Advent Capital Balanced Strategy Update

BALANCED STRATEGY Risk Management Overview ■ ■ ■ We evaluate risk on a firm, portfolio and position level. ■ Implementation The Risk Management Committee functions to provide risk oversight at a strategy/portfolio level and on a firm wide/enterprise basis. The Risk Management Committee's focus is collaborative and in close coordination with the investment team. ADVENT CAPITAL MANAGEMENT, LLC Advent is an investment adviser registered with the Securities and Exchange Commission. Advent Capital Management UK Limited, a wholly-owned subsidiary of Advent located in London, is authorized and regulated by the U.K. Financial Conduct Authority. Diversification: We reduce risk by managing diverse portfolios across multiple issuers, sectors and regions. The broad diversification should produce returns uncorrelated to any single factor. Investment Guidelines: Serve to manage top-down risks in the portfolio, including placing a cap on sector, and single issuer concentration. Sector and regional exposure are limited to the greater of 2x the benchmark weight or 25%. The firm's exposure is limited to 25% of a given issue. Adherence to stringent pricing policy based on objective, independent sources. 16

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