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How to Read Your Annual StatementA Guide to Your Annual Detail Statement

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National Financial Services LLC, Member NYSE, SIPC 422331.6.0 3.NF-ANN-DE-2016 1.806598.107

Your Annual Statement

Your Annual Statement provides details on all your account activity and positions for the previous year. It is designed to help you make more informed decisions about your account and effectively manage your investments. Some of the easy-to-read information you’ll find in your Annual Statement may include:

• Ayear-endsummarythatincludesyourportfolio allocation and the change in value of your portfolio over the year

• Totalportfoliovalue,withpositionsgroupedby investment type, as of December 31

• Transactionactivityfortheentireyear

• Anoverviewofcashmanagementactivity, including checking and debit card transactions,whenapplicable

• Realizedandunrealizedgain(loss)information at summary and lot level

• Accountprofile,includingconfirmationofyour proceeds for investments, dividends, retirement information, periodic investment plans,andsystematicwithdrawalplans

Annual Statements may be composed of year-end summaryinformation,holdings,activity,realizedgain(loss)information,andaccountprofiledata.Eachsectionprovidesdifferentviewsoftheaccount’sportfoliovalueandactivityfortheentireyear,asdescribedbelow.

General Account Information Easily find your account number for placing orders or making inquiries. Also readily available is contact information for your investment representative, includingaddressandphonenumber(s).

Total Value of Your Portfolio Thissectionprovidesthevalueoftheaccounton the last day of the year, plus any insurance or annuity assets, if applicable.

Change in Value of Your PortfolioThischartvisuallydisplaysthechangeinvalueofyourportfolioassetsfortheyear,orfromwhentheaccountwasopenedifafterJanuary1.

Change in Account ValueDisplays a summary of account activity for the year. Categories may include:

•AdditionsandWithdrawals •Income •Taxes,Fees,andExpenses •ChangeinInvestmentValue •OtherActivity

IncomeA summary of income earned based on positions held in your account during the year.

Taxes, Fees, and ExpensesAsummaryofyourtaxes,fees,andexpensesbasedon activity in your account during the year.

Account AllocationA comparison of your account asset allocation on January1versusDecember31.

HoldingsThissectionprovidesadetailedviewofyourportfolio positions as of December 31, including cash,equities,options,fixedincome,mutualfunds,and other securities.

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Accounts carried with National Financial Services LLC (NFS), Member NYSE, SIPC

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Quality Brokers, Inc.

Statement for the Period JanUarY 1, 2015, to deCemBer 31, 2015

John and Jane doe, Joint WroS

account number: aBC-456827

Your investment Consultant is:Bill SmithRR [email protected]

For questions about your accounts:Local: (617) 555-5555In State: (617) 555-5555National: (999) 999-9999www.qb.com

for YoUr informationThis statement is not a replacement for your tax forms and may not reflect all adjustments necessary for tax reporting purposes. Refer to your IRS tax forms including your Form(s) 1099 and Form(s) 5498, which will be mailed to you under separate cover.

total Value of Your account $325,000.00total Value of insurance and annuities $315,000.00

total ValUe of YoUr Portfolio $640,000.00

Information for assets not held by NFS is provided by outside parties and is included for informational purposes only.

Change in ValUe of YoUr Portfolio

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$ thousands

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02/1501/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 10/15 11/15 12/15

QUalitY BroKerS, inC.123 main StreetanYWhere, ma 10101

John doeJane doe102 SUmmer StreetBoSton, ma 02110

Change In Value of Your Portfolio information can be found in Miscellaneous Footnotes at the end of this statement.

YEAR-END SUMMARY 2015

Accounts carried with National Financial Services LLC (NFS), Member NYSE, SIPC

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Quality Brokers, Inc.

Change in aCCoUnt ValUeBeginning ValUe (aS of 01/01/15) $300,000.00additions and Withdrawals $15,000.00income $2,000.00taxes, fees, and expenses ($1,200.00)Change in investment Value $9,200.00

ending ValUe (aS of 12/31/15) $325,000.00Refer to Miscellaneous Footnotes in this statement for more information on your Change in Investment Value.

inCome 12/31/15taxable dividends $1,000.00taxable interest $1,000.00

total taxaBle $2,000.00

total inCome $2,000.00Taxable income is determined based on information available to NFS at the time the statement was prepared, and is subject to change. Final information on taxation of interest and dividends is available on Form 1099-DIV, which is mailed in February of the subsequent year.

taxeS, feeS, and exPenSeS 12/31/15margin interest ($600.00)account fees ($600.00)

total taxeS, feeS, and exPenSeS ($1,200.00)

aCCoUnt alloCation

01/01/15 12/31/15

01/01/15 % 12/31/15 %

Cash and Cash equivalents $127,870.68 9.5 $592,083.82 46.1equities $167,681.40 12.5 $338,930.08 26.4fixed income $1,044,403.78 77.9 $326,499.38 25.4other Securities $0.00 0.0 $27,100.00 2.1

total $1,339,955.86 100.0 $1,284,613.28 100.0

total insurance and annuities $305,000.00 $315,000.00

Cash and Cash Equivalents will include margin debit and credit balances.

