Investing may involve market risk, including possible loss of principal. Past performance is not indicative of future results. The S&P 500 is an unmanaged, capitalization-weighted index. Performance figures assume reinvestment of capital gains or
dividends, but do not include any fees or expenses. It is not possible to invest directly in the S&P 500.
Fully Paid Lending Disclosures
Fully Paid Securities Lending may not be appropriate for all investors. Reclassification of dividend income from loaned securities may have implications on tax responsibilities, and voting proxy rights are forfeited. Clients should consider the potential
counterparty risk, reinvestment risk, market risk, liquidity risk, and operational risk, among other considerations. The examples provided are hypothetical and do not take into account any specific situations.
• Prior to enrolling, carefully read the Master Securities Lending Agreement and Important Disclosures documents included in the enrollment package. These documents fully detail the disclosures below as well as other important considerations.
• The value of the collateral held on your behalf in the segregated third-party account may constitute the only satisfaction of Janney’s obligation to you in the event Janney becomes insolvent.
• Janney will make a best-efforts attempt to avoid borrowing your shares over record date.
• Securities are often borrowed to facilitate short sales. The potential exists that the lending of securities could result in downward pressure on that security as a result of short selling.
• There is no guarantee that your shares will be borrowed, and no guarantee that you will receive the best loan fees for shares.
• Income earned from securities loans is taxed as Miscellaneous Income. In the event you earned income from the program, you will receive an annual 1099-MISC form for your tax records.
• Lending interest rates are variable and may change at any time based on market conditions.
• At this time, IRA and ERISA accounts are prohibited from participating in this program.
SECURITIES LOANED OUT BY LENDER MAY NOT BE PROTECTED BY SIPC.