AB 2020 Form 10-K

Alternative 3 Additional Assumptions • Investment income (including interest, dividends, fees, etc.) = 2.40% • PIFNII (investment income — (management fee + other expenses)) = 1.80% PIFNII exceeds 6% Hurdle Rate and 6% Catch-up Cap, but is less than the 7% Hurdle Rate. See detailed formula in Alternative 2. Income Based Fee = (100% × (1.67% – 1.50%)) + (10.0% × (1.80% – 1.67%)) = 0.17% + (10.0% × 0.13%) = 0.17% + 0.01% = 0.18% Alternative 4 Additional Assumptions • Investment income (including interest, dividends, fees, etc.) = 2.60% • PIFNII (investment income – (management fee + other expenses)) = 2.0% PIFNII exceeds 7% Hurdle Rate, but is less than the 7% Catch-up Cap. See detailed formula in Alternative 2. Income Based Fee = (100% × (1.67% – 1.50%)) + (10.0% × (1.94% – 1.67%)) + (100% × (2.00% – 1.94%)) = 0.17% + (10.0% × 0.27% (1.94% – 1.67%)) + (100%× 0.06%) = 0.17% + 0.03% + 0.06% = 0.26% Alternative 5 Additional Assumptions • Investment income (including interest, dividends, fees, etc.) = 2.80% • PIFNII (investment income – (management fee + other expenses)) = 2.20% PIFNII exceeds 7% Catch-up Cap, but is less than the 8% Hurdle Rate. See detailed formula in Alternative 2. Income Based Fee = (100% × (1.67% – 1.50%)) + (10.0% × (1.94% – 1.67%)) + (100% × (2.06% – 1.94%)) + (15.0% × (2.20% – 2.06%)) = 0.17 + (10.0% × 0.27%) + (100% × 0.12%) + (15% × 0.14%) = 0.17% + 0.03% + 0.11% + 0.02% = 0.33% 9