merrill lynch investment advisory program user's … · user's guide to the ml investment...

MERRILL LYNCH INVESTMENT ADVISORY PROGRAM

User's Guide to the ML Investment Advisory Program Profiles

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MERRILL~. A BANK OF AMERICA

The Program allows clients to select various strategies from choices that, as reflected

on the Profile, consist of:

Securities recommended to be included by one or more Strategies.

Funds.

Certain Strategies may be available on a limited basis. Please review the Strategy profiles for additional

information

This User’s Guide generally explains the terms, charts and data included in the Strategy Profiles. Of

course, if you have any questions or require additional information, please contact your Merrill

Lynch Financial Advisor or Private Wealth Advisor (“Advisor”). Fixed Income, International, REIT and Preferred

Stock Manager Profiles are slightly different and, as appropriate, discussed in the text.

Please review the Program Profiles for specific information regarding selected strategies. Merrill Wealth Management makes available products and services offered by Merrill, Pierce, Fenner & Smith Incorporated (”MLPF&S” or Merrill) and other subsidiaries of Bank of America Corporation (”BofA Corp”). MLPF&S is a registered broker-dealer, a registered investment adviser and a Member of SIPC. Merrill makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of BofA Corp. Your Advisor can provide detailed information regarding the charts and other information described here. The Profiles are updated quarterly and it is suggested that you review profiles for each of your selected strategies at least annually with your Advisor.

of 9 Investment Products: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value ©2020 Bank of America Corporation. All rights reserved.

For illustrative purposes only


of 9 ©2020 Bank of America Corporation. All rights reserved.

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Equity Manager Sample Profile

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MERRILL~. A BANK OF AMERICA COMPANY

Benchmark Adherence This indicates the degree (high, moderate, low) to which the strategy has typically followed its Style Index (when implemented by Merrill) and is generally determined by quantitative measures of historical data, such as the strategy's R-Squared (the diversification measure, and the statistics are derived from regression equation and indicates the degree to which the observed value of one variable, such as the return of a Strategy, can be explained by, or are associated with the value of another variable, such as a market index) and Tracking Error (a measure of how closely a manager’s returns track the returns of the Style Index). The Benchmark Adherence can also be affected by subjective factors such as a change in the strategy's investment process. The Style Index is selected by Merrill to provide a relevant market comparison to the performance of the Style Manager Strategy. It can be either a single index or a combination of indexes. The Style Index is determined by Merrill based on several factors such as the Style Manager’s investment philosophy and style, the Style Manager’s asset mix over time, the range and average market cap of stock holdings over time, and maturities and duration of fixed income holdings.

Equity Manager Profile (Page 1)

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Strategy Type Indicates the type of Strategy for which the Style Manager provides investment recommendations to Merrill or implements directly (e.g., Equity, Fixed Income, International, Convertibles, REITs, or Preferred Stock).

The Equity styles available include the following: Value – Style Manager seeks to identify securities that it believes to be currently under-priced relative to a company’s assets or potential earnings. Earnings results for the companies may be below current expectations or negative. Relative Value – Style Manager seeks to identify securities that it believes represents “value” based on comparative analysis of a security’s historical characteristics, its industry, or the markets as a whole. Deep Value – Style Manager seeks to identify companies that it believes to be significantly undervalued relative to fair market value. These companies typically trade inexpensively in relation to their earnings, cash flow or book value and are often out of favor and depressed due to negative company events or news. Traditional Growth – Style Manager seeks to identify securities whose earnings have increased and that it expects to increase at a faster rate than the earnings of the overall market. Growth at a Reasonable Price (GARP)/Conservative Growth – Style Manager seeks to identify growth stocks with low price-to-earnings ratios. These investment styles seek to identify stocks that embody elements of both value and growth styles. Quality – Style Manager seeks to identify stocks with high Standard and Poor’s (S&P) ratings, expecting such high-quality securities to have superior long-term prospects. Core – Style Manager generally has a style-neutral philosophy geared to a broad market index. Securities are selected across the entire market. Aggressive Growth – Style Manager seeks to identify securities whose earnings or revenues have significantly increased and/or are expected to increase at a significantly faster rate than the overall market with expectation of higher long-term returns, but also higher volatility levels. May incorporate substantial allocations to sectors that traditionally have had the strongest growth prospects (e.g., Technology).

