Mutual Fund Investing at Merrill Lynch

Merrill Personal Advisor Progra Client Agreement

A Client Disclosure Pamphlet January 2021

Merrill Lynch, Pierce, Fenner & Smith Incorporated

One Bryant Park New York, N.Y. 10036 1.800.MERRILL

1 CCooddee 331111661199PPMM--00221100 Table of Contents

Introduction 2-3

U.S. Registered Mutual Fund Share Classes 3–7

Front-End Sales Charge and Contingent Deferred Sales Charge (CDSC) Waivers and Discounts at Merrill Lynch 7-8

Asset-Based Fee Programs 8-9

Retirement & Benefit Plan Services Programs 9

Merrill Edge® Self-Directed Investing 9-10

Compensation of Merrill Lynch Financial Advisors and Their Managers 10-12

Additional Merrill Lynch Services and Compensation 12-14

Money Market Mutual Funds 14-16

Purchases, Sales and Transfers 16

Other Services 16-17

Appendix 18

Mutual Funds are not FDIC insured; are not deposits or obligations of, or guaranteed by, any financial institution; and are subject to investment risks, including possible loss of the principal amount invested. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

Prospectuses for mutual funds can be obtained through the investor’s sign-in area of merrilledge.com. Clients of Merrill Advisory Center can also call 1.888.654.6837. If you’re not currently a Merrill Edge client, please call 1.888.637.3343.

Merrill Lynch, Pierce, Fenner & Smith Incorporated (also referred to as “MLPF&S” or “Merrill”) makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation (“BofA Corp.”). MLPF&S is a registered broker-dealer, registered investment adviser, Member SIPC an d a wholly owned subsidiary of BofA Corp.

Investment products:

Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value

Merrill Lynch is providing this third-party website only as a convenience and the inclusion of the website does not imply any endorsement, approval, investigation, verification or monitoring by Merrill Lynch or any of its affiliates of any content or information contained within or accessible from the website. Merrill Lynch and its affiliates do not control the accuracy, completeness, timeliness or appropriateness of the content or information on the website. If you choose to visit the website you will be subject to its terms of use and privacy policies, over which Merrill Lynch and its affiliates have no control. In no event will Merrill Lynch or any of its affiliates be responsible for any information or content within the website or your use of the website.

The Chief Investment Office (CIO) provides thought leadership on wealth management, investment strategy and global markets; portfolio management solutions; due diligence; and solutions oversight and data analytics. CIO viewpoints are developed for Bank of America Private Bank, a division of Bank of America, N.A., (“Bank of America”) and Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S” or “Merrill”), a registered broker-dealer, registered investment adviser and a wholly owned subsidiary of BofA Corp. This information should not be construed as investment advice and is subject to change. It is provided for informational purposes only and is not intended to be either a specific offer by Bank of America, Merrill or any affiliate to sell or provide, or a specific invitation for a consumer to apply for, any particular retail financial product or service that may be available.

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Introduction fund company or its distributor, or through other When selecting a mutual fund that fits your needs, financial intermediaries, without paying a fee or there are several key factors to consider: sales charge to Merrill Lynch or for lower fees and expenses. Further, some mutual funds have  The fund’s investment strategy investment strategies that can be substantially  The fund’s risk profile similar to the strategies of other investment  The fund’s investment performance products, such as exchange traded funds and  The fund’s relationship to your overall separately managed accounts. These investment asset allocation strategy, investment time products can have lower costs and expenses but horizon and liquidity needs have different features than those offered by  The fund’s manager mutual funds (e.g., exchangeability, certain  The fund’s fees and expenses, which will discounts and waivers, or daily net asset value). A reduce investment returns Merrill Lynch Financial Advisor’s compensation varies based on the type of investment product, This pamphlet offers information about fees and therefore a Merrill Lynch Financial Advisor can expenses for the U.S. registered mutual fund receive more or less compensation if you invest in share classes available through Merrill Lynch, a mutual fund over another investment product. Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) as well as the compensation that A review by or under the supervision of personnel Merrill Lynch earns with respect to those funds. of the Chief Investment Office (“CIO”), referred to as the “CIO Review Process,” is conducted on Merrill Lynch, a wholly owned subsidiary of Bank each mutual fund that Merrill Lynch makes of America Corporation (“BofA Corp”), offers a available to its clients. The CIO Review Process wide range of investment products and services, consists of (1) proprietary evaluation processes including many different open-end mutual funds. conducted by the CIO, and (2) processes and Mutual funds available through Merrill Lynch reviews provided by third parties that Merrill Lynch include (i) funds that are registered in the United has engaged for this purpose. The third-party States and typically only offered for sale to “U.S. reviewers apply evaluation processes that are persons” (“domestic” mutual funds) and (ii) funds generally consistent with, but not identical to, the that are domiciled outside of the United States multi-factor processes that the CIO applies. Merrill and typically only available to people or entities Lynch, through the CIO, reviews such third-party that are not “U.S. persons” under Regulation S of reviewers’ evaluation processes on an ongoing the Securities Act of 1933 (“offshore” mutual basis and believes that such processes are funds). This pamphlet only refers to domestic reasonable and appropriate. Please note that mutual funds. For information about offshore Merrill Lynch and the third-party reviewers can mutual funds at Merrill Lynch, refer to the Offshore Mutual Fund Investing Pamphlet at differ with respect to their approach to analyzing www.ml.com/funds. and rating particular funds or share classes of funds. Accordingly, in certain instances, Merrill Merrill Lynch offers its products, accounts and Lynch may continue to make available to clients services through different service models; for funds or share classes that have been assigned a example: negative rating by such third-party reviewers; this is particularly likely to occur where a third-party  F ull-service- Clients who work with a reviewer’s negative rating is driven solely by financial advisor in some capacity, or reference to the internal expenses associated with  S elf-directed- Clients who manage their a particular share class, and not the total cost of own accounts and do not have an ownership of such share class to the client. The advised relationship. CIO Review Process does not impact investment choices in a Merrill Edge self-directed investing Based on the service model, the same or account. similar products, accounts and services may vary in their price or fees charged to a client. For more information on any mutual fund, please request a summary prospectus, and/or a full In addition, you may be able to purchase mutual prospectus from your Merrill Lynch Financial funds or share classes directly from the mutual Advisor, Merrill Financial Solutions Advisor © 2016 Bank of America Corporation. All rights reserved. 2 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued)

