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    Strategies for Boosting Student Financial Literacy

    Institutions are finding solutions to a persistent challenge in higher education

    The underdeveloped state of financial literacy among many college and university attendees poses a serious challenge both to the students and their educational institutions.

     

    For students, limited understanding of personal financial management can be particularly costly at a time when 69% of them1 are assuming debt obligations to pay for their education, and those obligations are averaging $28,4002 at graduation. And for institutions of higher learning, from a business perspective, financial problems that may be due to low student financial literacy result in higher dropout and loan default rates.

     

    “Financial problems are the number one reason students aren’t able to complete their degree, and students who leave without a degree are four times as likely to default on their loans,” according to Mary Johnson, Vice President for Financial Literacy and Student Aid Policy for financial systems solutions provider Higher One.

     

    More broadly, educational institutions care about the ultimate success of their students after graduation, and financial literacy is key. A 2014 Gallup study3 found that the overall well-being of college graduates correlates to the level of debt they took on to finance their education.


    Defining financial literacy

    So what constitutes financial literacy? One academic researcher4 describes it as “the ability to use knowledge and skills to manage financial resources effectively for lifetime financial security.”

     

    Increasingly, colleges and universities are taking on the mission of helping their students achieve financial literacy. One reason, according to Bill Ford, Senior Vice President and Senior Relationship Manager in the Specialized Industries group of Bank of America Merrill Lynch, is that “parents are asking universities, ‘What’s your value proposition to support the high cost of tuition?’”

     

    Part of the response, he says, can be: “We’re training students to be smart about managing their funds to make sure they get their money’s worth.”

     

    Financial literacy is critical to the success of graduates entering the work force, adds Jonathan Millard, Public Sector Banking Senior Vice President and Market Leader, Bank of America Merrill Lynch. “Most institutions of higher learning regularly engage students about subjects beyond academics that will impact their lives going forward, such as good citizenship and community service,” he points out. “Efforts at promoting student financial literacy are consistent with that broader educational focus.”

     

    One barometer of colleges and universities’ interest in financial literacy is the number of applications submitted to Higher One’s annual “Financial Literacy Counts” grants program, which doubled to 130 last year.

     

    Grant applicants propose financial literacy efforts covering the financial aid process, understanding sustainable ratios of student debt service amounts to anticipated post-graduation earnings, consumer debt minimization, budgeting, savings and investing, and identity theft protection, among other subjects.

    The Financial Literacy Challenge

     

    One study of student financial literacy6 concluded that “most students and segments of the adult population are not prepared to take on financial decision-making. They have deficiencies in financial knowledge, and experience which impacts decisions about saving, investments, retirement planning, and wealth accumulation.”

                                                                                       

    Another study7, conducted over a three-year period averaging more than 50,000 students each year, revealed a decline in “responsible financial behavior.” Specifically, students are less and less likely to pay credit card bills on time, pay off credit card principal balances monthly, review bills before paying them, adhere to a budget, save money and balance their checkbooks. While the majority say they still do most of those things, that will no longer be true in a few years if current trends aren’t reversed.

     


    No perfect model

    The Coalition of Higher Education Assistance Organizations (COHEAO) recently surveyed the financial literacy program landscape and highlighted patterns and best practices5.  “There is no singular perfect operational model for a campus financial literacy program,” the report states.

     

    Before trying to identify the best model for them, institutions need to assess the particular characteristics and needs of their own students. That can entail determining the:

     

    • Frequency of emergency loan requests
    • Timeliness of bill payment
    • Categories of requests for financial resources being received
    • Number of students with financial holds on their accounts
    • Loan default rate for graduates.

     

    Having this data in hand at the outset “will help ensure that the program focus is timely and relevant,” according to the COHEAO report.

     

    Below are the five “most prevalent” financial literacy program models that, according to COHEAO, have achieved success.

     

    1. Event
    2. Interactive
    3. Game-Based
    4. Classroom
    5. Counseling

    Classroom-based programs are one approach taken at Howard University. The historic Washington, DC institution developed its first financial literacy curriculum back in 1999, according to Debby Lindsey-Taliefero, an economics professor there who has been intimately involved in the school’s financial literacy efforts. One challenge with classroom-based programs is customizing content to individual students’ needs, she says.


