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Variable Annuities

You choose how your premiums are invested.

A variable annuity is an insurance contract that allows you to take advantage of any potential market appreciation on a tax-deferred basis.* Investments options generally range from conservative to aggressive, and are managed by professional, experienced money managers. Although variable annuities offer investment features similar in many respects to mutual funds, generally called subaccounts, a typical variable annuity offers: (1) tax-deferred treatment of earnings; (2) a death benefit; and (3) annuity pay out options that can provide guaranteed income for life. The value of the underlying subaccounts that are not guaranteed and will fluctuate in response to market changes and other factors.

There are other important annuity benefits and features, including charges and expenses. For more information contact a Financial Specialist.

To learn more about the benefits and features of annuities or for a prospectus, contact a U.S. Bancorp Investments financial professional at your local U.S. Bank branch.

U.S. Bancorp Investments ("USBI") routinely receives compensation for the sale of financial products, including mutual funds, variable annuities, and fixed annuities. The compensation provided to USBI depends upon the product and may include a sales charge or commission.

Financial Product Compensation
The most well known type of compensation is transaction based compensation called a sales charge or commission that is paid by you. This sales charge may be paid at the time of purchase and is called a front-end sales charge. In other instances the product sponsor pays the sales charge or commission to USBI and your investment professional at the time of your purchase, but does not collect the charge from you unless you sell your investment within a specified number of years after your purchase. This type of charge is called a contingent deferred sales charge (CDSC) or surrender charge. The product sponsor may also collect higher annual operating expenses from the net assets of your investment and pay a portion to USBI. USBI may continue to receive compensation in the form of a trailer after your original transaction, which may be received periodically during the time frame in which you hold your investment.

USBI, in turn, pays a portion of the compensation it receives to your investment professional. The product sponsor typically discusses this compensation in the prospectus or contract, which is delivered around the time of your investment.

Financial Contributions from Product Partners to USBI

Many financial products are made available in the marketplace. To assist our clients in choosing the product that is right for them, USBI utilizes a formal due diligence process to evaluate firms who offer a broad array of financial products, selecting only those matching our required criteria and who strive to deliver the highest customer service and satisfaction. Following this due diligence process, our investment professionals make recommendations only from among this wide-range of approved products based upon the specific investment objectives of their clients.

USBI has entered into agreements through which certain firms (our approved "Product Partners") provide financial contributions to USBI which are used to support the marketing of their products, training of our investment professionals about their products, and for other purposes. These financial contributions may include revenue-sharing arrangements from the Product Partner that may provide: (1) an annual, lump-sum payment; (2) a payment of up to .0025 based upon the total amount of your purchase; (3) a payment of up to .001 per year based upon the daily average balance of funds held in your account.

Product Partners may also reimburse USBI for expenses incurred during training and educational conferences and seminars, and for providing client accounting and administrative services for USBI's client accounts holding the products of the Product Partner. In addition, investment professionals may receive promotional items, meals or entertainment or other "non-cash" compensation from the Product Partners.

All of the above-referenced financial contributions are in addition to any sales charges disclosed in the fee tables found in the prospectuses and statements of additional information for the mutual fund or in your annuity or insurance contract.

In exchange for sharing revenue, these approved Product Partners are provided enhanced access to USBI's distribution network and greater opportunities to participate in marketing and training functions. Investment professionals do not, however, receive any portion of, or any additional compensation as a result of these revenue and cost sharing arrangements. It is important to note that not all product sponsors approved by USBI make financial contributions to USBI.

Potential Conflicts of Interest from Financial Contributions

A potential conflict of interest exists where USBI and your investment professional is paid more in financial contributions if you purchase one type of product instead of another. A potential conflict of interest may also exist if one Product Partner provides more in financial contributions over another. USBI is committed to serving our client's interests first, so we have adopted policies reasonably designed to control and limit these potential conflicts of interest. These policies require investment professionals to recommend products and services based only on their appropriateness in meeting your investment goals. They prohibit the payment of any portion of revenue or cost sharing fees directly to investment professionals. In addition, revenue-sharing payments must be made by the distributor or the product sponsor by wire transfer or check, and are prohibited from being accepted in the form of direct or indirect investment portfolio trading commissions of the product sponsor.