(“Financial Solutions Advisor”) or Merrill Edge self - horizon. directed investing Investment Center representative (“Investment Center How it works: When buying Class A shares, a representative”) and read it carefully. Before front-end sales charge ranging from 0.00% to investing, carefully consider the investment 5.75% is deducted from your initial investment at objectives, risks, and charges and expenses of the time of purchase. When you purchase Class A the fund. This and other information can be found shares through a Merrill Lynch Financial Advisor, in the fund’s prospectus. Merrill Lynch generally only permits purchases of an amount of Class A shares where the sales U.S. Registered Mutual Fund Share Classes charge is 3.5% or lower. The amount of the sales charge you pay varies based upon factors such as the fund’s particular sales charge schedule, In order to accommodate different investing whether you are eligible for any discounts or needs, many mutual funds offer more than one waivers and/or the asset class of the fund. Based “class” of shares – generally Class A, Class C, on your investment needs, if you are unable to and no-load shares. Each share class represents complete the purchase of Class A shares due to an interest in the same mutual fund’s investment the maximum 3.5% sales charge, you can choose portfolio, but with different fees and expenses. to invest the same dollar amount in Class C An investor who holds a more expensive share shares or purchase an amount of Class A shares class of a mutual fund will pay higher fees over that would bring the sales charge to 3.5% or time—and earn lower investment returns—than lower. Most of this front-end sales charge is paid to an investor who holds a less expensive share Merrill Lynch as a “dealer concession” or “dealer class of the same fund. At Merrill Lynch, certain commission” and a portion of that amount is paid to share classes offered by a mutual fund are your Merrill Lynch Financial Advisor (see limited to specific service models. For example, discussion below). certain low-load and no-load mutual fund share classes are available only through certain Merrill A fund may offer discounts on, or waivers of, a Lynch asset-based fee programs and Merrill front-end sales charge depending on the terms Edge self-directed investing accounts, as set forth in the fund’s prospectus and/or statement described more fully below. However, these of additional information. For example, current share classes generally are not available to officers, directors, or employees of the fund clients purchasing mutual funds in a full-service company and its affiliates or their family members brokerage account. Additionally, certain share may qualify for a sales charge waiver. classes that impose sales charges (which are Additionally, less expensive share classes may be described directly below) are available through available to you depending on the eligibility terms more than one service model, including Merrill set forth in the fund’s prospectus and statement of Edge self-directed investing accounts. For additional information. The conditions under which information about a particular mutual fund’s share these discounts, waivers or shareholder rights are classes, you should review the fund’s available vary among fund families and financial prospectus, including the fee table. intermediaries (like Merrill Lynch) who offer the fund’s shares to their clients. The Financial Industry Regulatory Authority (FINRA) maintains a Mutual Fund Expense If you purchase shares through certain Merrill Analyzer tool on its website at Lynch platforms or accounts you may be eligible www.finra.org/fundanalyzer that may help you for the discounts, waivers of front-end sales in making a decision about which share class charges or different share classes as described in is best for you. the “Front-End Sales Charge and CDSC Waivers

and Discounts at Merrill Lynch” section below and Class A Shares. Class A shares, often referred to in the Merrill Lynch-specific disclosure in the as “front-end load” shares, typically impose a front- participating funds’ prospectuses. Reinstatement, end sales charge, also known as a “load”, which breakpoints, rights of accumulation and letters of you pay at the time of purchase. However, these intent are types of sales charge waivers or funds typically have lower annual operating discounts available at Merrill Lynch. The availability expenses than Class C shares, so they can be of these discounts, waivers of front-end sales more economical for investors who have an charges or different share classes may also vary intermediate to longer-term investment time © 2016 Bank of America Corporation. All rights reserved. 3 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) depending on the Merrill Lynch service model you fees are not eligible for reinstatement at Merrill select. As such, some of the funds’ discounts, Lynch. waivers or different share classes are not available at Merrill Lynch and are available only if For more information on reinstatement privileges you purchase the fund directly from the mutual at Merrill Lynch see “Front-End Sales Charge and fund company or its distributor, or through CDSC Waivers and Discounts at Merrill Lynch” financial intermediaries other than Merrill Lynch. below or the Merrill Lynch-specific disclosure in the participating fund’s prospectus. You may be Some fund families do not participate in certain able to obtain other reinstatement privileges if you discounts, waivers and/or share class exchange had eligible purchases made directly with the fund rights available at Merrill Lynch (“Non-Participating or through the fund’s distributor that are not Fund Families”). Accordingly, it is important to note available if you purchased the fund through Merrill that in such cases, Merrill Lynch discounts, waivers Lynch. of front-end sales charges or share class exchange rights are not available with respect to shares of the Breakpoints and Rights of Accumulation: Mutual funds of the Non-Participating Fund Families. If you funds issuing Class A shares generally offer hold shares of funds from Non-Participating Fund discounts, called “breakpoints,” on the front-end Families in your Merrill Lynch account, you are sales charge for larger investments or additional eligible for the CDSC waivers and Class C share investments within the same fund family. For conversion rights set forth in the fund’s prospectus, example, a mutual fund might impose a front-end if applicable. For a list of participating fund families, sales charge of 3.00% for investments between see the Appendix at the end of this pamphlet. $50,000 and $99,999, but reduce the charge to Consult the fund’s prospectus or statement of 2.50% for investments between $100,000 and additional information for information on available $249,999, and further reduce or eliminate the front-end sales charge discounts, waivers and front-end sales charge for even larger investments. eligibility for different share classes. Talk with your Mutual fund investors are typically permitted to Merrill Lynch Financial Advisor, Financial Solutions aggregate holdings in related accounts (such as Advisor or Investment Center representative if you your own or those of certain family members) to believe you qualify for a discount, waiver, or a calculate the appropriate breakpoint (called “rights different share class and to determine whether and of accumulation”). A Merrill Lynch Financial how they apply at Merrill Lynch. Advisor, Financial Solutions Advisor or Investment Center representative can help you determine Reinstatement of Class A Shares: Reinstatement whether you are eligible for any breakpoint privileges allow investors who have recently sold discounts. shares to purchase new shares of the same share class, within the same fund family, up to the dollar Check the fund’s prospectus and statement of amount of the sale proceeds with no sales charge. additional information to obtain fund-specific Merrill Lynch will apply reinstatement privileges for information on breakpoint discounts. It is your accounts that had sold Class A shares less than responsibility to notify your Merrill Lynch Financial 90 days prior to purchasing new Class A shares of Advisor, Financial Solutions Advisor or Investment any fund from the same fund family. Center representative of any holdings of a specific fund family held by your related accounts, whether Reinstatement privileges at Merrill Lynch will only at Merrill Lynch, another firm, or directly at the fund apply when the purchase and redemption in order to ensure that the most advantageous transactions occur in the same account. Because breakpoint is applied. Class A shares with no sales charges have lower annual 12b-1 and/or service fee than Class C Letter of Intent: A Letter of Intent (“LOI”) is a shares, if you qualify for reinstatement privileges written statement that you sign to express your for Class A shares, you will not be able to intent to invest a specific dollar amount of shares purchase Class C shares of the same fund family within a fund family within a specified time period until you use the full reinstatement privileges to (usually 13 months) that if bought all at once, which you are entitled. Automated transactions would entitle you to an applicable breakpoint (i.e. systematic purchases and withdrawals) and discount. Keep in mind that if you do not purchase purchases made after shares are automatically the amount committed to within the specified time sold to pay Merrill Lynch’s account maintenance period, a sufficient amount of your fund shares © 2016 Bank of America Corporation. All rights reserved. 4 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) can be sold to collect the difference between the fee that ranges from between 0.00% and 0.50% full sales charge stated in the fund’s prospectus of the net assets of the Class A shares. The 12b- applicable to your actual purchase amount and 1 and/or service fee for most funds offered at Merrill the reduced sales charge that was originally Lynch typically ranges between 0.20% and 0.30%. charged to you. Any share class for which no This annual 12b-1 and/or service fee is used to front-end sales charge is paid cannot count compensate the fund’s distributor and/or firms like towards the dollar amount of the LOI. Merrill Merrill Lynch for distribution and/or ongoing Lynch only offers an LOI feature with participating personal shareholder services, maintenance of fund companies; see “Front-End Sales Charge shareholder accounts, and/or related services, if and CDSC Waivers and Discounts at Merrill applicable. A portion of this amount is paid to your Lynch” below or the Merrill Lynch-specific Merrill Lynch Financial Advisor (see discussion disclosure in the participating fund’s prospectus. below). For more information, notify your Merrill Lynch Financial Advisor, Financial Solutions Advisor or The dollar amount at which you should consider Investment Center representative if you intend to purchasing Class A shares of a fund can be make additional future purchases within the same evaluated using FINRA’s Mutual Fund Expense fund family in order to benefit from an LOI, to Analyzer tool mentioned previously above. The obtain more information on the Merrill Lynch LOI, tool will help analyze the fund’s one-time front-end or to request a copy of the Merrill Lynch LOI form. sales charge and annual operating expenses Purchases made outside of Merrill Lynch do not compared to the sales charges and the annual count towards any existing LOI established at operating expenses of other share classes of the Merrill Lynch. same fund.

