JMG Financial Group Ltd

Item 5           Fees and Compensation

   A. The client can determine to engage JMG to provide discretionary investment advisory
      services on a fee-only basis.
         INVESTMENT ADVISORY SERVICES
         How Fees Are Determined. If a client engages JMG for discretionary investment advisory
         services on a fee-only basis, JMG’s annual advisory fee is based on a percentage of the
         market value of assets placed under JMG’s management, is negotiable, and varies based
         on the scope of and type of services provided.
         Typical Fee Range for Portfolio Management. For most discretionary portfolio
         management engagements, including Non-Sub-Advised portfolios (direct management
         by JMG), Sub-Advised Fixed Income portfolios, and Sub-Advised Equity portfolios, JMG’s
         annual advisory fee are assessed on a tiered basis and generally range from 0.35% to
                                                                                                              Page | 8
                 JMG Financial Group, Ltd. 2001 Butterfield Road, Suite 1400, Downers Grove, Illinois 60515
                                   jmgfinancial.com | P 630.571.5252 | F 630.571.3821

1.00% of assets under management, exclusive of any sub-advisor fees. Lower fee tiers
typically apply as assets increase and may include household accounts.
Sub-Advisor Fees. JMG may engage sub-advisors to manage certain assets. Unless
otherwise indicated, the annual fee charged by the sub-advisor generally ranges between
0.090% and 0.850%, depending on the type of management services and the market
value of assets managed by the sub-advisor. Sub-advisor fees are exclusive of, and in
addition to, JMG’s advisory fee.
Alternative Investments. Where JMG provides advisory services related to alternative
investments (exclusive of fees imposed by the alternative investment itself, such as
management fees and expenses), JMG’s annual advisory fee is assessed on a tiered basis
and generally ranges from 0.90% to 1.00% of the value of those assets. Lower fee tiers
typically apply as assets increase in alternative investments.
Account Minimum / Related Accounts. JMG generally requires a minimum account size
of $1,000,000 when providing only investment advisory services but may accept less in its
sole discretion. JMG may group related client accounts for purposes of meeting
minimums and other administrative considerations.
Negotiability Factors. Because fees are negotiable, JMG may charge a lower fee based on
criteria such as anticipated future earnings, anticipated additional assets, related
accounts, account composition, and negotiations with the client.
How and When Fees Are Billed. Clients may elect to have advisory fees deducted from
their custodial account. Generally, JMG deducts fees and/or bills clients quarterly in
advance, based on the market value of assets on the last business day of the previous
quarter (or, for fixed fees, a pro rata portion of the annual fixed fee).
Grandfathered Fee Schedules. JMG’s fee schedule and arrangements may be amended
from time to time. Many clients have been, and may continue to be, grandfathered under
fee schedules that preceded (i) an amended fee schedule or (ii) the client’s engagement
of JMG. JMG has grown and expects to continue to grow by acquisition; acquired firms
may have fee schedules or arrangements that differ from those described in this
brochure. Upon acquisition, an acquired firm will generally maintain its pre-existing fee
schedule, and clients may be subject to various different fee schedules and/or
arrangements that may be higher or lower than the ranges described above. The specific
fee charged to a client is set forth in the Advisory Agreement executed between JMG
and the client. Clients engaged under grandfathered arrangements should consult their
Advisory Agreement (which may be provided upon request) for the fees applicable to
their account.
FINANCIAL ADVISORY AND CONSULTING SERVICES
To the extent specifically requested by a client, JMG may provide financial advisory and
related consulting services (including investment consulting, retirement planning, cash
flow planning, estate consulting services not involving legal/accounting advice, and
budget analysis) on a stand-alone basis under a separate written agreement. Fees are
negotiable and generally range from $10,000 to $50,000 on a fixed-fee basis, depending
on the scope and complexity of the services and the professional(s) providing them. In
limited instances, fees may be hourly, ranging from $100 to $600 per hour, depending on

                                                                                                     Page | 9
        JMG Financial Group, Ltd. 2001 Butterfield Road, Suite 1400, Downers Grove, Illinois 60515
                          jmgfinancial.com | P 630.571.5252 | F 630.571.3821

scope and the professional(s) involved.
Long-term clients of JMG may continue to be grandfathered under financial advisory fee
schedules which fall outside the general fee range described above.
COMBINED INVESTMENT ADVISORY AND FINANCIAL ADVISORY SERVICES
Generally, this fee arrangement is unique to long term clients of JMG that continue to be
grandfathered (as described above). Under this fee arrangement, the client can
determine to engage JMG to provide discretionary investment advisory services and
financial advisory and consulting services (including investment consulting services,
retirement planning, cash flow planning, estate consulting services (not involving legal or
accounting advice/services), and budget analysis and review, etc.) and pay a combined
fee for both services. JMG’s annual combined investment advisory and financial advisory
fee is based upon a percentage (%) of the market value of the assets set forth on the exhibit
to the Advisory Agreement and generally ranges between 0.30% and 1.00%. JMG’s annual
...

Item 7           Types of Clients

         JMG’s clients generally include individuals, trusts, pension and profit sharing plans,
         business entities, and charitable organizations. JMG generally requires a $1,000,000
         minimum asset level when JMG provides only investment advisory services to a client.
         JMG may group related client accounts for the purpose of achieving the minimum account
         size requirements. JMG, in its sole discretion, may reduce its investment advisory fee
         and/or reduce or waive its minimum asset requirement based upon certain criteria (i.e.,
         anticipated future earning capacity, anticipated future additional assets, dollar amount of
         assets to be managed, related accounts, account composition, negotiations with client,
         etc.).