FAYEZ SAROFIM & CO

Our History and Organization Fayez Sarofim & Co., also referred to herein as “the firm”, was founded in August 1958. Since our founding, we have focused on the investment counseling business. The firm is located in one office in Houston, Texas. Fayez Sarofim & Co. is registered under the Investment Advisers Act of 1940, as amended, and regulated by the Securities and Exchange Commission. The firm’s registration as an investment adviser is required by law and does not imply a certain level of skill or training. Fayez Sarofim & Co. is a wholly-owned subsidiary of The Sarofim Group, LLC, which is 100 percent owned by current, active employees of Fayez Sarofim & Co. and members of the Sarofim family. Fayez Sarofim & Co. is principally owned by the Sarofim SGI Voting Trust, which is the majority shareholder of The Sarofim Group. The Sarofim SGI Voting Trust is controlled by Christopher Sarofim, the Chairman of the firm. The Sarofim Group is the ultimate corporate parent of a group of affiliated companies that generally operates as a single advisory business and includes the firm, two other registered investment advisers. The other registered adviser affiliates are:  Sarofim International Management Company, LLC  Sarofim Trust Co., LTA The firm is also affiliated with Sarofim Realty Advisors, LLC which is a separately registered real estate investment adviser. In our more than six decades of operations, Fayez Sarofim & Co. has served a broad range of clients through numerous business cycles. As of December 31, 2025, the firm’s assets under management totaled approximately $27.8 billion. The firm’s other registered investment adviser affiliates had assets under management of approximately $15.5 billion. Thus, the total client assets under management by the investment professionals of the firm and the registered investment adviser affiliates were approximately $43.3 billion as of December 31, 2025. Please refer to “Our Advisory Services” below for a discussion of the client assets managed by Fayez Sarofim & Co. on a discretionary and non-discretionary basis.

Our Advisory Services Fayez Sarofim & Co. provides investment supervisory services and other investment advisory services to a broad range of clients. Portfolio managers at the firm operate within the guidelines set by our Investment Committee. The Committee, chaired by Mr. Sarofim, is comprised of five senior investment professionals and five sector leaders that serve in a non-voting capacity. The Investment Committee is responsible for the firm’s portfolio structures and all investment decisions. The firm’s advisory services are detailed in the applicable governing documents, separate account agreements and other offering documents. The firm has and may in the future enter into side letters or other similar agreements with certain investors that have the effect of establishing rights (including economic or other terms) under, or altering or supplementing the

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terms of, the relevant governing documents or separate account agreements with respect to such investors. Large Capitalization Equity Product Fayez Sarofim & Co.’s primary investment product is our Large Capitalization Equity Product, which is available to both institutions and individuals. You can access this product directly by opening an account at Fayez Sarofim & Co. You can also access this product by opening a wrap fee account through a sponsoring financial services firm, by investing in certain of the mutual funds or ETFs that we sub-advise for BNY Mellon Investment Adviser, Inc., a subsidiary of Bank of New York Mellon Corp, or by investing in the Sarofim Equity Fund (an SEI Advisors’ Inner Circle Fund). The firm also has advisory and sub-advisory arrangements with banks and trust companies. Our equity strategy is focused on domestically traded common stocks with large market capitalizations and high daily trading volumes. American Depositary Receipts, preferred stocks, and foreign stocks may also be included if permitted by client guidelines. We seek to invest in the stocks of high quality, financially sound industry leaders that have an expanding global presence. We seek to maintain an investment perspective of at least three to five years, which generally results in low portfolio turnover and is typically tax efficient for taxable investors. Our strategy does not use derivatives, options, short-selling, leverage, or initial public offerings. We do not attempt to time the market. Global Equity Product Institutions and individuals seeking greater international equity exposure may wish to invest in Fayez Sarofim & Co.’s Global Equity Product. While the investment approach is similar to that of our Large Capitalization Equity Product, the Global Equity Product has a larger concentration in foreign-based companies and may include shares that are not traded on domestic exchanges. Global Equity Product portfolios primarily have their assets in common stock, ordinary shares, or American Depository Receipts. We focus on high quality multinational companies with large market capitalizations. Generally, at least 25 percent of assets are invested in companies organized in the United States and at least 25 percent of assets are invested in companies organized in other countries. We maintain an investment perspective of at least three to five years, which generally results in low portfolio turnover and is typically tax efficient for taxable investors. You can access this product by opening a separate account with the firm; by investing in the BNY Mellon Worldwide Growth Fund, which we sub-advise; or by opening a wrap fee account through a sponsoring financial services firm. Additionally, non-US investors may access this product by investing in the Sarofim Global Equity Fund. International Equity Product Institutions and individuals seeking discrete international equity exposure may wish to invest in Fayez Sarofim & Co.’s International Equity Product. The International Equity Product shares an

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investment approach consistent with our other products, with the key point of differentiation being its exclusive focus on internationally domiciled companies. International Equity Product portfolios primarily have their assets in common stock, ordinary shares, or American Depository Receipts. The International Equity Product invests in the stocks of high-quality international companies with large market capitalizations and does not seek specific geographic exposures. Stock selection is primarily driven by the assessment of a company’s total return potential over a three-to-five-year investment horizon, which results in low portfolio turnover and is typically tax efficient for taxable investors. You can access this product by opening a separate account with the firm or by opening a Unified Managed Account (UMA) with one of our UMA partners. Concentrated Equity Product Institutions and individuals seeking a concentrated portfolio composition may wish to invest in Fayez Sarofim & Co.’s Concentrated Equity Product. While the investment approach is similar to that of our Large Capitalization Equity Product, the Concentrated Equity Product owns more concentrated positions in our highest conviction holdings. You can access this product by opening a separate account with the firm. Concentrated Equity Product portfolios are primarily invested in domestically traded common shares with large market capitalizations and high daily trading volumes. American Depositary Receipts, preferred stocks, and foreign stocks may also be included if permitted by client guidelines. Concentrated Equity Product portfolios will typically be comprised of 15-30 stocks with a maximum weighting of 20% of the portfolio in a single security. Stock selection is primarily driven by the Investment Manager’s assessment of the stock’s total return potential relative to downside risk and not by adherence to a singular “growth” or “value” strategy. As such, the composition of the portfolio will vary depending upon market conditions and the opportunities available in the market at any given time. As a result, the portfolio is likely to experience a higher level of turnover and volatility than the Large Capitalization Equity Product and is not managed for tax efficiency. You can access this product by opening a separate account with the firm. You can also access this strategy by investing in the BNY Mellon Concentrated Growth ETF. Equity Income Product The Sarofim Equity Income Product seeks income and long-term capital appreciation by primarily investing in large capitalization domestic equities and other income-producing securities. Over periods of three-to-five years or longer, we strive to achieve a growing stream of income and total returns in excess of the income generated. Our Equity Income investment strategy primarily utilizes common stock, ordinary shares, and American Depository Receipts of high-quality companies based either in the United States or in other countries. Companies represented in the portfolio typically have market capitalizations of at least $5 billion. Using fundamental analysis, we seek to identify companies in business