The taxable and/or tax-exempt Fixed Income styles include: Multi-Strategy – Style Manager combines several approaches. Client accounts will hold a combination of individual securities and may hold shares of a Mutual Fund(s). Interest Rate Anticipation/Forecast – Style Manager recommends securities based on forecasts of interest rates. Interest Rate Trend Analysis – Style Manager adjusts the average maturity of the overall strategy recommendations in response to changes in interest rate trends. Sector Rotator – Style Manager recommends shifting assets of the strategy among fixed income sectors, for example, between Government and Corporate debt securities. Yield Curve Analysis – Style Manager attempts to maximize the yield/risk trade-off by focusingon the relative value offered by different maturities along the yield curve.

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• Equity Manager Sample Profile • • •

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MERRILL ~ -ABANKor AMu1c11 coM,.-.Nv

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MERRILL~. A BANK OF AMERICA COMPAN Y

4 Investment Approach/Style Summarizes the Style Manager’s approach to the security selection recommendation process (e.g., “top-down,” in which the Style Manager begins the investment process by making economic forecasts regarding industries and sectors that will be used to determine individual security selections, or “bottom-up,” in which the Style Manager begins the process with individual security selections).

It is important to note that even though Style Managers may consistently follow their investment approaches and styles, various market conditions can lead to overall strategy characteristics that vary over time. In addition, a Style Manager may apply its strategy on a security-by-security basis or on an overall style basis. From time to time client accounts may hold securities that have slightly different characteristics than the strategy implies. In addition, many Style Managers, regardless of their style, may at times have invested in and may provide recommendations to Merrill regarding foreign securities, securities known as “REITs” (Real Estate Investment Trusts), which own diversified strategies of real properties and/or mortgages, and Funds, all of which will incur additional costs not included within the Style Manager expense.


Investment Process5

Equity and Fixed Income Selection and Additional Information (where applicable) 6

Style/Capitalization7

Target Strategy Characteristics 8

Important Notes (are included as necessary, some examples below) Whether the Strategy is only available in a Managed Strategy or can also be selected as a Strategy for all of the assets in your accounts. For strategies that invest in International stocks through ADRs or foreign ordinary securities, indicates that because of certain state registration securities requirements the strategy may not be available and, even where available, may not be able to purchase all securities recommended by the Strategy. The investment style is not available to any retirement plan or non-US resident clients. Other important notes related to the Strategy.

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The Investment Process section provides an overview of the investment process.

The Equity and Fixed Income Selection and Additional Information sections provide a detailed summary of the primary criteria for selection of securities that the Style Manager will recommend to Merrill for purchase or sale in client accounts.

Identifies the equity exposure that is most characteristic of the Strategy. The box is plotted with capitalization along the vertical and value/growth along the horizontal, and represents the central tendency of the Strategy Composite for the style. It does not encompass every stock recommended for investment. The characterization of strategies is based upon the analysis done by Merrill of the investment process, strategy holdings and performance.

Identifies the characteristics of the Strategy that include average number of holdings, capitalization ranges, average market capitalization of the selection universe, the estimated amount of trading activity or “turnover” and anticipated cash positioning in the strategy.




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MERRILL~. A BANK OF AMERICA

Calendar Year Returns This chart shows the calendar year gross and net returns on an annualized basis for the applicable years. It also displays the corresponding Style Index returns.

Annualized Performance Chart This chart displays the Strategy Composite performance on both a “gross” and “net” of fees basis. Performance results are shown "gross", before the deduction of Program Fees, and "net", after the deduction of Program Fees. The maximum Program Fee Rate consists of the maximum Merrill Fee Rate of 2. 0 0% plus the maximum Style Manager Expense Rate. The actual Program Fee Rate applicable for a client may vary. Please refer to the Program Brochure for information on the Program Fees. The chart also contains the returns of the Style Index and, in certain cases, a broad market index for your information. The returns are displayed on an annualized basis for the applicable years up to 10 years.