Breakpoints, rights of accumulation, and LOIs can Class B Shares. Class B shares, often referred to as help reduce sales charges for investments within “back-end load” shares, typically do not impose a the same fund family. Investors can choose to front-end sales charge. Class B shares do, however, invest across multiple fund families for many typically impose a CDSC, which may be charged to reasons, including potential diversification, as well shareholders who redeem Class B shares within a as having the ability to invest in fund strategies certain number of years. This charge declines over that may not be available within the same fund time and eventually is eliminated. For example, the family. It is important to consider that investing CDSC typically starts at 5% for shares redeemed across multiple fund families reduces the during the first year and is reduced over time until it opportunity to qualify for breakpoint, rights of is eliminated, generally after six years. accumulation, and LOI discounts or benefits. Class B shares are not available for purchase at Also keep in mind that mutual funds issuing Class Merrill Lynch. Existing Class B shares may be A shares with a breakpoint that eliminates the redeemed or exchanged to purchase shares of the front-end sales charge generally impose a CDSC, same class of another fund within the same fund which is typically between 0.25% and 1.00% of the family. For additional information about exchanges, redemption amount, on purchases meeting that refer to the section below titled Mutual Fund Family breakpoint if you redeem (sell) the shares during the Fund to Fund Exchange Privileges and the - fund’s first year or longer, with no CDSC thereafter. A prospectus. CDSC reduces the amount of proceeds you receive when you sell all or a portion of your CDSCs on Class B shares that are being redeemed investment. While a front-end sales charge will not are typically paid to the fund’s distributor for amounts be imposed, Merrill Lynch will typically receive up- it paid to Merrill Lynch when you purchased your front compensation of between 0.25% and 1.00% Class B shares. Neither Merrill Lynch nor your Merrill of the invested amount, paid by the fund’s Lynch Financial Advisor typically receives the distributor or other service provider at the time of CDSC. Although Class B shares usually do not sale, and a portion of this amount is paid to your impose a front-end sales charge, they do include an Merrill Lynch Financial Advisor (see discussion annual 12b-1 and/or service fee (typically paid to below). the fund’s distributor or other service provider) that is equal to a maximum of 1.00%, which is higher Class A shares’ annual operating expenses than the 12b-1 and/or service fee for the fund’s typically include an annual 12b-1 and/or service Class A shares. As with Class A shares, © 2016 Bank of America Corporation. All rights reserved. 5 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued)

Merrill Lynch is compensated by the fund’s not to Merrill Lynch or your Merrill Lynch distributor or other service provider for providing Financial Advisor. distribution and/or ongoing personal shareholder  Class C shares generally include an services, typically at an annual rate of 0.25% of the annual 12b-1 and/or service fee that equal net assets of the Class B shares, and a portion of no more than 1.00% of the net assets of this amount is paid to your Merrill Lynch Financial the Class C shares. This is higher than Advisor (see discussion below). The remainder of comparable charges or fees for the fund’s the Class B 12b-1 and/or service fee (e.g., 0.75%) Class A shares. is typically retained by the fund’s distributor or other service provider. Class B shares often convert to Merrill Lynch typically receives up-front Class A shares after a period of time (typically 8 to compensation of 1.00% of the invested amount. 10 years), which effectively lowers the 12b-1 and/or This compensation is paid by the fund’s distributor service fee. or other service provider at the time of sale, and a portion of this amount is paid to your Merrill Lynch Reinstatement of Class B Shares: When you Financial Advisor (see discussion below). The redeem Class B shares at Merrill Lynch and initial compensation paid to Merrill Lynch in reinvest into the same fund family in the same connection with your purchase of Class C shares account within 90 days of the redemption, you will is generally lower than that paid on Class A share be reinstated into Class A shares with no sales transactions. However, Merrill Lynch typically charges, and the newly purchased shares will not receives a higher annual 12b-1 and/or service fee have a CDSC to the extent the older, redeemed in connection with your investment in Class C shares were no longer subject to a CDSC. shares, generally between 0.50% to 1.00% of the Automated transactions (i.e. systematic net assets of the Class C shares. A portion of purchases and withdrawals) and purchases made these fees is paid to your Merrill Lynch Financial after shares are automatically sold to pay Merrill Advisor (see discussion below) and a portion Lynch’s account maintenance fees are not eligible covers ongoing personal shareholder services for reinstatement at Merrill Lynch. provided by Merrill Lynch.

Class C Shares. Class C shares, often referred to as The dollar amount at which you should consider “level-load” shares, typically do not levy a front-end purchasing Class C shares of a fund can be sales charge when you buy shares. However, they evaluated using FINRA’s Mutual Fund Expense often impose a CDSC and higher annual charges, Analyzer tool mentioned previously above. so compared to Class A shares, they become less economical for investors who hold their For participating fund families, Merrill Lynch will investments over a longer term. In some automatically exchange your Class C shares for instances, Class C shares are more economical Class A shares ((or another eligible share class as for investors who have a short to intermediate disclosed in the fund’s prospectus)) of the same investment horizon and have less than $1 million fund in the month following the 5-year anniversary of household assets to invest in a fund family. of the purchase date. If a fund family’s prospectus Class C shares also may be more appealing to allows for automatic Class C share conversions you if you prefer the flexibility to change your (the fund’s terminology for an exchange) sooner investments among different fund families than 5 years from the date of purchase, the earlier periodically, without paying front-end sales prospectus conversion requirements will apply. charges or (possibly) CDSCs, or if you prefer not The fund level conversion feature may not apply to to pay front-end sales charges on each all Class C shares; please see the specific fund’s transaction. prospectus for more information. If you hold shares of funds from Non-Participating Fund Families in Class C shares generally impose the following sales your Merrill Lynch account, you are eligible for the charges: Class C share conversion rights set forth in the fund’s prospectus, if applicable.  Class C shares typically impose a CDSC of 1.00% of the redemption amount if you sell Mutual funds may offer CDSC waivers in certain during the first year, with no CDSC circumstances, such as in the event of the death thereafter. CDSCs are typically paid to the of the shareholder. Not all CDSC waivers included fund’s distributor or other service provider, in the fund’s prospectus or statement of additional © 2016 Bank of America Corporation. All rights reserved. 6 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) information are available through Merrill Lynch. See “Front-End Sales Charge and CDSC Waivers Front-End Sales Charge and CDSC Waivers and and Discounts at Merrill Lynch” below or the Discounts at Merrill Lynch Merrill Lynch-specific disclosure in the participating fund’s prospectus for a full list of CDSC waivers available through Merrill Lynch. Shareholders purchasing fund shares (except those of Non-Participating Fund Families – See Reinstatement of Class C Shares: When you “U.S. Registered Mutual Fund Share Classes” redeem Class C shares at Merrill Lynch and then above for more details regarding Non-Participating buy Class C shares from the same fund family in Fund Families) through Merrill Lynch may be the same account up to the dollar amount of the eligible for waivers or discounts as specified herein sale proceeds within 90 days of the redemption, and as disclosed in the Merrill Lynch-specific the newly purchased shares will not have a CDSC disclosure in the participating fund’s prospectus. to the extent you paid the CDSC on the older, For waivers and discounts not available through redeemed shares, or they were no longer subject Merrill Lynch, you will have to purchase shares to the CDSC at the time of the redemption. directly from that fund family’s transfer agent or Automated transactions (i.e. systematic other service provider. purchases and withdrawals) and purchases made For participating fund families, Merrill Lynch will after shares are automatically sold to pay Merrill automatically apply sales charge and CDSC Lynch’s account maintenance fees are not eligible waivers and discounts in the following scenarios: for reinstatement at Merrill Lynch.  Breakpoints as described in the Institutional, Retirement, No-Load, Load-Waived fund’s prospectus and Other Share Classes. In addition to Class A  LOI which allows for breakpoint discounts and C shares, other share classes that charge based on anticipated purchases within a different fees may be available through fund family, through Merrill Lynch, over a Merrill Lynch. In some instances, only certain 13-month period of time provided the fund types of investments, investors, accounts or family has agreed to offer this privilege programs may qualify for these other classes. For  Rights of accumulation which entitle example, some fund companies offer “retirement” shareholders to breakpoint discounts as shares through Merrill Lynch for retirement plans. described in the fund’s prospectus These retirement shares do not charge an up-front calculated based on the aggregated sales charge or CDSC, but may impose a 12b-1 holding of fund family assets held by and/or service fee. Some fund families offer accounts (including 529 program holdings, “institutional” shares, which do not charge an up- where applicable) within the client’s front sales charge, CDSC, or 12b-1 and/or service household at Merrill Lynch. Eligible fund fee. Also, institutional, no-load or other fund family assets not held at Merrill Lynch may shares (along with “load-waived” Class A shares) be included in the rights of accumulation may only be available through certain Merrill Lynch calculation only if the shareholder notifies asset-based fee programs and Merrill Edge self- his or her Merrill Lynch Financial Advisor directed investing accounts; see “Asset-Based Fee about such assets Programs” and “Merrill Edge Self-Directed  Shares purchased through a Merrill Lynch Investing”. affiliated investment advisory program  Shares exchanged due to the holdings Mutual Fund Family Fund to Fund Exchange moving from a Merrill Lynch affiliated Privileges: Mutual funds may offer exchanges into investment advisory program to a Merrill the same share class of another fund within the Lynch brokerage (non-advisory) account same fund family without a sales charge, Fund  Eligible shares purchased from the exchanges are subject to the exchange conditions proceeds of redemptions within the same set forth in the fund’s prospectus and fund and fund family, provided (1) the repurchase share class availability at Merrill Lynch, occurs within 90 days following the redemption, (2) the redemption and Consult the fund’s prospectus and statement of purchase occur in the same account, and additional information to obtain fund-specific (3) redeemed shares were subject to a information on exchange privileges. front-end or deferred sales load (known as

