Fund Evaluation Group LLC

Item 5 – Fees and Compensation
Our general policy is to charge fees in accordance with the fee schedule(s) in effect at the time of contract;
however, all FEG fees and minimums are subject to negotiation. Existing advisory clients are subject to
FEG’s minimum fee requirements and advisory fees in effect at the time the client entered into the advisory
relationship. For discretionary accounts, the client’s advisory account is generally debited directly. For non-

discretionary accounts, generally clients are billed directly, or choose an alternative billing method. When
applicable, out-of-pocket expenses (e.g., travel, printing, etc.) are billed to the client.

The manner in which we charge fees is set forth in the client’s advisory agreement. Fees are generally
charged quarterly, in arrears and assessed in accordance with the following guidelines:

                    Service Type                                           Fee Ranges
      Consulting & Supplemental Services;                The fee depends on the total assets under
                                                         advisement at the end of the billing period.
                                                         Fees generally range from 24 to 1 basis point
                                                         depending on the services and value of the
                                                         investment assets, and are subject to a
                                                         minimum fee. Certain clients may engage in
                                                         a flat fee arrangement.

      Outsourced Chief Investment Officer                The fee depends on the total assets under
      (OCIO)                                             management at the end of the billing period.
                                                         Fees generally range from 40 to 1 basis point
                                                         depending on the value of the investment
                                                         assets and are subject to a minimum fee.
                                                         Certain clients may engage in a flat fee
                                                         arrangement.

      Managed Portfolios                                 The management fee is 30 basis points (not
                                                         including platform fee) for clients that utilize
                                                         an independent financial intermediary
                                                         adviser. Actual investment fees incurred by
                                                         clients may vary. For clients that utilize FEG
                                                         as their adviser, the fee generally ranges
                                                         from 115 to 55 basis points on the value of
                                                         the investment assets and includes platform
                                                         fees. Fees largely vary based on the
                                                         agreement with the independent financial
                                                         intermediary.
      Research Services                                  Services are offered on an a la carte basis,
                                                         and fees will be individually quoted based on
                                                         the amount of time and expenses associated
                                                         with those services.

For FEG client assets invested in proprietary FEG funds, FEG’s compensation under the agreement may
be reduced (but not below $0) by any advisory fees received by FEG (or affiliate of FEG) attributable to
the client’s investment in the FEG Funds. Occasionally, FEG will, either directly or indirectly, through its
affiliates, enter into side letter arrangements that allow negotiated fees and/or waiving the minimum
investment requirement. Such arrangements are consistent with the client’s advisory agreement and the

offering documents of FEG’s proprietary funds. All arrangements, as such, will be in writing and agreed
upon by all parties.

FEG is a fiduciary to certain advisory clients that are employee benefit plans or individual retirement
accounts (IRAs) pursuant to the Employee Retirement Income and Securities Act (ERISA). As such, our
firm is subject to specific duties and obligations under ERISA and the Internal Revenue Code that include,
among other things, restrictions concerning certain forms of compensation.

Upon termination of FEG’s services, FEG will assess a pro-rated fee for services rendered in accordance
with the fee payment and termination provisions contained in the client contract.

In addition to our advisory fees, clients are responsible for the fees and expenses charged by custodians and
imposed by broker-dealers or platforms, including transaction charges, custodial fees, and commission
costs. Clients are also responsible for the fees charged by the underlying fund managers.

For further compensation arrangements please refer to Item 14 of this document.

Item 7 – Types of Clients
FEG generally provides investment advisory services to various types of clients, including the following:

    •       Charitable                                       •   Insurance
    •       Community Foundation                             •   Private Foundation
    •       Corporate                                        •   Religious
    •       Family Offices                                   •   Public Funds (State or Municipal Entities)
    •       Healthcare (for profit and not-for-profit)       •   Taft Hartley
    •       Higher Education (private and public)            •   Sovereign Nations
    •       Independent Schools                              •   Financial Intermediaries
    •       Individuals                                      •   Other Investment Advisers

            Item 8-Method of Analysis, Investment Strategies and Risk of Loss
FEG’s investment philosophy serves as the basis for the investment solutions we provide our clients and is
predicated upon the following four philosophical tenets:

        •     Independence: 100% of revenue is derived from providing investment advisory services, with
              no affiliations with broker dealers. It is essential for objective decision-making.

