Capital Advisors Group Inc

Item 5: Fees and Compensation

Discretionary Investment Management Services

Capital Advisors Group typically charges each discretionary investment management services
client a fee using a rate that is between .01 percent and 0.15 percent per year, depending on,
among other things, the size of account, the investment strategy selected, and the complexity
of the portfolio investments. Fees are typically calculated as a percentage of the account’s
month-end aggregate market value balances and are payable monthly in arrears. Investment
management fees relating to deposit programs typically consist of portions of the interest
received by the accounts and are set by a sub-adviser. Under their investment management
agreements with Capital Advisors Group, clients may be assessed a fee by Capital Advisors
Group in a minimum amount of up to $625 per quarter. Capital Advisors Group typically
deducts its discretionary investment management services fees from the client’s custodial
account. With respect to an account participating in a deposit program, Capital Advisors Group
receives its investment management fee directly from a sub-adviser from the fee that the sub-
adviser receives directly from the client or the client’s account.

Non-Discretionary Investment Advisory Services

Capital Advisors Group may provide access to its proprietary web-based, risk-assessment
platform to certain of its discretionary investment management clients. The fees associated
with these non-discretionary investment advisory services are typically included in the fees for
discretionary investment management services and are not separately assessed.

Fees and Client Expenses, Generally

All fees are agreed to in a discretionary investment management agreement executed with a
client. Investment management fees charged by Capital Advisors Group are exclusive of
brokerage commissions, dealer spreads, transaction fees, service fees, legal fees, expenses
attempting to protect or enhance the value of securities, amounts due on client-related loans
and debit balances, and other related costs and expenses, which are the responsibility of the
client. However, Capital Advisors Group typically pays custodial fees as well as fees relating to
domestic wire transfers that otherwise would be the responsibility of the client. Capital
Advisors Group is not affiliated with any custodial bank or broker that hold assets that are
managed by Capital Advisors Group.

Fees paid to Capital Advisors Group for investment management services do not include

amounts paid to asset managers for managing money market funds and other short-term
collective investment funds that Capital Advisors Group may use in managing client assets, and
do not include other expenses of such funds (including any fund share of distribution fees).
These amounts are described in each fund’s prospectus or other offering materials. From time
to time, a client could invest in a fund directly, without the services of Capital Advisors Group.
In that case, the client would not receive the services provided by Capital Advisors Group,
which are designed, among other things, to assist the client in determining which mutual fund
or funds are appropriate for the client’s financial condition and objectives. Certain funds, and
certain share classes of certain funds, recommended by Capital Advisors Group also may not
be available to the client directly. Accordingly, a client should review both the fees and
expenses charged by the funds and the fees charged by Capital Advisors Group to understand
the total amount of fees to be paid by the client and to thereby evaluate the advisory services
provided.

From time to time, Capital Advisors Group agrees to reduce the advisory fees it charges certain
clients.

Other Forms of Compensation Received by Capital Advisors Group

From time to time, Capital Advisors Group accepts compensation from entities affiliated with
money market funds and/or other short-term investment funds for providing certain
shareholder services to Capital Advisors Group’s clients investing in those funds, including
services which fund sponsors or their affiliates otherwise would be expected to provide.
Accepting such compensation presents a conflict of interest and may provide Capital Advisors
Group with an incentive to recommend investment funds and share classes based on the
compensation Capital Advisors Group would receive from the entities affiliated with such funds,
especially when less expensive funds and share classes are available. To address this conflict,
among other things, Capital Advisors Group’s Director of Investment Research and Strategy
determines whether a fund otherwise meets Capital Advisors Group’s suitability standards for
investment of client assets prior to Capital Advisors Group accepting any compensation from an
entity affiliated with such fund with respect to any investment by a client at Capital Advisors
Group’s direction or recommendation. In determining whether a fund is suitable, Capital
Advisors Group’s Director of Investment Research and Strategy considers factors such as asset
size of a fund, stability of fund flows, fund sponsor’s financial strength, management team’s
track record of credit and interest rate risk management, shareholder composition of the fund,
and performance.

Item 7: Types of Clients

 Capital Advisors Group typically provides portfolio management services to institutional
 investors, such as corporations, charitable institutions, and foundations. Capital Advisors
 Group may from time to time provide portfolio management services to certain high net worth
 individuals.

 Capital Advisors Group does not require institutional clients to maintain a minimum balance in
 their accounts. However, for high-net-worth investors, Capital Advisors Group may require a
 minimum balance of $5,000,000.

 A deposit program may require a minimum initial account balance, which is determined by the
 deposit program sponsor.