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I-23","page_number":2,"box":{"x":358,"y":207,"width":551,"height":9}},{"id":"321ef074-725b-4e1d-aea3-41ffe87b682d","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":2,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"991074dd-7838-4b8e-bf15-7b60b51bdaf7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-25","page_number":2,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"c26df5cb-34fe-4fbc-8bf4-277af8341384","block_type":"box","text":"Financial Statements","page_number":2,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"d047cacc-2679-44d3-b47a-60e082e8f350","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Certain of the restrictions are fundamental policies of the Fund and may not be","page_number":7,"box":{"x":70,"y":877,"width":796,"height":12}},{"id":"25bf5f21-953e-43f2-ba30-1e1c5efedeae","block_type":"box","text":"changed without the approval of the holders of a majority of the Fund’s outstanding voting securities (which for this","page_number":7,"box":{"x":69,"y":892,"width":819,"height":12}},{"id":"7326f257-8ab6-4ab0-809d-5979867e5eed","block_type":"box","text":"purpose and under the Investment Company Act, means the lesser of (i) 67% of the shares represented at a meeting","page_number":7,"box":{"x":70,"y":908,"width":835,"height":11}},{"id":"4cb3dfae-0226-47ef-9636-7f5e674dfc66","block_type":"box","text":"I-5","page_number":7,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3beb8dbf-a0b7-4fe3-8c4c-1c72c56c7b93","block_type":"box","text":"NM0926U-5977658-7/228","page_number":7,"box":{"x":764,"y":970,"width":140,"height":7}},{"id":"ab729546-4bf4-4ca8-a72d-95cabe8f7298","block_type":"box","text":"at which more than 50% of the outstanding shares are represented or (ii) more than 50% of the outstanding shares).","page_number":8,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"6542c0f2-7f84-4232-8c21-dbee01f8bf75","block_type":"box","text":"The Corporation, on behalf of the Fund, has also adopted certain non-fundamental investment restrictions, which may","page_number":8,"box":{"x":68,"y":60,"width":840,"height":11}},{"id":"3b65e810-7361-485c-b915-a810c1b80598","block_type":"box","text":"be changed by the Board without shareholder approval. None of the following fundamental or non-fundamental","page_number":8,"box":{"x":69,"y":75,"width":784,"height":11}},{"id":"f5726f05-5326-4720-a659-f13b81a8e0f8","block_type":"box","text":"investment restrictions shall prevent the Fund from investing all of its assets in shares of another registered","page_number":8,"box":{"x":70,"y":90,"width":772,"height":11}},{"id":"9c128986-9c61-493c-b40d-174d7833ebc4","block_type":"box","text":"investment company with the same investment objective and fundamental policies (in a master/feeder structure).","page_number":8,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"84bf08d4-c5f2-4cda-b24c-1045c53a22b0","block_type":"box","text":"Set forth below are the Fund’s fundamental and non-fundamental investment restrictions. Unless otherwise","page_number":8,"box":{"x":102,"y":128,"width":767,"height":9}},{"id":"a161cbf4-647a-46ec-af99-eab5aae6e66a","block_type":"box","text":"provided, all references below to the assets of the Fund are in terms of current market value.","page_number":8,"box":{"x":70,"y":143,"width":664,"height":11}},{"id":"e7f823e7-d5ef-4d78-bd86-d7a2270d20a7","block_type":"box","text":"Under its fundamental investment restrictions, the Fund may not:","page_number":8,"box":{"x":102,"y":166,"width":463,"height":11}},{"id":"4ecded53-6318-4dcb-956d-28f34fdcf62c","block_type":"box","text":"(1) Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":8,"box":{"x":102,"y":188,"width":733,"height":11}},{"id":"712bf64c-0bcb-4502-9e64-05550a04c571","block_type":"box","text":"Investment Company Act.","page_number":8,"box":{"x":70,"y":203,"width":178,"height":12}},{"id":"22491fd4-d173-4a0b-8f7a-dbc43f3f5939","block_type":"box","text":"(2) Invest more than 25% of its assets, taken at market value, in the securities of issuers in any particular","page_number":8,"box":{"x":102,"y":226,"width":759,"height":11}},{"id":"a854002d-321f-40d3-b0a2-862503b1452f","block_type":"box","text":"industry (excluding the U.S. Government and its agencies and instrumentalities).","page_number":8,"box":{"x":70,"y":241,"width":573,"height":11}},{"id":"76c04cc1-49b7-4da2-8d76-2df034c2910b","block_type":"box","text":"(3) Make investments for the purpose of exercising control or management. Investments by the Fund in wholly","page_number":8,"box":{"x":102,"y":264,"width":784,"height":11}},{"id":"f2c5f105-442b-4da5-bad3-6e1d56437d6b","block_type":"box","text":"owned investment entities created under the laws of certain countries will not be deemed the making of investments","page_number":8,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"30e40397-cdbf-49ba-abd0-6e888b0acdce","block_type":"box","text":"for the purpose of exercising control or management.","page_number":8,"box":{"x":68,"y":294,"width":378,"height":11}},{"id":"d8e8e606-7890-4bfe-b1f4-6788e71dcbaf","block_type":"box","text":"(4) Purchase or sell real estate, except that, to the extent permitted