Bell Investment Advisors Inc

Item 5 -        FEES AND COMPENSATION

ADVISORY FEES
Managed Accounts
For our separately managed client accounts, BIA charges an annual fee based on the market value of the
assets the client has placed with BIA for investment management purposes. There is a one-time account
set up fee of $150 per client account. “Market value” includes all cash, money market balances and the
value of all securities held in the account and supervised by BIA as shown on the quarter end client reports
provided by BIA. Generally, fees are payable quarterly in advance based on the total market value of the
account as shown on the BIA Portfolio Statement on the last business day of the previous quarter.

        Fees are 1.00% on the market value of Account up to $3,000,000.
        Fees on Account assets with a market value above $3,000,000 are negotiable.

The Account is subject to a minimum quarterly investment management fee of $2,500. BIA may negotiate
a different investment management fee with the client based on the nature of the client’s account. The
initial quarterly fee for a new client is pro-rated based upon the date the client assets are transferred to
BIA’s management.

Clients typically authorize BIA to deduct its quarterly investment advisory fee directly from their custodial
account. This authorization must be granted under the client’s signed BIA Investment Management
Agreement and BIA will send the client a copy of their investment advisory fee invoice at the same time
it requests payment from the client’s custodian. In such cases, it is the client’s responsibility to verify the
accuracy of the fee calculation, as the custodian will not determine whether the fee is properly calculated.

To the extent that a client authorizes the use of margin, and margin is thereafter employed by our
portfolio managers in the management of the client’s portfolio, the market value of the client’s account
and corresponding fee payable by the client to BIA would be increased. As a result, in addition to
understanding and assuming the additional principal risks associated with the use of margin, clients
authorizing margin are advised of the potential conflict of interest whereby the client’s decision to employ
margin would correspondingly increase the management fee payable to the Firm. Accordingly, the
decision as to whether to employ margin is left to the sole discretion of client.

Investment Management Fees to 529 Plans
529 plans are not charged based on a percentage of the assets in the account. Instead, each 529 plan is
charged a $150 set-up fee which covers the account set up and initial allocation recommendation. By
law, 529 plan clients can make an allocation change twice per calendar year. BIA offers its recommendation
for the annual allocation change for a fee of $150 regardless of the number of accounts.

Hourly Fee for Financial Consultation Services
If an investment management client requests BIA to provide financial consultation services in addition to
the management of the client’s portfolio, BIA charges an hourly rate of $150. Such fees are payable upon
completion of the services provided.

Fixed Fee Financial Planning Services
BIA also offers customized fee-only financial planning services starting at $10,000, depending upon the
complexity of the client’s financial circumstances and the number and types of planning services requested.

Clients are requested to pay the applicable financial planning fee at the time they sign a financial planning
fee agreement or request the service.

Initial financial planning services, including the creation of a comprehensive financial plan, are covered by
the applicable financial planning fee. Thereafter, plan updates in response to changes in the clients’ financial
circumstances and other financial planning services are provided for an additional fee of $1,000.

TERMINATION OF AGREEMENT
Clients retain the authority to terminate their investment management agreement at any time upon
written notice to the Firm. The Firm does not assess any fees related to termination but will be entitled
to all management fees earned up to the date of termination. Any prepaid fees owed to the client will be
refunded on a pro rata basis determined on the amount of time expired in the calendar quarter.

GENERAL FEE DISCLOSURES
The client’s fee is determined in accordance with the above fee structure, with exceptions negotiated on
a case-by-case basis at BIA’s discretion. Any deviations from the fee structure are based upon a number

of factors including the amount of work involved, the amount of assets placed under management and the
attention needed to manage the account.

We believe our investment management fees are competitive with the fees charged by other investment
advisors in the San Francisco Bay area for comparable services. However, comparable services are
available from some other sources for lower fees than those charged by BIA and from some other sources
for higher fees.

BIA receives no commissions on investment products purchased or sold for client accounts.

We do not provide clients advice as to the tax deductibility of our advisory fees. Clients are directed to
consult a tax professional to determine the tax deductibility of the payment of advisory fees.

CUSTODIAN AND BROKERAGE FEES
Clients incur certain charges imposed by their custodians and other third parties such as custodial fees,
deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, and
other fees and taxes on brokerage accounts and securities transactions. Additionally, clients will incur
charges by the executing broker-dealer in the form of brokerage commissions and transaction fees on
the investment transactions entered into for their account(s). All of these charges, fees and commissions
are in addition to BIA’s investment management fee.

FUND DISCLOSURES
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Item 7 -        TYPES OF CLIENTS
Our clients include individuals and their trusts and estates, pension and profit-sharing plans, mutual
funds, business entities and charitable foundations. We have established a $1,000,000 minimum value of
assets for establishing a client relationship and a minimum quarterly fee of $2,500. Multiple client
accounts are aggregated to meet this minimum. Because of our minimum, BIA’s services are not
generally appropriate for smaller accounts. There are other investment advisers who provide somewhat
similar services for lower compensation. Under certain circumstances, and in its sole discretion, we may
waive or alter the minimum account size requirement and/or the minimum fee.