Virtus Advisers LLC

Item 5 – Fees and Compensation
This section describes our basic fee schedule. VA reserves the right to negotiate all fees and
annual minimums based on individual client considerations, including but not limited to, number and
frequency of reports and client meetings, individual security investments versus common or
collective funds or mutual funds, investment guidelines and restrictions, or account size. We believe
that our fees are competitive with those charged by other investment advisers for comparable
services, but other firms may offer similar services for lower fees.

The specific manner in which fees are charged is established in a client’s written agreement with
VA. VA typically charges its clients a fixed percentage fee per annum for investment advice based
on the market value of the assets under management, payable quarterly in arrears. In limited
circumstances, we may offer fixed or other fee arrangements. Assets under management include a
client’s uninvested cash position for which VA does not provide investment advice. First and last
quarter fees are generally calculated based on the number of days in the quarter VA managed the
account. VA will invoice the client or the client’s custodian directly if instructed by the client in the
investment advisory agreement or other written authorization. Clients can elect to be billed directly
for fees or authorize VA to directly debit fees from their accounts. If you direct your custodian to pay
VA from your account, your custodian should send a quarterly statement directly to you, which
should disclose transactions made in the account and VA’s fees. VA (or its service provider) will
generally receive copies of the custodian’s statements in paper or electronic form. It is important
that you compare the client reports you receive directly from us to the official custodial records you
receive from your custodian. VA’s standard advisory contract is cancelable by either a client or VA
thirty days after receipt or delivery of written notice. Other termination conditions may be negotiated
to accommodate special client requirements.

VA acts as subadviser to one or more Virtus Funds or manages accounts that invest in such Funds or
third- party Funds. To the extent that client accounts are invested in Funds, these funds generally charge
a management fee for their services as investment managers. This management fee, along with other
charges, is included in the “expense ratio” of the fund. These fees are described in each fund’s
prospectus and are in addition to the fees you pay to VA. However, when a VA portfolio manager
determines to invest assets of an individual discretionary client (excluding asset allocation strategy
accounts) in a Fund for which it (or an affiliate) also acts as adviser and/or subadviser and receives an
investment advisory fee, the Firm will offset the Fund fee against the individual advisory fee.
If the client account is in an asset allocation strategy using Funds, including the Virtus Funds, an asset
allocation fee is charged in addition to the management fees the funds pay to the adviser for investment
management of the funds.
When VA uses an affiliated or unaffiliated sub-adviser in providing advisory services, clients will not
incur any increase in advisory or other fees as a result of such sub-advisory arrangement. VA
generally shares its fees with the entity providing sub-advisory services to VA (in the case of certain
affiliates, this can be affected through the affiliated sub-adviser receiving the fee and allocating a
portion of the fee to VA through intercompany transactions).

Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which will be incurred by the client. Refer to “Item 12. Brokerage Practices” for more
information.

To the extent that a client’s assets are invested in an account overseen or held by the client’s
trustee or custodian, the client should be aware that the trustee or custodian may also charge
management or transactional fees with respect to such assets. Mutual funds, UCITS, ETFs and
alternative investments bear their own operating expenses, including compensation paid to their
advisers and other service providers as well as other expenses and fees disclosed in their
respective prospectus or offering documents.

The written terms of each client’s contract will prevail with respect to all of those strategies listed
below. In addition to those listed below, VA may develop new strategies managed in seed accounts
which may be offered with negotiated fees. Standard fee schedules and minimum separate account
size for strategies managed by VA are as follows:

 Virtus Multi-Asset:

     Asset Allocation Advisory
      • 0.225% on the first $50 million
      • 0.200% on the next $50 million
      • 0.175% on the next $100 million
      • 0.150% on the balance of assets
      • Minimum Separate Account: $50 million

 Virtus Systematic:

   Emerging Markets Equity                                 U.S. Convertibles
    • 0.7000% on the first $50 million                      • 0.6500% on the first $50 million
    • 0.6000% on the next $50 million                       • 0.6000% on the next $50 million
    • 0.5000% on the next $400 million                      • 0.5500% on the next $150 million
    • 0.4500% on the balance of assets                      • 0.5000% on the balance of assets
    • Minimum Separate Account: $25 million                 • Minimum Separate Account: $25 million

   Global Equity                                           U. S. Small Cap Equity
    • 0.50% on the first $50 million                        • 0.700% on the first $50 million
    • 0.45% on the next $50 million                         • 0.600 on the next $50 million
    • 0.40% on the next $400 million                        • 0.550 on the next $150 million
    • 0.35% on the balance of assets                        • 0.500 on the balance of asset
...

Item 7 – Types of Clients
VA provides discretionary and non-discretionary investment advisory services to investment
accounts for institutional clients, open-end investment companies, UCITS, 529 Plan, and Private
Funds.

VA delegates certain responsibilities such as trading and operations to affiliated and unaffiliated
service providers.

We require new clients to enter into a signed written investment agreement outlining investment
guidelines, fees and other conditions for starting or maintaining an account (such as minimum
account size). The Board of Trustees for each Registered Investment Company and UCITS
establishes guidelines and restrictions which can be found in the applicable offering documents.

Fees and minimum initial assets under management are subject to modification and negotiation to
accommodate special client requirements. We reserve the right to waive any and all minimum
account requirements and to accept or continue to provide services to smaller accounts, at our sole
discretion.

Shareholders in investment companies, investors in other pooled products are not advisory clients
of VA.

VA delegates certain responsibilities such as trading and operations to affiliated and unaffiliated service

providers, including VA’s affiliate, Virtus Shared Services (“VSS”) which provides a variety of back office
and trading operations to VA (in addition to other VA affiliates).