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Risk/Return Analysis Chart This chart is a graphic display of the volatility or risk (as measured by standard deviation) inherent in the Strategy Composite results for the Style Manager Strategy. The vertical axis of the chart represents the return. The horizontal axis represents the amount of risk. This chart will only be provided if the Strategy Composite performance consists of at least five quarters (as of the most recent quarter end) of Strategy Composite returns.

Average Annual Gross Return (vertical axis) – reflects the annual return of each Style Manager based upon the quarterly average return of the performance shown before the deduction of fees as well as the annualized quarterly average return of the Style Index and, in certain cases, a broader market index. This return differs from those developed on other charts, such as the Annualized Performance Chart, in that the other charts reflect the result of compounding quarterly data and stating the results on an annual basis. The value of the Average Annual Gross Return that is plotted is shown immediately below this chart. Risk/Volatility (horizontal axis) – is measured by standard deviation. It shows how widely the annualized quarterly returns of each of the Style Manager Strategies have fluctuated from their average returns for the time period shown. The wider the range of the fluctuations, the higher the standard deviation or risk. If Standard Deviation is plotted, the value is shown immediately below this chart. Downside Risk (DSR) – of the Style Manager Strategy and Style Index is shown immediately below this chart but not plotted on this chart. Downside Risk statistics based on quarterly returns will only be provided for those Style Manager Strategies (including any Strategy Composite performance), Style Indexes and other indexes for which we have at least five quarters (as of current quarter end) of performance data and are provided for informational purposes only. DSR identifies volatility on the down side. It measures the variability of returns below the mean whereas standard deviation attributes volatility in either direction to risk.

Important Information and Disclosures MAA Composite: The MAA Composite is an aggregation of client accounts for a particular Style: Manager Strategy or Strategy (“Strategy”) managed by MAA in a substantially similar manner as described in the Strategy’s Profile. MAA may manage the Strategy through one or more Merrill advisory programs that includes the program to which the Profile relates. MAA Composite historical perfomance is first initiated for a Strategy when at least 5 accounts in a Strategy meet MAA Composite criteria. The performance of eligible new accounts in a Strategy are included in the MAA Composite performance at the beginning of the month following the first full calendar month (or for certain strategies such as municipal or international strategies, first full calendar quarter) the account is managed by MAA in a manner substantially similar to the other accounts in the MAA Composite. An account may be excluded or removed from the MAA Composite if or when MAA is not managing it in a substantially similar manner, such as due to account restrictions, a Style Manage change or termination, significant cash flows into or from the account, or title changes.

Clients should review and understand this information which generally describes the basis of the strategy’s composite results (including performance that may have been implemented directly by the Style Manager) and other important disclosures.





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Q2. 20T3 ML INVESTMENT ADVISORY PR O GRAM PROFI LE UPDATE ,:1an1g1d StnteO Mut11al Fulldsartd Elchanct- Tr.1d F1nds

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Managed Strategy Profile Overview

1 Strategy Composition Shows whether the Managed Strategy will consist of Style Manager Strategies and/or Funds and indicates the number of Style Manager Strategies and/or Funds included in the Managed Strategy. Merrill may select one or more Style Manager Strategies and/or Funds.

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Minimum Investment Shows the minimum amount required for initial investment in this strategy.

Objective Shows the objective of the Managed Strategy (Growth, Income or Total Return).

Asset Allocation Shows the Asset Allocation of the Managed Strategy (Conservative, Moderately Conservative, Moderate, Moderately Aggressive and Aggressive).

Managed Strategy Profile (Page 1)

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Type Shows the Type of Managed Strategy (Taxable or Tax Exempt).

General Information Provides general information such as specific contact information at Merrill Lynch.

Asset Class/Style Allocation Chart provides the asset allocation and Equity and Fixed Income ranges in the Managed Strategy.

Managed Strategy Composition This table identifies the Style Manager Strategies and/or Funds included in the Managed Strategy along with their asset allocations. When the composition of the Managed Strategy includes two or more Style Manager Strategies and/or Funds, the respective asset allocation for each Style Manager Strategy and/or Fund is also given. Any securities and/or symbols shown should not be considered recommendations or solicitations and may not have been, or in the future be, profitable.