    Inherent obligation

    Howard’s pioneering efforts to tackle the financial literacy challenge came to the attention of Congress in 2002, the year then-president H. Patrick Swygert was asked to testify at a hearing held by the Senate Banking Committee.

     

    “I truly believe that, as educators, we have an inherent obligation to educate, nurture, train and prepare our students for life’s many challenges,” including the financial ones, he testified. Swygert’s testimony touched on the degree to which minority students are at greater risk due to the effects of long-term economic stress in their communities.

     

    Financial literacy education efforts at Howard today occur in multiple settings — as sections of business and economics classes, as workshops and as a component of freshman orientation programs. At present, however, individual efforts evolve from a decentralized structure.

     

    Across the country in Orange County, CA, to attack the challenge in a coordinated fashion, Chapman University recently approved funding for a full-time Director of Financial Literacy. The impetus to establish the position came from Chapman’s Vice Chancellor for Enrollment and Financial Aid.

     

    “The financial aid people are very concerned that our students are successful in this area,” says Harold Hewitt, Jr., Chapman’s Executive Vice President and Chief Operating Officer.


    Expanding the audience

    A faculty member of Chapman’s Argyros School of Business & Economics has already incorporated tools from the Better Money Habits website into an accounting class for non-accounting majors. The university’s goal for the new financial literacy director is to expose many more students to the subject matter. How that is accomplished will be up to the person hired for the job, Hewitt says. It will probably involve a wide variety of instructional formats.

     

    The enumerated skills and experience required of the successful job candidate reveal one key premise of the effort: Students reject attempts to force-feed them a financial education. There will be no mandatory workshops, classes or any other form of instruction. Also, “We’re trying to get away from the ‘come to this meeting and we’ll give you a free pizza approach,’” Hewitt says.

     

    The job will be given to a highly creative person with an ability to connect with students via social media. “The person is going to have to sell the relevance of this material,” he explains.


    Tips for success

    Following are some general tips on connecting with students to create that “sales” opportunity:

     

    • Begin with a task force. Gaining buy-in for a substantial financial literacy effort requires involving all constituencies in a collaborative effort to build the program from the start. Those include administrative leadership (ideally including the president or provost, or a representative from those offices), student affairs, financial aid, career services, library, alumni affairs, faculty and student leaders.
    • Harness competitive instincts. Competitions and contests to promote participation in learning opportunities can take many forms and be fueled by social media. Examples include having student teams compete for the greatest number of students recruited to participate in a financial literacy event, and awards to individuals who develop the most creative solution to a financial challenge.
    • Seek external partners. Businesses in your area may see benefit in sponsoring financial literacy events and publicizing them broadly as part of their community service awareness program. Leveraging such resources both for financial and publicity support can build student awareness and engagement. In addition, seek out free resources offered through financial and other institutions, such as $tart with Change, Higher One’s online community aimed at helping students with money management.
    • Recruit prominent advocates. Find students, university staff and community leaders who many students respect, and who are passionate about financial education, to serve as publicists and cheerleaders for your program.

     

    As with any substantial undertaking, the effectiveness of a financial literacy promotion effort can be improved over time. That requires establishing performance metrics at the outset so that the necessary data can be gathered and analyzed after sufficient time has elapsed. Indicators of success can range from something as basic as program participation, to reductions in student loan default rates.

     

    Whatever metrics are used, patience, persistence and tactical adjustments are essential. “You have to be in it for the long haul,” says Howard University’s Lindsey-Taliefero.

     

    Given the high stakes, progress and ultimate success may be the only acceptable outcomes for all concerned. The good news is excellent resources are available to help make it happen.


    Bringing Relevance to Financial Education

     

    It takes a lot of knowledge to become financially literate — but it doesn’t need to be absorbed in one sitting. For example, most students will, justifiably, be more interested in debt management tactics than estate planning.

     

    That’s the principle behind BetterMoneyHabits.com, a free interactive multimedia website powered by Bank of America in partnership with Khan Academy. “The site works because people access the information when it’s relevant to them,” notes Andrew Plepler, leader of the bank’s social responsibility efforts.