Important Information about Revenue Sharing Arrangements

U.S. Bancorp Investments ("USBI") routinely receives compensation for the sale of financial products, including mutual funds, unit investment trusts (UITs), variable and fixed annuities, and variable and fixed life insurance. The compensation provided to USBI depends upon the product. In addition to sales loads, 12b-1 fees, networking and processing fees, USBI receives mutual fund support fees, which are sometimes referred to as "revenue sharing" payments, from the advisers or distributors of mutual funds that have access to USBI's investment professionals, as described below. Similarly, in addition to the commissions paid to USBI in connection with the sales of annuities and life insurance, USBI receives support fees from certain insurance companies or distributors. Again, these insurance companies and distributors (if applicable) have access to USBI's investment professionals, as described below.

Financial Revenue Sharing from Product Partners to USBI

Many financial products are made available in the marketplace. To assist our clients in choosing the product that is right for them, USBI utilizes a formal due diligence process to evaluate firms who offer a broad array of financial products, selecting only those matching our required criteria. Following this due diligence process, our investment professionals make recommendations from among this wide range of approved products based upon the specific investment objectives, risk tolerances, and time horizons of their clients and subject to broker-dealer suitability requirements.

USBI has entered into agreements through which certain firms (our "Product Partners") provide financial contributions to USBI which are used to support the marketing of their products, training of our investment professionals, and for other purposes. Product Partners may also reimburse USBI for expenses incurred during training and educational conferences and seminars, and for providing client accounting and administrative services for USBI's client accounts holding the products of the Product Partner. In addition, USBI employees, including investment professionals, may receive promotional items, meals or entertainment, or other non-cash compensation from the Product Partners.

In exchange for sharing revenue, these Product Partners are provided enhanced access to USBI's distribution network and greater opportunities to participate in marketing and training functions. Investment professionals do not, however, receive any portion of, or any additional cash compensation as a result of these revenue and cost sharing arrangements. It is important to note that not all product providers approved by USBI make financial contributions to USBI.

All of the above-referenced financial contributions are in addition to any sales charges or commissions that may be disclosed in the fee tables found in the prospectuses and statements of additional information for the mutual fund or in your annuity or insurance contract.

Mutual Funds - Revenue Sharing Payments

Financial contributions from USBI Mutual Fund Product Partners may include revenue-sharing arrangements. The revenue sharing payments made to USBI by a Mutual Fund Product Partner may consist of: (1) an annual, lump-sum payment; (2) a percentage of the total amount of mutual fund sales made by USBI for that fund family ("mutual fund sales-based fee"); and/or (3) a percentage of the total net assets of the mutual fund shares of that fund family held by USBI customers ("mutual fund asset-based fee").

The amount and type of revenue sharing payments received from a Mutual Fund Product Partner may vary and is subject to negotiation. Revenue sharing payments are generally in the following amounts:

Mutual Fund Sales-Based Fee Up to 0.25% (paid quarterly) on sales of mutual fund shares (e.g., $25 per $10,000 purchase).
Mutual Fund Asset-Based Fee Up to 0.05% per year (calculated and paid quarterly) of the net assets of all mutual fund shares of a particular Product Partner held through USBI (e.g., $5 per $10,000 in net assets of shares).

Insurance/Annuities - Revenue Sharing Payments

Financial contributions from USBI Insurance or Annuity Product Partners may include revenue-sharing arrangements. The revenue sharing payments made to USBI by an Insurance or Annuity Product Partner may consist of: (1) an annual, lump-sum payment; (2) a percentage of the total amount of gross insurance or annuity sales made by USBI for the insurance company ("annuity sales-based fee") and/or (3) a percentage of the aggregate value of insurance or annuity assets invested in contracts for which USBI is designated as the broker or agent of record by the insurance company or annuity provider ("annuity asset-based fee").

The amount and type of revenue sharing payments received from an Insurance or Annuity Product Partner may vary and is subject to negotiation. Revenue sharing payments are generally in the following amounts:
Insurance or Annuity Sales-Based Fee Up to 0.21% (paid quarterly) on sales of insurance or annuities (e.g., $21 per $10,000 purchase).
Insurance or Annuity Asset-Based Fee Up to 0.05% per year (calculated and paid quarterly) of the net assets of all insurance or annuity assets of a particular Product Partner where USBI is the broker or agent of record (e.g., $5 per $10,000 in net assets of shares).