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segments that have demonstrated the ability to maintain and grow earnings with a desire to return increasing amounts of cash to shareholders. You can access this product by opening a separate account with the firm. Core Fixed Income Product Fayez Sarofim & Co. also offers a Core Fixed Income Product, which is available directly to both institutions and individuals when they open an account with the firm. Our fixed income strategy emphasizes risk-averse management, current income and low cash reserves. Portfolio holdings may include United States Treasury securities, United States government agency securities, high quality corporate and municipal bonds, high quality commercial paper, and shares of money market funds. We select specific sectors and securities that we believe offer the best combination of quality, liquidity, income generation, and relative value consistent with our risk parameters. Foreign government and foreign corporate bonds are generally not part of our strategy. Municipal Bond Portfolios The firm also manages tax-free income portfolios, consisting of high quality municipal bonds rated AA or higher. Portfolios are customized relative to the client’s state of residence. Balanced Portfolios Fayez Sarofim & Co. will also construct balanced portfolios for our institutional and individual clients. These balanced portfolios combine the firm’s equity and fixed income strategies in proportions tailored to client requirements. Private Placements From time to time, Fayez Sarofim & Co. provides certain firm clients with greater than $20 million invested with the firm, as well as certain third-party investors or other persons, including the firm’s principals, personnel and certain other persons associated with Fayez Sarofim & Co., investment opportunities to directly or indirectly invest in certain privately-held companies and/or pooled investment vehicles, in each case via a private placement. In connection with any such private placement, Fayez Sarofim & Co. will endeavor to negotiate investment terms for participating clients as part of the firm’s collective negotiations for its other client accounts and proprietary accounts participating in the investment. Meeting Individual Client Needs The firm manages its separate portfolios for institutions and individuals on an account by account basis, taking into consideration a client’s financial resources, investment objectives, and needs. The firm addresses individual requirements for such items as current income, cash flow, and taxes. The firm will also vote the proxies related to securities held in a client’s account if

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requested to do so by the client. Proxies are voted in accordance with the firm’s Proxy Voting policy and established procedures. Please refer to Item 17—Voting Client Securities. Fayez Sarofim & Co. prefers not to be constrained by client instructions that prohibit holding certain securities. We believe that the ability to select from the widest range of investments that are consistent with our strategy results in higher returns over time. However, the firm does manage a number of accounts subject to instructions that specify various exclusions or that limit weightings in individual sectors, industries, or securities. We will accept new accounts subject to these types of instructions as long as we do not view the proposed directives as overly restrictive or too difficult or impossible to implement and monitor. Discretionary and Non-Discretionary Accounts Fayez Sarofim & Co. manages clients’ assets on either a fully discretionary basis or a nondiscretionary basis. Most of our clients have granted us full discretionary authority to manage the investment of assets in their accounts. With full discretionary authority for an account, we are able to do the following without obtaining the client’s consent:

Determine which securities to buy or sell and when to execute the transactions Determine the total amount of securities to buy or sell, subject to available funds Determine the broker or dealer through which securities are bought or sold Negotiate with the selected broker regarding commission rates for securities transactions

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Advisory Service Fees If you open an account at Fayez Sarofim & Co., the fee you will pay for our advisory services is calculated according to one or more of the schedules presented below. Fees are billed in three month rolling periods, after the end of each such period, and are based on the market value of the assets at the end of the last day of such period on which the New York Stock Exchange is open. Asset-based advisory fees charged for the provision of Fayez Sarofim & Co.’s investment management services are based upon the valuation of securities and investments provided by Fayez Sarofim & Co.’s pricing services, which are reflected on its internally generated portfolio appraisal statements. These statements may show different market values for particular investments than what is reflected on a client’s custodial statement. Fayez Sarofim & Co. maintains policies and procedures regarding the valuation of securities and investments held in client accounts. Equity Fees: Large Capitalization Equity Product, Concentrated Equity Product, Equity Income Product, and the Equity Portfolios of Balanced Accounts Market Value of Equities

Rate

First

$2,000,000 is billed at

0.75% (or 75 basis points) per year (i.e., 0.1875% per quarter)

Next $18,000,000 is billed at

0.50% (or 50 basis points) per year (i.e., 0.1250% per quarter)

Next $20,000,000 is billed at

0.40% (or 40 basis points) per year (i.e., 0.1000% per quarter)

Next $20,000,000 is billed at

0.35% (or 35 basis points) per year (i.e., 0.0875% per quarter)

Amounts over are billed at

$60,000,000 0.20% (or 20 basis points) per year (i.e., 0.0500% per quarter)

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Equity Fees: Global Equity Product and International Equity Product Market Value of Equities

Rate

First

$50,000,000 is billed at

0.60% (or 60 basis points) per year (i.e., 0.15% per quarter)

Next $50,000,000 is billed at

0.40% (or 40 basis points) per year (i.e., 0.1% per quarter)

Amounts Over $100,000,000 0.30% (or 30 basis points) per year (i.e. are billed at 0.075% per quarter) Fixed Income Fees The fee for fixed income securities is 0.20% (20 basis points) per year or 0.05% (5 basis points) per quarter. Cash Fees Our investment advisory agreements authorize Fayez Sarofim & Co. to bill cash positions in our portfolios at an annual rate of 0.20%, or 20 basis points. Cash assets may be held temporarily in money market funds or other short-term interest-bearing arrangements. If this is the case, such assets may also be subject to fees payable to the manager of these funds in addition to the fees charged by Fayez Sarofim & Co. Notwithstanding the above, we currently waive our fees on cash positions in our portfolios for all clients; however, this should not be interpreted as a permanent waiver, and we reserve the right to reinstitute the above-referenced cash position billing rate. Private Placement Program Fees Our fee for clients participating in private placement transactions is 0.50% (or 50 bps) of a participating client’s capital contributions to each investment until such investment is fully liquidated or otherwise fully disposed of by client.

Our Billing Practices For the purpose of computing fees, we may agree to treat managed assets in related accounts as if all the assets were in one account. After the fee is computed in this way, it is divided among the accounts involved, usually in proportion to the market value of each account. This grouping of related accounts must be approved in advance by the firm, and approval is not assured. We generally do not regard our fees as negotiable because we believe our fees are in the low end of the range of fees in the industry for comparable services. However, in a few instances, the firm in its sole discretion has granted (and may in the future grant) exceptions to the application of our regular fee schedules when we believe there are highly unusual factors involved that justify exceptional treatment. The firm attempts to ensure that other clients having similar unusual factors are treated in a similar manner for fee purposes, but this cannot be assured. From

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time to time, the firm will seek to determine if such unusual factors continue to justify deviations from our regular fee schedule. As mentioned earlier, the firm’s fees are billed quarterly, in arrears. Our clients may direct their custodians to deduct Fayez Sarofim & Co.’s fees from the assets in their account. Alternatively, clients may choose not to have the fees deducted from their accounts and may arrange to pay the fees by check or wire transfer. The firm does not accept advance fee payments.

