The Merrill Lynch Factor Model® (MLFM) implements an investment strategy designed to provide the risk and return characteristics of the hedge fund asset class by targeting a high correlation with the HFRI Fund Weighted Composite Index. Using a rules-based, discretion-free algorithm the MLFM allocates exposure to the S&P 500® Index, the Russell 2000® Index, the MSCI EAFE® Index, the MSCI® Emerging Markets Index, the Euro currency and cash. On a monthly basis the weights of the factors are recalculated using a regression model. Weightings for all of the factors may be negative, except with respect to the MSCI Emerging Markets Index. The MLFM was launched in June, 2006. For details about the methodology please refer to the methodology document.

Disclaimer

“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated (MLPFS) and Merrill Lynch Professional Clearing Corp., both of which are registered broker dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. This document is not a product of and has not been reviewed or approved by the Bank of America Merrill Lynch research department. It is furnished for informational purposes only; may be changed at any time; is not a recommendation to purchase any security or financial instrument, or to invest in any type of investmentstrategy; and is not tax, legal, or accounting advice. The strategies described in this document may involve significant risk and may not be suitable for every investor. Please consult your professional advisor before investing. Bank of America Merrill Lynch and its affiliates may offer advice on or transact in strategies or financial instruments that compete with or adversely affect the price of the strategies or financial instruments described herein. THE FACTOR MODEL AND THE INFORMATION HEREIN ARE PROVIDED FOR ON AN "AS IS" BASIS. BANK OF AMERICA MERRILL LYNCH AND ITS AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE INFORMATION, THE ML FACTOR MODEL, OR YOUR USE OF OR RELIANCE THEREON. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2012 Bank of America Corporation.

The Component Indices (S&P 500 Index, MSCI EAFE Index, MSCI Emerging Index, Russell 2000 Index) are the exclusive property of respectively Standard and Poors Financial Services LLC (“S&P”), Morgan Stanley Capital International Inc. (“MSCI”), and Frank Russell Company (“Russell”) (Collectively the “Component Sponsors”). The Component Sponsor names and the Component Index names are service mark(s) of the Component Sponsors or their affiliates and have been licensed for use for certain purposes by MLPFS. The ML Factor Model is not sponsored, endorsed, or promoted by the Component Sponsors, and the Component Sponsors bear no liability with respect to any financial securities linked to the ML Factor Model (MLFM Products). No purchaser, seller or holder of MLFM Products, or any other person or entity, should use or refer to any Component Sponsor trade name, trademark or service mark to sponsor, endorse, market or promote this product without first contacting the Component Sponsor to determine whether its permission is required. Under no circumstances may any person or entity claim any affiliation with the Component Sponsors without the prior written permission of such Component Sponsor.