General Information for Annual Ratio Processing

Details of how Eagle Performance calculates gross returns using annual ratios follow:

• A return can be grossed up for the annual expense ratio or netted down by the annual expense waiver. It can also be configured to be both grossed up and netted down.

• The expense adjustments are processed (reinvested) monthly.

• Expense adjustments can be calculated according to either a daily or monthly accrual method. The daily accrual method requires daily NAVs for the entire performance period. Monthly accruals require month end NAVs. While the accrual methodology is configurable, the reinvestment always occurs at month end (see step 2 For each month in the specified performance period in Annual Ratio Methodology).

• The calculations support leap years as well as performance periods that cross over leap years.

• The calculations support partial first and last months.

• The calculations support gross return calculations where the annual expense ratio changes during the performance period.

• The calculation uses a weighted average monthly ratio whenever an expense ratio changes on a mid-month date. For example, if the annual ratio was 1.2 up until 3/10/08 and then changed to 1.4, then the monthly ratio is based on 1.2% for 10 days and 1.4% for 21 days.

• Eagle Performance utilizes the entity module and its tables for storing and maintaining expense ratio and waiver data (including alternate expense ratios and the accrual methodology override.)

• The calculations rely on a default column location for looking up the annual ratios for expenses and waivers (MFP_EXP_RATIO & MFP_ANN_EXPWAIVER). You can also store alternate expense ratios on any user defined column. The Dynamic Performance field has a field-level setting that allows you to override the use of the default value and point it to any other value you want.