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MERRILL~. A BANK OF AMERICA COMPAN Y

Q2 20IJ ML INVESTMENT ADVISORY PROGRAM PROFILE UPDATE

Managed Strategy Sample Profil e

ManagedStnitegr. MutualFund11ndExcbang1 TradedFund1 ObjectlWI: Growth Min Investment $25,000

Asset Allocallon:Moderate

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MERRILL ~ -A BANK OF A MER I CA COMPANY

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Return Information Shows the Managed Strategy's calendar year returns on an annualized basis for the applicable years. It also displays the corresponding Style Index returns.

Style Index 10

The Style Index is selected by Merrill to provide a relevant market comparison to the performance of the Managed Strategy. It can be either a single index or a combination of indexes. The Style Index is determined by Merrill based on several factors such as the Style Manager’s investment philosophy and style, the Style Manager’s asset mix over time, the range and average market cap of stock holdings over time, and maturities and duration of fixed income holdings.

Managed Strategy Profile (Page 2)

Annualized Performance Chart 9 11

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This chart displays the Strategy Composite performance on both a “gross” and “net” of fees basis. Performance results are shown "gross", before the deduction of Program Fees, and "net", after the deduction of Program Fees. For a Strategy with more than one Style Manager, the maximum Style Manager Expense Rate for purposes of the net of fee performance information shown on this Profile is the highest Style Manager Expense Rate of the Style Managers in the Strategy. If such Style Manager list changes, the maximum Style Manager Expense Rate may change for purposes of the net of fee performance information. The actual Program Fee Rate applicable for a client may vary. Please refer to the Program Brochure for information on the Program Fees. The chart also includes the Style Index and a broader market index for your information. The returns are displayed on an annualized basis for the applicable years up to 10 years.

Risk/Return Analysis Chart This chart is a graphic display of the volatility or risk (as measured by standard deviation) inherent in the Strategy Composite results shown. The vertical axis of the chart represents the return. The horizontal axis represents the amount of risk. This chart will only be provided if the Strategy Composite performance consists of at least five quarters (as of the most recent quarter end) of Strategy Composite.

Average Annual Gross Total Return (vertical axis) – reflects the annual return based upon the quarterly average return of the performance shown before the deduction of Program fees as well as the annualized quarterly average return of the Style Index, and in certain cases, a broad composite market index. This return differs from those developed on other charts, such as the Annualized Performance Chart, in that the other charts reflect the result of compounding quarterly data and stating the results on an annual basis.

Risk/Volatility (horizontal axis) – is measured by standard deviation. It shows how widely the annualized quarterly returns graph for the Strategy Composite, Style Index, and other market indexes have fluctuated from their average returns for the time period shown. The wider the range of the fluctuations, the higher the standard deviation or risk.

Downside Risk (DSR) – of the performance shown and the Style Index is also included in the chart but is not plotted on this graph. Downside Risk statistics are based on quarterly returns of the performance data. DSR reflects volatility on the down side. It measures the variability of returns below the mean whereas standard deviation attributes volatility in either direction to risk.




User's Guide to the ML Investment Advisory Program Profiles MERRILL~. A BANK OF AMERICA

Balanced 50/50 Index The Balanced 50/50 Index is calculated as an equally weighted combination of the returns of two broadly based indexes, each of which is a proxy for its asset class. The computation is straightforward, consisting of: 50% of the monthly return of the Wilshire 5000 Index, plus 50% of the monthly return of the Merrill Lynch Domestic Bond Master Index.

Dow Jones Industrial Average (DJIA) An index of 30 predominantly industrial stocks actively traded on the New York Stock Exchange, used as an indicator of the performance of stocks in the United States.

Standard & Poor’s 500 Common Stock Index (S&P 500®) A market-value-weighted index of industrial, public utility, financial and transportation stocks with income reinvested. It is a generally used performance benchmark for domestic equity portfolios, although it reflects the performance of very large-capitalization stocks.

Standard & Poor’s 600 Common Stock Index (S&P 600®) A market-value weighted index containing exposure to all major sectors. It is composed of the 600 smallest capitalization stocks in the S&P 1500 Index, a broad stock market benchmark representing 90% of the U.S. equity market on a capitalization weighted basis.The S&P 600 Index reflects approximately 3% of the U.S. equity market on a capitalization weighted basis. This index is a measure of small-capitalization stock performance.

