Secor Investment Management LP

Item 5: Fees and Compensation
A. Advisory Fees and Compensation
MIS provides advisory services to clients that are “qualified purchasers” under Section 2(a)(51) of the Investment
Company Act of 1940. Fees for MIS’s services are typically charged as a percentage of plan assets, a percentage
of notional exposure, or as a flat fee. MIS’s practices vary depending upon the specific arrangement with the
client.

When MIS is acting as subcontractor to Mercer, a higher overall fee will be charged by Mercer to compensate
MIS for its additional services and MIS will be compensated pursuant to an intercompany agreement. The way
fees are charged by Mercer is established in a client’s written agreement with Mercer. Mercer generally bills
its fees monthly or quarterly in arrears, although a client’s written agreement with Mercer may permit fees to
be billed in advance.

For investment management services, Mercer’s fees typically:

     •     are calculated as a percentage of assets under management (which in certain cases is subject to a
           minimum annual fee);
     •     are based upon the market value (which may be daily, month-end, or quarter-end market value, as
           agreed with the client) of the client’s account during the relevant billing period, subject to any minimum
           fee that has been agreed with the client; and
     •     do not include trustee fees, custody fees, brokerage commissions or transaction costs, or mutual fund
           expenses.

For investment management fees based on a percentage of assets under management, asset values are typically
provided by the client’s custodian on a daily, month-end, or quarter-end basis, as agreed with the client.

B.   Payment of Fees

MIS does not currently deduct fees from managed accounts; nor does it have the authority to do so. In the case
of a managed account, the applicable client or its designee must direct fee payment. However, invoice and
payment arrangements may vary depending upon the specific arrangement with the client. MISilarly, when
MIS is acting as a subcontractor to Mercer, invoice and payment arrangements may vary depending on the
specific arrangement with the client.

For clients that are funds, the custodians are responsible for the management fee calculations. MIS reviews the
applicable calculation, and approves payment of the management fee, and then requests payment to be made
(no invoice is issued). Any reimbursements to MIS are requested via invoice.

C.   Additional Fees and Expenses

In addition to MIS’s fees, a client may incur fees payable to other service providers for such services as the
following: custody, transaction settlement, pricing, recordkeeping, and audit. The client makes its own
arrangements and negotiates the terms of these service arrangements.

For transactions that are executed by MIS, the client will incur brokerage and other transaction-related costs,
which are included in the net settlement costs/proceeds of the trade. Please see Item 12 for a description of MIS’s

Item 7:        Types of Clients
MIS provides investment advice only to institutional clients. MIS’s clients generally consist of corporate pension
plans and charitable organizations. Actual and potential clients may include, without limitation:

   •   Insurance companies;
   •   Corporate pension plans;
   •   Endowments, foundations and other charitable organizations;
   •   Family offices;
   •   Pooled investment vehicles; and
   •   State or municipal government entities.

MIS does not have any general requirements for opening or maintaining accounts, such as minimum account
size. The requirements for each managed account are negotiated on a case-by-case basis.