Somerset Capital Management LLP

ITEM 5: FEES AND COMPENSATION

A.      Advisory Fees and Compensation

Fee Schedules – Management fees for the SCM Funds depend on the class or series invested in. Typically
the management fee may range from 0.5% - 1.25% of assets under management. An investor in a pooled
investment vehicle advised by SCM should review the governing documents of such pooled investment
vehicle in conjunction with this brochure for more complete information on the fees and compensation
payable with respect to such pooled investment vehicle.

Deduction of Fees - Investment management fees and performance allocations charged to an SCM Fund
are typically deducted directly from the assets of such SCM Fund.

B. Payment of Fees – SCM’s fees for its investment advisory services are generally payable monthly or
quarterly in arrears. SCM does not allow clients to elect that SCM deduct its fee directly from their account.
Upon termination of SCM’s investment advisory services with respect to a client account, any earned,
unpaid fees will be immediately due and payable by the applicable client.

Please refer to the governing documents of the applicable SCM Fund for more complete information on the
timing of advisory fee payments by such SCM Fund.

C. Other Fees and Expenses - In addition to paying investment management fees, client accounts will
also be subject to other investment expenses such as custodial charges, brokerage fees, commissions and
related costs; interest expenses; taxes, duties and other governmental charges; transfer and registration fees
or similar expenses; costs associated with foreign exchange transactions; other portfolio expenses; and
costs, expenses and fees associated with products or services that may be necessary or incidental to such
investments or accounts. In addition to the expenses set forth above, each SCM Fund will also pay legal
fees, fees charged by accountants and administrators for their professional services and other expenses
related to the fund as described in greater detail in the fund’s offering documents. Client assets may be also
invested in money market mutual funds or other investment funds. In these cases, the client will bear its pro
rata share of the investment management fees and other fees and expenses of the fund, which are in addition
to the investment management fee paid to SCM.

To help ensure that the SCM Funds and therefore the investors in these funds are not charged undue costs,
SCM’s policy is (i) to make adequate disclosure in the offering documents of the SCM Funds in relation to
the nature of fees and expenses charged to the funds and (ii) not to charge the SCM Funds any fees and
expenses that do not directly benefit the funds and their investors and to pay for such costs itself.

The section below entitled “Brokerage Practices” describes the factors that SCM considers in selecting or
recommending broker-dealers and determining the reasonableness of their compensation.

D. SCM’s clients do not pay fees in advance.

E. Neither SCM nor its supervised persons will receive any form of compensation as broker or agent for
the sale of securities or other investment products by any client account save that a trail fee is paid to a
senior member of the Marketing department and which is calculated as a set percentage of management
fees received for UK and certain continental European clients following successful marketing by the
individual over a three year period.

ITEM 7: TYPES OF CLIENTS

Types of Clients - As noted under Item 4 – Advisory Business above, SCM provides discretionary
investment advisory services to: (i) the SCM Funds; (ii) certain other pooled investment vehicles offered
solely outside the U.S. to non-U.S. investors; (iii) funds that are registered as investment companies under
the Investment Company Act of 1940, as amended, to which SCM serves as discretionary sub-adviser;
(iv) separately managed accounts and (v) Somerset Singapore. At the time of writing this brochure Somerset
Singapore is not acting as a client of SCM. SCM’s clients and the investors in the SCM Funds may include
corporations, endowments, foundations, trusts, estates, charitable organizations, pension and profit sharing
plans and high net worth individuals. The SCM Funds are offered exclusively to investors who qualify as
“accredited investors” as defined in Regulation D under the Securities Act of 1933, as amended, and
“qualified purchasers” as defined in Section 2(a)(51) of the Investment Company

Act of 1940, as amended, (the “Investment Company Act”).

Minimum Investment Requirements – SCM generally requires that a client invests a minimum of
$50,000,000 to open a managed account. However, SCM may accept a lesser initial investment in its sole
discretion.

The minimum investment in respect of each SCM Fund is set out in the SCM Fund’s governing documents.
The Manager or Directors (as the case may be) of each SCM Fund may, in its or their discretion, waive the
minimum investment amount.