Stonebridge Advisors LLC

Item 5 – Fees and Compensation

Stonebridge’s fee schedule for SMAs and UMAs is generally as follows:

               Value of Portfolio                    Annual Management Fee
               Up to $50 million                             0.40%
               Over $50 million                              Negotiable

We reserve the right to deviate from the above schedules on a case-by-case basis.

For First Trust Funds sub-advised by Stonebridge (PSI, FPF, FPE, FPEI and VIT2), management
fees are payable to First Trust by the investor. Such fees are disclosed in those funds’ respective
prospectuses.

Stonebridge does not have custody of investor assets. Therefore, our billing is primarily handled
through our investors’ custodians. We bill the custodians for our advisory fees either in advance
or in arrears, depending on the terms specified in the advisory contract.

Investors on a WRAP single contract platform (i.e. investors whose advisory contracts are only
with the WRAP platform provider and not with Stonebridge directly) should examine their
agreements with the WRAP program sponsor to determine the exact manner in which fees are
assessed and billed by the WRAP program sponsor.

When Stonebridge is responsible for assessing fees, such as for investors on a dual contract
platform (i.e. investors whose advisory contracts are with both the WRAP platform provider and
with Stonebridge), we will bill “in arrears”, and assess our management fees based on the market
value of the investor’s account on the last trading day of the preceding calendar quarter. In the case
of an account terminated during the quarter, the management fee is based on the average market

value of the assets held in the account during the shortened billing period. If the account has been
under management for less than the full quarter, the fee will be prorated for the partial period. If
we are unable to collect the account’s final fee payment by billing the investor’s custodian (which
most often occurs when an investor’s custodial account has been terminated), we will bill the
investor directly for the final fee.

Stonebridge’s advisory fees for SMAs do not include brokerage commissions, transaction fees,
and other related costs and expenses that may be incurred by the investor, such as charges
imposed by custodians, brokers, and other third parties, fees charged by managers, custodial
fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund
fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds
and exchange-traded funds also charge internal management fees, which are disclosed in those
funds’ prospectuses. Such charges, commissions, fees and costs charged to SMA and fund
investors are exclusive of, and in addition to, Stonebridge’s fee, and we do not receive any portion
of these charges, commissions, fees, and costs (except in those cases where a portion of a
portfolio’s assets are invested in a fund sub-advised by Stonebridge).

Please refer to Item 12 below for a description of the compensation (e.g., commissions, if any)
charged by broker-dealers.

As described in Item 4 above, in certain instances for each of the SMA strategies described above,
Stonebridge may invest an SMA portfolio in exchange-traded funds (ETFs), and closed-end funds
(CEFs), that are either primarily invested in preferred securities or in cash equivalents. If this is
done, investors need to be aware that the underlying ETF or CEF may charge additional
investment management fees that are separate and distinct from the investment management
fees charged for Stonebridge’s SMA services.