by applicable law, the Fund may invest in","page_number":8,"box":{"x":102,"y":317,"width":778,"height":11}},{"id":"b5ef1f22-f54f-419c-ab62-d68a97ca9466","block_type":"box","text":"securities directly or indirectly secured by real estate or interests therein or issued by companies that invest in real","page_number":8,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"bc37d5ec-3657-4029-9357-81a510630e7a","block_type":"box","text":"estate or interests therein.","page_number":8,"box":{"x":69,"y":347,"width":190,"height":9}},{"id":"c8247e70-8cf4-4495-bccd-c72f7abd71e3","block_type":"box","text":"(5) Make loans to other persons, except that the acquisition of bonds, debentures or other corporate debt","page_number":8,"box":{"x":102,"y":370,"width":755,"height":11}},{"id":"20d96353-2729-4003-bb26-4a7004bc8fac","block_type":"box","text":"securities and investment in governmental obligations, commercial paper, pass-through instruments, certificates of","page_number":8,"box":{"x":69,"y":385,"width":823,"height":11}},{"id":"675178c2-a8c3-41ac-8571-63982c4b5a31","block_type":"box","text":"deposit, bankers’ acceptances, repurchase agreements or any similar instruments shall not be deemed to be the","page_number":8,"box":{"x":69,"y":400,"width":809,"height":11}},{"id":"802b5690-4288-43b5-ab65-63bf4e1a0325","block_type":"box","text":"making of a loan, and except further that the Fund may lend its portfolio securities, provided that the lending of","page_number":8,"box":{"x":69,"y":415,"width":795,"height":11}},{"id":"17d520a0-92af-4ab6-8241-6d44ee8b5dfc","block_type":"box","text":"portfolio securities may be made only in accordance with applicable law and the guidelines set forth in the Fund’s","page_number":8,"box":{"x":70,"y":430,"width":810,"height":11}},{"id":"5ae84979-f805-49b8-9981-18b7b948c2d3","block_type":"box","text":"Prospectus and SAI, as they may be amended from time to time.","page_number":8,"box":{"x":69,"y":445,"width":460,"height":11}},{"id":"e0d6bfab-4fc9-4474-8d16-a3fb6cb88864","block_type":"box","text":"(6) Issue senior securities to the extent such issuance would violate applicable law.","page_number":8,"box":{"x":102,"y":468,"width":594,"height":11}},{"id":"919c13fc-6801-467a-9d69-5420db4566a5","block_type":"box","text":"(7) Borrow money, except that (i) the Fund may borrow from banks (as defined in the Investment Company Act) in","page_number":8,"box":{"x":102,"y":491,"width":804,"height":11}},{"id":"63fda1cc-020e-444c-9e10-47b0f3b46ddd","block_type":"box","text":"amounts up to 33","page_number":8,"box":{"x":69,"y":506,"width":127,"height":11}},{"id":"1dfec087-8a96-43f1-90f5-382522811ba4","block_type":"box","text":"1⁄","page_number":8,"box":{"x":197,"y":506,"width":6,"height":5}},{"id":"5a90dc94-cd16-4519-97a1-283b0cdec0d7","block_type":"box","text":"1⁄3","page_number":8,"box":{"x":201,"y":506,"width":8,"height":9}},{"id":"90f3f818-d131-4b73-85ba-ad1c44f39aae","block_type":"box","text":"⁄3","page_number":8,"box":{"x":206,"y":509,"width":6,"height":6}},{"id":"ba6f59c5-a358-4ce4-9502-b9884b7d29da","block_type":"box","text":"% of its total assets (including the amount borrowed), (ii) the Fund may borrow up to an","page_number":8,"box":{"x":213,"y":506,"width":621,"height":11}},{"id":"2c9e73a4-9426-43e4-93aa-57f34e95f47b","block_type":"box","text":"additional 5% of its total assets for temporary purposes, (iii) the Fund may obtain such short term credit as may be","page_number":8,"box":{"x":69,"y":521,"width":822,"height":11}},{"id":"cfa6f59b-5334-42c3-a732-e3465e8be590","block_type":"box","text":"necessary for the clearance of purchases and sales of portfolio securities and (iv) the Fund may purchase securities","page_number":8,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"b66e96e5-ad28-4ba0-a149-29c47bfab9f8","block_type":"box","text":"on margin to the extent permitted by applicable law. The Fund may not pledge its assets other than to secure such","page_number":8,"box":{"x":69,"y":551,"width":817,"height":11}},{"id":"e08d24f6-e66e-42c3-b1d8-660156de61bc","block_type":"box","text":"borrowings or, to the extent permitted by the Fund’s investment policies as set forth in the Fund’s Prospectus and","page_number":8,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"0d9a3105-9199-4a6c-9aa5-91c00acd72e3","block_type":"box","text":"SAI, as they may be amended from time to time, in connection with hedging transactions, short sales, when issued","page_number":8,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"f2e5d0aa-cc64-486e-bee3-c9537f74651d","block_type":"box","text":"and forward commitment transactions and similar investment strategies.","page_number":8,"box":{"x":69,"y":596,"width":518,"height":12}},{"id":"8c5de707-a1ae-4807-825e-a3610031fc3c","block_type":"box","text":"(8) Underwrite securities of other issuers except insofar as the Fund technically may be deemed an underwriter","page_number":8,"box":{"x":102,"y":619,"width":794,"height":11}},{"id":"19650843-d9cd-4237-ac70-d5381c7efe7d","block_type":"box","text":"under the Securities Act of 1933, as amended (the “Securities Act”), in selling portfolio