Other Securities are infrequently traded instruments or other securities that are not easily categorized.Account Allocation shows the percentage that each asset class represents of your total account value. Account Allocation for equities, fixed income, and other categories may include mutual funds and may be net of short posi-tions. NFS has made assumptions concerning how certain mutual funds are allocated. Closed-end mutual funds listed on an exchange may be included in the equity allocation. The chart may not reflect your actual portfolio allocation. Consult your broker/dealer prior to making investment decisions.

Statement for the Period January 1, 2015, to december 31, 2015

John and Jane doe, Joint WroS account number: aBC-456827

Account Overview

Fixed Income

Fixed Income

Other SecuritiesCash and Cash Equivalents

Cash and Cash Equivalents

Equities

Equities

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Quality Brokers, Inc. Accounts carried with National Financial Services LLC (NFS), Member NYSE, SIPC

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John and Jane doe, Joint WroSaccount number: aBC-456827

NFS-provided cost basis, realized gain (loss) and holding period information may not reflect all adjustments necessary for your tax reporting purposes. Please refer to Footnotes and Cost Basis Information at the end of this statement for more information.

CASH AND CASH EQUIVALENTS - 1.01% of Total Account Value

Symbol/CUSIP Price on 12/31/15 Estimated Description Account Type Quantity 12/31/15 Market Value Annual Income

Money Markets

PRIME FUND DAILY MONEY CLASS FDAXX 1,082.17 $1.007 $1,082.177 DAY YIELD 0.01% CASHDividend Option ReinvestCapital Gain Option Reinvest

Total Equities $1,082.17

HOLDINGS > MUTUAL FUNDS - 98.99% of Total Account Value

Symbol/CUSIP Price on 12/31/15 Estimated Total Unrealized Description Account Type Quantity 12/31/15 Market Value Annual Income Cost Basis Gain (Loss)

Fixed IncomeBLACKROCK STRATEGIC INC OPP PORT FDAXX 2,211.616 $9.55 $21,120.93 $829.53 $22,254.01 ($1,133.08)CL A Estimated Yield 3.92% CASHDividend Option Reinvest

Capital Gain Option Reinvest

OPPENHEIMER INT’L BOND CLASS A FDAXX 3,273.713 $6.29 $20,591.65 $853.30 $20,910.19 ($318.54)Estimated Yield 4.14% CASHDividend Option Reinvest

Capital Gain Option Reinves

Holdings8

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ActivityThissectionprovidesarecapoftransactionsthatoccurred in your account for the year. See details ontrading,additionsandwithdrawals,incomeandexpenses,andotheractivityfortheentireyear.

Realized Gain (Loss) Lot DetailThissectionprovidesyear-to-datelot-levelgain(loss)informationfortransactionswherecostbasisinformation is complete.

Unrealized Gain (Loss) Lot DetailThissectionprovidesyear-to-datelot-levelunrealizedgain(loss)informationfortransactionswherecostbasisinformationiscomplete.

Account ProfileReviewspecialfeaturesinyouraccount,suchasdetailsonwhereproceedsaresentfor investments and dividends, retirement information, periodic investment plans, and systematicwithdrawalplans.

Footnotes and Cost Basis InformationFindexplanationsofimportantabbreviationsusedthroughout the statement and information related tocostbasisandgain(loss)data.Forretirementaccounts, this section is labeled Footnotes and Cost Information.

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YourAnnualStatementiscustomizedtoincludeinformation relevant to your account, so it may not include all the sections described here. Contact your investment representative if you have any questions. Quality Brokers, Inc. Accounts carried with National Financial Services LLC (NFS),

Member NYSE, SIPC

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ALERT: The information provided is a summary of your Account Profile based on information provided by your broker/dealer. This information verifies your account features as ofthe date the statement was prepared. If you have any questions, please contact your representative.

Account Profile > Proceeds

Proceeds from the sale(s) in your account will be invested in your core money market.

Account Profile > Dividends

All or some of the dividends from your account are reinvested.

Note: If you have position-level dividend elections, please review those with your representative.

Footnotes and Cost Basis InformationAmortization, accretion and similar adjustments to cost basis have been provided for many fixed income securities (and some bond-like equities), however, they are not provided for certain types, such as short-term instruments, Unit Investment Trusts, foreign fixed income securities, or those that are subject to early prepayment of principal (pay downs). Where current year premium or acquisition premium amortization is provided, the prior years’ cumulative amortization is reflected in the adjusted cost basis, but we cannot provide a breakdown or the total of such prior amortization amounts.