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued)

Rights of Reinstatement). Automated charge waivers or discounts, when applicable, at the transactions (i.e. systematic purchases time you provide instructions to buy or sell mutual and withdrawals) and purchases made fund shares: after shares are automatically sold to pay Merrill Lynch’s account maintenance fees  Shares purchased by the fund’s directors or are not eligible for reinstatement trustees, and employees of the fund’s  Shares purchased by employer-sponsored investment advisor or any of its affiliates, as retirement, deferred compensation, and described in the fund’s prospectus employee benefit plans (including health  Return of excess contributions from an IRA savings accounts) and trusts used to fund account those plans, provided that the shares are  Shares sold due to the death or disability of not held in a commission-based brokerage the shareholder account and shares are held for the benefit of the plan For more information on the waivers and discounts  Shares of funds purchased through the available, please speak with your Merrill Lynch Merrill Edge Self-Directed platform where Financial Advisor, Financial Solutions Advisor or the fund family has contractually agreed to Investment Center representative. waive sales charges  Shares purchased by employees and Asset-Based Fee Programs registered representatives of Merrill Lynch You can purchase mutual funds through various or its affiliates and their family members asset-based fee programs available at  Shares sold to pay Merrill Lynch fees but Merrill Lynch, including discretionary and non- only if the transaction is initiated by Merrill discretionary investment advisory programs. In Lynch these programs, you pay Merrill Lynch an annual  Shares sold as part of a required minimum fee based on a percentage of the value of the distribution for IRA and retirement assets held in your Merrill Lynch account accounts pursuant to the Internal Revenue associated with these programs. Code  Shares sold as part of a systematic These asset-based fee programs allow you to withdrawal plan as described in the fund’s purchase institutional shares, “no-load” and low- prospectus load fund shares, or load-waived Class A shares  Shares held in retirement brokerage (or another share class without a front-end sales accounts, that are exchanged for a lower charge or CDSC) (“Advisory Share Classes”). cost share class due to transfer to certain These asset-based fee programs provide fee based accounts or platforms features and benefits, as well as share classes (applicable to Class A and Class C shares that are not available for purchase in a traditional only) Merrill Lynch brokerage account that charges  Shares purchased by a 529 Plan (does not include 529 Plan units or 529-specific transaction fees and is serviced by your Merrill share classes or equivalents) Lynch Financial Advisor or Financial Solutions  Shares purchased by third party Advisor, or through Merrill Edge self-directed investment advisors on behalf of their investing accounts. The total cost of purchasing advisory clients through Merrill Lynch’s and holding mutual fund shares through an asset- platform based fee program may be more or less than  Shares purchased through reinvestment of investing in mutual fund shares in a traditional capital gains distributions and dividend Merrill Lynch brokerage account that is serviced reinvestment when purchasing shares of by your Merrill Lynch Financial Advisor or the same fund (but not any other fund Financial Solutions Advisor, or through a Merrill within the fund family) Edge self-directed investing account, depending  Shares exchanged from Class C (i.e. level- on the amount of the asset-based fee and the load) shares of the same fund in the month specific mutual fund shares in which you invest. of or following the 5-year anniversary of the purchase date in commission-based In addition, certain model portfolios available in brokerage accounts Merrill Lynch's asset-based fee program invest your assets in funds. Clients enrolled in these You must specifically request the following sales models indirectly incur the funds’ expenses. If the © 2016 Bank of America Corporation. All rights reserved. 8 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) model portfolio is managed by a third-party managed accounts even if the asset-based fee investment manager that invests in funds that are program account is terminated. proprietary to that manager, the manager receives a portion of the proprietary funds’ Retirement & Benefit Plan Services Programs expenses directly from the funds as compensation. This provides an incentive for the third-party manager to select proprietary funds for You can purchase mutual funds through various the model portfolio with higher expenses over retirement or benefit plans and custodial accounts funds, including proprietary funds, with lower for certain individually-held retirement plans or expenses and creates a conflict of interest relating arrangements available at Merrill Lynch. For to the third-party manager’s selection of funds. these programs, the share class availability may You should ask your Merrill Lynch Financial be determined by the plan sponsor, the size or Advisor or Financial Solutions Advisor for more nature of the plan, or other factors. Terms and information about these cost differences and pricing (including discounts and waivers) for whether an asset-based fee program might be mutual funds offered through retirement plans right for you. may differ from other programs. In addition, the compensation paid to Merrill Lynch or to the Advisory Share Classes are not available for Merrill Lynch Financial Advisor may differ from purchase in a Merrill Lynch brokerage what is described in the sections below. For more account. Fund share classes available for information, including information on fees and brokerage accounts generally have higher compensation, please contact your Merrill Lynch operating expenses than Advisory Share Classes Financial Advisor or the retirement or benefit plan’s and will charge sales loads and 12b-1 and/or sponsor or refer to the fund’s prospectus and service fees, which are used to compensate statement of additional information, which you may Merrill Lynch and your Merrill Lynch Financial request from the fund. Advisor. This creates a conflict of interest because it provides an incentive for your Merrill Lynch Merrill Edge® Self-Directed Investing Financial Advisor to advise or recommend that you terminate your asset-based fee program Mutual funds, including certain load, low-load, account and open a brokerage account or move load-waived and no-load funds, are available individual positions to a brokerage account if there through a Merrill Edge self-directed investing is a difference in compensation. account and are subject to service, transaction, short-term redemption, and other fees, which In the event your advisory agreement governing are described on the Merrill Edge website at your asset-based fee program account is www.merrilledge.com/pricing. Merrill Edge self- terminated and you transition your holdings to a directed investing is designed for U.S. - based Merrill Lynch brokerage account, or you transfer Advisory Share Class holdings from an asset- investors who wish to make their own investment based fee program account to a Merrill Lynch choices in a Merrill Edge self-directed investing brokerage account, Merrill Lynch will exchange account. In addition to access to certain no-load or the positions from Advisory Share Classes to load-waived Class A shares, you may be able to brokerage share classes after you transition to a purchase a less expensive share class of a fund brokerage account, if available. Brokerage share through a Merrill Edge self-directed investing classes have different expenses than Advisory account than through your Merrill Lynch Share Classes (including 12b-1 and/or service Financial Advisor or your Financial Solutions fees). While the exchange transaction will not be a Advisor. These share classes are not available taxable event and will not be subject to sales to clients purchasing shares in a full-service loads or commissions, all future purchase account. transactions in the fund will be subject to sales loads and other fees and commissions as detailed The funds and share classes available through a in the fund’s prospectus. Not all exchanged funds Merrill Edge self-directed investing account, and will be available for subsequent purchases in a the related fees, loads or load waivers may vary brokerage account. Please note that this and may change from time to time. You should exchange provision will not apply to Advisory consult the Merrill Edge website to determine Share Classes that are purchased in asset-based which specific funds and share classes are fee program retirement plan accounts or trust available at any given time. You may be able to

