BG Investment Services Inc

Item 5: Fees & Compensation

    How We Are Compensated for Our Advisory Services

    Comprehensive Portfolio Management:

    The fee to be charged to the client will be outlined in the advisory agreement to be signed by the
    client or in the Statement of investment Selection (“SIS”) provided by the Asset Managers for clients
    using one or more of the Asset Managers.

    Our firm’s maximum annual fee for this service will not exceed 1.50%. Our annualized fees are billed
    on a pro-rata basis quarterly in advance based on the value of the account(s) on the last day of the
    previous quarter. Fees are negotiable and will be deducted from client account(s). Adjustments will
    be made for deposits and withdrawals during the quarter that exceed 10% of the Client’s account
    value. Our fees are generally not negotiable. In rare cases, our firm will agree to directly bill clients.

    Please note that the fees charged by the Asset Managers are separate and in addition to our firm’s
    advisory fees noted above. The maximum annual fee for clients utilizing Asset Managers will not
    exceed 0.50%. Thus, clients who utilize Asset Managers may be subject to a maximum total fee of
    2.00%. For Asset Managers accounts that fall below the minimum account balance requirements, an
    annual fee of $60.00 may be assessed. Further, the Asset Managers establish and maintain their own
    separate billing process over which we have no control. Please refer to the Asset Manager’s SIS for
    their account minimums and billing process.

ADV Part 2A – Firm Brochure                         Page 5                                 BG Investment Services, LLC.

    Other Types of Fees & Expenses

    Non-wrap Clients will incur transaction fees for trades executed by their chosen custodian, either
    based on a percentage of the dollar amount of assets in the account(s) or via individual transaction
    charges. These transaction fees are separate from our firm’s advisory fees and will be disclosed by
    the chosen custodian. Fidelity Brokerage Services (“Fidelity”) eliminated transaction fees for U.S.
    listed equities and exchange traded funds for clients who opt into electronic delivery of statements
    or maintain at least $1 million in assets at Fidelity. Clients who do not meet either criteria will be
    subject to transaction fees charged by Fidelity for U.S. listed equities and exchange traded funds.

    Clients may also pay holdings charges imposed by the chosen custodian for certain investments,
    charges imposed directly by a mutual fund, index fund, or exchange traded fund, which shall be
    disclosed in the fund’s prospectus (e.g., fund management fees and other fund expenses), distribution
    fees, surrender charges, variable annuity fees, IRA and qualified retirement plan fees, mark-ups and
    mark-downs, spreads paid to market makers, fees for trades executed away from custodian, wire
    transfer fees and other fees and taxes on brokerage accounts and securities transactions. Our firm
    does not receive a portion of these fees.

    Wrap clients will not incur transaction costs for trades by their chosen custodian. More information
    about this can be found in our separate Wrap Fee Program Brochure.

    Refunds Following Termination

    We charge our advisory fees quarterly in advance. In the event that you wish to terminate our
    services, we will refund the unearned portion of our advisory fee to you. You need to contact us in
    writing and state that you wish to terminate our services. Upon receipt of your letter of termination,
    we will proceed to close out your account and process a pro-rata refund of unearned advisory fees.

    Commissionable Securities Sales

    We do not sell securities for a commission in our advisory accounts.

Item 7: Types of Clients & Account Requirements

    We have the following types of clients:
       • Individuals and High Net Worth Individuals;
       • Government Entities or Charitable Organizations;
       • Pension and Profit-Sharing Plans; and Trusts;
       • Corporations, Limited Liability Companies and/or Other Business Types

    We do not have requirements for opening and maintaining accounts or otherwise engaging us.
    However, clients who opt into electronic delivery of statements or maintain at least $1 million in

ADV Part 2A – Firm Brochure                       Page 6                                BG Investment Services, LLC.

    assets at Fidelity will not be charged transaction fees for U.S. listed equities and exchange traded
    funds.