Boyd Watterson Asset Management LLC

Item 5    Fees and Compensation

    A. Fee Schedules

    Our asset-based advisory fees are negotiated with clients (or platform sponsors) on a case-by-
    case basis and will depend on the characteristics of the account, the relationship with the client,
    and other variable factors. Asset-based advisory fees are calculated based on all assets under
    management including assets that are frozen at the request of the client. The following fee scales
    are used as a guide, but accounts contract for higher or lower fee schedules:

             Institutional fixed income portfolios - 0.30% of the first $50 million, 0.25% of the next
             $50 million and 0.20% of assets over $100 million.

             Non-institutional fixed income portfolios - 0.50% of all assets under management.

             Institutional equity portfolios - 0.75% of the first $10 million, 0.60% of the next $15
             million, 0.50% of the next $25 million, 0.40% of the next $50 million and 0.30% of assets
             over $100 million.

             Non-institutional equity portfolios - 1.0% of all assets under management.

             International equity portfolios - 1.0% of the first $10 million, 0.85% of the next $15
             million, 0.75% of the next $25 million, 0.65% of the next $50 million and 0.55% of assets
             over $100 million.

             Real estate portfolios - negotiated on a case-by-case basis or described fully in client
             agreements and/or fund offering documents, as applicable.

  The value of discretionary accounts is included in our RAUM reported in Form ADV Part 1.

  The value of non-discretionary accounts is included in our RAUM reported in Form ADV Part 1.

  Real estate SMA assets include the managed real estate assets not otherwise reported as part of RAUM, which
consists of real estate assets managed in separately managed accounts.

   Boyd Watterson provides recommended asset models based on current Boyd products to unified managed
accounts that may or may not be executed by the platform of the unified managed account and may or may not
be offered on a wrap fee basis.

        Custom Strategies – negotiated on a case-by-case basis as described in the client
        agreements.

B. Fee Deduction

Our management fee is generally charged in advance on a quarterly basis, unless otherwise
requested by a particular client. The fee schedule, manner in which the fee is calculated, billing
method and when fees are due will be detailed in your investment management agreement. Fees
of more than $1,200 will not be charged more than six months in advance.

Fees for partial periods, either upon opening an account or terminating services, will be prorated
based on the number of days that services will be or were provided.

C. Other Types of Fee Schedules

Private Fund Investors and Clients

Fees for investments in private co-mingled real estate funds and other investment vehicles that
we manage are in accordance with fund documentation and investor subscription documents.

Fees for separately managed real estate accounts and programs are in accordance with the
clients’ investment management agreements.

As described in Item 6 below, certain private real estate funds or programs managed by Boyd
Watterson agree to pay to Boyd Watterson or certain of its affiliates incentive compensation
equal to a percentage of the amount by which the investor’s net return (or amounts distributed
to the investor) exceeds an agreed hurdle rate. The incentive compensation is more fully
described in the documentation for the applicable fund or program.

Fees for non-discretionary real estate consulting and management services are either a flat annual
fee, a flat transaction fee, or a fee based on a percentage of rents received by the client, as set
forth in the client agreements.

Boyd Watterson Limited Duration Enhanced Income Mutual Fund

The Boyd Watterson Limited Duration Enhanced Income Fund (“LDEI Fund”) is a registered
investment company for which we serve as investment adviser and receive a management fee
from the LDEI Fund based on assets under our management in the LDEI Fund. If permitted by a
client’s investment management agreement, or subsequent amendments to the investment
management agreement, we have the ability to purchase or sell shares of the LDEI Fund for
managed client accounts. In such event, the portion of a client’s adviser account assets invested
in the LDEI Fund will not be subject to Boyd Watterson’s account management fee for such period
of time so invested. Alternatively, a credit will be subtracted from our advisory fee in an amount
that we calculate to represent the client’s pro rata share of investment advisory fees paid by the
LDEI Fund to Boyd Watterson or as otherwise specified in the client’s investment management
agreement. However, the client will be subject to other fees and expenses applicable to LDEI Fund.

These fees and expenses are outlined in the offering documents of the LDEI Fund, which should
be read carefully prior to purchase authorization.

None of our employees accept compensation for the sale of securities or other investment
products in the form of asset-based sales charges or service fees from the sale of mutual funds,
including the LDEI Fund.

Employees who market investment advisory services to investment advisory clients occasionally
include the LDEI Fund as an investment advisory strategy among fixed income strategies as part
of Boyd Watterson’s investment advisory services. Part of the employment compensation paid by
Boyd Watterson to these employees is based upon new assets under management in advisory
accounts resulting from their marketing efforts. These employees are not compensated any
differently for client accounts investing in the LDEI Fund versus other investment advisory
strategies.

Our wholesale or “advisory channel” marketing employees are dedicated to marketing our
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Item 7    Types of Clients

We manage assets for individuals, investment companies, businesses, pension plans, charitable
organizations, insurance companies, commingled funds, mutual funds, and state and municipal
government entities.