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) purchase these funds or share classes directly formula regardless of which funds are purchased. from the mutual fund company or its distributor, or However, some share classes of a fund carry through other financial intermediaries without higher front-end sales charges, 12b-1 and/or paying a fee or sales charge to Merrill Lynch, or service fees than others (e.g., Class A shares for lower fees or expenses than if you purchase may have higher front-end sales charges and through a Merrill Edge self-directed investing therefore pay higher up-front compensation than account. If you have any questions, please Class C shares). In addition, some funds may set contact your Investment Center representative. higher front-end sales charges and/or 12b-1 and/or service fees than other funds. The fund sponsors that make share classes of As a result of these differences, Merrill Lynch their funds available through Merrill Edge self- and/or a Merrill Lynch Financial Advisor may directed investing accounts on a no-load or load- receive more or less compensation depending on waived basis pay a fee to Merrill Lynch of the share class or fund you purchase. This between 0.10% and 0.43% annually of the value creates a conflict of interest because the different of shares held through Merrill Edge (some mutual compensation provides Merrill Lynch and/or funds pay Merrill Lynch both a “per account” fee Merrill Lynch Financial Advisors with an incentive and a percentage fee of less than 0.43%. The to recommend share classes or funds that pay aggregate of these fees may exceed 0.43% in more compensation over those that pay less. In certain cases). This fee compensates Merrill addition, the compensation Merrill Lynch and/or Lynch for development, operation and Merrill Lynch Financial Advisors receive when a maintenance of the Merrill Edge service, the client is eligible for a breakpoint discount is servicing of Merrill Edge self-directed investing typically lower than a purchase that is not eligible accounts that purchase shares of these mutual for a breakpoint discount. Further, breakpoint funds, and the sub-accounting and related schedules vary from fund to fund. As a result, services described below. Merrill Lynch and/or Merrill Lynch Financial Advisors have an incentive to recommend the If you purchase a load fund through a Merrill purchase of an amount of a mutual fund that will Edge self-directed investing account, you will not provide the client with the benefit of a pay a sales charge in connection with that breakpoint. purchase. Merrill Lynch will retain the entire sales charge for purchases of load funds made To address the conflict of interest related to the through a Merrill Edge self-directed investing variable nature of how Merrill Lynch Financial account, and you will not receive the services of Advisors are compensated for the sale of Class a Merrill Lynch Financial Advisor or Financial A shares, Merrill Lynch has a policy that pays Solutions Advisor for that purchase or the Merrill Lynch Financial Advisors a standardized, account. level commission for the sale of Class A shares depending on the fund’s asset class (e.g., equity, Compensation of Merrill Lynch, Merrill Lynch fixed income or other asset class, such as an Financial Advisors and Their Managers asset allocation fund) and the amount of the Class A shares purchased. This eliminates the Merrill Lynch and Merrill Lynch Financial Advisors’ conflict of interest for Merrill Lynch Financial compensation varies depending on the fund Advisors to choose a Class A share of a fund in sponsor, fund product or share class, and the a particular asset class that pays a higher availability of discounts such as breakpoints. It commission than a Class A share of another fund also depends on whether mutual fund shares are in that asset class. Under the policy, Merrill purchased through a traditional brokerage Lynch receives the sales charges disclosed in account, an asset-based fee program, or a the fund’s prospectus. Therefore, to the extent self-directed investing account. The fund the sales charges collected from the sales of share-class specific compensation and asset- mutual fund Class A shares exceeds the based fee program compensation (described commissions paid to Merrill Lynch Financial above) are the basis upon which Merrill Lynch Advisors, Merrill Lynch will retain the difference. Financial Advisors are paid. For brokerage accounts, the portion of Merrill Lynch’s Merrill Lynch also sets a limit as to the maximum compensation that is paid to its Merrill Lynch portion of front-end sales charge and 12b-1 Financial Advisors is calculated by the same and/or service fee included in the Merrill Lynch © 2016 Bank of America Corporation. All rights reserved. 10 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued)

Financial Advisors’ compensation formula based between accounts and Merrill Lynch’s business. on the share class and size of investment. All Further, Merrill Lynch selects mutual funds that are mutual funds available at Merrill Lynch are available on its brokerage platforms based on subject to this policy. When a fund has a front-end qualitative and quantitative evaluation of such sales charge and 12b-1 and/or service fee that factors as cost, performance, risk management exceeds the policy limit, Merrill Lynch retains the policies and procedures and on the consistency of difference and it is not paid as compensation to the execution of their strategy. the Merrill Lynch Financial Advisor. For brokerage accounts, Merrill Lynch only offers and Non-Monetary Compensation recommends mutual funds that pay 12b-1 fees. As a result, Merrill Lynch has a conflict of interest Representatives of fund companies, often in selecting certain funds and share classes for referred to as “wholesalers,” work with Merrill inclusion as part of its product offering available to Lynch Financial Advisors and their managers to you over others. Therefore, you should not promote those fund companies’ mutual funds. assume that you will be invested in the share Consistent with the rules of FINRA, fund class with the lowest possible expense ratio that distributors and/or their affiliates will periodically the mutual fund provider makes available to the participate in Merrill Lynch hosted internal investing public. training and education conferences, as well as

