Sit Fixed Income Advisors II LLC

Fees and Compensation Item 5

The specific manner in which fees are calculated and paid to Sit Fixed Income is established in the
investment management agreement with each client. Generally, fees are stated at an annual rate,
calculated quarterly as a percentage of net asset value at the end of each calendar quarter, and payable
quarterly in arrears. Fees paid by investment company clients are generally calculated and paid monthly
in arrears. The net asset value is generally determined based on the aggregate market value of all assets
held in the account. Management fees are prorated for material capital contributions or withdrawals made
during the calendar quarter, and fees are prorated for accounts initiated or terminated during the quarter.

Depending on specific circumstances, such as, for example, a large amount of assets managed for a client,
fees are subject to negotiation.

Sit Fixed Income’s fees are exclusive of brokerage commissions, transaction fees, and other portfolio
related costs and expenses which are incurred by the client. Clients will likely incur charges imposed by
custodians, brokers, and consultants. Item 12 further describes the factors that Sit Fixed Income considers
in selecting or recommending broker-dealers for client transactions and determining the reasonableness of
the commissions.

Clients may request to be billed in advance, and in the event such a client terminates its agreement,
unearned fees will be promptly refunded. Clients may also request that Sit Fixed Income send a copy of
its invoice directly to its custodian, who will in turn direct payment from the client’s account.

Pursuant to the terms of the investment management agreement with each client, clients may terminate
the agreement with Sit Fixed Income on thirty days written notice, or in some cases at any time without
notice. Each registered investment company may terminate the investment management agreement with
Sit Fixed Income on sixty days written notice provided the investment company's Board of Directors
consents or a majority of the investment company's shareholders consent. The investment management
agreements are terminated automatically if assigned. All terminations are without penalty.

Sit Fixed Income provides investment management services to tax-exempt charitable organizations and
makes a charitable contribution to certain of such organizations. The charitable contributions are
generally equal to a fixed percentage of the investment management fees paid to Sit Fixed Income by the
charitable organizations directly or through an investment in a private investment fund.

Sit Fixed Income’s most significant fee schedules are presented below.

    Separate Account Management by strategy:

                  Balanced
                        Net Asset Value           Annual Rate
                        First $10 million            0.75%
                        Next $10 million             0.70%
                        Next $10 million             0.65%
                        Next $10 million             0.60%
                        Next $10 million             0.55%
                        Over $50 million           Negotiable

                  Taxable Short Duration
                  Taxable Municipal Bond
                  Municipal Short Duration
                  Municipal Intermediate Duration
                        Net Asset Value         Annual Rate
                        First $20 million          0.40%
                        Next $30 million           0.30%
                        Next $50 million           0.25%
                        Over $100 million         Negotiable

                 Municipal Long Intermediate Duration
                        Net Asset Value        Annual Rate
                        First $20 million          0.35%
                        Next $30 million           0.25%
                        Next $50 million           0.20%

                 Municipal Total Return
                        Net Asset Value           Annual Rate
                        First $20 million            0.35%
                        Next $30 million             0.30%
                        Next $50 million             0.25%
                       Over $100 million           Negotiable

              Taxable Intermediate Duration (Govt/Corp)
              Taxable Intermediate Duration (Government)
              Quality Income
              Taxable Total Return
                    Net Asset Value         Annual Rate
                    First $10 million          0.35%
                    Next $10 million           0.25%
                    Over $20 million           0.20%

              Taxable Return Plus
              Municipal Return Plus
                   0.40% on all assets, plus a performance fee equal to 20% of the excess
                   return over benchmark; or a 1.00% fee and no performance fee.

              Municipal High Income
                   Net Asset Value              Annual Rate
                   All assets                     0.50%

    For certain clients for which Sit Fixed Income manages multiple accounts, Sit Fixed Income has
    negotiated a rate applicable to the total of all assets managed on behalf of the client by Sit Fixed
    Income and its affiliates. For certain clients utilizing the services of certain financial consultants
    or financial intermediaries, Sit Fixed Income has negotiated a rate applicable to the total of all
    assets managed on behalf of the financial consultant or financial intermediary by Sit Fixed
    Income and its affiliates.

Affiliated Registered Investment Company Management (Mutual Funds):

   Sit Fixed Income assists its parent company Sit Investment Associates, Inc. in the management of
   the following registered investment companies that are part of the Sit Mutual Funds, a family of
   no-load, open-end registered investment companies (mutual funds):
            Sit Tax-Free Income Fund
...

