Mutual Funds

UBS Financial Services Inc. receives fees in the form of networking fees or omnibus service fees, which are in consideration of certain ancillary services it provides in effecting mutual fund transactions in your accounts. Networking and omnibus fees generally are paid by mutual funds from investor assets in mutual funds, but in some cases are subsidized, in part, by affiliates or the distributor of the mutual funds.

Legacy 12b-1 Fees:  Although UBS Financial Services only offers the single share class of domestic funds, you may have funds with sales load in your account that were purchased at UBS Financial Services prior to January 2020, or transferred from another firm (referred to as “Legacy Shares”. Some Legacy Shares may carry 12b-1 fees, which are marketing and operational expenses a mutual fund pays financial intermediaries to cover marketing and distribution costs. 12b-1 fees vary among mutual funds and are described in the fund prospectus. For Legacy Shares that carry a 12b-1 fee, UBS Financial Services receives this fee directly from the mutual fund at the rate and frequency described in the fund prospectus. The typical ranges of 12-b1 fees that you hold are as follows:

• A shares: generally, 0.15% to 0.50%, sometimes lower, never higher (most frequently 0.25%)
• B shares: generally, 0.85% to 1.00%, sometimes lower, never higher (most frequently 1.00%)
• C shares: generally, 0.50% to 1.00%, sometimes lower, never higher (most frequently 1.00%)
• Retirement shares: generally, 0.25% to 1.00%, sometimes lower, never higher (most frequently 0.50%).

UBS pays your financial advisor the 12b-1 fees it receives at the grid rate applicable to them. Effective July 1, 2025, UBS will pay your financial advisor 12b-1 fees only when the total amount of domestic and 529 12b-1 fees attributable to them exceed $100,000 for the year.

Networking fees are paid to UBS Financial Services by a mutual fund or its sponsor that does not have an omnibus arrangement with UBS Financial Services. The fees are paid for linking the mutual fund shares owned by clients of UBS Financial Services, and for facilitating trades in these shares, through a standardized system. The payments are calculated by applying a rate (up to $16 per year) for each UBS Financial Service client position in a mutual fund that exceeds $500. Some mutual funds choose to calculate this rate expressed in basis points on assets. Depending on asset levels, a basis points fee will result in a higher or lower fee than a per position fee. Networking fees are not paid on certain discretionary retirement accounts. Your financial advisor does not receive any portion of this compensation.

Omnibus fees are paid to UBS Financial Services by a mutual fund or its sponsor for providing recordkeeping and performing certain administrative duties for the mutual fund shares on an omnibus basis. The fees range from $15-$26 per position in each mutual fund and are assessed for each UBS Financial Services client and can vary by share class. Some fund companies may choose to calculate this rate expressed in basis points on assets, which can result in payments more than $26 per position. Some fund families may also consider the excess of what the mutual fund would otherwise have paid for omnibus recordkeeping services on a per position fee schedule as a form of revenue sharing. Exclusions apply to positions below an asset level mutually agreed upon by UBS and the fund company, certain discretionary advisory and retirement accounts, and certain funds and/or share classes. A portion of the payments we receive for omnibus processing is paid to a sub-account vendor. Your Financial Advisor does not receive any portion of this compensation.

Domestic mutual funds:  In addition to sales loads (where it is applicable), 12b-1 fees, networking, and omnibus and brokerage trade processing fees, UBS Financial Services. receives other compensation from certain distributors or investment advisors of mutual funds that is made available to you for investing. This separate compensation (commonly referred to as "revenue sharing") is based on the asset value of a mutual fund family's shares held by clients at UBS Financial Services (including wrap-fee programs).

• Revenue sharing payments are made directly from the mutual fund distributor or investment adviser. It does not come from the mutual fund itself or through mutual fund portfolio trading commissions. Except as noted below, none of these amounts are rebated to you or paid to your financial advisor or his or her branch office. However, these amounts are allocated to the individual branch offices as "non-compensable revenue" (revenue that is not paid out to Financial Advisors or Branch Office Managers) but are considered part of the overall profitability of the branch, and as one of several components used in determining Branch Office Manager compensation.
• Many mutual fund companies, including our affiliate, UBS Asset Management, pay revenue sharing to us. UBS Financial Services determines the level of access to our branches based on our own review and evaluation of mutual funds and fund families. There are multiple factors involved in determining a particular mutual fund’s level of access to our branches. Although revenue sharing is  one factor, others include understanding of business goals, quality of sales personnel and marketing material, range of products, level of service to Financial Advisors and Branch Managers, participation of funds in researched investment models, and branch discretion.
• In general, except for money market and offshore funds, mutual fund families compensate UBS Financial Services up to 0.15% per year of the asset value of all equity mutual fund shares held at UBS Financial Services Inc.; and up to 0.10% per year (paid quarterly) of the asset value of all fixed-income mutual fund shares held at UBS Financial Services.  (Certain mutual fund companies pay a flat fee annually which in some instances exceeds the rates listed above. Money market mutual funds pay revenue sharing of up to 0.11% for assets held in UBS accounts that are not retirement assets in discretionary advisory programs. Except as noted below, this calculation includes shares of affiliated and non-affiliated funds in our wrap-fee programs but does not include mutual fund assets held at other financial institutions and retirement) assets in certain advisory programs.

In addition, a small number of fund families pay us a fee based on the total sales of its funds in UBS client accounts. This fee ranges from 0.05% to 0.08% on the sales of all mutual funds in that fund family that occur in brokerage accounts.

Although we seek to apply a level, standard payment schedule for all of the mutual fund companies whose funds we sell, we recognize that mutual fund companies approach revenue sharing in a variety of ways, and that some mutual fund companies decline to pay revenue sharing exactly at the levels listed above or at all, which presents a financial disincentive for us to promote the sale of those funds that do not pay us at the levels listed above.

Revenue sharing payments present a conflict between our interests and those of our customers because the payments give us a financial incentive to recommend that our customers buy and hold shares of those funds that we maintain on our distribution platform and for which we receive revenue sharing payments. Although mutual funds from more than 400 different mutual fund families are available through our distribution platform, this is only part of the universe of mutual funds that are available to our customers in the marketplace. No portion of the revenue sharing fees are paid to financial advisors.

Offshore Funds:  UBS Financial Services make offshore mutual funds available to clients who are not residents in the United States and is paid by the distributors of those funds a fee that is calculated as a percentage of the management fee that each offshore fund charges. These fees range from 55% to 65% of the offshore fund’s management fee.

A portion of the fee UBS Financial Services receives is for the services it provides to an offshore fund is paid to the financial advisor based on the grid rate applicable to them. revenue sharing is individually negotiated with each offshore mutual fund company.

Interval Funds:  Interval funds will sometimes pay UBS Financial Services a finder’s fee for certain purchases of the mutual fund. This fee is generally determined based on the total dollar value of a client’s holdings with the fund company (other than transactions in qualified plans and some nonprofit/charity accounts) and is described in the fund’s prospectus or the fund’s Statement of Additional Information. Where UBS Financial Services receives these amounts, Financial Advisors will receive a portion of these fees based on the grid rate applicable to them. These are one-time payments made by the fund’s asset manager. Such fees generally are 1.50% of the purchase amount, sometimes lower but never higher. Redemptions within certain time frames may result in a CDSC fee to be charged to you by the fund company to offset the one-time payment previously made to UBS Financial Services.