MUTUAL FUND SHARE CLASS ANALYSIS GUIDE

1 As the industry and your clients needs continue to change, it may be appropriate to execute a non-taxable conversion to a no-load or advisory SHARE CLASS . This technical GUIDE offers step-by-step instructions including gathering details about your clients holdings, analyzing available products to ensure you are selecting the appropriate SHARE CLASS , and finally executing the conversion through the MUTUAL fund Trade Desk. Each procedure in the Process Overview is outlined in detail below. PROCESS OVERVIEW:A. Retrieve a list of all MUTUAL funds held in your advisory accounts. B. Retrieve a list of all MUTUAL funds in your AMP and UMA Use the Product Lookup Tool on the Advisor Portal (or utilize another desired method) to determine if a lower-cost SHARE CLASS is available. i. If a lower cost SHARE CLASS is available, contact the fund directly to confirm that the cheaper shares are convertible, are not closed to new investors or restricted in some other way, and that they are available for the client s account type ( R shares are typically restricted to retirement accounts only).

2 The MUTUAL fund Trading Desk may be able to assist with this information as well. Once you have confirmed availability continue to the next For UMA accounts, submit a Trade Hold service request in the WMP. Once the hold has been processed, continue to the next Edit your AMP or UMA Submit a non-taxable conversion request to the MUTUAL fund Trade Desk to convert the shares held in the clients For UMA accounts, once the conversion has been completed, lift the Trade Hold by submitting a service request in the : The following are detailed instructions for completing each of the above stepsA.) Identifying which MUTUAL funds are held in your client accounts1. Access the Wealth Management Platform2. Click Holdings ANALYSIS from the Book of Business Reports on the left3. This will retrieve a list of all holdings held across all of your WMP accounts 4. Click the funnel icon in the top left to display search filters5. In the Program filter, select Advisor Managed Portfolios or Unified Managed Accounts 6.

3 In the Security Type filter, select MUTUAL Funds7. Click Apply8. This will retrieve a list of all MUTUAL fund products held across all of your AMP or UMA accounts. You can export this list to an Excel spreadsheet by clicking the CSV icon. B.) Identifying which MUTUAL funds are in your models1. Access the Wealth Management Platform2. Click the Manage tab and select Models from the navigation panel on the left3. Click the magnifying glass icon to retrieve your full model list4. Click the triangle icon along the top of the table (fourth icon from left) to display the Grouping Manager menu5. Click the plus sign next to Security. The menu will now show Model followed by Click on Security to highlight the row7. Click the up arrow. The menu will now show Security followed by Model8. Click the checkmark icon in the top right to apply the changes9. The table will now display all products across all models. The Positions column displays the amount of models using that product. Clicking the arrow to the left of a product will expand the row to display the models held by that product.

4 You can export the list to an Excel spreadsheet by clicking the CSV icon. MUTUAL fund SHARE CLASS ANALYSIS GUIDES eptember 2016 For Financial Advisor Use OnlyC.) Comparing costs between MUTUAL fund SHARE classes for advisory accounts1. Access the Advisor Portal2. Click the Products tab and scroll down to the Product Lookup section 3. Click the Type menu and select Fee-Based Eligible4. Use the various other filters as desired to search for a product (sponsor name, product name, etc.) and click Search5. The search results will display. You can export the results to an Excel spreadsheet by clicking the Export to Excel option. Note that the spreadsheet export includes several additional columns of Find the desired product in the search results7. Compare the Net Expense Ratio of the various SHARE classes. The one with the lowest Net Expense Ratio will be the most cost-effective. 8. Note the Minimum Initial Investment column. If the amount shown is higher than the client will be investing, check if there s a Y in the Minimum Initial Investment Waived column.

5 If yes, the minimum is waived for fee-based accounts. If no, the minimum applies and you need to select the next cheapest option until you arrive at the one with a minimum that the client can Once you have identified the lowest cost SHARE CLASS (with a minimum that is waived or that is low enough for the client to meet), check the fund s prospectus to ensure that the fund is available for the client s account. If it is not available due to a restriction or is being closed to new investors, etc., you should check the next cheapest ) Submitting a Trade Hold request for a UMA account1. If you identify instances where a UMA account holds a MUTUAL fund and a lower cost SHARE CLASS is available, you will need to submit a Trade Hold request for the account before continuing to convert the shares or editing your UMA model (as described below).2. Access the Wealth Management Platform3. Click the Clients tab4. You can either click on the client in the navigation panel on the left, or click the magnifying glass in the navigation panel instead.

6 The magnifying glass will bring you to the full clients list where you can select the Click the client s Service tab6. Click the plus sign to the right of the UMA account7. Select Trade Hold from the menu8. Click the Reason Code menu and select a reason for the trade hold9. Enter a Follow Up Date10. Enter any additional Comments into the text field11. Read the disclaimer and click the Accept checkbox12. Click Save + Next13. Click Edit14. Mark the Enable Trade Hold checkmark15. Click Save + Next16. Review your work and click Submit RequestE.) Editing your models1. Access the Wealth Management Platform2. Click the Manage tab3. Click Models on the navigation panel on the left4. Click the magnifying glass icon to retrieve your full model list5. Click on the model to be edited 6. Click the Positions tab7. Click the Edit button8. Delete the ticker for the highest-cost MUTUAL fund and replace with the new tickerF.) Submit a conversion request1. Access the Advisor Portal2. Click the Products tab3.

7 Scroll down to the Most Requested section of the screen (under the Product Lookup)4. Click the Voluntary Non-Taxable SHARE CLASS Conversion Requests link5. All instructions on submitting a conversion request are housed here, including a spreadsheet template that you will utilize to submit the request. Note that conversions are NOT trades and cannot be processed directly on the WMP, in NetX360, or in Streetscape. They must be processed via the conversion template spreadsheet and submitted directly to the MUTUAL fund Trade Group | 200 Liberty Street, 15th Floor | New York, NY 10281 Securities and investment advisory services are offered through Advisor Group subsidiaries FSC Securities Corporation, Royal Alliance Associates, Inc., SagePoint Financial, Inc., and Woodbury Financial Services, Inc., Broker-Dealers, Registered Investment Advisors and members of FINRA and SIPC. Client Segmentation Modeling is not intended to remove your fiduciary responsibility nor, in times of market volatility or client necessity, preclude material is provided solely for informational purposes for Advisor Group affiliated advisors and is not intended for public/client use.

8 Unauthorized reproduction, duplication, or distribution of this material is prohibited. G.) Lifting a Trade Hold request on a UMA account1. As described previously, UMA accounts must be on a trade hold before you submit conversion requests or edit your UMA models. Once the shares are converted and the model is edited, you can then lift the trade hold as described in this Access the Wealth Management Platform3. Click the Clients tab4. You can either click on the client in the navigation panel on the left, or click the magnifying glass in the navigation panel instead. The magnifying glass will bring you to the full clients list where you can select the Click the client s Service tab6. Click the plus sign to the right of the UMA account7. Select Trade Hold from the menu8. Click the Reason Code menu and select a reason for the trade hold9. Enter a Follow Up Date10. Enter any additional Comments into the text field11. Read the disclaimer and click the Accept checkbox12. Click Save + Next13.

9 Click Edit14. Mark the Disable Trade Hold checkmark15. Click Save + Next16. Review your work and click Submit RequestIf you have any questions regarding SHARE CLASS conversions, please contact the MUTUAL fund Trade Desk at 800-372-8169.