Types of Clients Item 7

Sit Fixed Income manages client assets on a discretionary basis for several types of clients, including,
public and private institutional investors, pension funds, Taft-Hartley plans, charitable institutions,
foundations, endowments, corporations, insurance companies, municipalities, registered investment
companies, private investment companies, collective investment trusts and high net worth individuals. As
of December 31, 2025, we managed $14.8 billion. Sit Fixed Income also manages a few client accounts
on a non-discretionary basis as an accommodation to clients. The non-discretionary accounts as of
December 31, 2025, totaled $139.2 million. Therefore, the total assets managed by Sit Fixed Income on a
discretionary basis and non-discretionary basis is $14.9 billion.

The account minimum for separately managed accounts is generally $10 million.

Sit Fixed Income serves as the adviser, sponsor, general partner, or manager for several investment
companies to which it provides investment advisory services. See the response to Item 10 for information
on these affiliated investment companies.

Sit Fixed Income’s parent, Sit Investment Associates, Inc., manages equity securities on a discretionary
basis for the same types of clients, and manages the Sit Mutual Funds, a family of funds which includes
fixed income funds totaling $837 million. Sit Fixed Income assists in the management of the Sit Mutual
Funds’ fixed income securities.

Together, Sit Fixed Income and its parent company, Sit Investment Associates, Inc., manage $18.5 billion
in fixed income and equity securities as of December 31, 2025.

Methods of Analysis, Investment Strategies and Risk of Loss Item 8

Analysis - Fixed Income Philosophy

We believe the consistent attainment of superior risk-adjusted returns is achievable using a conservative
investment management approach with:
    • investment grade securities;
    • special emphasis on interest income; and
    • significant stability of principal value.

To this end, we utilize a bottom-up strategy which looks for securities and market sectors with strong
risk/reward potential. Although we do place a great deal of emphasis on interest rate projection and
interest rate movement, we are not duration managers.

Within the stated philosophy, our fixed income separate account objectives are established to:
   • provide superior results compared to benchmarks and managers of a similar style;
   • avoid excessive return volatility and generate consistent returns over an economic cycle;
   • structure portfolios to meet specific client needs.

Taxable Fixed Income General Strategy

Interest income provides the vast majority of a bond portfolio’s total return over an interest rate cycle. Sit
Fixed Income’s taxable fixed income process focuses on earning high levels of interest income from high
quality securities. In general, we underweight U.S. Government & Agency bonds and overweight
corporate, asset-backed and mortgage pass through-securities. Overall, our clients’ investment objectives
and guidelines govern our industry and sector limits more so than the benchmark.

Municipal Fixed Income General Strategy

Interest income provides the vast majority of a bond portfolio’s total return over an interest rate cycle. Sit
Fixed Income’s municipal fixed income process focuses on strong individual security analysis and seeks
investment grade quality securities which have high levels of coupon interest income and complexities
such as sinking fund and prepayment provisions. The former provides income and lower volatility. The
latter produces shorter expected lives and relatively higher yield. The combination is a strong book yield
and after-tax return advantage using high quality securities.

Investment Strategies and Risk of Loss

Sit Fixed Income manages client accounts with the following general investment strategies. Specific
client objectives and restrictions are set forth in the investment management agreement with each client
and differ from client to client. For example, clients may impose restrictions on investing in certain
issuers or types of securities or may define a benchmark differently than other clients. The following
descriptions of investment strategies and instruments are not intended to be exhaustive. Sit Fixed Income
may employ various additional strategies and instruments from time to time in a manner consistent a
client’s investment management agreement.

Investments in the fixed income portfolios may include:
    • Obligations of the U.S. government, its agencies and instrumentalities;
    • Mortgage-backed securities (including collateralized mortgage obligations (CMOs));
    • Asset-backed securities;
    • Corporate debt securities;
    • Municipal obligations issued by U.S. states, territories, and possessions and the District of
       Columbia, and their political subdivisions, agencies and instrumentalities (both revenue bonds
       and general obligation bonds);
    • Registered investment companies (open-end funds (mutual funds) and closed-end funds);
    • Preferred securities and preferred convertible securities;
    • Fixed income derivatives;
    • Exchange traded futures contracts and options for hedging purposes only and not for leverage or
       speculative purposes;
    • Whole loans;
    • Publicly traded master limited partnerships, and
    • Short-term debt obligations, including commercial paper and bank instruments.

Strategies used to manage client accounts include the following:

    Taxable Portfolios:
       • Taxable Municipal Securities – Bloomberg Municipal Taxable Bonds Intermediate Index
       • Return Plus (closed-end bond funds) – Bloomberg Aggregate Bond Index
       • Targeted Opportunity (closed-end funds) – Bloomberg Aggregate Bond Index
       • Total Return – Bloomberg Aggregate Bond Index
       • Intermediate Duration – government – Bloomberg Intermediate Government Bond Index
...