B-1 STATEMENT OF ADDITIONAL INFORMATION Dated May 1 ...

ERISA ClientsIn the case of client accounts subject to the Employee Retirement Income Security Act of 1974, asamended (“ERISA”), MSA will consider in voting proxies those factors that may affect the value of itsclient’s accounts, and shall not subordinate the interests of participants and beneficiaries to unrelatedobjectives. MSA shall act with the care, skill, prudence and diligence under the circumstances thenprevailing that a prudent man acting in a like capacity and familiar with such matters would use in theconduct of an enterprise of like character and with like aims.Fixed Income and Non-Voting SecuritiesTo the extent applicable and not otherwise required in this section, these Proxy Voting Policies andProcedures will also be used by MSA for exercising voting rights which may arise upon conversion of, orin connection with certain other situations with respect to, fixed income or other securities which do notordinarily carry voting rights. These limited circumstances include extraordinary corporate actions, plansof reorganization, or liquidation or similar matters, however the procedural requirements contained inthese Proxy Voting Policies and Procedures shall not apply in the case of ordinary course requests foramendments, consent solicitations or directions with respect to the exercise of remedies for fixed incomeor other traditionally non-voting securities. In both instances however, it is the policy of MSA to castthese votes in a manner consistent with the best interests of its advisory clients and in so doing not tosubrogate its client’s interests to its own.Northwestern Mutual’s Treasury & Investment Operations personnel (as service providers to MSA) areresponsible for coordinating with the clients’ custodians to ensure that all voting materials received by thecustodians relating to the clients’ portfolio from issuers, trustees or other third parties are processed in atimely fashion and delivered to the applicable portfolio managers and MSA’s Chief Compliance Officer,and for maintaining voting records. As is the case with equity securities, MSA’s portfolio managers areresponsible for voting decisions on fixed income or other non-equity securities held in the client accountsthey manage. However, because no recommendations are generated by ISS, in the limited circumstancesdescribed above, the portfolio manager will submit a written recommendation as to how the clientsecurities should be voted and the rationale for such recommendation to the Head of MSA Fixed IncomeInvestments who will review the recommendation to determine whether a conflict of interest exists. 3 Inaddition, the portfolio manager will disclose any contact he or she has had with persons outside of MSAregarding the voting issue. In the event that no conflict of interest exists, the Head of MSA Fixed IncomeInvestments (or the Committee, as the case may be) will permit the portfolio manager to vote the clientsecurities as recommended. A summary of such votes will be reviewed by the Committee at its nextregularly scheduled meeting. In the event the portfolio manager or other MSA officer, director oremployee identifies a conflict of interest relating to a particular proposal, the Committee will review theproposal and determine the vote based on the portfolio manager’s voting recommendation (if any) and allrelevant facts and circumstances.EXHIBIT AMSA Proxy Voting GuidelinesSpecific voting guidelines have been established by MSA for voting proxies. The following is a summaryof some of the more significant policies. MSA has engaged Institutional Shareholder Services (“ISS”), anunaffiliated proxy voting and research service, to assist in the voting of proxies. ISS makes proxy votingrecommendations to MSA based on these Guidelines. A complete copy of the Guidelines is available toclients upon request.3Any MSA officer, director or employee who becomes aware of a conflict of interest relating to a particular voteregarding fixed income or other non-voting securities shall immediately disclose that conflict to the Head of MSAFixed Income Investing or, if the conflict involves the Head of MSA Fixed Income Investing, to the Committee.B-98