LIMITATION ON COST BASIS INFORMATION: NFS’s cost basis information system has a cumulative lifetime limit on how much activity it can track for each individual security position in an account. For this purpose, each buy, sell, dividend, wash sale disallowed loss, stock split, stock merger, etc., is an event. For some customers, this limit can be reached with approximately 1500 events. Upon reaching the limit, the system no longer displays or tracks cost basis information for the affected position, and such information will usually show as not available or unknown. Once the limit is reached, all cost basis information for the affected position will need to be tracked and updated by you, the investor.

Starting in 2011, the way that cost basis and related information is tracked and reported will change due to new federal tax rules. As a result, your official 1099-B forms for certain transactions will reflect which lots have been sold for tax purposes. To apply a specific identification cost basis method to 1099-B reporting, appropriate instructions must be on file with NFS or be received by NFS before the trade has settled. Absent such instructions, NFS determines cost basis at the time of sale based on its default methods of average cost for open-end mutual funds and first-in, first-out (FIFO) for all other securities (including ETFs). NFS applies FIFO (or other disposal method, if applicable) based on its records, which may be different from yours. For transactions that are not subject to 1099-B cost basis reporting, you should refer to your trade confirmations and other applicable records to determine which lots were considered sold for tax purposes.

While NFS must meet IRS requirements with respect to certain information required to be reported to the IRS, NFS-provided cost basis, realized gain and loss, and holding period information may not reflect all adjustments necessary for your tax reporting purposes. Taxpayers should verify such information when calculating reportable gain or loss from a sale, redemption or exchange. NFS is not responsible for your use of this information in meeting your federal, state, and other tax obligations. NFS makes no warranties with respect to and specifically disclaims any liability arising out of a customer’s use of, or any tax position taken in reliance upon, such information.

Consult your tax advisor for further information.

Account Profile

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NFS-provided cost basis, realized gain (loss) and holding period information may not reflect all adjustments necessary for your tax reporting purposes. Please refer to Footnotes and Cost Basis Information atthe end of this statement for more information.

TRADING

Settlement Account Total Realized Date Type Transaction Description Quantity Amount Cost Basis Gain (Loss)

Securities Purchased

03/29/15 CASH YOU BOUGHT AMERICAN CENTURY MID CAP VALUE 1,755.401 ($22,765.00) $22,765.00CLASS A PROSPECTUS UNDER SEPARATE COVER UNSOLICITED CONF:200002974 @ $12.96

03/29/15 CASH YOU BOUGHT OAKMARK INTERNAT’L SMALL CAP I 918.339 ($13,270.00) $13,270.00PROSPECTUS UNDER SEPARATE COVER UNSOLICITED @ $14.456

03/31/15 CASH YOU BOUGHT VANGUARD INTL EQUITY INDEX FD 19 ($939.13) $939.13INC FTSE ALL-WORLD EX-US INDEX FD ETF SHS UNSOLICITED @ $48.6386

06/14/15 CASH REINVESTMENT AMERICAN CENTURY MID CAP VALUE 5.787 ($73.90) $73.90CLASS A REINVESTED @ $12.77

09/20/15 CASH REINVESTMENT AMERICAN CENTURY MID CAP VALUE 6.83 ($78.55) $78.55CLASS A REINVESTED @ $11.50

Total Securities Purchased ($37,126.58)

Securities Purchased

03/29/15 CASH YOU SOLD ARTISAN INTL VALUE FUND INV CL (494.911) $13,639.75 $11,642.37 $1,997.38UNSOLICITED @ $27.56 LT GAIN $1,971.42ST GAIN $25.96

03/29/15 CASH YOU SOLD PERKINS MID CAP VALUE FUND CLASS (978.422) $23,080.97 $19,817.43 $3,263.54T UNSOLICITED @ $23.59 LT GAIN $3,240.27 ST GAIN $23.27

Total Securities Sold $36,720.72

Activity

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EQUITIES

Date of Date Symbol/ Sales Price/ Cost Realized Holding Description Sale Acquired CUSIP Share Quantity Proceeds Basis Gain (Loss) Period

AMERICAN INTL GROUP INC WT EXP 01/26/15 01/26/12 AIGWS unavailable 0 $13.77 $13.77 ST 01/19/2021

INTERMUNE INC COM 04/26/15 11/01/10 ITMN $46.00 600 $27,368.48 $7,953.96 $19,414.52 ST



Position Total ITMN 1,500 $68,532.43 $19,884.90 $48,647.53

Total Equities 1,500 $68,546.20 $19,884.90 $48,661.30


EQUITIES

Account Date Symbol/ Price on Market Cost Basis/ Unrealized Holding Description Type Acquired CUSIP 12/31/15 Quantity Value Proceeds Gain (Loss) Period

AMERICAN INTL GROUP INC WT EXP MARGIN 01/20/11 AIGWS $6.12 784 $4,798.08 $12,363.68 ($7,565.60) ST 01/19/2021

Realized Gain (Loss) Lot Detail—Year Ending 2015

Unrealized Gain (Loss) Lot Detail — Year Ending 2015

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