AB 2020 Form 10-K

• PIFNII (investment income – (management fee + other expenses)) = 1.60% PIFNII exceeds 6% Hurdle Rate, therefore there is an income based incentive fee. Income Based Fee = 100% × (the greater of 0% AND (the lesser of (PIFNII – 6% Hurdle Rate) AND (6% Catch-up Cap – 6% Hurdle Rate))) + 10% × (the greater of 0% AND (the lesser of (PIFNII – 6% Catch-up Cap) AND (7% Hurdle Rate – 6% Catch-up Cap))) + 100% × (the greater of 0% AND (the lesser of (PIFNII – 7% Hurdle Rate) AND (7% Catch-up Cap – 7% Hurdle Rate))) + 15% × (the greater of 0% AND (the lesser of (PIFNII – 7% Catch-up Cap) AND (8% Hurdle Rate – 7% Catch-up Cap))) + 100% × (the greater of 0% AND (the lesser of (PIFNII – 8% Hurdle Rate) AND (8% Catch-up Cap – 8% Hurdle Rate))) + 20% × (the greater of 0% AND (PIFNII – 8% Catch-up Cap)) = (100% × (1.6% – 1.5%)) + 0% + 0% + 0% + 0% + 0% = 100% × 0.1% = 0.1% 8