BTS Asset Management Inc

Item 5 – Fees and Compensation
    A) Fee Schedules

Fee schedule for Tactical Asset Allocation Portfolios: Clients pay BTS an annual management fee calculated in
accordance with the fee schedules below:

Amount under Management          Advisory Fee      Representative Fee        Maximum Annual Management Fee
First: <$100,000                   1.25%
Next: $100,000 - $249,999          1.00%              0% - 1.25%                           2.50%
Next: $250,000 - $499,999            .75%
Next: $500,000 - $999,999            .50%
Next: $1 Million+                    .40%

Fee Schedule for Strategic Asset Allocation Portfolios: Clients pay BTS an annual management fee calculated in
accordance with the fee schedule below:

Amount under Management           Advisory Fee      Representative Fee         Maximum Annual Management Fee
First: <$250,000                     .60%
Next: $250,000 - $749,999            .40%              0% - 1.00%                            1.60%
Next: $750,000 +                     .30%

Fee Schedule for the Multi-Strategy Portfolios: Clients pay BTS an annual management fee calculated in accordance with
the fee schedule below:

Assets Under Management         Advisory Fee       Representative Fee        Maximum Annual Management Fee
First: <$100,000                   1.00%
Next: $100,000 - $249,999            .85%              0%-1.00%                             2.00%
Next: $250,000 - $499,999            .75%
Next: $500,000 - $999,999            .50%
Next: >$1 Million                    .40%

Fee Schedule for the Strategic Income Portfolio: Clients pay BTS an annual management fee calculated in accordance
with the fee schedule below:

Assets Under Management        Advisory Fee         Representative Fee        Maximum Annual Management Fee
First: <$499,999.99                 .30%
Next: $500,000+                     .25%                0%-1.00%                            1.30%

Fee Schedule for the Managed Income Portfolio: Clients pay BTS an annual management fee calculated in accordance
with the fee schedule below:

Assets Under Management        Advisory Fee         Representative Fee        Maximum Annual Management Fee
First: <$250,000                    .65%
Next: $250,000 - $499,999           .55%               0%-1.00%                             1.65%
Next: $500,000 - $999,999           .45%
Next: $1 Million +                  .35%

Fee Schedule for the BTS Gold Tactical Asset Allocation Portfolio: Clients pay BTS an annual management fee calculated
in accordance with the fee schedule below:

Assets Under Management        Advisory Fee         Representative Fee        Maximum Annual Management Fee
First: <$250,000                    .65%
Next: $250,000 - $499,999           .55%               0%-1.00%                             1.65%
Next: $500,000 - $999,999           .45%
Next: $1 Million +                  .35%

Fee Schedule for Tax-Advantaged Bond Asset Allocation and Municipal High-Yield Bond portfolios: Clients pay BTS an
annual management fee calculated in accordance with the fee schedule below:

Assets Under Management        Advisory Fee         Representative Fee        Maximum Annual Management Fee
First: <$250,000                    .65%
Next: $250,000 - $499,999           .55%               0%-1.00%                             1.65%
Next: $500,000 - $999,999           .45%
Next: $1 Million +                  .35%

Fee Schedule for the Enhanced Equity Income Portfolio: Clients pay BTS an annual management fee calculated in
accordance with the fee schedule below:

Assets Under Management         Advisory Fee        Representative Fee        Maximum Annual Management Fee
First: <$250,000                     .55%
Next: $250,000 - $499,999            .50%               0%-1.00%                             1.55%
Next: $500,000 - $999,999            .45%
Next: $1 Million +                   .40%
The Fee Schedules noted above reflect the current structure and do not reflect the structure applied to Clients who
engaged BTS prior to March 31, 2020. For accounts opened prior to March 31, 2020, the maximum Representative
Referral fee for all portfolios was, and remains, 1.5%, whereas today the maximum is 1.25% for tactical portfolios, and
1.00% for all other portfolios.

Under certain circumstances, BTS agrees to charge Clients of certain sales representatives and/or broker-dealers
referring BTS to their Client less than its customary rate because of the volume of business referred to, or promised to
be referred to BTS, by such sales representatives or broker/dealers. Fees charged to pension plans, retirement plans,
and institutional Clients are negotiable. BTS reserves the right to negotiate fees where there are multiple accounts for
one person or within the same household which may, when consolidated, amount to over a breakpoint. Fees vary

depending on the Client’s financial representative and account type. Indirect fees and expenses, such as third-party fees,
custodian fees, and mutual fund expenses, also vary by Client and account. As a concession to their clients, some third-
party solicitors select a reduced representative fee. Because of the fee structure, fees will differ for each BTS client. As
an example, two BTS Clients with the same size account and using the same BTS Portfolio may have materially different
fees charged for the same or similar services received by BTS. Due to the different fee levels, Clients assessed higher
fees will have performance that will be lower than BTS Clients with lower fees. In addition, BTS may have agreements
with certain broker/dealers or registered investment advisors to manage Client accounts through the broker/dealers'
or registered investment advisors’ custodian at a reduced advisory fee. In addition, generally the Advisory Fee portion
of the Annual Management Fee (which consists of a Representative’s Fee plus the Advisory Fee) that is charged to the
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Item 7 – Types of Clients

Using the Portfolios and our product availability described throughout this Brochure, BTS provides portfolio
management services directly to individuals, high net worth individuals, corporate pension and profit-sharing plans,
Taft-Hartley plans, foundations, endowments, registered investment companies and trust portfolios. BTS also provides
its services to unaffiliated entities that use the services for the benefit of their own clients.

For Clients with a direct relationship with BTS, BTS has certain account minimum requirements for opening accounts:
Minimum Investment Amounts for BTS Portfolios

BTS Tactical Asset Allocation Portfolio accounts require an initial minimum of $25,000.
BTS Strategic Asset Allocation Portfolio accounts require an initial minimum of $25,000.
BTS Multi-Strategy Portfolio accounts require an initial minimum of $100,000 for accounts held at Axos, $25,000 for
variable annuity accounts.

BTS Custom-Multi Strategy Portfolio accounts require an initial minimum of $100,000.
BTS Strategic Income Portfolio accounts require an initial minimum of $25,000.
BTS Managed Income Portfolio accounts require an initial minimum of $25,000.
BTS Gold Tactical Asset Allocation accounts require an initial minimum of $25,000.
BTS Enhanced Equity Income Portfolio accounts require an initial minimum of $50,000.

BTS may accept, at its discretion and on a case-by-case basis, lower account minimums. Whether an account below the
required amount is accepted is a matter to be determined at the time of application.