securities.","page_number":8,"box":{"x":69,"y":634,"width":703,"height":12}},{"id":"7019cc93-c0a0-4e0c-a710-ef7bc9723552","block_type":"box","text":"(9) Purchase or sell commodities or contracts on commodities, except to the extent that the Fund may do so in","page_number":8,"box":{"x":102,"y":657,"width":790,"height":11}},{"id":"2a21694b-544d-4c35-8d69-59cb8ec80295","block_type":"box","text":"accordance with applicable law and the Fund’s Prospectus and SAI, as they may be amended from time to time, and","page_number":8,"box":{"x":69,"y":672,"width":829,"height":11}},{"id":"a7811b3f-485c-4cb2-bee0-222c1250f5af","block_type":"box","text":"without registering as a commodity pool operator under the Commodity Exchange Act.","page_number":8,"box":{"x":68,"y":687,"width":609,"height":11}},{"id":"6265cc31-a8a1-425e-895a-3acfdeb34564","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":8,"box":{"x":102,"y":710,"width":768,"height":11}},{"id":"a747054c-afec-4975-b860-a8eda3d0212a","block_type":"box","text":"approval, the Fund may not:","page_number":8,"box":{"x":69,"y":725,"width":197,"height":11}},{"id":"08893d24-0423-4928-98dc-bf7976a08512","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":8,"box":{"x":102,"y":748,"width":747,"height":11}},{"id":"5496b91c-7110-42d6-a566-0ae28587f32d","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":8,"box":{"x":69,"y":763,"width":759,"height":11}},{"id":"4e056955-8f30-47d4-a941-3ebf8600cdca","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":8,"box":{"x":70,"y":778,"width":829,"height":11}},{"id":"01e67f75-1a7b-448c-87e9-ab312470910d","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":8,"box":{"x":70,"y":793,"width":808,"height":11}},{"id":"64fd7810-bb98-4837-a062-098a5dee5bb0","block_type":"box","text":"another investment company in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":8,"box":{"x":69,"y":808,"width":701,"height":11}},{"id":"d8674a9d-8b99-47b2-b763-d29eedbe98ad","block_type":"box","text":"(b) Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":8,"box":{"x":102,"y":831,"width":770,"height":11}},{"id":"c3e473c5-a2ec-4688-8446-254328f3f03b","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":8,"box":{"x":69,"y":846,"width":510,"height":11}},{"id":"66ba9c08-fd6e-4280-89ac-1cfef5081281","block_type":"box","text":"Except with respect to fundamental investment restriction (7), above or with respect to policies adopted pursuant","page_number":8,"box":{"x":102,"y":869,"width":807,"height":11}},{"id":"1196ea05-7d4f-4b43-8aac-d13bfff0c01b","block_type":"box","text":"to Rule 35d-1 under the Investment Company Act, all limitations under the Fund’s fundamental or non-fundamental","page_number":8,"box":{"x":68,"y":884,"width":818,"height":11}},{"id":"b49cad54-aa40-432e-99fd-7cf7b57fde0c","block_type":"box","text":"investment restrictions apply only at the time that a transaction is undertaken. Any change in the percentage of the","page_number":8,"box":{"x":70,"y":899,"width":821,"height":11}},{"id":"2e1870fb-f07a-48d4-a200-7f0d6fe73a7f","block_type":"box","text":"I-6","page_number":8,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"6e49aec6-e236-4b39-be36-9d035bfd46a5","block_type":"box","text":"NM0926U-5977658-8/228","page_number":8,"box":{"x":764,"y":970,"width":140,"height":7}},{"id":"996ab33b-63e5-48f3-82f2-86be87f875ed","block_type":"box","text":"Fund’s assets invested in certain securities or other instruments resulting from market fluctuations or other changes","page_number":9,"box":{"x":70,"y":45,"width":833,"height":11}},{"id":"d2e247a4-ede0-42f9-aff1-ca5b27d78c6d","block_type":"box","text":"in the Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines that it is","page_number":9,"box":{"x":70,"y":60,"width":826,"height":11}},{"id":"697f25dd-9ae5-4ab1-8c5b-00c0faedeb2e","block_type":"box","text":"practicable to sell or close out the investment without undue market or tax consequences.","page_number":9,"box":{"x":70,"y":75,"width":642,"height":11}},{"id":"1897fcc9-5982-4951-b732-bee38372c1cf","block_type":"box","text":"For purposes of fundamental investment restriction (2) above, with respect to the Fund’s industry classifications,","page_number":9,"box":{"x":102,"y":98,"width":805,"height":11}},{"id":"f4d33e06-1fa0-43b3-9f8f-2c097a4b5bd9","block_type":"box","text":"the Fund currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized","page_number":9,"box":{"x":68,"y":113,"width":829,"height":11}},{"id":"b7fd40fc-2892-47ca-b4cf-da5cf67eca2f","block_type":"box","text":"market indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to","page_number":9,"box":{"x":69,"y":128,"width":839,"height":11}},{"id":"8dfc89c3-b87f-491f-8770-71c67c210fd1","block_type":"box","text":"give broad authority to the Fund as to how to classify issuers within or among industries.","page_number":9,"box":{"x":68,"y":143,"width":631,"height":11}},{"id":"06f864ce-876e-4eef-a545-094dd852696d","block_type":"box","text":"In addition, as a non-fundamental policy that may be changed by the Directors and to the extent required by the","page_number":9,"box":{"x":102,"y":166,"width":793,"height":11}},{"id":"d63af01e-7da5-4c1e-be2c-2425399db967","block_type":"box","text":"Commission or its staff, the Fund will, for purposes of