Potential Conflicts of Interest from Financial Revenue Sharing

A potential conflict of interest exists where USBI is paid more in revenue sharing if you purchase one type of product instead of another. A potential conflict of interest may also exist if one Product Partner provides more in financial contributions over another. USBI may offer products that USBI or its affiliates may underwrite, or may otherwise be financially interested in a primary or secondary distribution. USBI may also offer products which involve entities with a relationship with USBI and/or its affiliates. USBI may receive compensation or other benefits for selling such products.

USBI is committed to serving our clients' interests first, so we have adopted policies reasonably designed to control and limit these potential conflicts of interest. The policies require investment professionals to recommend products and services based only on their appropriateness in meeting your investment goals. The policies prohibit the payment of any portion of revenue or cost sharing fees directly to investment professionals. In addition, revenue-sharing payments must be made by the distributor or the product provider by wire transfer or check, and policies prohibit the acceptance of these payments in the form of direct or indirect investment portfolio commissions of the product sponsor.

Product Partners

A list of all Product Partners that have made financial contributions to USBI, ranked in order of financial contributions for the prior 12 months as of February 28, 2014, is included below:

Pacific Life
Ohio National
Western National Life
Franklin-Templeton
First Trust Portfolios
Dividend Capital
Forethought
Transamerica
Russell Investments
Jackson National Life
Lord Abbett & Co
Symetra
Principal Financial
Nuveen Investments
Nationwide
SunAmerica
AXA Equitable Life Insurance
OneAmerica
Lincoln Financial
Prudential
PIMCO
Putnam
New York Life
Invesco
Hines Securities
Wells Real Estate
Great-West Life & Annuity
American Funds
John Hancock
Lincoln Benefit Life
Hartford
Cole Capital
Eaton Vance
Allianz
Federated
Blackrock
Delaware Funds
Western-Southern
Metlife
Great American
Allianz Global Investors
Liberty Life Insurance
MFS
Capitas Financial
Mass Mutual
Mercury Financial Group
First American Funds
Aquila
ADP Retirement Services
Wilshire Associates
Fidelity Investments
J.P. Morgan
DWS Scudder/Deutsche Bank


For more complete information about mutual fund or variable annuity products or to obtain a prospectus, please ask your USBI investment professional. Investors should consider the investment objectives, risks, and charges and expenses carefully before investing. This and other important information is contained in the prospectuses. You should read and consider the information in the prospectuses carefully before investing.

U.S. Bancorp Asset Management, Inc., formerly known as FAF Advisors, Inc., an affiliate of USBI serves as an advisor to First American Funds. First American Funds are distributed by Quasar Distributors, LLC, an affiliate of USBI.

Variable, Mutual Funds, Fixed Annuities

  • Are not insured by the FDIC or any other federal government agency
  • Are not deposits or other obligations of, and are not underwritten or guaranteed by, U.S. Bank or any of its affiliate
  • May involve investment risk including the possible loss of principal


Securities and Exchange Commission Rule 11Ac1-6

U.S. Bancorp Investments, Inc. has prepared the linked report pursuant to U.S. Securities and Exchange Commission rule 11Ac1-6 requiring quarterly reports of order routing practices. The report provides information on the routing of any order that the customer has not specifically instructed to be routed to a particular venue for execution. For these non-directed orders, U.S. Bancorp Investments, Inc. has selected the execution venue on behalf of its customers. View the U.S. Bancorp Investments, Inc. 11Ac1-6 report.

Investment products and services are available through U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.

Insurance products are available through U.S. Bancorp Insurance Services, LLC, in Montana U.S. Bancorp Insurance Services of Montana, Inc., and in Wyoming U.S. Bancorp Insurance & Investments, Inc. All are licensed insurance agencies and subsidiaries of U.S. Bancorp and affiliates of U.S. Bank. Policies are underwritten by unaffiliated insurance companies and may not be available in all states. CA Insurance License Number OE24641.
NOT A DEPOSIT NOT FDIC INSURED
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
MAY LOSE VALUE NOT GUARANTEED BY THE BANK
U.S. Bank is not responsible for and does not guarantee the products and services, or the performance of the products or services, offered by its affiliates or by third parties.

* U.S. Bancorp Investments, Inc. and U.S. Bancorp Insurance Services, LLC is not a tax advisor. When it is appropriate, you are encouraged to seek professional tax advice.

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