Third Party Fees You May Incur Fayez Sarofim & Co. does not provide custodial services, and we are not affiliated with a brokerage firm. The firm’s brokerage practices are discussed in Item 12 of this brochure. The advisory service fee you pay to us does not include other fees or charges you may incur in connection with your account at Fayez Sarofim & Co. The following is a non-exclusive list of the types of fees and charges that might be payable to third parties in connection with your account. This list is not meant to be exhaustive. There may be additional fees that are not included in this list. Examples of Fees Paid to Third Parties  Custodial fees  Broker commissions  Wire transfer or other transaction fees  Exchange fees  Odd lot differentials  Fees charged by mutual funds, including money market funds  Fees charged by private funds

Wrap Fee Programs and UMA Programs If you are a client of one of the wrap fee programs or UMA programs that Fayez Sarofim & Co. participates in, you do not pay any fees directly to our firm. As discussed in greater detail in Item 4, a portion of the fee you pay to the plan sponsor will compensate Fayez Sarofim & Co. for our advisory services. Please consult with your plan sponsor regarding the fees you will pay, what is included in these fees, and what additional expenses you may incur.

Mutual Funds and UCITS Funds If you invest in a mutual fund or ETF that Fayez Sarofim & Co. sub-advises for BNY Mellon Investment Adviser, Inc.; the Sarofim Equity Fund; or the Sarofim Global Equity Fund, you do not pay any fees directly to our firm. For our sub-advisory services to the BNY Mellon mutual funds, Fayez Sarofim & Co. is paid monthly fees by either the applicable mutual fund or ETF or BNY Mellon Investment Adviser, Inc. according to the contract for each fund. Information about the mutual funds sub-advised for BNY Mellon Investment Adviser, Inc., including fees, can be obtained from BNY Mellon Investment Adviser, Inc., www.bnymellonim.com/us or 1-800-645-6561.

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For the Sarofim Equity Fund, Fayez Sarofim & Co. is paid monthly fees by the mutual fund. Information about the Sarofim Equity Fund including fees, investment objectives, risk factors, charges, expenses and other information can be found in the Fund’s prospectus which can be obtained by calling 1-855-SAROFIM or 1-855-727-6346. Please read it carefully before investing. The Sarofim Equity Fund is distributed by SEI Investments Distribution Co. (SIDCO). The Fund is managed by Fayez Sarofim & Co. SIDCO is not affiliated with Fayez Sarofim & Co. For UCITS funds, Fayez Sarofim & Co. is paid a management fee for serving as Investment Manager from the Fund Managers. UCITS funds are not available or marketed to US persons. For more information about the UCITS funds managed by Fayez Sarofim & Co., contact CapitalB at Sarofim@capbp.com. Fayez Sarofim & Co. is not affiliated with a brokerage firm. Neither the firm nor any of our employees receives compensation for the sale of securities, mutual funds or other investment products. Please refer to the applicable governing documents, separate account agreements and other offering documents for complete information with respect to fees and compensation.

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Loss Fayez Sarofim & Co. provides day-to-day investment advisory services to the firm’s clients. The following is a summary of the investment strategies and methods of analysis generally used by Fayez Sarofim & Co. on behalf of the firm’s clients. More detailed descriptions of the investment strategies and methods of analysis are included in the applicable governing documents, separate account agreements and other offering documents. There can be no assurance that Fayez Sarofim & Co. will achieve the investment objectives of a particular client, and a loss of investment is possible.

Equity Products Under most circumstances, our portfolios are fully invested with low cash balances. Our longerterm investment perspective generally results in low portfolio turnover and is typically taxefficient for taxable investors. Our strategies do not use derivatives, options, short-selling, leverage, or initial public offerings. We do not attempt to time the market. Central to our philosophy is the belief that earnings growth is the most important driver of longterm stock price appreciation. In our experience, companies with dominant franchises in structurally attractive industries are most likely to generate durable growth. Generally, we invest in the stocks of high quality industry leaders that have a market capitalization of $5 billion or higher. These established companies have demonstrated sustained patterns of earnings and dividend increases. They have an expanding global presence and sustainable competitive advantages. Their balance sheets are strong, and their management teams have a record of successfully redeploying capital. To shape our portfolios, Fayez Sarofim & Co. employs a predominantly “bottom-up” investment process managed by the Investment Committee. Drawing on the fundamental research of our inhouse analysts and select external resources, the Committee formulates a macroeconomic and capital market outlook and evaluates the attractiveness of the various economic sectors and industries. The most attractive segments are identified along with those areas that should be underweighted or avoided. This macro overlay provides a context for the analysts’ research efforts and helps direct them to the industries and companies most aligned with the Committee’s current outlook. The analysts present specific buy and sell recommendations to the Investment Committee, which makes the final decision. The Investment Committee is responsible for the firm’s portfolio structure and all investment decisions. Our internal research function is crucial to this investment process. We perform independent, fundamental analysis on all of our investments and potential investments. Our research analysts visit companies, interview company managers, attend trade conferences, review corporate reports, filings and press releases, and stay abreast of financial and market news. We subscribe to numerous software and on-line products and selectively utilize numerous outside sources of information, such as government agencies, consultants, and Wall Street sources. The most important output of our internal research effort is proprietary projections of a company’s

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earnings, cash flow and dividends over a multiple-year period. These projections drive our valuation analysis. We seek to control investment risk through disciplined adherence to our investment decisionmaking process. We continuously monitor the underlying operating and earnings trends of the companies represented in the portfolio and remain alert to changes in demand, competition, or technology that may influence these trends. Diversification also plays a role in our approach to controlling risk, and we monitor portfolios by industry exposure and individual stock concentration. We confine our equity holdings to securities with large market capitalizations and high daily trading volumes to help limit liquidity risk. Although we strive to mitigate risks that may accompany an investment in products, clients who invest can lose money, including losing a portion of their original investment. The prices of the securities in our portfolios fluctuate. We cannot guarantee any particular level of performance. Below is a list of the types of risks you should consider before investing in our products. While the discussion below often refers to an “account,” it enumerates certain risk factors that apply generally to an investment in an account or other fund, vehicle or portfolio managed by Fayez Sarofim & Co.

Concentration Risk. The risk that there is an insufficient level of diversification such that an investor is excessively exposed to one or a limited number of investments, industries or sectors. Fayez Sarofim & Co. expects to make a limited number of investments, resulting in the risk that the aggregate returns realized by an account may be substantially adversely affected by the unfavorable performance of, or a default in respect of, even one of such investments.

Equity Securities Risk. The value of an account will fluctuate with changes in the value of the equity securities in which it invests. Equity securities prices fluctuate for several reasons, including changes in investors’ perceptions of the financial condition of an issuer or the general condition of the relevant equity market, such as market volatility, or when political or economic events affecting an issuer occur. Common stock prices may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase. Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole, or they may occur in only a particular country, company, industry or sector of the market.

Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of an account’s assets and distributions may decline.

Non-U.S. Securities Risk. Non-U.S. securities may be subject to higher volatility than securities of domestic issuers due to possible adverse political, social or economic developments, restrictions on foreign investment or exchange of securities, capital controls, lack of liquidity, currency exchange rates, excessive taxation, government seizure of assets, the imposition of sanctions by foreign governments, different legal or

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accounting standards, and less government supervision and regulation of securities exchanges in foreign countries.

Significant Exposure Risk. To the extent an account invests a large percentage of its assets in a single asset class or the securities of issuers within the same country, state, region, industry or sector, an adverse economic, business or political development may affect the value of the account’s investments more than if the account were more broadly diversified. A significant exposure makes the account more susceptible to any single occurrence and may subject the account to greater market risk than a portfolio that is more broadly diversified.

Style Risk. Our investment strategy focuses on what we believe to be high-quality stocks with large market capitalizations. As a result, our portfolios may underperform the broader market during intervals when such securities are out of favor with investors.

Value Stocks Risk. The intrinsic value of a stock with value characteristics may not be fully recognized by the market for a long time or a stock judged to be undervalued may actually be appropriately priced at a low level.

Fixed Income Products Fayez Sarofim & Co.’s Core Fixed Income Product emphasizes risk-averse management, current income and low cash reserves. Portfolio holdings may include United States Treasury securities, United States government agency securities, mortgage pass-through securities of governmentsponsored enterprises (GSE) such as Ginnie Mae, investment grade corporate bonds, municipal bonds, high quality commercial paper, and shares of money market funds. Foreign government and foreign corporate bonds and sub-prime mortgages are not part of our strategy. In our fixed income portfolios, we emphasize certain sectors and select specific securities that we believe offer the best combination of quality, liquidity, income, and value consistent with our overall duration target. The duration of a fixed income portfolio is a measure of risk that indicates the sensitivity of the portfolio’s market value to changes in interest rates. We will make modest shifts in our duration target to reflect changes in the Investment Committee’s projections for interest rates and inflation. The Investment Committee determines the firm’s overall outlook for the economy, interest rates, and inflation. Given this backdrop, the investment professionals serving on the firm’s Fixed Income Investment Committee establish the specific parameters for fixed income portfolios. The Fixed Income Investment Committee meets quarterly to set duration targets and sector emphasis and to review and approve the list of corporate bond issuers that may be utilized. The firm’s research analysts conduct fundamental credit analysis. Our approach considers not only the current creditworthiness of an issuer but also the ability of the issuer to grow and finance its future business plans. Our research analysts monitor the credit quality of existing holdings and recommend high quality corporate issuers to the Fixed Income Investment Committee for possible inclusion on the list of approved issuers.

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Within the framework set by the Fixed Income Investment Committee, fixed income portfolio managers structure portfolios to meet client requirements. Before transactions are executed, the portfolio managers utilize the CMS/Bond Edge portfolio management system to simulate the transaction and its effect on the portfolio. This process includes an analysis of the effect on the portfolio’s duration, current yield, average maturity and other characteristics. The simulated portfolio can also be stress-tested under various interest rate assumptions. While we emphasize risk-averse management and capital preservation in our Core Fixed Income Product, clients who invest in this product can lose money, including losing a portion of their original investment. The prices of the securities in our portfolios fluctuate. We cannot guarantee any particular level of performance. Below is a representative list of the types of risks you should consider before investing in this product. While the discussion below often refers to an “account,” it enumerates certain risk factors that apply generally to an investment in an account or other fund, vehicle or portfolio managed by Fayez Sarofim & Co.

Call Risk. Some debt securities may be redeemed, or “called,” at the option of the issuer before their stated maturity date. In general, an issuer will call its debt securities if they can be refinanced by issuing new debt securities which bear a lower interest rate. An account is subject to the possibility that during periods of falling interest rates an issuer will call its high yielding debt securities. An account would then be forced to invest the proceeds at lower interest rates, likely resulting in a decline in the account’s income.

Debt Securities Risk. Investments in debt securities subject the holder to the credit risk of the issuer. Credit risk refers to the possibility that the issuer or other obligor of a security will not be able or willing to make payments of interest and principal when due. Generally, the value of debt securities will change inversely with changes in interest rates. To the extent that interest rates rise, certain underlying obligations may be paid off substantially slower than originally anticipated and the value of those securities may fall sharply. During periods of falling interest rates, the income received by an account may decline. If the principal on a debt security is prepaid before expected, the prepayments of principal may have to be reinvested in obligations paying interest at lower rates. Debt securities generally do not trade on a securities exchange making them generally less liquid and more difficult to value than common stock.

Extension Risk. Extension risk is the risk that, when interest rates rise, certain obligations will be paid off by the issuer (or other obligated party) more slowly than anticipated, causing the value of these debt securities to fall. Rising interest rates tend to extend the duration of debt securities, making their market value more sensitive to changes in interest rates. The value of longer-term debt securities generally changes more in response to changes in interest rates than shorter-term debt securities. As a result, in a period of rising interest rates, securities may exhibit additional volatility and may lose value.

Floating Rate Securities Risk. Floating rate securities are structured so that the security’s coupon rate fluctuates based upon the level of a reference rate. As a result, the coupon on

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floating rate securities will generally decline in a falling interest rate environment, causing an account to experience a reduction in the income it receives from the security. A floating rate security’s coupon rate resets periodically according to the terms of the security. Consequently, in a rising interest rate environment, floating rate securities with coupon rates that reset infrequently may lag behind the changes in market interest rates. Floating rate securities may also contain terms that impose a maximum coupon rate the issuer will pay, regardless of the level of the reference rate which would decrease the value of the security.

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Fayez Sarofim & Co. serves as an investment adviser for a broad range of clients, including but not limited to:

Private employer pension and profit-sharing plans State and local government retirement systems Taft-Hartley union plans Employee savings and thrift plans Keogh plans Individuals—retirement accounts Individuals—taxable accounts Endowments, foundations, or other tax-exempt organizations Banks Trusts and estates Registered investment companies, i.e., mutual funds Insurance companies Insurance Company Separate Accounts Corporations and small businesses

We continue to seek new clients. Generally, the minimum dollar amount for new managed accounts is $5 million, subject to the firm’s discretion. However, the minimum dollar amount for new managed accounts in our Global Equity and International Products is $10 million, subject to the firm’s discretion. The firm may waive size requirements in its sole discretion if related accounts are currently under management and otherwise on a case-by-case basis.