fundamental investment restriction (1), treat securities issued","page_number":9,"box":{"x":69,"y":181,"width":832,"height":11}},{"id":"2f440073-d060-41a4-b8ca-3cef5f5be1a6","block_type":"box","text":"or guaranteed by the government of any one foreign country as the obligations of a single issuer.","page_number":9,"box":{"x":69,"y":196,"width":689,"height":11}},{"id":"50c0e1f6-3190-4455-ba28-530ba4254d13","block_type":"box","text":"III. Information on Directors and Officers","page_number":9,"box":{"x":69,"y":226,"width":294,"height":9}},{"id":"260ec790-168d-46eb-aabd-6ca4493e5e02","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thirteen of whom are not “interested persons” of","page_number":9,"box":{"x":101,"y":249,"width":790,"height":11}},{"id":"15d0a014-582e-4427-828d-9d95468fd655","block_type":"box","text":"the Corporation as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":9,"box":{"x":68,"y":264,"width":828,"height":11}},{"id":"7c429639-c050-44e1-9c60-a1b365f922d7","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":9,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"77bf64df-11e2-4d44-a196-e2d53f6e49f1","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":9,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"f49659b3-a19a-455b-b559-72fa06ba1c57","block_type":"box","text":"Complex”). The Corporation is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset","page_number":9,"box":{"x":69,"y":309,"width":799,"height":11}},{"id":"f1bc0ab0-ded2-45c7-a2c7-58b50ea8268e","block_type":"box","text":"Complex. The Directors also oversee as board members the operations of the other open-end registered investment","page_number":9,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"d9d1b0e1-ea88-4fbf-85ef-4a9ea963098a","block_type":"box","text":"companies included in the BlackRock Multi-Asset Complex.","page_number":9,"box":{"x":69,"y":340,"width":418,"height":10}},{"id":"c6b2e0a3-90c1-4767-b4ec-2bf69383b7a8","block_type":"box","text":"The Board has overall responsibility for the oversight of the Corporation and the Fund. The Chair of the Board is","page_number":9,"box":{"x":101,"y":362,"width":794,"height":11}},{"id":"ba617390-78cc-4e46-b6ce-13f9fdac8623","block_type":"box","text":"an Independent Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director.","page_number":9,"box":{"x":69,"y":377,"width":823,"height":11}},{"id":"64e638a8-94aa-41e0-bf01-1e0efb9097e6","block_type":"box","text":"The Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a","page_number":9,"box":{"x":68,"y":392,"width":766,"height":12}},{"id":"d8cc9b02-daca-41f0-be3b-185a0a2e3d3c","block_type":"box","text":"Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair","page_number":9,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"fa70fc6b-fe0a-4d98-9a7d-3e5922d95a73","block_type":"box","text":"of the Board is to preside at all meetings of the Board and to act as a liaison with service providers, officers,","page_number":9,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"21c747e9-549f-47df-902b-0a036951fbbe","block_type":"box","text":"attorneys and other Directors generally between meetings. The Chair of each Committee performs a similar role with","page_number":9,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"e18a65b3-5835-40f1-9998-1ffd6fc1f1b6","block_type":"box","text":"respect to the Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions","page_number":9,"box":{"x":69,"y":453,"width":836,"height":11}},{"id":"b1616c23-18bb-406f-991f-b7b94308b948","block_type":"box","text":"as may be delegated by the Board or the Committee from time to time. The Independent Directors meet regularly","page_number":9,"box":{"x":69,"y":468,"width":805,"height":11}},{"id":"b42a813d-10db-4cd4-8f79-121f8f3d8dbf","block_type":"box","text":"outside the presence of Fund management, in executive session or with other service providers to the Fund. The","page_number":9,"box":{"x":69,"y":483,"width":802,"height":11}},{"id":"ea464380-4641-4faa-8cf6-081feab6cbde","block_type":"box","text":"Board has regular meetings five times a year, and may hold special meetings if required before its next regular","page_number":9,"box":{"x":70,"y":498,"width":788,"height":11}},{"id":"c9929deb-dede-4c25-ae77-de986420eb42","block_type":"box","text":"meeting. Each Committee meets regularly to conduct the oversight functions delegated to that Committee by the","page_number":9,"box":{"x":69,"y":513,"width":802,"height":12}},{"id":"b18409f8-dd8c-4c29-a3c2-cedebb67415e","block_type":"box","text":"Board and reports its findings to the Board. The Board and each standing Committee conduct annual assessments","page_number":9,"box":{"x":70,"y":528,"width":821,"height":12}},{"id":"c8aee03a-e653-4757-b178-fcdd51b4f6fc","block_type":"box","text":"of their oversight function and structure. The Board has determined that the Board’s leadership structure is","page_number":9,"box":{"x":69,"y":543,"width":767,"height":12}},{"id":"ddf56127-b468-49b5-990b-dd8f4b98b1fa","block_type":"box","text":"appropriate because it allows the Board to exercise independent judgment over management and to allocate areas