Sumitomo Mitsui DS Asset Management Company Limited

Item 5.              Fees and Compensation

Advisory Fees
Our standard annual advisory fee for portfolio management of Japanese equity portfolios for
non-Japanese investors ranges from 0.5% to 0.2% of assets under management, billed
quarterly in arrears based on quarter-end account values. Fees may be negotiated, and
individual client agreements may specify different fee schedules based on the scope and

complexity of services, account size, and other factors.

Different fee arrangements, including fee discounts or performance-based compensation,
create an incentive for us to favor accounts that pay higher fees. We address this conflict
through our allocation policies and supervisory oversight.

Fee Methodology & Billing
We calculate our investment advisory fees as set forth in the investment advisory agreement
with each client, and in general we calculate fees in proportion to the client’s assets under
management using either the month-end asset balance or the average daily balance as the
basis for this calculation, and it is common practice to treat accounts on a non‑aggregated
basis.

We do not currently have any U.S. clients whose fees are subject to an annual cap. At present,
all U.S. client accounts are billed in accordance with the fee arrangements agreed with each
client, without applying an annual cap. However, we may consider such arrangements on a
case-by-case basis in the future.

Other Costs
Clients also bear custodial fees, transaction costs, and fund-level expenses (e.g., mutual
fund/ETF management fees), which are separate from our advisory fee.

Negotiability & Conflicts
Under certain circumstances, we may offer fee discounts or alternative fee arrangements.
These variations can create potential incentives or conflicts of interest, which we address
and mitigate through our compliance program. Clients may request additional information
about how their fees were determined at any time.

Item 7.            Types of Clients

As noted above under “Advisory Business,” we provide investment management services to
institutional investors, primarily consisting of governmental pension funds, private corporate
pension funds and related trusts. There is no clear standard for the minimum account size.