Truist Investment Services, Inc. "TIS" Investing Guide

EQUITIESPrincipal Amount 0– 14,999.99 15,000– 24,999.99 25,000– 49,999.99 50,000– 249,999.99 250,000– 499,999.99 500,000– 999,999.99 1,000,000 and aboveCommission Charge 35 110 135 335 585 985 1685 2.0%1.5%1.4%1.0%0.90%0.82%0.75%of principalof principalof principalof principalof principalof principalof principalOPTIONSCommission(1.4702% x principal) 41.38Maximum charge: 25.00 per contractMinimum charge: 2.50 per contractOverriding minimum: 60.00Full-Service brokerage accounts are eligible to invest inlisted securities and any mutual fund on our Platformwhich TIS makes available to such accounts. Availabilityof investments will vary over time. TIS reserves theright, in its sole discretion, to determine at any timeand from time to time, and with or without advancenotice, which securities, mutual fund shares, mutualfund share classes and other investments it will makeavailable to its client’s Full-Service brokerage accounts.Mutual Funds and Mutual Fund Share Classes.Recommendations from TIS account representativesto clients enrolled in Full-Service brokerage accountsare limited to mutual fund share classes, annuities,unit investment trusts and similar investmentswhich compensate TIS and/or your representativefor distribution and/or shareholder services throughsales loads, 12b-1 and/or shareholder service fees asmore fully described in each investments’ Prospectusand Statement of Additional Information. Full-Servicebrokerage accounts will not be recommended to investin lower cost share classes of mutual funds whichTIS, in its sole discretion, shall make available on ourPlatform to Self-Directed brokerage or accounts whichhave contracted with our affiliate, TAS, for investmentadvisory services. Full-Service brokerage clientshave the ability to access other share classes on anunsolicited basis only.3. Self-Directed Brokerage RelationshipIn a Self-Directed brokerage relationship, TIS will act asyour agent to complete securities and other investmenttransactions at your direction and on your behalf.While TIS can, in its discretion provide you with generaleducational materials and investment research, ina Self-Directed brokerage relationship, TIS and itsaccount representatives will not make investmentrecommendations to you and you will not be assignedan account representative.Self-Directed brokerage accounts are eligible to investin listed securities and any mutual fund on our Platformwhich TIS makes available to such accounts. Availabilityof investments will vary over time. TIS reserves theright, in its sole discretion, to determine at any time andfrom time to time, and with or without advance notice,which securities, mutual fund shares, mutual fund shareclasses and other investments it will make available toits client’s Self-Directed brokerage accounts.Self-Directed brokerage accounts are not permitted toinvest in annuities or other insurance products.4. Investing in Mutual FundsHow can you be sure you’re choosing the mix of mutualfund investments that is right for you? You shouldconsider these decisions carefully based on your owninvestment objectives, risk tolerance and time horizonand relative to each strategy’s objectives, process,performance and expense structures which vary acrossfunds and fund families.This guide is designed to help you make informeddecisions about your investment planning. Readingit carefully, reading the prospectus and disclosuredocuments of any mutual funds you are considering,and talking with your TIS representative will helpyou fully evaluate your options. This guide includesexplanations about the costs associated with differentshare classes, compensation costs and discounts thatare available to you.About Mutual FundsA mutual fund is a diversified portfolio of investmentsprofessionally selected and managed under a statedinvestment objective. Funds can be invested in U.S. orinternational stocks, bonds, money market instrumentsor a blend of these investments. The investmentcompany owns the investments and sells shares of thefund to individual investors. Diversification does notensure against loss and does not assure a profit.Mutual Fund Fees and ExpensesLike most investments, there are certain chargesassociated with mutual funds. The prospectus spells outthe charges you pay, including sales charges and annualoperating expenses. These charges vary by share class.Sales ChargesSales charges are levied on either the front-end or theback-end of a mutual fund transaction that includesTIS and your TIS representative. Front-end charges arelevied when you purchase certain classes of shares.Back-end charges, or contingent deferred sales charges(CDSC), are levied when you sell certain classes ofshares. However, back-end charges decline overtime, so you pay less or nothing at all in sales charges