of","page_number":9,"box":{"x":69,"y":559,"width":839,"height":11}},{"id":"27536d19-6a25-45e9-9b00-1b947458034a","block_type":"box","text":"responsibility among Committees and the full Board to enhance effective oversight.","page_number":9,"box":{"x":69,"y":574,"width":593,"height":11}},{"id":"bb03bce0-acaa-455d-be35-9e57a5aacd0e","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":9,"box":{"x":101,"y":596,"width":777,"height":12}},{"id":"50036efb-866d-4037-9be9-3b5defd0cd0e","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":9,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"164a70c0-6716-4af6-b86e-b231d2b9552b","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Corporation’s charter, and the","page_number":9,"box":{"x":68,"y":627,"width":815,"height":11}},{"id":"cfa80d90-f28f-4a6e-b132-d484baa4df8e","block_type":"box","text":"Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s performance,","page_number":9,"box":{"x":70,"y":642,"width":784,"height":11}},{"id":"fdeb761c-1300-4434-8803-3e6393dae913","block_type":"box","text":"operations and investment strategies and techniques. The Board also conducts reviews of the Manager and its role","page_number":9,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"d87f718b-e22b-4dc3-9ce2-7ee8327df353","block_type":"box","text":"in running the operations of the Fund.","page_number":9,"box":{"x":70,"y":672,"width":266,"height":11}},{"id":"80e64995-8f59-4573-83b9-9038725d0937","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":9,"box":{"x":102,"y":695,"width":785,"height":11}},{"id":"bdad2b47-bc0b-471c-86cf-1d3b5085a542","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":9,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"4decc3ad-d092-469c-bdb0-b4e61fa72d09","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":9,"box":{"x":69,"y":725,"width":832,"height":11}},{"id":"d9647d22-038d-4297-a1fa-73ad75ab5bae","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":9,"box":{"x":68,"y":740,"width":820,"height":11}},{"id":"289935c0-ea7f-471e-a57f-fedd708bef31","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":9,"box":{"x":70,"y":755,"width":811,"height":11}},{"id":"d3e6b05f-9b30-41a3-a5c1-0dd7fd3ac5c5","block_type":"box","text":"part of the Board’s general oversight of the Fund and is addressed as part of various Board and Committee","page_number":9,"box":{"x":70,"y":770,"width":767,"height":12}},{"id":"2c4f1d21-7a26-447c-b363-befadff86861","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":9,"box":{"x":69,"y":785,"width":815,"height":12}},{"id":"7899b98b-2311-413e-8c48-223053c950dd","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":9,"box":{"x":70,"y":801,"width":803,"height":11}},{"id":"9fa7e168-e31c-4e00-ab33-214704fd2454","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":9,"box":{"x":69,"y":816,"width":840,"height":11}},{"id":"042df2c2-1f71-4858-bde1-8d7c68ebf330","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":9,"box":{"x":69,"y":831,"width":814,"height":11}},{"id":"a79a65c6-7dda-4eb7-a1c5-1bcb0b0c8b35","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":9,"box":{"x":69,"y":846,"width":817,"height":11}},{"id":"248cf892-6239-4398-898c-3fec417f1a0b","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":9,"box":{"x":69,"y":861,"width":812,"height":11}},{"id":"76aaebef-afae-406a-95b8-b7fda8ab3cd4","block_type":"box","text":"testing of the Corporation’s compliance program and reports to the Board regarding compliance matters for the Fund","page_number":9,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"6f7b4ce2-4b37-4522-80a6-4eee48abd0be","block_type":"box","text":"and its service providers. The Independent Directors have engaged independent legal counsel to assist them in","page_number":9,"box":{"x":69,"y":891,"width":794,"height":12}},{"id":"8e8123b1-111e-4a6b-8be2-667204a10de2","block_type":"box","text":"performing their oversight responsibilities.","page_number":9,"box":{"x":70,"y":906,"width":299,"height":12}},{"id":"05495631-0d1c-4407-acc0-87ffc5ac793f","block_type":"box","text":"I-7","page_number":9,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"30d679cd-8465-42d9-bc5b-fb7e8139a211","block_type":"box","text":"NM0926U-5977658-9/228","page_number":9,"box":{"x":764,"y":970,"width":140,"height":7}},{"id":"fba87f61-0ba7-44b1-afa0-35b60114da5c","block_type":"box","text":"Audit Committee.","page_number":10,"box":{"x":101,"y":45,"width":122,"height":9}},{"id":"df22f175-9b5e-47e4-88f8-d93e6d7abafc","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":10,"box":{"x":229,"y":45,"width":673,"height":11}},{"id":"e53abd17-83d5-4ea9-ba00-231fb1cfa006","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors.","page_number":10,"box":{"x":68,"y":60,"width":834,"height":11}},{"id":"41f20874-69fe-49f8-9c4b-573750cff023","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":10,"box":{"x":68,"y":75,"width":820,"height":11}},{"id":"e3605aa1-c346-457f-9fb5-55b0308b3063","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":10,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"b637cf42-be3d-4520-95cc-466251625410","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":105,"width":830,"height":11}},{"id":"9d83f7a0-9ac1-456b-bbfd-cd7a732b4390","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":10,"box":{"x":70,"y":120,"width":825,"height":11}},{"id":"316fd5e2-3881-44f4-97d7-7ffaaf7bf480","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":10,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"f4ffb576-805c-4da8-88f6-435dab67079d","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":10,"box":{"x":68,"y":150,"width":781,"height":11}},{"id":"c584da59-30a6-450b-9667-ef877e41e5f8","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":10,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"671e7fa9-4708-45cb-9640-971e3319535c","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of