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Fayez Sarofim & Co. does not have fee structures that include performance-based fee arrangements, which generally refers to fees based on a share of capital gains on or capital appreciation of the assets of a client. Since Fayez Sarofim & Co. does not manage accounts that are charged a performance-based fee, the firm does not manage any such accounts side-by-side with accounts that are charged another type of fee, such as an hourly or flat fee or an asset-based fee. Generally speaking, side-by-side management is a reference to the simultaneous management of mutual funds and hedge funds. Fayez Sarofim & Co. has not formed a hedge fund and is not a manager to hedge funds.

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Fayez Sarofim & Co. is affiliated with three other registered investment advisers: Sarofim International Management Company, Sarofim Trust Co., and Sarofim Realty Advisors, LLC. While the firm and certain of its “management persons” have a relationship with the above-listed “related person” investment advisers, Fayez Sarofim & Co. does not believe that the relationship is material to the firm’s advisory business or to the firm’s clients or that the relationship may result in a material conflict of interest. For purposes of this response, the firm’s investment and administrative professionals are considered “management persons” since they are considered to have a controlling influence over the firm’s management or policies or the general investment advice given to the firm’s clients. A “related person” for purposes of this response includes all employees of the firm and its affiliates other than those performing only clerical, administrative support or similar functions. The firm seeks to avoid and mitigate all conflicts of interest and has adopted policies and procedures to be followed in determining and eliminating conflicts of interest. For example, please see the discussion in the response to Item 11 Code of Ethics, Participation or Interest in Client Transactions, and Personal Trading.

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Transactions, and Personal Trading As required by SEC rules and in line with what we believe to be good business practices, Fayez Sarofim & Co. has adopted a Code of Ethics for employees and certain on-site contractors. References to “employees” in this Item 11 include such on-site contractors. The Code of Ethics is designed to reinforce a culture of compliance within the firm and to ensure that we fulfill our fiduciary duty to our clients and prospective clients. To help our employees understand, appreciate and uphold their fiduciary responsibilities, the Code of Ethics sets standards of expected conduct and outlines prohibited conduct. The code requires that each employee must:

Comply with the spirit and the letter of the federal securities laws and the rules governing the capital markets Act with competence, dignity, integrity, and in an ethical manner, when dealing with clients, the public, prospects, third-party service providers and fellow employees Use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, trading, promoting Sarofim’s services, and engaging in other professional activities Adhere to the highest standards with respect to any potential conflicts of interest with clients Recognize that he or she should never benefit at the expense of any client Conduct all personal securities transactions in a manner consistent with fiduciary obligations to clients, and avoid any actual improprieties, as well as the appearance of impropriety Treat as confidential the identity of clients and their financial circumstances and security holdings

Employees are required upon hire and annually thereafter to acknowledge that they have received, read, understood, and agree to comply with the Code of Ethics. Annual compliance training sessions, which are mandatory for all employees, review key precepts of the code. To help us enforce the Code of Ethics, we regulate and monitor employee securities trading activity and require certain periodic disclosures from employees. Within ten days of starting employment with the firm, an individual must submit an initial holdings report to the firm’s Chief Compliance Officer, detailing security holdings and the accounts in which they are held. An updated holdings report must be submitted semiannually by all employees. Employees must also have trade confirmations and monthly or quarterly statements sent to the firm. In addition, certain key employees are required to complete quarterly transactions reports. The firm’s Chief Compliance Officer or his designee reviews these reports periodically for accuracy and unusual trading activity. Employees must receive preclearance for most personal securities transactions. Sarofim may disapprove of any proposed transaction, particularly if the transaction appears to pose a conflict of interest or otherwise appears improper. The firm maintains a restricted list that includes securities that are being traded in client accounts and securities that are being considered for

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purchase in client accounts. Employee trades in securities on the restricted list may not be approved. Furthermore, employees are prohibited from engaging in securities transactions or recommending transactions for client accounts that place, or appear to place, their own interests above the interests of our clients or the firm. As an investment adviser, we hold many of the same securities that we recommend for our clients. A significant portion of the firm’s assets and our investment professionals’ net worth is invested in equity portfolios constructed and managed similarly to those of most of our clients; however, at times the firm and its employees may invest in directionally different ways from our clients. Consequently, the firm often effects transactions on behalf of clients in discretionary accounts or recommend transactions to clients with non-discretionary accounts that involve securities held in the firm’s account or in the accounts of employees. When this is the case, employee trading in the particular security must be conducted in accordance with the principles and procedures outlined in the Code of Ethics. Since Fayez Sarofim & Co. provides investment advice to various clients, including clients that routinely invest in various levels of the same issuer’s equity and debt securities, there are likely to be conflicts of interest relating to such investments that must be resolved by Fayez Sarofim & Co. Where multiple clients invest in different parts of the capital structure of an issuer, their respective interests generally will be conflicting, including in cases where the issuer becomes financially distressed. For example, it is possible for both an account employing an equity strategy and an account employing a debt strategy to be simultaneously invested in the same issuer that becomes financially distressed. In such cases, the interests of each client may be in direct conflict with another. Fayez Sarofim & Co. has adopted conflicts policies and procedures that generally provide that determinations are to be made in good faith in the collective best interests of such clients. Fayez Sarofim & Co. and our registered investment adviser affiliates have adopted and follow policies and procedures that prohibit trading while having material information that is not available to the public and during “blackout periods.” An individual employed by or associated with Fayez Sarofim & Co. may be an officer or director of a publicly traded company or a party to contractual arrangements with a publicly traded company. If so, such an individual may be prohibited by the policies of the public company from trading in the securities of that company during blackout periods imposed or recommended by the company. It is also the policy of Fayez Sarofim & Co. and our registered adviser affiliates that these individuals may not trade in securities of the public company during a blackout period. These policies also require that all directors, officers and other employees of Fayez Sarofim & Co. and our affiliates are subject to the same restrictions. Although trading in securities of the designated public company during a blackout period is prohibited in the personal accounts of employees and in the firm’s account, Fayez Sarofim & Co. and our affiliates may trade in securities of the public company on behalf of our discretionary investment advisory clients provided:

The individual who is the officer, director, or affiliate of the public company does not exercise sole investment discretion over the trading of these securities for client accounts during the blackout period; and

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This individual has not, does not and will not disclose material information that is not available to the public.