Standard and Poors (S&P) MidCap 400 Common Stock Index A market capitalization-weighted index composed of 400 stocks, including reinvestment of dividends, that is generally considered representative of mid-sized US companies.

Standard and Poors (S&P) High Yield Dividend Aristocrats Index Measures the performance of companies within the S&P Composite 1500 that have followed a managed-dividends policy of consistently increasing dividends every year for at least 20 years.

Russell 1000® Index Measures the performance of the 1000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index.

Russell 1000® Growth Index Measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 1000® Value Index Measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 2000® Index Measures the performance of the 2000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index.

Russell 2000® Growth Index Measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000® Value Index Measures the performance of those Russell 2000 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 2500™ Index Measures the performance of the 2500 smallest companies in the Russell 3000 Index, which represents approximately 20% of the total market capitalization of the Russell 3000 Index.

Russell 2500™ Growth Index Measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2500™ Value Index Measures the performance of those Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values.

Russell 3000® Index Measures the performance of the 3000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market.

Russell 3000® Growth Index Measures the performance of those Russell 3000 Index companies with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000 Growth or the Russell 2000 Growth indexes.

Russell 3000® Value Index Measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes.

Russell Midcap® Index Measures the performance of the 800 smallest companies in the Russell 1000 Index, which represent approximately 30% of the total market capitalization of the Russell 1000 Index.

Russell Midcap® Growth Index Measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000 Growth index.

Russell Midcap® Value Index Measures the performance of those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values. The stocks are also members of the Russell 1000 Value index.

S&P 500/Citigroup Growth Index S&P 500/Citigroup Growth Index contains the full market cap of the S&P 500. The S&P/Citigroup multifactor methodology is used to score constituents, which are weighted according to market cap and classified as growth. The index has a relatively low turnover.

The Market Indexes



MSCI Europe Total Return - Net (MSCI Europe TR Net)


User's Guide to the ML Investment Advisory Program Profiles MERRILL~. A BANK OF AMERICA COMPANY

This is Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of the developed markets in Europe.

ICE BofA AAA-A US Corporate, Government and Mortgage Index (D010)

ICE BofA US Corporate, Government & Mortgage Index (MLDBI, D0A0)

ICE BofA US Cash Pay High Yleld Index (J0A0)

ICE BofA U.S. Broad Market Bond Index (MLBMI, USOO)

ICE BofA U.S. Inflation Linked Bond Index (GOQI)

ICEBofA Corporate and Government Master Bond Index (MLCP&G,B0A0)

ICE BofA Corporate and Government Bond Index A Rated & Above {B010)

ICE BofA Government Master (G0A0)

ICEBofA Corporate Master (C0A0)

ICE BofA Treasury Short Term 1-3 Years (6102)

ICE BofA Treasury lntennediate Term 3-5 Years (6202 )

ICE BofA Treasury lntennediate Term 5-7 Years (6302)

The Market Indexes Continued from page 7

S&P 500/Citigroup Value Index S&P 500/Citigroup Value Index contains the full market cap of the S&P 500. The S&P/Citigroup multifactor methodology is used to score constituents, which are weighted according to market cap and classified as value. The index has a relatively low turnover.

Lipper Large Cap Growth An unmanaged index considered representative of large-cap growth funds tracked by Lipper. Lipper Growth & Income An unmanaged index considered representative of growth & income funds tracked by Lipper. Lipper Equity Income An unmanaged index considered representative of equity income funds tracked by Lipper. Morgan Stanley All Country World Index ex US The Morgan Stanley All Country World Index ex US is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed (excluding the USA) and emerging markets. The index is shown with minimum dividend reinvested after deduction of withholding tax. Morgan Stanley Capital International World Index (MSCI World®) The Morgan Stanley World Index is a market-weighted equity index which is a proxy for the performance of global stock markets. The index is shown with minimum dividend reinvested after deduction of withholding tax.