                   

    One of the main goals of the website is to “connect information to people's goals and situations — so information is easily accessible when and where people need it.”8

     

    Many of the bank’s financial centers employ personal finance experts who can serve as a resource to colleges and universities in their financial literacy promotion efforts. Bank of America’s commitment to this cause stems from its overall mission to “make financial lives better,” Plepler says.


    For more information about millennial money matters and insights into the “money mindset” of many parents of millennials, check out the latest Bank of America/USA TODAY Better Money Habits Millennial Report. http://about.bankofamerica.com/assets/pdf/bmh-millennials-report-spring-2015.pdf

    1The Institute for College Access & Success, “Student Debt and the Class of 2013,” November 2014.

    2Ibid.

    3Great Jobs, Great Lives: The 2014 Gallup-Purdue Index Report

    4Lewis Mandell, Ph.D., The Financial Literacy of Young American Adults: Results of the 2008 National Jump$tart Coalition Survey of High School Seniors and College Students, 2009.

    5COHEAO, Financial Literacy in Higher Education: The Most Successful Models and Methods for Gaining Traction, March 2014.

    6Lindsey-Taliefero et al., “A Review of Howard University’s Financial Literacy Curriculum,” American Journal of Business Education, 2011.

    7Money Matters on Campus: How College Students Behave Financially and Plan for the Future. Study sponsored by Higher One and conducted by EverFi, 2015.

    8BetterMoneyHabits.com

    Key Takeaways

    • A lack of financial knowledge can result in student money problems, which correlate with higher dropout and loan default rates.
    • Increasingly, colleges and universities are taking on the mission of helping their students achieve financial literacy.
    • Successful financial literacy programs range from interactive online programs to game-based education to individual counseling.

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    Certain hyperlinks on the Sites may link websites maintained by the Affiliates, which are not to be considered a part of the Sites. Certain other links on the Sites to non-affiliated third-party sites may contain information over which we have no control. We take no responsibility for the content, accuracy, content, completeness, timeliness, current value or any aspect of the information on these sites and disclaim any liability to Client for it or for any consequence of your decision to use the links provided or your use of such information. Links to non–Bank of America sites do not imply any endorsement of or responsibility for the opinions, ideas, products, information or services offered at such sites, or any representation regarding the content at such sites. We also disclaim all liability and make no representations or warranties for any products or services sold or provided to Bank of America or its Affiliates by any third party. Your purchase of products or services through one of those other sites is subject to agreements and/or the terms and conditions in effect between Client and the providers of products and services at those other sites. Client agrees that it shall not bring a suit or claim against Bank of America or its Affiliates arising from or based on your purchase or use of products or services through those other sites. Links do not imply that Bank of America, its Affiliates or the Sites sponsors, endorses, is affiliated or associated with, or is legally authorized to use any trademark, trade name, logo or copyright symbol displayed in or accessible through the links, or that any linked sites is authorized to use any trademark, trade name, logo or copyright symbol of Bank of America or its Affiliates.

    CONTENT AND SERVICE AVAILABILITY

    Bank of America or its Affiliates may make changes to the Sites and reserves the right to do so without prior notice to you. Client acknowledges that not all products and services listed or discussed in the Sites are available in all geographic areas. Your eligibility for particular products and services is subject to final determination and acceptance by Bank of America or its Affiliates.

    CONSENT TO ELECTRONIC DELIVERY

    You agree to receive certain documents and information provided by Bank of America and its Affiliates through the Sites and/or through email provided to you via the Sites. This delivery will generally consist of certain Content on the Sites, and certain other documents relating to Bank of America and its Affiliate’s business. This electronic provision and delivery will be regarded by you as appropriate delivery pursuant to any delivery requirements under the various statutes and rules, where applicable, of the Securities and Exchange Commission, the National Association of Securities Dealers and any state or other jurisdiction. You acknowledge that you have the appropriate technological equipment to use the Sites and to receive email via the Internet and understand that your use of the Internet may incur certain operational costs such as monthly fees for a service provider. You agree to notify Bank of America or the applicable Affiliate in the event that you no longer desire to receive content through this delivery procedure and will allow a reasonable amount of time to permit proper delivery to you through other means.