In addition, our compliance policies and procedures require us to make certain disclosures if any of our employees have these types of relationships with a public company. Other topics discussed in the firm’s compliance policies and procedures, including the Code of Ethics, include:

Prohibition against insider trading Restricting access to material non-public information Approval for outside business affiliations Contributions to candidates for political office Communications with clients Entertainment, gifts and gratuities

Clients or prospective clients may receive a copy of the firm’s Code of Ethics by sending a written request to: Mr. William D. Hanna Chief Compliance Officer Fayez Sarofim & Co. 845 Texas Ave., Suite 2000 Houston, TX 77002 BHanna@sarofim.com

H

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Fayez Sarofim & Co. is not affiliated with a brokerage firm. The firm’s brokerage practices related to transactions in clients’ accounts may differ among clients depending on the degree of discretionary authority the client has given us. We prefer to have full discretionary authority to manage the investment of a client’s assets. Full discretionary authority includes brokerage discretion, which gives the firm the ability to select the broker to execute transactions in a client’s account and to negotiate the commission rate. In some instances, the firm’s brokerage discretion is limited by directions from the client or by agreements the client has entered into with third parties. The firm also has non-discretionary arrangements with clients. In certain non-discretionary arrangements, once the client has approved a particular transaction, the firm is authorized to place the order and select the broker to execute it. In other non-discretionary arrangements, the client places the order and selects the broker to execute the transaction. Please see also Item 16 Investment Discretion. Fayez Sarofim & Co.’s general policy when placing orders for the purchase or sale of securities in a client’s account is to seek to secure the best net execution, including both execution prices and commission rates. In selecting brokers or dealers to execute transactions, we consider such factors as:

the price of the security the commission rate the size and difficulty of the order the reliability, integrity, financial condition and general execution and operational capabilities of competing brokers and dealers the research services that competing brokers provide

Orders are placed with brokers that we believe are responsible and will give effective execution of orders under conditions favorable to our clients. On an overall basis, we believe we obtain favorable executions and competitive commission rates for client transactions. However, it is possible that a more favorable execution or a lower commission rate would have been obtained if the order had been placed with another broker. In selecting brokers, we may give preference to brokers that provide research and other services to us so long as we believe that the objective of best net execution is not being sacrificed. A discussion of what is meant by research and other services and our policy governing procedures for giving preference to the brokers that provide them is included in the following section Research and Other Soft Dollar Benefits. The firm will not choose a broker to execute a transaction solely on the basis that the broker has referred clients or prospective clients to us. Please refer to the discussion on Brokerage for Client Referrals.

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When orders from our portfolio managers are received concurrently for more than one client account, the firm may seek to aggregate or batch the orders in an effort to obtain reduced commission rates or more favorable execution. A broker may be selected to execute an aggregated order because of the broker’s ability to handle such executions, provided that the primary consideration of best net execution is met. Generally, when trades are aggregated, each client account within the block will receive the same price and commission. From time to time, the firm will evaluate the performance of the brokers that have been selected to execute orders for our clients’ accounts. If we believe a broker’s performance has been unsatisfactory, we will cease doing business with this broker entirely or until improvement has been demonstrated. The firm’s executive officers are available to discuss brokerage allocation with clients or prospective clients upon request. Research and Other Soft Dollar Benefits Brokers and dealers may provide research or other services in addition to the services required to execute an order. When a portion of the commission paid to a broker for the execution of an order is considered to be a payment for these additional services, this portion of the commission is often referred to as “soft dollars.” The additional research and other services received are sometimes referred to as “soft dollar benefits.” Fayez Sarofim & Co. uses the soft dollar benefits received from brokers to supplement our own internal research activities and to consider a broader range of information and opinions in formulating our investment decisions. The soft dollar benefits will be used in servicing some or all of our client accounts as well as the firm’s proprietary accounts, not just those accounts that paid commissions to the brokers providing the soft dollar benefits. A client account may pay a higher commission because of the soft dollar safe harbor benefits provided by a broker, but this will only occur if we have determined in good faith that this commission is reasonable in relation to the value of the soft dollar safe harbor benefits provided by the broker. However, the value we receive from these soft dollar benefits is difficult to quantify in a dollar amount. The use of soft dollar benefits may create conflicts of interest. One such conflict is that when client brokerage commissions are used to obtain research or other products and services, Fayez Sarofim & Co. receives a benefit because the firm does not have to produce or pay for the research, products, or services. Also, Fayez Sarofim & Co. may have an incentive to select broker-dealers based on the firm’s interest in receiving research or other products or services, rather than on the clients’ interest in receiving most favorable execution. Fayez Sarofim & Co. has adopted a soft dollar policy to address the conflicts of interest that may arise when the firm has discretionary authority to direct brokerage related to clients’ accounts to brokers from which we also receive soft dollar benefits. Under our soft dollar policy, Fayez Sarofim & Co. will only use soft dollars to obtain products and services that fall within the safe harbor provided by Section 28(e) of the Securities Exchange Act of 1934, as interpreted by the Securities and Exchange Commission.

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The following products and services fall within the definition of “research services” within the soft dollar safe harbor:

Research reports; Discussions with research analysts and meetings with corporate executives; Fees to attend conferences or seminars that provide substantive content regarding issuers, industries, and/or securities; Research related to the market for securities, such as trade analytics (including analytics available through order management systems), and advice on market color and execution strategies; Market, financial, economic, and similar data; Pre-trade and post-trade analytics used during the investment decision-making process; and Proxy services that the adviser uses during the investment decision-making process, as opposed to services used to satisfy the adviser’s own voting, recordkeeping, or disclosure obligations.

These safe harbor services do not include the referral of clients to Fayez Sarofim & Co. The Section 28(e) safe harbor applies to research products and services that are “provided” by a broker-dealer. In addition to proprietary research produced directly by a broker-dealer, the safe harbor also applies to third-party research. Fayez Sarofim & Co. may be involved in deciding what third-party research will be provided, and the third-party may send the research directly to us, but the broker-dealer must either (a) have a legal obligation to pay for the research, or (b) pay for the research directly, review the description of the research for red flags that would indicate that it was outside of the safe harbor, and develop and maintain procedures so that research payments are documented and paid for promptly. From time to time Fayez Sarofim & Co. may enter into commission sharing agreements with certain brokers that allow us to use client commissions to pay for research produced by someone other than the executing (or introducing or clearing) broker-dealer. It is our belief that such arrangements may offer efficient execution venues that provide high quality, low-cost execution while research providers compensated out of the shared commissions offer valuable research ideas that benefit our clients. Each commission sharing arrangement is evidenced by written agreement. We evaluate such arrangements on a case-by-case basis and negotiate each commission sharing agreement accordingly. In the event that a product or service has multiple uses, some of which are eligible under the soft dollar safe harbor, and others of which are not, Fayez Sarofim & Co. may only use soft dollars to pay for that portion of a product or service that falls within the safe harbor. We must use hard dollars to pay for the portion of the product or service’s costs that are outside of the safe harbor. In such a case, Fayez Sarofim & Co. will make a reasonable allocation of the cost of the product or service according to its use. We will maintain adequate books and records so as to be able to demonstrate that the allocation was made in good faith. We are subject to a conflict of interest when making any such allocation determination.

