2. THE DIGITAL ECONOMY: THRIVING IN A DISRUPTIVE ENVIRONMENT PALM BEACH STRATEGIC FORUM April 7, 2014 Ashvin Chhabra Chief Investment Officer Merrill Lynch Wealth Management Bank of America

3. 2 Merrill Lynch makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”) and other subsidiaries of Bank of America Corporation (“BAC”). Investment products: MLPF&S is a registered broker-dealer, a registered investment adviser, member SIPC and a wholly owned subsidiary of BAC. ARRAXXYQ Are Not FDIC InsuredAre Not Bank GuaranteedMay Lose Value

4. 3 AGRICULTUREINDUSTRIALDIGITAL 500 Years of Financial Markets 1500 1700 2000

5. 4 World GDP over the Last 500 years Percentage of World GDP (Last 500 years) Source: Angus Maddison, University of Groningen

6. 5 The Digital Revolution

7. 66

8. 7 "Personal" Risk Reduce downside risk Willing to accept below-market returns in return for less volatility Protect basic standard of living Preserve Lifestyle, Liquidity & Safety "Aspirational" Risk Take measured, but significant risk to potentially enhance return Enhance lifestyle "Market" Risk Balance risk and return through traditional asset allocation from a broadly diversified portfolio Maintain lifestyle Stocks Bonds AI Considers three dimensions of risk to help achieve life goals: Low Risk/Return Spectrum High Wealth Allocation Framework