Symphony Asset Management LLC

ITEM 5           FEES AND COMPENSATION

Advisory Fees

Symphony’s fees for investment management services are typically based on a fixed or tiered
percentage of assets under its management. Certain eligible clients may also pay performance fees
or special profit allocations in addition to asset based fees.

Symphony’s fee arrangements are based on various factors, which include type of investment
strategy, asset class, services provided, type of client and/or account, size of account and for private
funds, the time of investment among other factors. Fees and services may be negotiated based on
these and other factors. Some clients pay higher or lower fees than other clients and some existing
clients pay higher or lower fees than new clients. Related accounts may be aggregated for fee
calculation purposes in certain circumstances. See below for a more detailed description of
Symphony’s fees.

When Symphony calculates fees, valuations of account assets are determined in accordance with its
valuation procedures, which generally rely on third party pricing services, but may permit the use of
other valuation methodologies in certain circumstances. Because the use of certain valuation
methodologies presents a potential conflict for Symphony, in that its fees are generally based on the
value of assets in a client’s account, Symphony has adopted policies and procedures to seek to
ensure that its valuations are fair. Symphony’s determinations may differ from valuations reflected in
a client’s custodial statements. Fees are generally payable monthly or quarterly (either in advance or
in arrears as negotiated) based upon monthly or calendar quarter-end market value, as the case may
be.

Performance-based fees may create an incentive for Symphony to make investments that are riskier
or more speculative than would be the case in the absence of a performance-based fee. In these
instances, Symphony’s compensation may be larger than it would otherwise have been because the
fee will be based on account performance instead of, or in addition to, a percentage of assets under
management. See Item 6 entitled Performance-Based Fees and Side-by-Side Management for a
discussion of potential conflicts as a result of charging fees based on assets under management.

Holdings in a client’s separate account may include investment companies or other pooled investment
vehicles, such as private investment funds, for which a separate management fee is charged. In the
event that client assets are invested in an investment company or other fund for which Symphony or
an affiliate serves as adviser, those assets are generally excluded from the applicable advisory
account fees. Symphony typically waives management fees and performance fees on assets
Symphony manages for its employees and Proprietary Accounts.

Fee Schedules

The following sets forth Symphony’s basic advisory fee arrangements, although these fees and
other compensation may be negotiated and arrangements with different clients may vary. Fees for
all types of accounts are payable quarterly, either in advance or arrears.

Institutional Separately Managed Accounts

Symphony generally receives from Institutional Separately Managed Account clients a fixed or tiered
fee equal to a percentage of the client’s total assets under Symphony’s management. The fees paid

by Institutional Separately Managed Accounts are determined through negotiation and are set forth
in Symphony’s IMA with the client. The fees generally range from 1% to 2% per annum on accounts
for which Symphony uses short-selling, leverage, hedging, derivatives and similar investment
methods in the investment strategy (“Hedged Strategies”). For long only Institutional Separately
Managed Accounts which do not use Hedged Strategies, depending on the investment strategy,
assets under management, type of account, services provided and other factors, the fees generally
range from 0.37% to 1% per annum.

Symphony may charge Institutional Separately Managed Accounts a performance fee, in compliance
with Rule 205-3 promulgated under the Investment Advisers Act of 1940 (the “Advisers Act”), as
amended, and all applicable laws relating to such a performance fee.

Private Funds

Hedged Private Funds

For both on-shore and off-shore Private Funds which primarily invest in fixed income instruments in
Hedged Strategies, (“Credit Hedge Funds”) depending on the investment strategy, Symphony
receives an annual management fee which generally ranges from 1% to 2% of the net asset value of
each investor’s capital account funds. In addition Symphony receives from Credit Hedge Funds an
annual performance-based special profit allocation or an annual performance fee in the range of 10%
to 20%. The annual performance fee or special profit allocation is based on net profits after
management fee and any applicable performance hurdle.

Long-Only Private Funds

For private funds that are long only and do not utilize Hedged Strategies, Symphony receives an
annual management fee, which is generally tiered based on the amount invested and ranges from
0.45% to 0.55% of an investor’s capital account.

The fees and expenses for each Private Fund, whether Hedged or Long-Only, are described in more
detail in each Private Fund’s offering documents. If lower fees are negotiated with a specific investor
or shareholder in a Private Fund, such fee would be set forth in an agreement between the Private
Fund and such investor or shareholder.

Collateralized Loan Obligations

For providing investment services as Collateral Manager or Sub-Advisor of CLOs, Symphony’s fees
range from 0.30% to 0.50% per annum based on assets under management. For providing services
to certain CLOs, Symphony receives a performance fee. The fees and valuation methods used to
determine the fee are described in more detail in the offering documents for the CLOs, the Collateral
Management Agreement or IMA entered into between Symphony and the CLO Issuer or the Advisor
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ITEM 7          TYPES OF CLIENTS

Symphony provides investment advisory services to a wide variety of institutional clients, including
pension funds, foundations, endowments, sovereign wealth funds, private investment funds,
structured debt vehicles (primarily CLOs), registered investment companies, and other pooled
investment vehicles. Investors in Symphony managed strategies may include public and corporate
pension funds, Taft-Hartley Plans, sovereign wealth funds, high net worth individuals, corporate non-
pension accounts, endowments and foundations. Prior to investing in any funds or other pooled
investment vehicles, an investor should review the relevant offering materials for important
information concerning the objectives, policies, strategies, risks, fees, and other important
information. Symphony reserves the right to refuse to accept any account for any reason.

Institutional Separately Managed Accounts

Symphony generally requires a minimum account size for separate account assets under
management in a range of $50,000,000 to $100,000,000 depending on the investment strategy.
This minimum may be negotiated. In determining the acceptable minimum account value,
Symphony considers arrangements with other financial service providers to the accounts and
certain services provided by the custodian.

Mutual Funds, Private Funds and Collateralized Loan Obligations

The prospectus, confidential private offering circular or private offering memorandum for each
Mutual Fund, Private Fund and CLOs and other structured debt vehicles advised by Symphony
includes information regarding the minimum investment requirements for each such fund.

Proprietary Accounts

Symphony, independently or together with its parent Nuveen, may also create Proprietary Accounts
in order to develop a performance track record in new investment products and/or strategies before
offering them to outside investors. Such accounts may be seeded by Symphony, its affiliates and/or
its senior investment and management personnel who simultaneously manage multiple types of
investment vehicles, including sub-advised mutual funds, utilizing the same or similar investment
strategies. Generally, management and/or performance-based fees are waived for Proprietary
Accounts. Generally, there is no minimum account size for Proprietary Accounts.