    NO WARRANTY

    Client acknowledges that any information provided through the Sites is not intended to be a recommendation, offer or solicitation of any particular products or services. In addition, all research, analysis and similar market information from non-affiliated third parties provided represent the views and opinions solely of the author or the indicated source. Bank of America and its Affiliates do not independently verify the accuracy or completeness of such information, nor does Bank of America and its Affiliates endorse any particular views expressed therein. Except for offering memoranda, Bank of America and its Affiliates disclaim any liability to Client for this information or for any consequence of your decision to use it. Client agrees that it shall independently confirm any such information presented through the Sites before relying on such information. Bank of America, its Affiliates and their respective employees, contractors, agents and various contributors to the Sites have no duty to correct or update any inaccurate or out-of-date information on the Sites.

    Client acknowledges that it is acting for its own account, and it has made its own independent decisions to enter into a Transaction and as to whether a Transaction is appropriate or proper for it based upon its own judgment and upon advice from such advisors as it has deemed necessary. Client is not relying on any communication (written or oral) of Bank of America or its Affiliates as investment advice or as a recommendation to enter into a Transaction; it being understood that information and explanations related to the terms and conditions of a Transaction shall not be considered investment advice or a recommendation to enter into that Transaction. Further, Client has not received from Bank of America or its Affiliates any assurance or guarantee as to the expected results of a Transaction.

    COMPLIANCE WITH LAWS AND INDEMNITY

    The Sites may be used only for lawful purposes. Client’s conduct may be subject to local, state, national and international laws. Client agrees that it and any of its Authorized Persons shall comply with this Agreement, applicable laws, rules, regulations, ordinances and other similar national and international requirements of the country, state and province in which you are accessing and using the Sites.

    Client agrees to abide by applicable export control laws and not to transfer, by electronic transmission or otherwise, any content on the Sites subject to restrictions under such laws to a national destination prohibited under such laws, without first obtaining, and then complying with, any requisites government authorization. Client further agrees not to upload to the Sites any data or software that cannot be exported without prior written government authorization, including, but not limited to, certain encryption software. This assurance and commitment shall survive termination of these Terms and Conditions. Offices, residents and operations of your organization in Cuba, Iran, Iraq, Libya, North Korea, Sudan, Syria and any other countries that are the subject of sanctions by the United States Office of Foreign Asset Control or other general U.S. embargo restrictions are not permitted to access and use the Sites, and any such access and use is a violation of these Terms and Conditions.

    Upon request by Bank of America or its Affiliates, you agree to defend, indemnify and hold harmless Bank of America, its Affiliates, their officers, directors, employees, agents, contractors or other suppliers from all liabilities, claims and expenses, including attorneys fees, that arise from a breach of these Terms and Conditions for which you are responsible, or from third-party claims arising from your use of the Sites. Bank of America and its Affiliates reserve the right to assume the exclusive defense and control of any matter otherwise subject to indemnification by you. Notwithstanding the foregoing, you are not required to indemnify Bank of America or its Affiliates for its own violations of applicable laws.

    • FOR RESIDENTS OF BRAZIL:

      The information contained here does not constitute a public offering or distribution of securities in Brazil and no registration or filing with respect to any securities or financial products available on the Sites has been made with Commisao de Valores Mobiliarios.

    • FOR RESIDENTS OF CANADA:

      The information contained here does not constitute a public offering or distribution of securities in Canada or any of its provinces. No registration or filing with respect to any securities or financial products available on the Sites has been made with any regulatory agency thereof.

    • FOR RESIDENTS OF FRANCE:

      The Sites do not constitute a solicitation to enter into a transaction involving financial instruments, is not being distributed in the context of a public offer in France within the meaning of Article L. 411–1 of the Monetary and Financial Code, and has thus not been submitted to the COB for prior approval and clearance procedure. Any offers, sales or distribution of financial instruments through the Sites shall only be made in France to qualified investors (investisseurs qualifi?s) as defined in and in accordance with Article L. 411-2 of the Monetary and Financial Code and d?cret no. 98–880 dated 1st October, 1998. The contents of the Sites may not be redistributed or reproduced (in whole or in part) by any User. The Sites are made available with the understanding that Users will make investment decisions for their own account with the conditions set out in d?cret no. 98–880 dated 1st October, 1998. By using the Sites, Users undertake not to transfer, directly or indirectly, any financial instrument acquired through the Sites to the public in France, other than in compliance with applicable laws and regulation. Services hereunder may be provided by Banc of America Securities, Limited, as agent or otherwise.