Morgan Stanley Capital International Europe, Australasia and Far East Index (MSCI EAFE®) The Morgan Stanley EAFE Index is a market-weighted equity index which is a proxy for the performance of the international stock markets. The index is shown with minimum dividend reinvested after deduction of withholding tax. Morgan Stanley Capital International Emerging Markets Index (MSCI Emerging Markets®) The Morgan Stanley Emerging Markets Index is a market-weighted index which is a proxy for the performance of international emerging stock markets. Morgan Stanley Capital International (MSCI US REIT) The MSCI US REIT Index is a free float-adjusted market capitalization weighted index that is comprised of equity REITs that are included in the MSCI US Investable Market 2500 Index, with the exception of specialty equity REITs that do not generate a majority of their revenue and income from real estate rental and leasing operations. The index represents approximately 85% of the US REIT universe.

National Association of Real Estate Investment Trusts (NAREIT®) The National Association of Real Estate Investment Trusts is a market-weighted capitalization REIT index. It represents a broad index of Equity, Mortgage, Hybrid, Healthcare and Micro-cap REITs.

A market-value-weighted index composed of U.S. Treasury, Agency, Mortgage-backed securities and domestic Corporate (A/A2 rated or better) debt issues. Corporate bonds rated below A/A2 are excluded. It is a total return index since it includes the effects of both price changes and the reinvestment of income.

A market-value-weighted index composed of U.S. Treasury, Agency, Mortgage-backed securities and domestic Corporate (BBB/Baa rated or better) debt issues. This index can be used as a proxy for the domestic fixed income market, and as a performance benchmark for fixed income portfolios.

The BofA Merrill Lynch US Cash Pay High Yield Index tracks the performance of US dollar denominated below investment grade corporate debt, currently in a coupon paying period, that is publicly issued in the US domestic market. Qualifying securities must have a below investment grade rating (based on an average of Moody’s, S&P and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule and a minimum amount outstanding of $100 million.

A market-value-weighted index composed of U.S. Treasury, Agency, Mortgage and Asset-backed securities and domestic Corporate (BBB/Baa rated or better) debt issues. This index can be used as a proxy for the domestic U.S. fixed income market, and as a performance benchmark for fixed income portfolios.

The U.S. Treasury Inflation-linked Index tracks the performance of the inflation linked sovereign debt of the U.S. Treasury. The inception date of the Index is February 28, 1997.

A market-value-weighted index composed of U.S. Treasury, Agency and domestic Corporate (BBB/Baa rated or better) debt issues. Mortgage-backed securities are excluded. It is a total return index since it includes the effects of both price changes and the reinvestment of income.

A market-value weighted index composed of U.S. Treasury, Agency and domestic Corporate (A/A2 rated or better) debt issues. Mortgage-backed securities and Corporate bonds rated below A/A2 are excluded.

A market-value-weighted index composed of U.S. Treasury and Agency fixed income issues. Mortgage-backed securities are excluded. The ML Government Master Index is a component of the MLCP&G.

A market-value-weighted index composed of domestic Corporate (BBB/Baa rated or better) debt issues. The ML Corporate Master Index is a component of the MLCP&G.

A market-value-weighted index composed of U.S. Treasury short-term debt issues.

A market-value-weighted index composed of U.S. Treasury intermediate-term debt issues.

A market-value-weighted index composed of U.S. Treasury intermediate-term debt issues.



ICE BofA Treasury Intermediate Term 7-10 Years (6402)



A market-value-weighted index composed of U.S. Treasury intermediate-term debt issues. ICE BofA Treasury Intermediate Term 1-10 Years (6502)

ICE BofA Government Intermediate Term 1-10 Years (G5AO)

ICE BofA Corporate & Government 1-5 Years (BVA0)

ICE BofA Corporate & Government 1-10 Years (B5A0)

ICE BofA Corporate and Government 1-10 Year A Rated & Above (B510)

ICE BofA Fixed Rate Preferred Securities lndex5M (POP1)

ICE BofA Global Broad Market Excluding US Dollar Index (GBXD)

ICE BofA AH-Quality Convertible Index (VXN0, CNVRTX144A)

ICE BofA US Mortgage Backed Securities Index (M0A0)

ICE BofA Investment-Grade Convertible Index (VXN1, IG CNVRTX144A)

ICE BofA 0-3 Month US Treasury Bill Index (G0B1)

ICE BofA 3 Month U.S. Treasury Bills (T-Bills)

ICE BofA Municipal Index 1-22 Years (ML Muni 1-22 Yrs., U0T1)

ICE BofA Munlclpal Index 1-12 Years (ML Munl 1-12 Yrs., U0T0)

ICE BofA Institutional Municipal Index (U0A0)

ICE BofA Municipal Index 1-3 Years (U1A0)

ICE BofA Munlclpal Index 3-7 Years (U2A0)

ICE BofA Munlclpal Index 7-12 Years (U3A0)


The Market Indexes Continued from page 8

A market-value-weighted index composed of U.S. Treasury short- and intermediate-term debt issues.