as you hold your shares for longer periods of time.When choosing a mutual fund, you will want to askabout sales charges and take the type of charge intoconsideration based on your investment goalsOperating ExpensesFund operating expenses include managementfees, SEC Rule 12b-1 fees , the costs of shareholdercommunications and other expenses. Operatingexpenses are deducted from the fund’s assets, reducinginvestment returns, although they are not chargedas an additional fee separate from the mutual fund’sinternal expenses. Operating expenses vary by fund,fund family, investment objective and share class suchthat higher operating costs correspondingly reducemutual fund investment returns. The fund’s prospectuswill provide you with a record of the fund’s expenseratio, so that you can compare the expense costs ofvarious funds.Classes of SharesThere are several different classes of mutual fundshares. Each share class has different fees andexpenses, which affect the fund’s results.As discussed previously in this guide, mutual fund shareclasses we recommend to TIS clients vary by brokeragerelationship (Self-Directed or Full Service).Class A Shares generally carry front-end sales charges.These are deducted from your initial investment. Thefront-end sales charge can range from 0.00% - 5.75%. AShares also typically charge annual 12b-1 fees of 0.25%. Breakpoint Discounts. Most Class A mutual fundsoffer breakpoint discounts for large investments,so that, the larger your investment in a fund,the lower the sales charge percentage appliedto the investment. Many mutual fund groupscount holdings in related accounts toward thisbreakpoint. This privilege is referred to as rights ofaccumulation.Letters of Intent. Some mutual funds will grantbreakpoint discounts at a lower investment level if aninvestor signs a Letter of Intent claiming an intentionto invest a specified amount in the fund over aspecified period of time. Each fund’s rules aboutrights of accumulation and letters of intent differ, sobe sure to ask your TIS representative about a fundfamily’s rules before investing so that you can takesteps to qualify for any available discounts.Class B Shares (not currently offered by TIS) donot generally carry front-end sales charges, but theiroperating expenses are typically higher than those of A3Shares. B Shares normally impose a contingent deferred(back-end) sales charge (CDSC). The CDSC is typicallyreduced each year and is usually eliminated if you holdyour shares for seven or eight years. (In most cases,Class B Shares convert to A shares at this point).Class C Shares do not generally carry front-end salescharges and generally impose a lower CDSC, often1 percent for one year. C Shares typically charge anannual 12b-1 fee of 0.50% to 1%. In most cases there isalso a contingent deferred sales charge.TIS has adopted a policy of, where available andpermitted by the applicable mutual fund company,C-Share mutual fund shares held in Full-Servicebrokerage accounts are converted by TIS to Class Ashares after being held for a period of six years (subjectto the terms of each mutual fund’s prospectus).Sales Charges, 12b-1 Fees and otherCompensation, Conflict of InterestSome funds carry higher sales charges or operatingexpenses (including 12b-1 fees and shareholderservice fees) than others. This creates an incentivefor TIS representatives to sell certain funds becausethe higher sales charge and/or operating expenselevel will result in a higher compensation amount tothe TIS representative. TIS mitigates this conflict ofinterest by disclosing it to its clients and by supervisingTIS representatives’ investment recommendations.However, TIS cannot eliminate this conflict of interestas it is inherent in the business model of a typicalsecurities broker to be compensated in connection withits brokerage services.Feel free to ask your TIS representative how he or shewill be compensated for any mutual fund transaction.Other Mutual Fund Share ClassesIn addition, there are many other share classes of fundsincluding, but not limited to no load funds, institutionalclass shares, or retirement class shares we makeavailable to our clients through our clearing firm, NFS.Some mutual funds’ discounts, fee waivers or differentshare classes are not available at TIS and are availableonly if you purchase the mutual fund directly fromthe mutual fund company or its distributor, or throughfinancial intermediaries other than TIS.TIS does not recommend share classes of mutual fundsto its clients other than as set forth above.Institutional class shares, which do not charge (orwaive) sales loads and 12b-1 fees are offered by TISonly to clients who also have separately contracted toengage in an ongoing investment advisory relationshipThe fund company takes 12b-1 fees out of the fund's assets each year for marketing and distribution expenses, which includes compensation to TIS and itsaccount representatives, as set forth in each mutual fund’s prospectus.