    • FOR RESIDENTS OF GERMANY:

      The Sites are made available only to professional investors as such term is defined in the Securities Sales Prospectus Act.

    • FOR RESIDENTS OF HONG KONG:

      Access to the Sites is by invitation only to institutional investors. No information or material contained in the Sites is or should be construed as amounting to an offer to enter into any transaction or investment whatsoever. The information on these Sites is provided by the Hong Kong branch of Bank of America, N.A., and is compiled from information prepared by subsidiaries and affiliates of Bank of America Corporation. Your agreement for the use of this Site is with the Hong Kong branch of Bank of America, N.A.

    • FOR RESIDENTS OF IRELAND:

      Access to the Sites is by invitation only to professional investors.

    • FOR RESIDENTS OF ITALY:

      Access to the Sites is by invitation only to professional investors as defined in article 31 of CONSOB regulation no. 11522 of July 1, 1998.

    • FOR RESIDENTS OF JAPAN:

      Access to the Sites is by invitation only to financial institutions as defined under the Law Concerning Foreign Securities Firms.

    • FOR RESIDENTS OF KOREA:

      Access to the Sites is by invitation only to professional investors with a valid password. The information contained here does not constitute a public offering or distribution of securities in Korea.

    • FOR RESIDENTS OF NETHERLANDS:

      Access to the Sites is by invitation only to professional market parties as defined in the Dutch Securities Transactions Supervision Act 1995. Securities or other instruments on these Sites are only offered to professional market parties.

    • FOR RESIDENTS OF SINGAPORE:

      Access to the Sites is by invitation only to institutional investors. The information contained here does not constitute a public offering or distribution of securities in Singapore. The information in these Sites is provided by Bank of America Singapore Limited and is compiled from information prepared by subsidiaries and affiliates of Bank of America Corporation. Your agreement for the use of these Sites is with Bank of America Singapore Limited.

    LIMITATION OF LIABILITY

    THE FOLLOWING LIMITATIONS OF LIABILITY IN THIS SECTION SHALL NOT APPLY TO VIOLATIONS OF LAWS RELATING TO THE OFFER AND SALE OF SECURITIES. YOU ACKNOWLEDGE THAT NEITHER Bank of America, ITS AFFILIATES NOR THEIR OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, CONTRACTORS OR OTHER SUPPLIERS MAKES ANY WARRANTIES OR GUARANTEES WITH RESPECT TO THE SITES, INCLUDING WITHOUT LIMITATION, WARRANTIES REGARDING THE ACCURACY OR COMPLETENESS OF ANY CONTENT, OR WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT OF INTELLECTUAL PROPERTY, TITLE OR FITNESS FOR A PARTICULAR PURPOSE. Bank of America, ITS AFFILIATES AND SUCH PERSONS SHALL NOT BE LIABLE TO YOU FOR ANY LOSS, COST, DAMAGE OR OTHER INJURY, WHETHER IN CONTRACT, TORT, NEGLIGENCE OR OTHERWISE, ARISING OUT OF OR CAUSED IN WHOLE OR IN PART BY (I) CLIENT’S USE OF OR RELIANCE ON THE SITES, OR (II) Bank of America’s PERFORMANCE OF ITS OBLIGATIONS UNDER OR IN CONNECTION WITH THESE TERMS AND CONDITIONS. Bank of America DOES NOT REPRESENT, WARRANT OR GUARANTEE THAT THE SITES WILL BE FREE FROM ERRORS OR WILL BE AVAILABLE. FURTHERMORE, Bank of America WILL NOT BE LIABLE FOR ANY DELAY, DIFFICULTY IN USE, INACCURACY OF INFORMATION, COMPUTER VIRUSES, MALICIOUS CODE OR OTHER DEFECT IN THE SITES, OR FOR THE INCOMPATIBILITY BETWEEN THE SITES AND FILES AND THE USER’S BROWSER OR OTHER SITES ACCESSING PROGRAM. NOR WILL Bank of America BE LIABLE FOR ANY OTHER PROBLEMS EXPERIENCED BY THE USER DUE TO CAUSES BEYOND THE Bank of America’s CONTROL. IN NO EVENT WILL Bank of America, ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, CONTRACTORS OR OTHER SUPPLIERS BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY PUNITIVE, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR SIMILAR DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.