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Soft dollar credits are assets of Fayez Sarofim & Co.’s clients that must be treated with appropriate care. We review at least monthly soft dollar accrual and expenditure reports sent by broker-dealers and reconcile such reports against our internal records. Any discrepancies should be promptly reported to the CCO. Fayez Sarofim & Co. will periodically review soft dollar credit and debit balances, and if we develop large credit balances, we will consider whether clients are paying unnecessarily high commissions. Conversely, if we develop large deficits, we will evaluate whether we should curtail our soft dollar spending or take other actions in order to avoid the appearance that we must trade accounts excessively in order to reduce our soft dollar deficits. Over the past year, the soft dollar benefits we have received have been limited to the research and other services that fall within the soft dollar safe harbor provisions of Section 28(e) of the Securities Exchange Act of 1934. Brokerage for Client Referrals Fayez Sarofim & Co. has a policy that precludes the firm from selecting a broker to execute transactions solely on the basis that this broker has referred clients or prospective clients to us. This practice is prohibited because of the conflicts of interest that could result. In exercising our brokerage discretion, we may select brokers that have referred clients or prospective clients to us to execute portfolio transactions, but this selection cannot be based solely on referrals and must be made in accordance with the general policies and procedures discussed throughout Item 12. Client-Directed Brokerage A client of Fayez Sarofim & Co. may direct the firm to give preference to certain brokers or dealers in allocating brokerage transactions for the client's account. The firm will comply so long as we, in good faith, believe that the objective of best net execution is not being sacrificed or that the amount of commission being paid to such broker or dealer is reasonable in relation to the value of the services provided. In some instances, the firm is directed to use a specific broker for executing transactions either as a result of instructions from a client or as a result of arrangements entered into by the client such as a wrap fee program agreement. (Please see the discussion of wrap fee programs in Item 4 Advisory Business.) In these instances, the designated broker may charge higher commission rates than those generally available to us. We will follow the client’s direction and seek to obtain the lowest commission rate and best net execution available from this broker as long as the client understands that this arrangement limits our ability to negotiate commissions on the client’s behalf and to aggregate or batch the client’s order with the orders of other clients to attain reduced commission rates or better executions. The client in these instances must understand that if the firm were free to select a broker, negotiate for institutional brokerage rates, and to batch orders, the client might pay rates below customary retail brokerage rates and might achieve better executions.

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Read the rest in the brochure

Fayez Sarofim & Co. and our affiliate Sarofim International Management Company have both entered into several written solicitation agreements. Fayez Sarofim & Co. has one such agreement with BNY Mellon Securities Corporation (BNYMSC). BNYMSC has agreed to solicit investment advisory clients for the firm on a nonexclusive basis. The firm, in turn, has agreed to pay BNYMSC a referral fee, which is based on the investment advisory fees the firm receives from a client referred by BNYMSC. The referral fee is computed quarterly and due within 30 days after the end of a quarter. For accounts managed less than 12 months, the referral fee is 50 percent of the investment advisory fee. For all other accounts, the fee is 20 percent. No accounts are to be solicited in states in which such solicitations are not in compliance with state laws. Fayez Sarofim & Co also has a solicitation agreement with Capital-B who solicits certain qualified non-US investors for its advisory business. The firm pays Capital-B an annual fee and a fee based upon new investments. The firm also has three written solicitation agreements with Papamarkou Wellner Asset Management Inc. (PWAM). One agreement is for institutional accounts, one for noninstitutional accounts, and the third agreement, which is inactive, is for incentive-fee government margin accounts. PWAM has agreed to solicit investment advisory clients for the firm on a nonexclusive basis. For accounts referred under the institutional and non-institutional account agreements, the firm has agreed to pay PWAM a referral fee, which is computed quarterly at 40 percent of the aggregate quarterly investment advisory fees the firm receives from clients referred by PWAM. The referral fee is due promptly after the firm collects the advisory fees. No accounts are to be solicited in states in which such solicitations are not in compliance with state laws. Fayez Sarofim & Co.’s affiliate Sarofim International Management Company has also entered into a written solicitation agreement with PWAM. For accounts referred under the agreement, the firm has agreed to pay PWAM a referral fee, which is computed quarterly at 40 percent of the aggregate quarterly investment advisory fees the firm receives from clients referred by PWAM. The referral fee is due promptly after the firm collects the advisory fees. No accounts are to be solicited in states in which such solicitations are not in compliance with state laws. From time to time, brokers, dealers, or other persons may refer clients or prospective clients to Fayez Sarofim & Co. and our affiliates on an informal basis. The firms do not pay fees for these informal referrals. Furthermore, the firms will not select brokers or dealers to execute portfolio transactions solely on the basis that they have referred clients or prospective clients to the firm. Please refer to Item 12 Brokerage Practices—Brokerage for Client Referrals.

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Fayez Sarofim & Co. and its management persons have not been subject to any other material legal or disciplinary events required to be discussed in this brochure.

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Fayez Sarofim & Co. accounts are managed within the guidelines set by the firm’s Investment Committee. Teams of two to four investment professionals share the client servicing and portfolio management responsibilities for each account. We manage accounts on an individual basis, taking into consideration a client’s known financial resources, investment objectives, and needs. Each account is reviewed at least quarterly by one of the investment professionals assigned to the portfolio management team for the account. This review is conducted in conjunction with the quarterly reporting process discussed below. Several factors may prompt a more frequent review, including significant cash flows, unusual liquidity requirements, or changes in a client’s situation, investment objectives, or guidelines. Accounts may also be reviewed more frequently if there is a dramatic change in market conditions or a significant shift in the firm’s economic and market outlook. Matters reviewed include portfolio holdings, asset mix, cash flow and liquidity requirements, account-specific instructions or guidelines, and other pertinent factors. Portfolio reports are distributed to clients on a quarterly basis. In some instances, the report may be prepared monthly. These written reports typically include:

summary of investment performance, including current and longer-term results S&P sector classifications of portfolio holdings portfolio appraisal by individual security, including purchase cost, current market value, percent of portfolio, unrealized gains and losses, estimated current income and current yield corporate capital changes and dividend changes commission report purchases and sales during the period income and expense report realized gains and losses

This written portfolio report also strongly recommends that clients compare our portfolio appraisal with statements received from their custodians and to notify us immediately of any discrepancies. This recommendation is made in accordance with our obligation to protect client interests and is consistent with the SEC rules for investment advisers. Periodically, clients receive our commentary on the economy and the market outlook. One or more of the investment professionals assigned to an account will confer with the client from time to time. Clients may also request a conference to review their account. Client communication is an important part of our investment advisory services, and we encourage clients to contact us if they have questions. In addition to the information provided to all investors, the firm may provide certain investors with additional information or more frequent reports that other investors will not receive.

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“Custody” means holding, directly or indirectly, client funds or securities or having authority to obtain possession of them. Fayez Sarofim & Co. does not hold client assets or provide custodial services. Assets of clients of our firm are held by a “qualified custodian” as defined by the SEC, which is usually a bank or brokerage firm. If the firm inadvertently receives client funds, we are generally required to return them to the sender within three business days. Before entering into an investment advisory agreement with Fayez Sarofim & Co., you must first establish an account with a qualified custodian. If you need assistance in selecting a custodian, the firm will make suggestions, taking into consideration the cost, the perceived quality of the custodial services, and the types of securities involved as well as other factors we think may be relevant. Clients should receive account statements from their qualified custodian on at least a quarterly basis. If you do not receive such statements, please notify us immediately. As a client, you should compare the quarterly portfolio report you receive from us with the account statements you receive from your qualified custodian. We urge you to notify us immediately if you find discrepancies. For tax purposes, the account statement you receive from your custodian is the official record of your transactions and assets.