the Fund and the internal controls of the Fund","page_number":10,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"0c39b70e-a036-4e38-9389-408b04193daa","block_type":"box","text":"and certain service providers; (5) oversee the performance of the Fund’s Independent Registered Public Accounting","page_number":10,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"47a6ed29-7fb9-49ee-8430-a1f38b076c5e","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":10,"box":{"x":70,"y":211,"width":809,"height":11}},{"id":"b8a8c09f-9e42-491b-9f5a-fc9a58a6e4ed","block_type":"box","text":"performance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":10,"box":{"x":70,"y":226,"width":815,"height":11}},{"id":"32eab9f4-5a36-4a9a-a4b8-603251be8fd1","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial reporting and controls;","page_number":10,"box":{"x":69,"y":241,"width":774,"height":11}},{"id":"1caf7798-c0a4-4c27-8cca-c1887f26f6ea","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":10,"box":{"x":69,"y":256,"width":815,"height":12}},{"id":"65519a34-c12b-4664-9249-5f01ae65335a","block_type":"box","text":"regarding financial reporting; and (9) undertake such other duties and responsibilities as may from time to time be","page_number":10,"box":{"x":69,"y":271,"width":819,"height":12}},{"id":"9dd848ed-12b3-45a1-912e-037d285033ce","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written charter for the Audit Committee.","page_number":10,"box":{"x":69,"y":286,"width":812,"height":12}},{"id":"6003e71d-7fe3-4e94-adf2-414538f51545","block_type":"box","text":"During the twelve months ended May 31, 2026, the Audit Committee met four times.","page_number":10,"box":{"x":70,"y":302,"width":605,"height":11}},{"id":"71b1bb7b-f961-4f8b-a716-9b534809e7af","block_type":"box","text":"Governance and Nominating Committee.","page_number":10,"box":{"x":102,"y":324,"width":286,"height":12}},{"id":"43d47e17-5204-4b20-b3ba-0854b640c826","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":10,"box":{"x":394,"y":324,"width":464,"height":12}},{"id":"6d72388a-8d5e-4580-b2a5-f5ce13ef0646","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":10,"box":{"x":70,"y":340,"width":838,"height":11}},{"id":"5844e1fe-c287-4276-b57d-5f83f7d1fd53","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":10,"box":{"x":70,"y":355,"width":786,"height":11}},{"id":"56da0509-57ae-4060-b21b-f014395d3c99","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Corporation","page_number":10,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"1f43f3b0-27b4-4e21-87d4-f1455cb54b8c","block_type":"box","text":"and recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise","page_number":10,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"c98f145d-98dc-4db4-a722-6b330eea265c","block_type":"box","text":"the Board with respect to Board composition, procedures and committees (other than the Audit Committee);","page_number":10,"box":{"x":68,"y":400,"width":772,"height":11}},{"id":"fc214f42-27f8-49cb-8ced-c188aa669958","block_type":"box","text":"(3) oversee periodic self-assessments of the Board and committees of the Board (other than the Audit Committee);","page_number":10,"box":{"x":69,"y":415,"width":820,"height":11}},{"id":"583862c2-6668-4405-a010-0aafd28d2fc9","block_type":"box","text":"(4) review and make recommendations regarding Independent Director compensation; (5) monitor corporate","page_number":10,"box":{"x":69,"y":430,"width":768,"height":11}},{"id":"f400e6bf-1454-4553-aa4e-bbf6ae4b7f47","block_type":"box","text":"governance matters and develop appropriate recommendations to the Board; (6) act as the administrative committee","page_number":10,"box":{"x":68,"y":445,"width":837,"height":12}},{"id":"e1bf673d-4870-4d9c-a174-be8078b50664","block_type":"box","text":"with respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee)","page_number":10,"box":{"x":68,"y":460,"width":827,"height":11}},{"id":"6d0de6e0-2ec5-468a-b309-3192cceb2a35","block_type":"box","text":"and codes of ethics as they relate to Independent Directors; and (7) undertake such other duties and responsibilities","page_number":10,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"55e11e7e-2be9-4c28-9b25-8e32df89cedc","block_type":"box","text":"as may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":10,"box":{"x":69,"y":491,"width":831,"height":11}},{"id":"6876cc2d-0fca-489f-842f-5758ed8590f7","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the","page_number":10,"box":{"x":69,"y":506,"width":744,"height":11}},{"id":"df7ed6c0-70ef-4b35-9c14-678c5e6eb5e6","block_type":"box","text":"Corporation’s