    Because some states or jurisdictions do not allow the exclusion or limitation of liability for certain damages, in such states or jurisdictions, the liability of the Bank of America, its officers, directors, employees, agents, contractors or other suppliers shall be limited in accordance with this agreement to the extent permitted by law.

    Neither Bank of America, its Affiliates nor any of their officers, directors, employees, agents, contractors or other suppliers shall be liable in any way, and you agree to indemnify and hold harmless Bank of America, its Affiliates and such persons for (1) any inaccuracy, error, or delay in, or omission of (a) any information on the Sites, or (b) the transmission or delivery of any information on the Sites; (2) any loss or damage arising from or occasioned by (a) any such inaccuracy, error, delay, or omission, (b) non-performance, (c) interruption of use of the Sites due either to any negligent act or omission by Bank of America, its Affiliates, their officers, directors, employees, agents, contractors or other suppliers or to any "force majeure" (i.e., flood, extraordinary weather conditions, earthquake, or other act of God, fire, war, insurrection, riot, labor dispute, accident, action of government, communications, power failure, or equipment or software malfunction) or any other cause beyond the control of the Bank of America, its Affiliates, their officers, directors, employees, agents, contractors or other suppliers. You understand that Bank of America accepts no responsibility for security of information on the Internet.

    UK CONDITIONS

    Banc of America Securities Limited has approved the Sites for the purpose of Section 57 of the Financial Services Act of 1986. Banc of America Securities Limited is regulated for the conduct of investment business in the United Kingdom by the Securities and Futures Authority Limited. No access to the Sites shall be given in the United Kingdom to Private Customers, as that term is defined under the rules of The Securities and Futures Authority Limited; and any investments will not be made by us to any Private Customer.

    CHANGES TO AGREEMENT

    Bank of America may make changes to this Agreement at any time, without prior notice to you. Your continued use of the Sites indicates your continued agreement to be bound by this Agreement, as changed from time to time. You should view these Terms and Conditions often to stay informed of changes that may affect you.

    GOVERNING LAW

    This Agreement shall be governed by and construed under the law of the State of New York and the Federal law of the United States. You hereby consent and submit to jurisdiction in the Federal or state courts of the State of New York, U.S.A. You hereby irrevocably waive your rights to a jury trial.

    THIRD-PARTY LICENSORS

    The Sites may, from time to time, provide Client with various licensed programs ("Licensed Programs") from third-party vendors ("Vendors") which have been licensed by Bank of America for Client use and/or which require Client to sign a third-party license agreement ("License Agreement"). In using the Licensed Programs, Client agrees that it will

    • protect any confidential information of Bank of America, its Affiliates or Vendors contained in the Licensed Programs;
    • restrict the use of the Licensed Programs by Client solely to conditions agreed upon in the Agreement and the License Agreement;
    • restrict the copying of Licensed Programs to that number reasonably required for Client use and backup purposes
    • include Bank of America and Vendor copyright and all other proprietary notices in the use of all Licensed Programs;
    • prohibit the sale, relicensing, leasing, rental, lending and transferring of Licensed Programs;
    • prohibit, and take reasonable measures to prevent, the decompiling, disassembly, reverse engineering or modification of Licensed Programs;
    • comply with all export laws in respect of Licensed programs;
    • disclaim any liability on the part of Vendors for damages, liabilities, costs or expenses incurred by Client in the use of License Programs; and
    • make all vendors a third-party beneficiary of all Client waivers, disclaimers, limitation of liabilities, confidentiality and IP provisions contained in the Agreement.

    MERRILL LYNCH, PIERCE, FENNER & SMITH – FURTHER INFORMATION

    "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 and Merrill Lynch Professional Clearing Corp., both of which are registered as broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed.

    © 2017 Bank of America Corporation

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