less than the
amounts set forth in the range above. Please see each SMA client’s applicable governing
documents for specific fee terms applicable to the SMA client.

Wrap Programs

Where RBA provides services under wrap fee programs sponsored by unaffiliated wrap
sponsors, the wrap sponsors typically contract directly with the end client to perform
investment management and/or custodial services. Clients pay a single all-inclusive – or
“wrap” – fee, typically quarterly in advance, to the wrap sponsor based on assets under
management. A description of the wrap fee is set forth in the applicable sponsor’s brochure.
From the all-inclusive fee, the sponsor will pay RBA an annual management fee based on the
amount of assets in the wrap fee program under RBA’s management. In a dual contract
arrangement, the client signs an agreement with both RBA and the wrap sponsor. For these
clients, the specific manner in which fees are calculated and paid to RBA is established in a
separate agreement between RBA and the wrap sponsor, the details of which are available to
applicable end clients from the sponsor.

Model Portfolio Provider

For its model portfolio provider services, RBA has agreements with model portfolio sponsors to
provide model portfolios for a fee. RBA’s model portfolio fees are negotiable and will vary from
sponsor to sponsor, but typically do not exceed 0.40% per annum on the value of the sponsor’s
client assets allocated to RBA’s model portfolios.

Pooled Investment Vehicles

RBA generally receives an annual management fee of up to 1.25% per annum from the mutual
fund, UCITS, UIT, ETF, collective investment trust, private fund or other pooled investment
vehicle, as applicable. In certain circumstances, RBA is also entitled to performance-based
compensation. The services rendered to each mutual fund, UCITS, UIT, ETF, collective
investment trust, private fund or other pooled investment vehicle will be pursuant to a written
management contract generally terminable by either party on 60 days' (or less, depending on
the contract) prior written notice. As noted above, services to mutual funds, UCITS, UITs, ETFs,
collective investment trusts, private funds or other pooled investment vehicles may be
provided pursuant to an advisory agreement or sub-advisory arrangement. The amount of
fees charged may depend on the product’s investment objective and investment strategy, the
size of the product and other relevant factors. Fees may be reduced at specified higher asset
levels. Management fees and performance-based compensation (if any) are deducted directly
from investors’ assets in the applicable fund.

Additional information regarding the fees and expenses for mutual funds, UCITS, UITs, ETFs,
collective investment trusts, private funds or other pooled investment vehicles can be found in
the respective product’s offering materials and/or governing documents.

Published Research and Investment Commentary

RBA may also provide investment advisory services through published research and
investment commentary and asset allocation models periodically provided to unaffiliated
brokers and independent investment advisers pursuant to written contracts. RBA currently has
several such arrangements in place. The basic fee structure for such services is a percentage of
assets managed by the applicable independent financial services provider and/or fixed-fee,
which vary according to the contract.

Index Provider Services

In connection with the licensing of its indices, RBA may be contractually entitled to receive a fee
based on the market value of assets managed by the third party using the indices. RBA
generally receives this fee on a monthly or quarterly basis, typically paid in arrears. The rates
for such fee will generally range up to 0.50% per annum depending on certain factors
including, but not limited to, the level of assets managed by the unaffiliated third-party
manager pursuant to an index, and the frequency which RBA provides the index component
information (monthly or weekly basis). Such fees are generally negotiable. RBA may also receive
an index support fee to provide marketing, due diligence support or other assistance to

licensees of an index. The basic fee structure for such services will be a percentage of the assets
...

ITEM 7 – TYPES OF CLIENTS

RBA offers investment advisory services to individuals, pension and profit-sharing plans,
investment companies, state or municipal government entities, insurance companies,
charitable organizations, registered investment companies, UCITS funds, UITs, ETFs, private
funds, collective investment trusts, investment advisers, corporations and other business
entities, model portfolio providers and other financial intermediaries.

In general, RBA requires a minimum account size of $10,000,000 for direct SMA clients.
Account minimums may be waived at the discretion of RBA. RBA has the right to terminate an
account if it falls below a minimum size.

Details of minimum investment requirements for the mutual funds, UCITS funds, UITs, ETFs,
collective investment trusts, private funds or other pooled investment vehicles can be found in
the respective product’s offering materials.