Bahl & Gaynor Inc

Item 5     Fees and Compensation

Generally, B&G’s advisory fees are based on a percentage of assets under management. Fees
and services may be negotiable based on factors such as client type, asset class, pre-existing
relationship, portfolio complexity and account size or other special circumstances or
requirements. Some existing clients pay higher or lower fees than new clients. Related
accounts may be aggregated for fee calculation purposes in certain circumstances.

When B&G calculates fees, valuations of account assets are determined in accordance with
B&G’s valuation procedures, which generally rely on third party pricing services.

Individually managed accounts are charged an annual fee paid quarterly for portfolio
management services. The fee is calculated as a percentage of the client’s assets under
management and varies based on the investment strategy.

The following schedule represents the standard fee schedule for High Net Worth (HNW) clients
and institutional clients that are individually managed utilizing Bahl & Gaynor’s Separately
Managed Accounts strategies:

Assets Under Management
1% on first $1 million
.85% on next $2 million

.65% on next $2 million
.5% on amounts over $5 million
B&G's minimum account fee is $10,000 which may, at the firm’s discretion, be waived or
discounted.

B&G does not impose a minimum account size requirement for individually managed services.
B&G reserves the right to determine whether to accept an account based on the client’s
circumstances and the nature of the requested services. Fee calculations include cash
balances held in the account, including margin balances, unless explicitly excluded in the
Investment Advisory Agreement.

B&G generally charges advisory fees on a quarterly basis, unless otherwise agreed upon by the
client and B&G. Fees are based on the market value of the assets in the account as of the
valuation date, the average market value of the account during the billing period, or the market
value at the end of the calendar quarter, as specified in the client agreement.

Clients may authorize B&G to deduct fees directly from their custodial accounts; otherwise,
clients are responsible for paying fees directly.

Clients who engage Sub-Advisers for their fixed income assets authorize B&G to pay the sub-
adviser for its services on a quarterly basis, equal to a percentage of the fair market value of
the assets in the accounts. The value of the accounts will include accrued interest income. The
fee is charged to each account on a prorated basis upon inception of the account and at the
beginning of each calendar quarter, thereafter, based on the portfolio value as determined by
the custodian as of the last business day of the previous calendar quarter. The sub-adviser
receives an annual rate of 0.30% for aggregate accounts size of under $200 million, and 0.25%
for aggregate accounts sizes over $200 million.

Clients who invest in the Bahl & Gaynor Income Growth Fund Mutual Fund will have those
assets excluded from account-level management fees.

B&G may, from time to time, recommend that a client invest in the Bahl & Gaynor Income Growth
ETF (BGIG), Bahl & Gaynor Small/Mid Cap Income Growth ETF (SMIG), Bahl & Gaynor Dividend
ETF (BGDV), and/or Bahl & Gaynor Small Cap Dividend ETF (SCDV) (collectively, the “Bahl &
Gaynor ETFs”). A conflict of interest arises because B&G receives both fund-level and
account-level fees. To address this conflict, B&G will resolve the conflict by crediting against
the account level fee an estimate of the investment management fees it receives from the ETF
(but not exceeding the full account level fee) for the period per the client’s stated fee schedule
above. This reduction is not at the combined and pro-rated relationship level.

B&G calculates fees for assets invested in Alternative Funds based on the most recent
reported market value, which is typically subject to a delayed reporting period. Fees are paid
quarterly, in arrears, based on the reported market value as of the last day of the month prior
to billing. In addition to B&G’s fees, the client will incur charges imposed directly at the fund
level (e.g., management fees and other fund expenses).

In the event a client account holds ERISA plan assets or assets of an IRA or other account
subject to Section 4975 of the Internal Revenue Code, B&G also complies with requirements of
Prohibited Transaction Exemption 77-4.

B&G serves as an investment adviser for separately managed account (“SMA”) programs
offered through both wrap fee and dual contract arrangements. B&G’s advisory fee for these
programs is established by agreement between B&G and the program sponsor.

For wrap fee programs, clients pay a single fee to the program sponsor that typically covers
investment management, trading, custody, and other administrative services. B&G does not
have visibility into the specific fee arrangement between the sponsor and the client or how the
wrap fee is allocated between the parties.

For dual contract programs, B&G and the program sponsor each charge their fees separately.
The advisory fee charged by B&G is agreed upon directly with the client and follows the same
guidelines that apply to B&G’s other individually managed accounts.

For Institutional Separate Accounts and dual contract SMA accounts, the timing of payments—
whether billed in advance based on anticipated advisory services for the upcoming quarter or
in arrears after services are provided—and the billing method (such as invoicing or direct
deduction of fees) are agreed upon between B&G and the client.

For wrap fee SMA accounts and certain dual contract SMA accounts, payment arrangements
are typically determined by the program sponsor. In most wrap programs, the sponsor collects
the total wrap fee from the client and remits B&G’s portion to B&G. In some dual contract
programs, the sponsor may also collect and remit B&G’s advisory fee separately.
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Item 7    Types of Clients

B&G provides advisory services for the following types of clients:

Individuals (other than high-net-worth individuals)
High-net-worth individuals
Pension and profit-sharing plans (other than plan participants)
Charitable organizations
Corporations and other businesses entities not listed above.
State and municipal government entities
Investment companies
Insurance companies