Scout Investments Inc

Item 5 – Fees and Compensation
Scout’s investment advisory fees vary depending on the type of client and the investment strategy
provided. In general, fees are based upon a percentage of your assets that are managed by Scout.
Fees are billed quarterly unless otherwise stated in the investment advisory agreement. The specific
method of payment is described in your agreement with Scout, or with your financial intermediary.
If your investment advisory fee is billed in advance and Scout stops providing advisory services prior
to the end of the billing period, you will be reimbursed for any unearned fees proportionate to the
number of days remaining from the time your investment advisory agreement terminates to the end
of the billing period. Your account will also incur additional expenses, such as brokerage and
transactional costs that are not included in Scout’s investment advisory fee. For more information
about these types of expenses, please see Item 12 entitled Brokerage Practices. For purposes of
fee invoicing, Scout will directly bill you or your agent. You may also choose for Scout to deduct our
investment advisory fee directly from your custodial account. If you are a separately managed
account client, the choice to be directly billed or have your fee automatically deducted from your
custodial account will depend upon your separately managed account platform. Please contact your
financial representative for more information. All fees stated below are negotiable. Scout may
charge clients fees that are higher or lower than your fee or the fees listed below. This may occur
under a variety of circumstances including, but not limited to, the type of client, the total client assets
managed by Scout or a client’s specific investment objectives and guidelines.

Institutional Client General Fee Schedule

The following table describes Scout’s standard fee schedule for institutional accounts.

  Investment Strategy                                   Fee Schedule

  Mid Cap Equity                                        First $50 million: 0.80%
                                                        Next $50 million: 0.65%
                                                        Above $100 million: 0.60%

  Small Cap Equity                                      First $50 million: 0.85%
                                                        Next $50 million: 0.70%
                                                        Above $100 million: 0.65%

 Small / Mid Cap Equity                           First $50 million: 0.85%
                                                  Next $50 million: 0.70%
                                                  Above $100 million: 0.65%

  Core Plus Fixed Income                          First $50 million: 0.30%
  Core Fixed Income                               Next $50 million: 0.20%
                                                  Above $100 million: Negotiable

  Intermediate Fixed Income                       First $50 million: 0.25%
                                                  Next $50 million: 0.20%
                                                  Above $100 million: Negotiable

  Long Duration Fixed Income                      First $100 million: 0.25%
                                                  Next $100 million: 0.20%
                                                  Above $200 million: Negotiable

  Low Duration Fixed Income                       First $50 million: 0.20%
                                                  Next $50 million: 0.15%
                                                  Above $100 million: Negotiable

                                                  First $25 million: 0.15%
  Ultra Low Duration Fixed Income
                                                  Next $25 million: 0.125%
                                                  Next $50 million: 0.10%
                                                  Above $100 million: Negotiable

  Unconstrained Fixed Income                      First $150 million: 0.40%
                                                  Above $150 million: 0.30%

Separately Managed Account General Fee Schedule

If you become a client of Scout through a financial intermediary’s separately managed account
program (including individual managed account, dual contract and wrap account platforms), Scout
will generally negotiate an investment advisory fee schedule with your program sponsor. Scout’s
investment advisory fee schedule will vary between programs and, for some programs, may be
lower than listed below. For more information, please contact your financial representative.

    Investment Strategy                                 Fee Schedule

    Small Cap Equity                                    Dual Contract – 0.85%
                                                        Individual Managed Account – 0.75%
                                                        Wrap Account – 0.75%

Other Investment Advice

Scout provides investment models, including purchase and sale information, to third-party financial
intermediaries for use in UMAs. We provide these investment models to the financial intermediary on a non-
discretionary basis and the financial intermediary makes the decision to buy or sell securities included in
the investment model. We typically receive a fee from the financial intermediary based upon a percentage
of the total assets using our investment model. The percentage fee varies between different financial
intermediaries.

Item 7 – Types of Clients

Scout provides discretionary investment management services to pooled investment vehicles, including
registered and unregistered investment companies, private investment funds, Undertakings for Collective
Investments in Transferable Securities (“UCITS”) funds, institutional accounts (such as pension plans,
government agencies, corporations, trusts, foundations and endowments) and to individuals through
separately managed accounts (such as individual managed accounts, dual contract and wrap fee

accounts). Scout also provides investment advice in the form of model portfolios to financial intermediaries.
Below are the minimum account sizes applicable to Scout’s investment management services. We can
waive account minimums at our discretion. Scout may provide portfolio management services to certain
employees, family members or friends without charge, or for fee rates that are lower than the rates available
to other clients.

Institutional Clients
The minimum account size for the Mid Cap Equity and Small Cap Equity strategies is $10,000,000. The
minimum account size for the Core Fixed Income, Core Plus Fixed Income, Intermediate Fixed Income,
Low Duration Fixed Income and Ultra Low Duration Fixed Income strategies is
$25,000,000. The minimum account size for the Long Duration Fixed Income strategy is $50,000,000. The
minimum account size for the Unconstrained Fixed Income strategy is
$150,000,000.

Separately Managed Account Clients
The minimum account size for separately managed accounts varies by program and investment strategy,
but usually ranges from $100,000 to $3,000,000. In general, the minimum total asset size for Scout to
participate in a separately managed account platform is $10,000,000 in assets managed by Scout.

Private Fund
Scout, through its Reams division, acts as investment adviser to two private investment funds: the
Columbus Core Plus Bond Fund, LLC and the Columbus Unconstrained Bond Fund, LLC. The minimum
investment size for the private investment funds is $1,000,000 for clients with a separate account in one or
more of our other investment strategies. The minimum investment size for all other investors is
$10,000,000.

The following table describes the standard fee schedule for the private funds.

   Investment Strategy                                Fee Schedule

                                                      First $50 million: 0.35% Next $50 million:
   Columbus Core Plus Bond Fund, LLC                  0.25%
                                                      Above $100 million: Negotiable

                                                      First $50 million: 0.40% Next $50 million:
   Columbus Unconstrained Bond Fund, LLC              0.30%
                                                      Above $100 million: Negotiable

Other Investment Advice

Scout provides investment models, including purchase and sale information, to third-party financial
intermediaries for use in UMAs. We do not set a minimum account size for underlying UMA participants. In
general, the minimum size for Scout to participate in a UMA platform is $10,000,000 in total assets using
one of our investment models.