        •     Ardency: Rigorous due diligence uncovers opportunities that preserve value and provide growth.

        •     Prudence: Deliberate portfolio design commensurate with risk tolerance, market opportunities,
              and competitive advantages yields success.

        •     Alignment: Outcomes improve when resources and objectives are aligned.

Portfolio Design

We take a broad-based view of asset allocation, with investments generally falling into one of four asset
categories: global equity, global fixed income, real assets and diversifying strategies. Each category serves
a specific role within a portfolio. An allocation to all four categories provides diversification to major
market risk factors and provides a high-level framework to view the exposures within the portfolio. In order
to achieve an even greater level of diversification, the four broad categories are further broken down into
sub-categories with more specific risk/reward characteristics and market behavior. By strategically
allocating portfolios among these categories, FEG seeks to generate consistent returns and manage risk
irrespective of the market environment.

FEG develops specific investment objectives for each client portfolio. The investment objectives define
strategic allocation profiles targeting the risk and return characteristics, as well as performance benchmarks.

Manager Selection

FEG believes investment firms that meet our quality threshold on organizational structure, personnel,
investment philosophy, and performance must also demonstrate key attributes to be included on the
recommended list. FEG’s research process uses the following six tenets:

    •   Conviction: Strong belief in the investment philosophy; willing to put investment decisions ahead
        of business decisions; invests alongside of clients to promote aligned interests

    •   Consistency: Stability of organizational structure; solid composition of investment professionals;
        strong investment philosophy and processes

    •   Pragmatism: Understand core strengths; can capitalize and sustain a competitive edge

    •   Culture: Strong ethical foundation; passionate about investing; proper organizational and
        compensation structure; culture pervades across organization

    •   Risk Control: Not blind risk takers, but risk conscious; acknowledge mistakes; robust and effective
        risk mitigation

    •   Active Return: Ability to identify and profit from investment opportunities; successful track
        record

Review and Monitoring

Before an investment manager’s strategy is rated as recommended by FEG, we assess the manager and
strategy on rigorous quantitative and qualitative factors. Our research team evaluates managers based on
the quality of the firm, strategy, philosophy, investment process, professionals, and performance. Once
managers and strategies meet our initial requirements, further due diligence is performed, which includes
in-depth contact with investment professionals. Depending on the strategy, FEG’s initial and on-going due
diligence process may vary. More complex strategies require more extensive due diligence, while simplistic
strategies in highly regulated structures, such as index funds, may require less rigor. FEG’s Investment
Committee determines the extent of required due diligence for each type of manager and strategy.

FEG’s investment professionals, including the Research and Portfolio Management teams, meet on a
regular basis to discuss the changing market conditions and manager performance. They conduct a formal
quarterly review and an annual oversight of the market conditions, performance, and client portfolios, while
monitoring both qualitative and quantitative attributes.

Risk of Loss

Investing in securities and other financial instruments involves the risk of loss that clients should be
prepared to bear. Summarized below are certain important risks for clients and prospective clients to
consider.

    •   Securities of ETFs and other Investment Companies: FEG recommends exchange traded funds
        (ETFs) or securities of other investment companies, such as shares of closed-end investment
        companies, unit investment trusts, and open-end investment companies. These types of investments
        represent interests in professionally managed portfolios that can invest in any type of instruments.
        Investing in ETFs and other investment companies involves substantially the same risks as
        investing directly in the underlying securities, but it involves additional expenses at the investment
        company level, such as a proportionate share of portfolio management fees and operating expenses.
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