Sparx Asset Management Co Ltd

Item 5: Fees and Compensation
In general, fees are based on a percentage of the current market value of the assets under
management (“Management Fee”). In certain situations, SPARX may receive fees based upon
criteria other than a percentage of assets under management, including flat and Performance Fees.
Management Fees may range as high as 2% of assets under management per annum, payable on a

monthly or quarterly basis or as negotiated with the client. A client’s account may hold shares of
mutual funds for which a separate management fee is charged.

In addition to Management Fees, SPARX may charge clients a performance fee based on the
percentage of the total investment return over a fixed period of time and as of the date of any
withdrawal or redemption of the investment (“Performance Fee”). Performance Fees range as high
as 20% and generally payable semi-annually or annually regarding the return above the high water
mark.

Expenses related to the assets under management or funds such as custody, administration, legal,
accounting, professional, and other incidental fees and expenses are payable by the clients and funds.

Item 7: Types of Clients
SPARX offers portfolio management services to institutional investors, including banking and thrift
institutions, pension and profit sharing plan businesses, private investment partnerships and
companies, sophisticated qualified high net worth individuals, and certain government organizations.

SPARX also offers investment advisory services to investment companies registered with the SEC,
as a sub-adviser to their investment managers. SPARX also offers sub-advisory services to private
funds.

The requirement for opening an account or investing in a fund widely varies. In general, the
minimum account size for a client is $50 million while the minimum initial investment for a fund is
$1 million. Minimum initial investment for each strategy is described in the next section of Methods
of Analysis, Investment Strategies, and Risk of Loss. Initial investments of a lesser amount may be
accepted at the sole discretion of SPARX, a fund’s board of directors, or a fund’s trustee.