with TAS, our affiliated registered investment advisor,or to certain customers whose investments separatelysatisfy applicable minimum investment amounts setforth in the mutual fund’s prospectus.For more information about share class expenses, seeFINRA ‘s Mutual Fund Expense Analyzer at www.finra.org/fundanalyzer which can assist you in determiningwhich share class is appropriate for you.TIS and your TIS Representative’s CompensationTIS and your TIS representative are compensated fortheir services in various ways, depending on the type offund, the amount invested and the share class.Full-Service Brokerage Accounts Mutual Fund Share class available for purchasein connection with an TIS Full-Service brokeragerelationship are limited to Class A shares, ClassC Shares and other similar share classes whichcompensate TIS and your TIS representative(“Eligible Share Classes”). Eligible Share Classesgenerally have higher operating expenses thanother available share classes and will charge salesloads and 12b-1 and/or shareholder service or otherfees which are used to compensate TIS and your TISrepresentative.Rule 12b-1 fees and shareholder services feescharged to the operating expenses of each mutualfund and are indirectly paid by you through themutual fund’s internal expense ratio. Thesecharges increase the mutual funds expenses andcorrespondingly reduce your investment returnsassociated with such investments. In addition, TIS receives payments for shareholderservices, omnibus recordkeeping services and otherservices provided to some, but not all, mutual fundfamilies Your TIS representative receives a portion of thecompensation received by TIS. Your TIS representative’s compensation is generallybased on a compensation formula applied to thefront-end sales charge described in the fund’sprospectus for A Shares, or to the selling fee orsales concession for C Shares. The fund familyadministers these fees/payments. Ongoing payments on mutual fund shares (known asresiduals or trails) that are set by the fund familyare also paid to TIS representatives.Conflicts of InterestThe compensation TIS and its representatives receive inconnection with the Full-Service brokerage account’sinvestments in certain mutual funds and mutual fundshare classes described above creates aconflict of interest and incentive for TIS to not offercertain mutual funds and share classes to its FullService brokerage clients which do not offer similarcompensation to TIS. TIS mitigates this conflict ofinterest by disclosing it to its clients but TIS cannoteliminate this conflict of interest as it is inherent inthe business model of a typical securities broker tobe compensated in connection with its mutual funddistribution and brokerage services. Except withrespect to purchases of share classes which do notcompensate NFS and/or TIS for distribution expenses,TIS does not charge a transaction fee or commission inconnection with mutual fund investments.Self-Directed Brokerage Accounts TIS receives a portion of the ongoing fees you payto each fund family. Such fees can include Rule12b-1 fees and shareholder services fees chargedto the operating expenses of each mutual fund andindirectly paid by you through the mutual fund’sinternal expense ratio. These charges increase themutual funds expenses and correspondingly reduceyour investment returns associated with suchinvestments. In addition, TIS receives payments for shareholderservices, omnibus recordkeeping services and otherservices provided to some, but not all, mutual fundfamilies TIS will charge a transaction fee ranging from 0to 50 for the purchase of no-load funds in SelfDirected brokerage accounts.Conflict of InterestThe compensation TIS receives in connection with theSelf-Directed account’s investments in certain mutualfunds and mutual fund share classes described abovecreates a conflict of interest and incentive for TIS tonot offer mutual funds and share classes to its clientswhich do not offer similar compensation to TIS. TISmitigates this conflict of interest by disclosing it to itsclients but TIS cannot eliminate this conflict of interestas it is inherent in the business model of a typicalsecurities broker to be compensated in connection withits mutual fund distribution services.TAS Managed Investment Advisory AccountsIn the case of Investment Advisory accounts managedby TAS, where available to TAS clients on the TISPlatform, accounts held in TIS Brokerage Accounts areinvested in institutional class mutual fund shares whichdo not pay TIS sales loads or ongoing 12b 1 fees. Inthe event non-12b-1 share classes of applicable mutualfunds are not available, TIS credits affected customeraccounts with any 12b-1 fees received in connectionwith TAS investment advisory accounts.

