Samsung Asset Management Company Ltd

Item 5 – Fees and Compensation

Description

SAMC is compensated for its investment management services based on a percentage of assets under
management. All such fees are subject to negotiation. Fees can vary depending on vehicle type, and,
within the same vehicle, actual fees charged to a Client may vary on a case-by-case basis. Below are
the general ranges of fees currently charged by type of strategy.
Equity Strategies. SAMC generally charges Clients a management fee based on total Client assets
under management in the range of 0.5% to 1.0% per annum.
Fixed Income Strategies. SAMC generally charges Clients a management fee based on total Client
assets under management in the range of 0.2% to 0.5% per annum.
Fee Billing

Subject to negotiation, fees are calculated based on a percentage of the market value of a Client’s
assets under management or historical cost (or book value) in certain circumstances and are payable in
agreed terms. Fee payment due dates are negotiable; generally, fees are due monthly, quarterly or
yearly in arrears. Each Client’s fees are negotiable and fall either within or outside such range,
depending upon a variety of factors including the type of Client, the strategy being employed, the size
of the account, SAMC’s relationship with the Client and the amount or type of services required. The
way fees are charged by SAMC is established in the Client’s Constituent Documents or other written
agreement with SAMC. Generally, SAMC will invoice its fee in arrears each agreed period. Clients
may elect to be billed directly for fees or to authorize SAMC to directly debit fees from Client
accounts. If a Client elects to authorize SAMC to directly debit fees from an account, the Client
should review the billing invoice to verify the fee calculation and the corresponding debit as reflected
in their account statement provided by their custodian.
Other fees and Expenses

SAMC’s fees are exclusive of brokerage commission, transaction fees and other related costs and
expenses which are incurred directly by the Client. Clients may incur certain charges imposed by
custodians, brokers, and other third-party service providers. Such fees may include, but are not
limited to, custodian fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and

electronic fund fees, management fees and other fees and taxes on brokerage accounts and securities
transactions. Where SAMC invests in or otherwise recommends an investment in a mutual fund, ETF
or similar collective investment vehicle, such fund may also charge internal management fees and
expenses, which are in addition to SAMC’s fees, and are disclosed in the fund’s prospectus.
Such charges, fees and commissions are exclusive of and in addition to SAMC’s fee, and SAMC does
not receive any portion of these commissions, fees or charges.
Item 12 describes the factors that SAMC considers in selecting or recommending broker-dealers for
Client transactions and determining the reasonableness of compensation (e.g., commission rates).
SAMC will exercise discretion and invest Client assets in SAMC managed funds. This is a conflict of
interest, and SAMC will only make such an investment if it is established that this would be suitable
for the Client and where there is a reasonable basis for the action.
Advanced Payment: Termination of Services

SAMC’s fees are not payable in advance. Investment management agreements may be terminable by
either party as negotiated. In the case of any termination, management fees will be determined on a
pro rata basis through the date of termination.
Sales-Based Compensation

Neither SAMC nor SAMC’s supervised persons receive compensation for the sale of securities or
other investments, including asset-based sales charges or service fees from the sale of mutual funds.

Item 7 – Types of Clients

SAMC provides investment management and advisory services to institutional Clients including, but
not limited to, banking or thrift institutions, pension plans, insurance companies, corporations, pooled
investment vehicles, other investment advisers and insurance companies.
SAMC does not have predetermined requirements for opening or maintaining Client accounts unless
otherwise required by laws and regulations.