conferences that Merrill Lynch may host for From time to time, Merrill Lynch may recognize clients. The amount paid to participate/for certain Merrill Lynch Financial Advisors through participation is used by Merrill Lynch Financial promotional programs that factor in, among other Advisors or Merrill Lynch to offset the expenses criteria, overall sales of mutual funds. These incurred for these events and cannot be programs may reward Merrill Lynch Financial reasonably allocated to any particular client. Advisors with compensation, including Fund families periodically organize training attendance at off-site locations and/or various programs to provide Merrill Lynch Financial employee training sessions that may be Advisors and certain personnel with information sponsored or co-sponsored by mutual fund on their platform of products and service, the companies whose funds Merrill Lynch makes opportunity to interact with a firm’s management, available. and to obtain information that may be helpful to employees in their practices. Fund families pay Merrill Lynch Financial Advisors’ managers are for the costs associated with these meetings, compensated differently than the Merrill Lynch which generally includes meals, travel and Financial Advisors, reflecting their different accommodations. responsibilities and accountabilities. However, the portion of total compensation earned by Merrill From time to time, fund families provide Merrill Lynch with respect to mutual fund sales that is paid Lynch Financial Advisors with non-monetary gifts to managers is calculated pursuant to the same and gratuities (gifts), such as promotional items, formula for all funds. Financial Solutions Advisors meals and access to certain industry related and Investment Center representatives are not conferences. Fund managers, fund distributors compensated based on mutual fund purchases. and/or their affiliates may also make charitable donations or cover the costs of reasonable Merrill Lynch addresses conflicts related to how entertainment in connection with events Merrill Lynch Financial Advisors and managers sponsored by Merrill Lynch or related to clients. are compensated, in a variety of ways, including the disclosure of the conflicts in this pamphlet. These reimbursement payments, fund family Moreover, Merrill Lynch Financial Advisors are training programs, entertainment, gifts and required to recommend or select mutual funds in charitable donations result in conflicts of interest accordance with the applicable standard of care. because they create incentives for Merrill Lynch Financial Advisors and Merrill Lynch to In addition, Merrill Lynch has established a recommend or select funds of these fund families. variety of policies, procedures, restrictions and In addition, wholesalers who participate in events disclosures designed to address and to monitor or provide entertainment have more opportunities for these potential conflicts of interest both those to interact and build relationships with Merrill arising between and among accounts as well as Lynch Financial Advisors. This creates a conflict © 2016 Bank of America Corporation. All rights reserved. 11 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) of interest to the extent this leads Merrill Lynch Merrill Lynch only makes available to its clients Financial Advisors to sell mutual funds from these shares of those mutual funds whose affiliates have fund families. entered into contractual arrangements with Merrill Lynch that generally include the payment of one or Fund families are not permitted to condition their more of the fees described below. The following fees reimbursement payments, fund family training do not purchase placement on any preferred lists or programs, charitable donations, entertainment, any special positioning or coverage of certain funds and gifts on any amount of sales of their funds by Merrill Lynch. These fees are used to cover the and Merrill Lynch does not incentivize Merrill types of services outlined below and are not passed Lynch Financial Advisors to recommend or select on to Merrill Lynch Financial Advisors or their one fund family over another. In addition, Merrill managers as compensation. Lynch has implemented policies and procedures intended to identify, quantify and track gifts and Sub-Accounting Related Services. Merrill Lynch, entertainment that Merrill Lynch and Merrill Lynch through its subsidiary, Financial Data Services, Financial Advisors and personnel receive. Merrill LLC (“FDS”), provides various sub-accounting (as Lynch reports gifts and entertainment received by defined below) and other related administrative it or Merrill Lynch employees to the extent such services with respect to each mutual fund position amounts exceed the thresholds imposed by held in an account at Merrill Lynch. These applicable regulations. services include, for example, aggregating and processing purchases, redemptions, exchanges, Merrill Lynch addresses conflicts related to how dividend distribution and reinvestment, Merrill Lynch Financial Advisors and managers consolidated account statements, tax reporting, are compensated (including non-cash and other recordkeeping and reporting services compensation), in a variety of other ways, (“sub-accounting services”). For these services, including the disclosure of the conflicts in this FDS receives sub-accounting fees paid by the pamphlet. Moreover, Merrill Lynch Financial mutual fund or by its adviser, principal underwriter Advisors are required to recommend or select or another agent on its behalf. Merrill Lynch mutual funds that are appropriate for each client and/or FDS do not retain compensation for annual in accordance with the applicable standard of 12b-1 and/or service fee or for sub-accounting care, which includes factors such as, the client’s services for mutual funds held in retirement investment objectives, risk tolerance, time accounts in asset-based fee programs. horizon, financial situation, liquidity needs and the costs associated with the recommendation or Depending on the specific arrangements, as selection. In addition, Merrill Lynch has compensation for these sub-accounting services, established a variety of policies, procedures, FDS receives from all the fund families with share restrictions and disclosures designed to address classes that charge sales loads either typically and to monitor for these potential conflicts of between $16 to $21 annually for each position or interest both those arising between and among between 0.10% to 0.15% annually of the value of accounts as well as between accounts and fund shares held in a client’s account at Merrill Merrill Lynch’s business. Lynch, depending on the fund company’s election. In the case of the no-load fund shares the sub- Additional Merrill Lynch Services and accounting, administrative services, distribution Compensation and marketing services and support fees payable by no-load fund companies are typically bundled In addition to receiving dealer concessions and into one asset-based fee typically between 0.10% 12b-1 and/or service fees in connection with to 0.38% (which may include up to a 0.25% 12b-1 clients’ purchasing and holding mutual fund and/or service fee) annually of the value of shares shares, Merrill Lynch and its subsidiary provide held in a client’s account at Merrill Lynch. other services for which they may receive additional compensation from funds or their Sub-accounting service arrangements and the affiliates. This compensation is often but not amount of the compensation paid to FDS varies always disclosed in detail in a fund’s prospectus, by fund and by share class. FDS receives the summary prospectus, statement of additional agreed-upon sub-accounting fee for providing information or website. these sub-accounting services and this cost is either borne by the mutual fund (like other mutual © 2016 Bank of America Corporation. All rights reserved. 12 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) fund expenses) as part of its operating costs or by payments. its adviser, principal underwriter or other agent. Marketing Services and Support. For certain Merrill Lynch only offers funds and fund share brokerage accounts, Merrill Lynch provides a classes that make payments to FDS for providing variety of distribution, marketing services and sub-accounting related services. A fund may offer support to sponsors of mutual funds that are a share class that does not include a fee for these available through Merrill Lynch. These services services that FDS provides. Accordingly, you include, but are not limited to the provision of: a should not assume that you will be invested in the mutual fund specialist support desk for Merrill share class with the lowest possible expense ratio Lynch Financial Advisors, Financial Solutions that the fund sponsor makes available to the Advisors or Investment Center representatives to investing public. It is generally in your best interest answer questions regarding their funds; work to purchase lower-fee share classes because your stations that include information, announcements, returns are not reduced in whole or part by data, and tools relating to their funds; ongoing additional fees and expenses. In addition, funds review and implementation of features and that would otherwise meet Merrill Lynch’s criteria restrictions imposed by their funds; strategic for inclusion on its product platform but whose planning support that is intended to assist fund principal underwriters, agents or sponsors do not sponsors with strategies that are aligned with agree to pay such fees will not be available for Merrill Lynch’s investment themes and goals; purchase in your account at Merrill Lynch, thereby making Merrill Lynch Financial Advisors or other limiting the available universe of mutual funds and employees available for education regarding their share classes available to you. funds; sales related reports and other information; and branch office support, including phones, You should be aware that the amount of sub- computers, conference rooms, as well as facilities accounting fees paid by the different funds varies and personnel support for prospectuses, summary among funds and, in certain instances, between prospectuses, and promotional and other share classes of individual funds. Therefore, FDS materials relating to their funds. receives more sub-accounting fees from some funds than it receives from others. This results in In addition to the front-end and 12b-1 and/or service a conflict of interest because it creates an fees discussed in the “U.S. Registered Mutual Fund incentive for Merrill Lynch to recommend that you Share Classes” section, Merrill Lynch receives invest in mutual funds and/or share classes that compensation for purchases made through pay higher fees to FDS. brokerage accounts from fund sponsors for its distribution, marketing services and support Merrill Lynch addresses conflicts related to sub- generally ranging from 0.035% to 0.25% on a accounting fees for the services described in this portion of mutual fund purchases and from 0.035% section in a variety of ways, including the disclosure to 0.10% annually on a portion of mutual fund of the conflicts in this pamphlet. In addition, Merrill assets. Merrill Lynch typically receives 0.25% on a Lynch selects mutual funds that are available on portion of mutual fund purchases and 0.10% its platforms based on qualitative and quantitative annually on a portion of mutual fund assets from evaluation of such factors as performance, risk most fund sponsors. Unlike 12b-1 and/or service management policies and procedures and on the fees, marketing services and support fees are not consistency of the execution of their strategy. generally paid from the fund’s assets, and are Merrill Lynch also has adopted various policies typically paid from the profits of the fund’s and procedures reasonably designed to prevent investment advisor, distributor or other fund the receipt of sub-accounting fees from affecting affiliate. The amount of compensation Merrill Lynch the nature of the advice or recommendations receives from funds for marketing services and provided to clients by Merrill Lynch Financial support can exceed the cost of the services provided Advisors, although such policies and procedures in any given year. Merrill Lynch does not receive or do not eliminate such conflicts of interest. Merrill retain these marketing service and support fees with Lynch Financial Advisors do not have an incentive respect to the underlying investment options that to recommend or select certain funds or share serve as funding vehicles for variable insurance and classes that pay sub-accounting fees because variable annuity products and for Merrill Lynch Financial Advisors do not receive additional retirement or benefit plan clients or for asset-based compensation as a result of these types of fee programs but does receive fees from sub- © 2016 Bank of America Corporation. All rights reserved. 13 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) accounting services (except as described below). These fees compensate Merrill Lynch for providing sub-accounting services and/or administrative Merrill Lynch only offers for brokerage accounts services to the retirement or benefit plan’s sponsor, funds from fund families that pay marketing in connection with these funds. For more services and support fees. Further, mutual funds information, including information on fees and that would otherwise meet Merrill Lynch’s criteria compensation, please contact the retirement or for inclusion on its product platform but whose benefit plan’s sponsor or refer to the fund’s principal underwriters, agents or sponsors do not prospectus and statement of additional agree to pay such marketing services and support information, which you may request from the fund. fees will not be available for purchase in your brokerage account at Merrill Lynch, thereby Money Market Mutual Funds limiting the available universe of mutual funds available to you. You should be aware that the Merrill Lynch makes available money market amount of marketing services and support fees mutual funds (“Money Funds”) for purchase in a paid by the different mutual fund families varies, therefore Merrill Lynch receives more fees from Merrill Lynch account . The Money Funds available some fund families than it receives from others. for purchase in a Merrill Lynch account typically This results in a conflict of interest because it require a client to place a purchase or redemption creates an incentive for Merrill Lynch to order in order to transact in the fund. A limited recommend that you invest in mutual funds from number of Money Funds are made available to fund families that pay higher marketing services certain accounts as an automatic cash sweep and support fees. option as described within the specific account agreement. Merrill Lynch addresses conflicts related to marketing services and support fees for the Merrill Lynch also makes available a limited services described in this section in a variety of number of money market mutual funds to give ways, including the disclosure of the conflicts in this clients the ability to exchange assets from mutual pamphlet. In addition, Merrill Lynch selects mutual funds within the same fund family (“Exchange- funds that are available on its brokerage platforms Only Money Funds,” and together with Money based on qualitative and quantitative evaluation of Funds, “Money Market Funds”). If you would like such factors as performance, risk management the ability to exchange into a different fund policies and procedures and on the consistency of family’s Exchange-Only Money Fund, you will the execution of their strategy. Merrill Lynch has need to open an account, outside of your also adopted various policies and procedures relationship with Merrill Lynch, directly with that reasonably designed to prevent the receipt of fund family’s transfer agent or other service marketing services and support fees from provider. For purposes of this pamphlet, affecting the nature of the advice or Exchange-Only Money Funds are made available recommendations provided to clients by Merrill on the same terms as mutual funds described in Lynch Financial Advisors, although such policies the preceding sections in respect to available and procedures do not eliminate such conflicts of interest. Merrill Lynch Financial Advisors do not share classes, fees and expenses, and have an incentive to recommend certain funds or compensation to Merrill Lynch. share classes that pay marketing services and support fees because Merrill Lynch Financial Similar to the information provided in the “U.S. Advisors do not receive additional compensation Registered Mutual Fund Share Classes” section as a result of these types of payments. above, the Money Funds available at Merrill Lynch may offer more than one “class” of shares. Each A list of mutual fund families that paid Merrill share class represents an interest in the same Lynch $100,000 or more in marketing support investment portfolio, but may have or be subject to payments and the range of marketing services different fees and expenses. The availability and and support payments received as of the prior eligibility requirements of share classes offered by calendar year is available at www.ml.com/funds . a Money Fund are typically outlined in the prospectus and statement of additional information Certain Retirement/Benefit Program Administration of the fund and may vary from class to class. Fees. Merrill Lynch receives fees from fund sponsors whose funds are made available to For brokerage accounts, the Money Funds Merrill Lynch retirement or benefit plan clients. available at Merrill Lynch are not subject to front- © 2016 Bank of America Corporation. All rights reserved. 14 ARXXXXXX 351205PM-0417