Amended and Restated Bylaws (”Bylaws“), shareholders must follow certain procedures to nominate a","page_number":10,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"35e68d82-8fc4-4abe-8230-859ba31b6322","block_type":"box","text":"person for election as a Director at a shareholder meeting at which Directors are to be elected. Under these advance","page_number":10,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"f831386e-c17b-434e-8181-ad06fc320b65","block_type":"box","text":"notice procedures, notice of the proposed nominee to the Secretary of the Corporation must be delivered to or","page_number":10,"box":{"x":69,"y":551,"width":789,"height":11}},{"id":"f7d48c18-2fff-4413-9ed8-45d0f0f40db0","block_type":"box","text":"mailed and received at the principal executive offices of the Corporation not later than the close of business on the","page_number":10,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"1b1ee446-533e-4e64-9af6-d88ec46eef70","block_type":"box","text":"fifth day following the day on which notice of the date of the meeting was mailed or public disclosure of the date of","page_number":10,"box":{"x":68,"y":581,"width":819,"height":12}},{"id":"242047e5-0174-463a-bd26-587c1e26b8d2","block_type":"box","text":"the meeting was made, whichever first occurs. The Corporation’s Bylaws provide that notice of a proposed","page_number":10,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"02ef0cca-7cee-4644-ba67-af7c6e6cbe85","block_type":"box","text":"nomination must include certain information about the shareholder and the nominee, as well as certain other","page_number":10,"box":{"x":69,"y":612,"width":782,"height":10}},{"id":"6270f618-780f-48eb-b69a-394f7825b708","block_type":"box","text":"information, including a written consent of the proposed nominee to serve if elected. Reference is made to the","page_number":10,"box":{"x":70,"y":627,"width":789,"height":11}},{"id":"374b940e-d0b2-43d0-950b-f09eb5794130","block_type":"box","text":"Corporation’s Bylaws for more details. The Board has adopted a written charter for the Governance Committee.","page_number":10,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"5ad9683e-f053-4692-9484-7e9d4f8bcaa9","block_type":"box","text":"During the twelve months ended May 31, 2026, the Governance Committee met ten times.","page_number":10,"box":{"x":70,"y":657,"width":648,"height":11}},{"id":"82b67953-7eca-4d25-8181-392f53993091","block_type":"box","text":"Compliance Committee.","page_number":10,"box":{"x":102,"y":680,"width":168,"height":11}},{"id":"b093b5b2-19d0-4fb9-bde7-9a9c9bdd55fa","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":10,"box":{"x":276,"y":680,"width":629,"height":11}},{"id":"39b48b2e-854d-4b37-aa3a-84937fa685f0","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":10,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"b7eacd7e-dcb0-4b2b-a730-1d9d374d20bc","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":10,"box":{"x":68,"y":710,"width":773,"height":11}},{"id":"570048f4-246f-46f5-a89d-90c5c8548430","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Corporation, the fund-related","page_number":10,"box":{"x":69,"y":725,"width":794,"height":11}},{"id":"57485906-3f0f-4a3a-a107-a3a3ea694b2c","block_type":"box","text":"activities of BlackRock and any sub-adviser and the Corporation’s third-party service providers. The Compliance","page_number":10,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"11c987b1-1f53-432b-adf1-733ed8a0f6d4","block_type":"box","text":"Committee’s responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the","page_number":10,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"fb48aa79-4f2d-4c6a-a0b6-272892ca73a4","block_type":"box","text":"Corporation and its service providers and recommend changes or additions to such policies and procedures;","page_number":10,"box":{"x":69,"y":770,"width":773,"height":12}},{"id":"edd7dcda-9eb8-43df-9047-5ab2edde8dde","block_type":"box","text":"(2) review information on and, where appropriate, recommend policies concerning the Corporation’s compliance with","page_number":10,"box":{"x":69,"y":785,"width":829,"height":12}},{"id":"204c3fcb-edb2-4018-8420-42232530cef3","block_type":"box","text":"applicable law; (3) review reports from, oversee the annual performance review of, and make certain","page_number":10,"box":{"x":69,"y":801,"width":719,"height":11}},{"id":"1a3a07d6-e2c1-47ec-8a8b-e6c4de22db7a","block_type":"box","text":"recommendations and determinations regarding the Corporation’s Chief Compliance Officer (the “CCO”), including","page_number":10,"box":{"x":69,"y":816,"width":814,"height":11}},{"id":"1a0b3c03-bc6c-4b45-abfc-0438e755ba6e","block_type":"box","text":"determining the amount and structure of the CCO’s compensation and recommending such amount and structure to","page_number":10,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"2131a39c-5708-435d-b223-7d523180f46d","block_type":"box","text":"the full Board for approval and ratification; and (4) undertake such other duties and responsibilities as may from