Managed Account Advisors LLC, a Merrill Lynch affiliate, manages the Closed Merrill Lynch Multi-Firm Consults Diversified Portfolio (CDP) III accounts on a discretionary basis using model portfolios developed by the sub-advisors as a guide. A portion of the fixed-income portfolio is managed by PIMCO directly in the form of commingled vehicles, which are available only through managed accounts utilizing the Total Return strategy. Accounts opened prior to 4/1/10 were previously managed on a discretionary basis by Allianz Global Investors Managed Accounts using model portfolios developed by the sub-advisors as a guide.

The allocation of the underlying securities is dynamic. No representation is being made that rebalancing will be timely or have a positive impact on the Portfolio. Hypothetical testing used to help construct this allocation did not take into consideration market conditions, trading costs associated with rebalancing and certain other factors. Smart Administration should not be a substitute for financial advice with respect to changes in an investor''s personal financial situation. A position of less than $250,000 in the Total Return portion of the portfolio may result in greater performance dispersion than a larger position in the strategy.

The Total Return portion of the portfolio consists of individual securities and a select combination of proprietary, commingled vehicles managed by Allianz Global Investors'' affiliated investment manager Pacific Investment Management Company (PIMCO). These vehicles are available only through managed accounts utilizing the Total Return strategy and are available by prospectus only. No fees are charged to clients at the commingled vehicles level. For more information about this product contact your financial advisor.

Investment Risk: Investing in securities entails risk. When investing in value securities, the market may not necessarily have the same value assessment as the manager, and, therefore, the performance of the securities may decline. Investments in smaller companies may be more volatile than investments in larger companies. Investing in non-U.S. securities entails additional risks, including political and economic risk and the risk of currency fluctuations; these risks may be enhanced in emerging markets. The use of derivative instruments may involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk and the risk that a portfolio could not close out a position when it would be most advantageous to do so. Portfolios investing in derivatives could lose more than the principal amount invested in these instruments. Lower rated bonds generally involve a greater risk to principal than higher rated bonds. The guarantee on Treasuries, TIPS and Government Bonds is to the timely repayment of principal and interest. Portfolios that invest in them are not guaranteed. The value of some mortgage-related or asset-backed securities may be particularly sensitive to interest rate changes, and there is no assurance that private insurers of the underlying mortgages or assets will meet their obligations. With Corporate bonds there is no assurance that issuers will meet their obligations.