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) end sales charges, but they can include an annual Merrill Lynch only offers for brokerage accounts 12b-1 and/or service fee or administrative service Money Funds from fund families that pay fee ranging from 0.00% to 0.50%. However, the marketing services and support fees and, for all Money Funds available for purchase order in your accounts, sub-accounting fees. Therefore, Money Merrill Lynch brokerage account typically do not Funds that would otherwise meet Merrill Lynch’s include these fees. Money Funds available to criteria for inclusion on its product platform but certain brokerage and asset-based fee accounts as whose principal underwriters, agents or sponsors an automatic cash sweep option typically include a do not agree to pay such fees will not be available 0.40% administrative service fee. Fund families for purchase in your brokerage and/or asset- may offer a share class of the Money Fund that based account at Merrill Lynch, thereby limiting does not include these annual 12b-1 and/or the available universe of funds available to you. service fee or administrative service fees. In You should be aware that the amount of addition, you may be able to purchase other share marketing services and support fees and sub- classes that have lower fees and expenses accounting fees paid by the different fund families through your Merrill Lynch account, directly from varies, therefore Merrill Lynch receives more fees the fund company or its distributor, or through from some fund families than it receives from other financial intermediaries. It is generally in others. This results in a conflict of interest your best interest to purchase lower-fee share because it creates an incentive for Merrill Lynch to classes because your returns are not reduced in recommend or select funds from fund families that whole or part by additional fees and expenses. pay higher fees.

Assets held in the Money Funds are also Merrill Lynch addresses conflicts related to financially beneficial to Merrill Lynch. Merrill Lynch marketing services and support and sub- provides distribution and marketing services and accounting fees in a variety of ways, including the support (see Marketing Services and Support disclosure of the conflicts in this pamphlet. In section above) with respect to the Money Funds. addition, Merrill Lynch selects funds that are In consideration of the provision of marketing available on its platforms based on qualitative and services and support, Merrill Lynch receives quantitative evaluation of such factors as compensation of up to 0.41% annually of the performance, risk management policies and value of Money Fund shares held in Merrill Lynch procedures and on the consistency of the accounts, but typically receives between 0.09% execution of their strategy. Merrill Lynch has also and 0.10% from fund sponsors. Merrill Lynch does adopted various policies and procedures not receive these marketing services and support reasonably designed to prevent the receipt of marketing services and support and sub- fees in asset-based fee programs. accounting fees from affecting the nature of the

advice or recommendations provided to clients by In addition, FDS provides various sub-accounting Merrill Lynch Financial Advisors, although such and other related administrative services with policies and procedures do not eliminate such respect to each Money Fund position held in an conflicts of interest. Merrill Lynch Financial account at Merrill Lynch (see Sub-Accounting Advisors do not have an incentive to recommend Related Services section above). As or select certain funds or share classes that pay compensation for these services, FDS receives up these fees because Merrill Lynch Financial to 0.005% annually of the value of money fund Advisors do not receive additional compensation shares held in a client’s account at Merrill Lynch. as a result of these types of payments. Certain Money Funds offered by BlackRock, Inc. Certain Retirement/Benefit Program Administration have also retained FDS as the transfer agent to Fees. Merrill Lynch receives fees from fund such funds. The operating costs of each of these sponsors whose Money Funds are made available BlackRock Money Fund’s include its allocable to Merrill Lynch retirement or benefit plan clients. share of the fees and expenses of such outside These fees compensate Merrill Lynch for providing service providers. We do not retain compensation sub-accounting services and/or administrative for annual 12b-1 and/or service fee or services to the retirement or benefit plan’s sponsor, administrative service fees or for sub-accounting in connection with these funds. For more services for Money Funds held in retirement information, including information on fees and accounts in asset-based fee programs. compensation, please contact the retirement or benefit plan’s sponsor, or refer to the fund’s