A market-value-weighted index composed of U.S. Treasury and agency short- and intermediate-term debt issues.

A market-value-weighted index composed of U.S. Treasury and corporate debt.

A market-value-weighted index composed of U.S. Treasury and corporate debt issues.

A market-value weighted index composed of U.S. Treasury, Agency and domestic Corporate (A/A2 rated or better) debt issues with a maximum maturity of 10 years. Mortgage-backed securities and Corporate bonds rated below A/A2 are excluded. It is a total return index since it includes the effects of both price changes and the reinvestment of income.

The Merrill Lynch Fixed Rate Preferred Securities Index tracks the performance of fixed rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market. Qualifying securities must be rated investment grade (based on a composite of Moody’s, S&P, and Fitch) and must have an investment grade rated country of risk (based on a composite of Moody’s, S&P and Fitch foreign currency long term sovereign debt ratings).

The BofA Merrill Lynch Global Broad Market Excluding US Dollar Index is a subset of The BofA Merrill Lynch Global Broad Market Index excluding all securities denominated in US dollars. The BofA Merrill Lynch Global Broad Market Index tracks the performance of investment grade debt publicly issued in the major domestic and eurobond markets, including sovereign, quasi-government, corporate, securitized and collateralized securities. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch).

A market-value-weighted index composed of Convertible Bonds and Preferred Stocks of all credit qualities, excluding 144A securities.

The BofA Merrill Lynch US Mortgage Backed Securities Index tracks the performance of US dollar denominated fixed rate and hybrid residential mortgage pass-through securities publicly issued by US agencies in the US domestic market.

A market-value-weighted index composed of Investment Grade Convertible Bonds and Preferred Stocks (BBB/Baa rated or better), excluding 144A securities.

The BofA Merrill Lynch 0-3 Month US Treasury Bill Index is a subset of The BofA Merrill Lynch US Treasury Bill Index including all securities with a remaining term to final maturity less than 3 months. The BofA Merrill Lynch US Treasury Bill Index tracks the performance of US dollar denominated US Treasury Bills publicly issued in the US domestic market. Qualifying securities must have at least one month remaining term to final maturity and a minimum amount outstanding of $1 billion.

Direct obligations of the United States Treasury. The returns shown on the Profiles are compiled from the yields available from the weekly auction of Treasury Bills with a maturity of 91 days. These returns can be used as a proxy for “cash and cash equivalents”.

The BofA Merrill Lynch 1-22 Year US Municipal Securities Index is a subset of The BofA Merrill Lynch US Municipal Securities Index including all securities with a remaining term to final maturity less than 22 years.

A market-value-weighted index composed of intermediate-term municipal debt issues.

A market-value-weighted index composed of long-term municipal debt issues.

A market-value-weighted index composed of short-term municipal debt issues.



Wilshire Real Estate Securities Index (WRESI) Capitalization-weighted index composed of publicly traded equity REITs and REOCs. The index excludes special purpose, health care and mortgage REITs.

Please note that the Russell Indexes shown in the Profiles are marks of the Frank Russell Company. S&P500® and Standard & Poor’s 500 are trademarks of the McGraw-Hill Companies, Inc. MSCI indexes shown in the Profiles are marks of Morgan Stanley Capital International (MSCI).

*Global Industry Classification Standard (GICS) A standardized classification system for equities developed jointly by Morgan Stanley Capital International (MSCI) and Standard & Poor’s. The GICS methodology is used by the MSCI indexes, which include domestic and international stocks, as well as by a large portion of the professional investment management community• Composite Fixed Income Portfolio Analysis: Portfolio Allocation, Maturity Distribution, Calendar Year Returns, Quality Distribution, and Taxable Fixed Income Characteristics.



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