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Fayez Sarofim & Co. will manage clients’ assets on a fully discretionary basis, a limited discretionary basis or a non-discretionary basis. Most of our clients have granted us full discretionary authority to manage the investment of the assets in their accounts, and we prefer to manage accounts on this basis. Before the firm may assume discretionary authority, the firm and the client must execute an investment advisory agreement. The investment advisory agreement includes:

A statement of the firm’s appointment as investment manager A discussion of the duties and powers of the firm as investment manager including discretionary authority A description of the duties of the client, including advising the firm of investment objectives and any specific restrictions Other pertinent information on matters such as compensation and termination

With full discretionary authority for an account, the firm is able to do the following without obtaining the client’s consent:

Determine which securities to buy or sell Determine the total amount of securities to buy or sell, subject to available funds Determine the broker or dealer through which securities are bought or sold Negotiate with the selected broker regarding commission rates for securities transactions

Unless the client notifies the firm in writing of specific restrictions, the investments made on behalf of the client are considered not to be restricted. The firm manages a number of accounts subject to client instructions that prohibit holding certain securities or types of securities or that limit weightings in individual sectors, industries, or securities. In certain instances, the firm’s discretion to determine the broker through which client securities are bought or sold is limited due to arrangements entered into by the client such as wrap fee programs or directions from the client. For example, a particular broker may have custody of a client’s securities, and the client may direct the firm to use this custodial broker to purchase or sell securities in the client’s account. In other instances, the client may direct the firm to give preference to one or more brokers in allocating brokerage transactions for the account. For a discussion of the firm’s policies and procedures in these instances, please refer to Item 12 Brokerage Practices. When we provide services on a non-discretionary basis, we give the client investment advice, but we do not have the authority to implement our recommendations in the client’s portfolio without the client’s approval. The client may or may not follow the firm’s advice. In certain nondiscretionary arrangements, once the client has approved a particular transaction, the firm is authorized to place the order and select the broker to execute it. In other non-discretionary arrangements, the client places the order and selects the broker to execute the transaction.

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Proxy Voting and Class Actions Policy A client may give Fayez Sarofim & Co. the authority to vote the proxies requested by the issuers of securities in the client’s account. To guide us as we exercise this authority and to comply with SEC rules, the firm has adopted a Proxy Voting and Class Actions policy and procedures. We evaluate each proxy on a case-by-case basis and generally seek to vote proxies in a way that maximizes the value of clients’ assets. In deciding how to vote on a particular proxy proposal, we rely, for the most part, on the business judgment of the management and directors of the issuer of the security, and the fiduciary responsibilities that the issuer’s directors have with respect to the issuer’s shareholders. If we decide the recommendation of the issuing company’s management is not in the best interests of shareholders, we will not follow management’s recommendation. To avoid conflicts of interest, no employee of Fayez Sarofim & Co. may participate in the voting process for a particular proxy if the employee meets any one of the following criteria:

is an officer or director of the company issuing the proxy beneficially owns 5 percent or more of the outstanding shares of any class of securities of the company issuing the proxy otherwise is interested in any way in the outcome of the vote, with the exception of being a beneficial owner of less than 5 percent of the outstanding shares of any class of securities of the company issuing the proxy

Fayez Sarofim & Co., or a third party acting on the firm’s behalf, retains:

copies of all proxy statements received regarding client securities records of votes cast on behalf of clients records of client requests for proxy voting information documents used or prepared by the firm that were material to deciding how to vote on a particular issue copies of the Proxy Voting and Class Actions policy and procedures adopted by the firm

Clients may obtain a copy of our Proxy Voting policy and procedures by writing to: Mr. William D. Hanna Chief Compliance Officer Fayez Sarofim & Co. 845 Texas Ave, Suite 2000 Houston, Texas 77002 BHanna@sarofim.com Clients who have given us authority to vote proxies on their behalf may obtain an annual, semiannual, or quarterly record of these votes by submitting a written request to Mr. Hanna at the address above. Clients who have given us authority to vote proxies but wish to direct a particular vote may do so by submitting their instructions in writing to Mr. Hanna.

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Clients may choose to retain the authority to vote the proxies related to securities in their accounts. In such instances, clients would receive the proxy statements from their custodians. Clients may contact Mr. Hanna at the address above if they have questions about a particular solicitation. Proxy Voting Procedures Fayez Sarofim & Co. has retained Glass Lewis & Co. (“Glass Lewis”) to assist in the proxy voting process. The Chairman of the Proxy Committee, or his or her delegatee manages Sarofim’s relationship with Glass Lewis. Glass Lewis provides the following in connection with the voting of proxies by Fayez Sarofim & Co.: (i) analyses of proposals, (ii) vote recommendations, (iii) vote execution services, and (iv) record keeping services. Glass Lewis provides its analyses of proposals and vote recommendations pursuant to and in accordance with the proxy voting guidelines furnished to it by the firm. Absent specific client instructions, Fayez Sarofim & Co. has adopted the following proxy voting procedures designed to ensure that proxies are properly identified and voted, and that any conflicts of interest are addressed appropriately. First, Glass Lewis analyzes the proxy proposal in accordance with a set of policy guidelines established by Fayez Sarofim & Co.’s Proxy Committee and makes a vote recommendation to the firm. This recommendation, which becomes the default position for the vote, is then sent to the analyst at our firm who is responsible for the research coverage of that security. If our analyst agrees with the vote recommendation submitted by Glass Lewis, he or she will instruct Glass Lewis to cast the vote according to that recommendation. If the analyst at our firm does not agree with the default recommendation provided by Glass Lewis, the analyst must provide a written explanation of the reasons for the different opinion. This written explanation is reviewed by the chairman of the firm’s Proxy Committee. If the chairman agrees with the analyst’s recommendation, that recommendation becomes final and binding, and Glass Lewis is instructed to vote according to the analyst’s recommendation. In the rare instance that the chairman and the analyst cannot reach an agreement, the matter is considered by all the investment professionals on the Proxy Committee. The decision of the group is final and binding. No employee of the firm may participate in the voting process for a particular proxy if any one of the three disqualifying factors enumerated in the Proxy Voting Policy section above applies. Fayez Sarofim & Co. and Glass Lewis, acting on our behalf, maintain as permanent records the original proxy bulletin, the voting instructions, and the reasons for such votes. Class Actions Fayez Sarofim & Co. does not direct clients’ participation in class actions.

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The disclosures required by Item 18 do not apply to Fayez Sarofim & Co. Fayez Sarofim & Co. does not require prepayment of management fees more than six months in advance or have any other events requiring disclosure under this item of the brochure. Fayez Sarofim & Co. has not been the subject of any bankruptcy petition.

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