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) prospectus and statement of additional legal obligation to provide financial support to the information, which you may request from the fund. Money Market Funds, and you should not expect that the sponsor will provide financial support to the For brokerage accounts, Merrill Lynch Financial Money Market Fund at any time. Advisors are compensated at a rate based on their clients’ total assets invested in the Money Purchases, Sales and Transfers Funds held in Merrill Lynch accounts. For asset- based fee accounts, Merrill Lynch Financial Merrill Lynch maintains policies prohibiting late Advisors receive an annual fee based on a trading in, and the excessive trading of, mutual percentage of the value of the total assets held in fund shares. Merrill Lynch’s excessive trading your account associated with these programs. policies may not be consistent with fund companies’ excessive trading policies, and is in Money Fund transactions receive the price next addition to any monitoring for excessive trading calculated following receipt of the order by a fund. conducted by the fund companies. Merrill Lynch However, effective October 11, 2016, certain personnel may not open accounts or enter client Money Funds transitioned from calculating their transactions for the purpose of late trading, prices per share at the end of the day to pricing excessive trading or market timing, nor may they their shares multiple times a day. Merrill Lynch facilitate late trading, excessive trading or market submits orders to funds only once at the end of timing in accounts at the funds’ transfer agents, or the day. Therefore, Merrill Lynch customer assist clients in making other arrangements to late transactions will continue to receive the end of the trade, excessively trade or market time mutual day price. If the value of a fund’s shares funds. The Merrill Edge self-directed investing decreases over the course of the day, you may account also may not be used for any of the above- receive a lower price per share if you place an described purposes. There is no guarantee that all order through your Merrill Lynch account than if instances of excessive trading will be prevented. you placed an order directly with the fund. If you would like the flexibility of multiple pricing times, In certain cases, the funds you hold through you will have to transfer your position to the fund’s Merrill Lynch may not be transferable to another transfer agent. For more information, please financial intermediary. This may occur for a number speak with your Merrill Lynch Financial Advisor, of reasons, including situations where the other Financial Solutions Advisor or Investment Center financial intermediary does not have appropriate representative. agreements with those funds. The same may be true if you hold your mutual fund shares at another You could lose money by investing in a Money financial intermediary and attempt to transfer those Market Fund. There are different types of Money shares to your Merrill Lynch account. In these Market Funds. For certain Money Market Funds, instances you will need to determine what you the share price of the fund will fluctuate and, would like to do with the fund shares: (i) liquidate therefore, when you sell your shares of such a fund them (which may result in redemption or other fees, they may be worth more or less than what you sales charges or a taxable event), (ii) transfer them originally paid for them (fluctuating Money Market from the financial intermediary to the fund (or its Funds). While other Money Market Funds seek to transfer agent), (iii) request share certificates to be preserve the value of your investment at $1.00 per issued to you (typically not available for mutual share (stable value Money Market Funds), they fund shares), or (iv) retain them at the financial cannot guarantee that they will do so. Fluctuating intermediary through which you currently hold Money Market Funds and some stable value them. Please refer to the applicable fund Money Market Funds may impose a fee upon the prospectus or contact your Merrill Lynch Financial sale of your shares or may temporarily suspend Advisor, Financial Solutions Advisor or Investment your ability to sell shares if such funds’ liquidity falls Center representative for further information. below required minimums because of market conditions or other factors. An investment in any Other Services Money Market Fund is not insured or guaranteed by Bank of America, N.A., Merrill Lynch or any Bank of America Corporation is a diversified financial bank affiliate of Merrill Lynch, the Federal Deposit services company that together with its affiliates Insurance Corporation or any other government generally seeks to provide a wide range of services agency. A Money Market Funds’ sponsor has no to retail and institutional clients for which it receives © 2016 Bank of America Corporation. All rights reserved. 16 ARXXXXXX 351205PM-0417 Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued) compensation. As a result, BofA Corp and Information about a particular mutual fund’s policies Merrill Lynch can be expected to pursue additional regarding selection of brokers may be found in the business opportunities with the firms whose mutual fund’s statement of additional information, which funds Merrill Lynch makes available to its clients. you may request from the fund. For additional Consistent with industry regulations, these services information on mutual funds in general, you can could include (but are not limited to): banking and visit educational websites of the Securities and lending services, sponsorship of deferred Exchange Commission (w ww.sec.gov ), F INRA compensation and retirement plans, investment (www.finra.org ), t he Securities Industry and banking, securities research, institutional trading Financial Markets Association (w ww.sifma.org), and the Investment Company Institute services, investment advisory services, and (www.ici.org). effecting portfolio securities transactions for funds and other clients. Merrill Lynch professionals (including your Merrill Lynch Financial Advisor, Financial Solutions Advisor or Investment Center representative) involved with the offering of mutual funds to individual investor clients may introduce mutual fund distributors, sponsors or service providers to other services that BofA Corp and its affiliates provide. Merrill Lynch Financial Advisors may, as permitted by law, receive compensation (the amount of which may vary) in connection with these products and services.

Revenue paid for, or generated by, such services may not be used by the mutual fund distributors, sponsors or service providers to compensate Merrill Lynch, directly or indirectly, for any of the fees described throughout this pamphlet.

Mutual Fund Investing at Merrill Lynch Disclosure Statement (Continued)

Appendix

Merrill Lynch Sales Charge Waiver Policy- Participating Fund Families

This list may be updated from time to time. Check www.ml.com/funds for a current list of participating fund families.

AAM Eventide Nuveen AB Federated Olstein Abbey Capital Fidelity Advisor Pacific Life First Eagle Investment Aberdeen Permanent Management AIG Funds Franklin Templeton Investments PGIM Investments Alger Fuller & Thaler PIMCO Allianz Global Investors Gabelli Funds Poplar Forest Capital ALPS Funds Goldman Sachs Popular American Guggenheim Principal American Beacon Hartford Funds Putnam American Century Highland Capital Management Rational Funds Amundi Pioneer Hotchkis & Wiley Royce Funds Angel Oak Capital ICON Russell Investments Arbitrage Invesco/Oppenheimer Salient Partners Arrow Funds IVA Funds Shenkman Capital Ashmore Group IVY Investments Smead Capital Management Barings J.P. Morgan Asset Management Snow Capital Management BlackRock Janus Henderson Investors Stadion Funds Brookfield John Hancock Sterling Capital Calamos Investments Kinetics Mutual Funds Thornburg Calvert Kopernik Global Investors Timothy Partners Carillon Funds Lateef Investment Management Tortoise Capital Advisors Catalyst Legg Mason Touchstone Investments Cohen & Steers Lord Abbett Transamerica Macquarie Investment Columbia Threadneedle UBS Management Credit Suisse Mainstay Investments Van Eck Davidson Marketfield Asset Management Victory Capital Management Davis Funds MFS Mutual Funds Virtus Investment Partners Deutsche Asset Management Miller Value Funds Voya Investment Management Diamond Hill Capital Morgan Stanley Wells Fargo Management Dreyfus Nationwide Westwood Eaton Vance Natixis Global Asset Management Emerald Mutual Funds Neuberger Berman