Exchange of Institutional Class and other LowerCost Mutual Fund Share Class Shares for Class A,Class C or Similar Share Classes upon Change in YourRelationship with TIS or TAS.agreement with us to favor the product and services ofthe participating partner firms. A list of partner firmsand monies received can be found on our website atwww.truist.com/wealth/tis-disclosure.TIS Self Directed brokerage accounts and TASInvestment Advisory Programs provide you with accessto mutual fund share classes that are not available forpurchase in an TIS Full-Service Brokerage relationship(“Ineligible Share Classes”).Our receipt of this additional monies creates a conflictof interest that TIS or an TIS representative would favora participating partner firm over one that does notparticipate. In order to minimize/alleviate this conflictof interest, we disclose this conflict of interest to youand supervise the recommendations of your TIS accountrepresentative. Your TIS account representative doesnot share in any additional compensation TIS receivesin connection with education and training activities butcan participate at such educational events.In the event (i) your investment advisory agreementwith our affiliate, TAS, governing your asset-basedinvestment advisory fee program account with TAS isterminated and you transition your holdings to a TISFull Service Brokerage Account or (ii) you change yourbrokerage relationship with TIS from Self-Directedbrokerage to Full Service brokerage, as specified inyour brokerage account agreement, TIS has the right, inits sole discretion, and without prior notice to you, toexchange your Brokerage Account’s mutual fund shareswhich are held in Ineligible Share Classes for EligibleShare Classes (generally Class A or Class C shares)shares of the same mutual fund, if available.Eligible Share Classes have different and generallyhigher expenses than Ineligible Share Classes (including12b-1 and/or service fees). While any such exchange willnot be a taxable event and will not be subject to salesloads or commissions, all future purchase transactionsin the applicable mutual fund will be subject to salesloads and other fees and commissions as detailed inthe mutual fund’s prospectus. Not all exchanged fundswill be available for subsequent purchases in a TISFull-Service Brokerage Account. Please note that thisexchange provision will not apply to Ineligible ShareClasses of mutual funds that are purchased in TASinvestment advisory program retirement plan accountseven if the TAS fee-based investment advisory programagreement is terminated.Other Compensation to TIS from MutualFund FamiliesCertain mutual fund companies pay TIS or NFS anadministration and record-keeping charge for each fundin your account.A written statement of each mutual fund’s policies canbe found in its Prospectus or Statement of AdditionalInformation (SAI), which is available from the fundfamily. If you have any questions about these practices,please ask your TIS representative.TIS regularly receives voluntary monies from severaldifferent partner firms that are used for the generaleducation and training of TIS representatives. Theparticipation by partner firms in these educationalsettings is voluntary and does not constitute anFor More InformationTo learn more about mutual funds, ask your TISrepresentative or visit the following web sites:Investment Company Instituteici.orgFinancial Industry RegulatoryAuthorityfinra.orgSecurities and Exchange Commissionsec.govSecurities Industry and FinancialMarkets Associationsifma.orgTruisttruist.com5. Investing in AnnuitiesThis section is designed to help you make informeddecisions your decision as to whether an annuity isthe right investment for you. You should read thisinformation carefully and in conjunction with the policydocuments, disclosure materials, and/or prospectus ofany annuity you are considering. You should also talkwith your TIS representative, who can help you fullyevaluate your options.Whenever you choose an investment, - including anannuity - you should carefully consider your investmentobjectives, risk tolerance, and time horizon andevaluate that investment in light of its attributes,performance, fees, and expense structure. Investingin an annuity within a tax-deferred account, such asan Individual Retirement Account (IRA) will provideno additional tax savings. This guide will help youby discussing the fees, expenses and tax implicationsassociated with annuities, as well as the compensationpaid to TIS.This guide seeks to be broadly informative, but itcannot address completely the features and benefitsof any particular annuity contract. Thus, with respectto any specific annuity you choose to consider,please remember that the policy contract, disclosurematerials, and/or prospectus of the annuity itselfare always the governing documents. It is important

that you read these documents carefully before youinvest. Please contact your TIS representative withany questions you may have about annuities or otherinvestments.About AnnuitiesAn annuity is a contract issued by a life insurancecompany that provides one or more investment choicesand allows your money to grow tax deferred until itis withdrawn. In return for the premiums you pay,the issuing insurance company pledges to return yourfunds in the future-including earnings if occurred - orto make a series of guaranteed periodic payments(called annuitization) to you or anyone else youspecify. Annuities can be purchased by making a singlepayment or by making a series of payments over time.Guarantees, including interest rates and subsequentincome payouts are backed by the claims-paying abilityof the issuing company.Annuity contracts are generally designed for long-termretirement savings and should not be considered ashort-term investment option. Before investing in anannuity, it is usually advisable to take full advantage ofinvesting in other pre-tax options such as IRAs and any401(k) and/ or 403(b) plans that are available to you. Inaddition, we encourage you to carefully consider otherinvestment options, before you decide on an annuity.You can access the money you invest in an annuity by(a) surrendering your contract, (b)

Your Brokerage Relationship with TIS 1. Available Investment Options 2. Full-Service Brokerage Relationships 3. Self-Directed Brokerage Relationships 4. Investing in Mutual Funds 5. Investing in Annuities 6. Investing in 529 Plans 7. Investing in Unit Investment Trusts 8. Cash Sweep Services B. Other Products and Conflicts of Interest