BLB & B Advisors LLC

Item 5 - Fees and Compensation
Fees for investment management are outlined in each client’s Investment Management Agreement. Fees
are generally charged in arrears and are calculated as a percentage of assets under management or a flat
dollar amount. For percentage fee arrangements, portfolios are valued at the end of each calendar quarter
and charged one-fourth of the annual fee rate based on the value of the portfolio at that time. Fees are
prorated for intra-period deposits and withdrawals. Certain legacy contracts do not address proration for
flows, and, in those cases, the fee is pro-rated based on inflows only. Fees for partial periods are prorated
accordingly.
The methodology used in calculating servicing fees by third-party providers and external asset managers
used by BLBB may differ from the method used by BLBB in calculating BLBB’s investment advisory fees.
Clients are encouraged to review and understand the fee calculation methodology used by third-party
providers and asset managers servicing BLBB clients. Any fees calculated by third-party providers are
independent of BLBB advisory fees and BLBB receives no portion of any third-party provider fees.
BLBB can offer fees that differ from our published rates for charitable clients, for qualified retirement
plans, for employees and their families, for clients with unusual portfolios or service needs, and as required
for competitive reasons. In addition, minimum fees may be waived. All deviations from published rates
are subject to review and must be approved by BLBB’s President.
Fee Schedule:

                  Assets Under Management                                   Fee

                          First $1,000,000                                 1.00%

                          Next $1 Million                                  0.85%

                          Next $3 Million                                  0.70%

                          Next $5 Million                                  0.55%

                             Thereafter                                    0.40%

                           Minimum Fee                                     $1,500
        Less 15% for charitable clients.
BLBB does not require a minimum household size but assesses a minimum household fee of $1,500 for
smaller accounts. The application of the minimum fee may result in an effective fee percentage greater
than 1.00%. For example, an account with $100,000 in assets under management would pay an effective
fee rate of 1.50%. Investment management fees for qualified retirement plan clients are generally charged
at an annual rate of 0.50% but can vary based on the size and complexity of the plan.
When valuing a public security for billing purposes, BLBB will use that security’s closing price or reported
Net Asset Value or, if not available, the bid price of the last recorded transaction. In valuing securities,
BLBB will generally use information provided by (1) Pershing, (2) the client’s custodian or (3) quotations
from an independent third-party pricing service or, in the case of alternative investments, the lesser of
contributed capital or the third-party sponsor-provided most recent net asset computation. In the rare
absence of a published quotation (for public securities), BLBB will use its discretion based on comparable
securities BLBB believes reasonably represent that security’s value.

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Fees are generally debited directly from client accounts, except in certain circumstances where clients are
invoiced. Important information about the direct debiting of management fees:
    •   Clients must provide authorization for BLBB to deduct fees;
    •   Clients receive a statement from the custodian which shows their holdings as well as the fee
        deduction; and
    •   Clients are responsible for reviewing the accuracy of the fees being billed, as the custodian will not
        do so.
Fees are generally not charged for financial planning services or educational seminars/conferences if the
client is already paying for investment management services. In instances where financial planning clients
have not engaged BLBB to provide investment management services (“Financial Planning Only”), fees for
Financial Planning Only clients may be fixed or variable pursuant to a Financial Planning Agreement
executed between the client and BLBB. Financial Planning Only fees range from $2,500- $10,000 for the
initial financial plan and clients generally pay one half of the planning fee as an initial deposit, with the
balance being paid when the financial plan is delivered. In addition to the initial fee, clients may engage
BLBB to provide ongoing financial planning services for an annual fee. Similar to investment advisory
fees, annual financial planning fees are generally charged quarterly, in arrears and clients can terminate
their Financial Planning Agreement at any time upon written notice to BLBB.
Clients can cancel their Investment Management Agreement at any time by providing written notice to
BLBB. Upon such notification, the portfolio will be valued and the fee prorated for the period elapsed
since the last billing. There are no restrictions on, or penalties for, canceling an Investment Management
Agreement.
BLBB and its affiliates have been providing investment management services for more than sixty years and
BLBB provides a range of services to a wide variety of clients. Accordingly, there are many legacy billing
arrangements, fee schedules, and minimum fee arrangements in place with fees that are higher or lower
than our current published rates; the highest fee rate currently in effect is 1.50%. Accordingly, it is possible
that similarly situated clients could pay disparate fees. Clients and prospective clients are encouraged to
compare fee and service offerings across a variety of firms.
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Item 7 - Types of Clients
BLBB generally provides investment advice to individuals, trusts/estates/charitable organizations,
corporations or business entities, pensions/profit sharing plans, and banks/thrift institutions.
Prior to accepting or opening an account for a client, BLBB must determine that there is a fit between the
client’s goals and objectives and BLBB’s philosophy and decision-making process.