Stephens Investment Management Group LLC

Item 5 Fees and Compensation

Overview of Fee Arrangements
SIMG offers investment advisory services to clients under two types of fee structures: (1)
fees based solely on a percentage of assets under management (“asset based fee”); and (2)
asset/performance fee arrangements which are hybrid fees based on both a percentage of
assets under management and on the performance of the client’s account
(“asset/performance fee”). Fees are negotiable and vary from client to client. Managing
accounts for differently situated clients with differing fee structures and rates in the same
strategy and with the same investment team presents conflicts of interest for SIMG.
Please review important disclosures concerning these conflicts in Item 6- Performance-
Based Fees and Side-By-Side Management

Asset Based Fees for Separately Managed Accounts
SIMG typically charges clients an investment advisory fee based on the value of the
assets in the client’s account. Where we act as investment adviser to a client in a
separately managed account, our maximum fee is as follows:

     Small Cap Growth Strategy                 1.25% of assets under management
     Mid Cap Growth Strategy                   1.00% of assets under management
     SMID Core Growth Strategy                 1.00% of assets under management
     SMID Select Growth Strategy               1.10% of assets under management
     Leaders and Innovators Strategy           1.00% of assets under management
     SMID Hybrid Growth Strategy               1.25% of assets under management
     Artificial Intelligence and               1.00% of assets under management
     Automation Strategy

In each instance fees are negotiable and vary depending on the size of the investment, the
nature of the services to be rendered by SIMG to the client, and other factors. Fees are
typically invoiced quarterly, in arrears. We provide investment advisory services to our

affiliates, their officers, directors, employees and their family members at fee levels that
are less than those noted above.

Sub-Advisory Relationships
In some instances we are retained to act as sub-advisor for a client’s assets in a separately
managed account. In these situations the nature of the overall services we render to the
particular client differs from those advisory relationships where we act as the sole
investment adviser to a client and interface with the client directly. Consequently, our
fees in these sub-advisory relationships are generally lower than the fees we charge
where we act as the client’s sole investment advisor. Sub-advisory fees are negotiated on
a case-by-case basis, and SIMG’s sub-advisory fees do not include the advisory fee
charged by the client’s investment adviser.

Asset/Performance Based Fee Arrangements
On occasion, SIMG enters into fee arrangements whereby we are compensated under
hybrid asset/performance based fee arrangements. Only certain clients qualify for
asset/performance fee arrangements which compensate SIMG based, in part, on the
performance of the client’s account. SIMG only enters into asset/performance fee
arrangements with Qualified Clients (as defined in Rule 205-3 under the Investment
Advisers Act of 1940) and in accordance with the requirements set forth in applicable
laws, rules, and regulations.

When suitable clients choose asset/performance fee arrangements, SIMG charges an asset
based fee plus we receive a performance fee if SIMG’s net performance exceeds an
agreed upon benchmark. The asset component of the asset/performance fee is computed
and charged quarterly in arrears. The performance component of the asset/performance
fee arrangement is computed and is paid annually in arrears.

Additionally, the Vanguard Explorer™ Fund and SIMG have entered into an investment
advisory agreement wherein we are paid an asset based fee plus a fulcrum performance
fee based on SIMG’s average performance versus the benchmark over a five year period.
The current benchmark utilized is the Russell 2500® Growth Index.

It is not typical for SIMG to enter into asset/performance fee arrangements with clients.
When we do enter into such arrangements, the terms of these arrangements are negotiated
with clients on a case by case basis, and the structure of these arrangements will likely
differ significantly from client to client.

The particular fee arrangement chosen may not be the most advantageous to the client in
all circumstances. We will reject any fee arrangement in instances where: (1) the
Qualified Client standard is not met; (2) where we reasonably believe the investor lacks
the necessary financial sophistication to enter into such an arrangement; (3) where a
client purports not to fully understand our method of compensation and the nature of its
risks; or (4) where we otherwise deem the client to be unsuitable for a hybrid
asset/performance fee arrangement.

Pooled Vehicles
SIMG’s fee schedule for investment companies, collective investment trusts and other
pooled vehicle accounts may be higher or lower than the fees noted above for separately
managed accounts depending on the circumstances of the client relationship. Such fees
are negotiated on a case-by-case basis and are based on the assets in the mutual fund or
the collective investment trust and can also include a performance component. The
advisory fees for the mutual funds and collective investment trusts we advise or sub-
advise are set forth in each fund’s and trust’s prospectus or disclosure document.

Payment of Fees
Our advisory fees for our separately managed accounts are paid quarterly in arrears. If an
account is custodied at Stephens’ clearing broker, Pershing, we typically arrange for our
fee to be deducted from the client’s assets pursuant to an authorization from the client.
Where client accounts advised by SIMG are custodied away from Stephens Inc.’s
clearing broker-dealer, Pershing, we typically bill clients for fees incurred. For mutual
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Item 7 Types of Clients

SIMG is primarily an investment adviser to institutional accounts, high net worth
individuals and to investment companies. We provide investment advice to individuals,
trusts, boards and retirement systems for various governmental pension and retirement
plans, corporate pension and retirement plans, various foundations and private entities
and investment companies. Our investment focus is on equity securities, although fixed
income securities, mutual funds, exchange-traded securities and other types of securities
may be purchased for client accounts in our various strategies from time to time. The
minimum account size for each strategy SIMG advises is as follows:

       Small Cap Growth Strategy                                    $3,000,000
       Mid Cap Growth Strategy                                      $2,000,000
       Small and Mid Cap (SMID) Core Growth Strategy                $1,000,000
       Small and Mid Cap (SMID) Select Growth Strategy              $1,000,000
       Leaders and Innovators Strategy                              $1,000,000
       SMID Hybrid Growth Strategy                                  $1,000,000
       Artificial Intelligence and Automation Strategy              $1,000,000

We can waive these minimum account sizes in our sole discretion. If the value of an
account declines below our minimum account size for any reason after the account is
opened, it is our normal practice to continue to maintain the account. However, we
reserve the right to accept or decline any account and in accordance with the terms of a
particular account’s investment agreement, we reserve the right to close an account if
appropriate in our discretion.

For the mutual funds and collective investment trusts we advise or sub-advise, the
minimum investment in the American Beacon Stephens Small Cap Growth Fund, the
American Beacon Stephens Mid-Cap Growth Fund, the Bridge Builder Small/Mid Cap
Growth Fund, the First Trust Multi-Manager Small Cap Opportunities ETF, the
Vanguard Explorer™ Fund and the Stephens Collective Investment Trust Funds vary by
the share class and are set out in each fund’s prospectus or disclosure document.

Additionally, we advise wrap fee accounts in various programs sponsored by affiliated
and unaffiliated investment advisers. The sponsor establishes a minimum account size
for each program, and you should refer to the sponsor’s wrap fee brochure for a
discussion of minimum account sizes and whether the minimum account size can be
waived.