time","page_number":10,"box":{"x":68,"y":846,"width":839,"height":11}},{"id":"2f8785b9-0781-415b-b2e1-82bb56fb4f4b","block_type":"box","text":"to time be delegated by the Board to the Compliance Committee. The Board has adopted a written charter for the","page_number":10,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"3360f01e-28c6-47d5-aa7a-be972eb3d543","block_type":"box","text":"Compliance Committee. During the twelve months ended May 31, 2026, the Compliance Committee met four times.","page_number":10,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"8e534c1d-fddc-4390-aeb3-26c8ca7d0ec6","block_type":"box","text":"I-8","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"bb29c709-6bcc-4cd6-a05e-56548e4762bb","block_type":"box","text":"NM0926U-5977658-10/228","page_number":10,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"587fc8a2-b4cd-4080-a625-38011f86c661","block_type":"box","text":"Per formance Oversight Committee.","page_number":11,"box":{"x":102,"y":45,"width":248,"height":11}},{"id":"91d7a42e-a33d-4767-91b7-a29a3ef9281e","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":11,"box":{"x":356,"y":45,"width":531,"height":11}},{"id":"8c08dcc8-aa1d-4cdb-95f2-f519f30b2cbc","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":11,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"48145ce6-e7a6-4340-ac2c-afbcce06ab10","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Performance Oversight Committee’s purpose is","page_number":11,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"66f1ad95-71c0-4333-afd5-e90d57078d2e","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment performance relative to its agreed","page_number":11,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"414496b6-a4e3-463c-8667-fa4dc4a143a5","block_type":"box","text":"upon performance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":11,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"377abfe1-5acb-4a77-b2fb-4f511fc3f9c8","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":11,"box":{"x":69,"y":120,"width":782,"height":12}},{"id":"283f99ad-bd30-4c5d-91a8-5485baae0cbf","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":11,"box":{"x":70,"y":135,"width":829,"height":11}},{"id":"078a57dc-45cd-496a-972a-372b068e7652","block_type":"box","text":"and practices; (2) review information on the Fund’s investment performance; (3) review information on appropriate","page_number":11,"box":{"x":69,"y":150,"width":816,"height":11}},{"id":"2266e8cf-5599-4059-8d15-8fccbab8c0bf","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":11,"box":{"x":69,"y":166,"width":803,"height":11}},{"id":"f2ca1524-7346-4ecf-8f09-efe178d9d795","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":11,"box":{"x":69,"y":181,"width":827,"height":11}},{"id":"f0654480-e568-4129-81a1-bcd404f33f22","block_type":"box","text":"the Performance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":11,"box":{"x":68,"y":196,"width":811,"height":11}},{"id":"e04b31f3-c52a-401e-b195-792dfb5d6aac","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":11,"box":{"x":69,"y":211,"width":757,"height":11}},{"id":"3dbaede2-9bce-45bc-8b8e-78a738bffa06","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":11,"box":{"x":70,"y":226,"width":835,"height":11}},{"id":"1e0ee12d-cedc-456b-8dde-14a7dec5206c","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) undertake such other","page_number":11,"box":{"x":68,"y":241,"width":800,"height":11}},{"id":"f712ca6c-064f-4576-a78d-ca2a4eb60199","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Performance Oversight","page_number":11,"box":{"x":69,"y":256,"width":780,"height":12}},{"id":"aa8422f1-5092-48ae-9b5d-18c9535f392a","block_type":"box","text":"Committee. The Board has adopted a written charter for the Performance Oversight Committee. During the twelve","page_number":11,"box":{"x":69,"y":271,"width":810,"height":12}},{"id":"702854ed-8373-4c2b-970d-a5aa5561d0b6","block_type":"box","text":"months ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":11,"box":{"x":69,"y":286,"width":602,"height":12}},{"id":"9ae0c43c-b6d2-4ebe-b696-584e8a6ce86c","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":11,"box":{"x":101,"y":309,"width":186,"height":11}},{"id":"a299082c-7357-4b82-94f5-21b287599645","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":11,"box":{"x":293,"y":309,"width":598,"height":11}},{"id":"064648ff-92d4-4fa3-b962-6358673a113e","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":11,"box":{"x":70,"y":324,"width":819,"height":11}},{"id":"cde3cebf-503a-409a-9fbc-37a64b29b63d","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":11,"box":{"x":69,"y":339,"width":796,"height":11}},{"id":"4838d5d3-0bfb-4060-8815-38a7032e23a9","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":11,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"a2b3e355-23ac-4d55-b21c-a3e978b8c334","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":11,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"f26bce18-1aa0-4c70-8bff-f175a4d2e891","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":11,"box":{"x":68,"y":385,"width":816,"height":11}},{"id":"b0351ce6-d74d-4616-8436-48e1074c6983","block_type":"box","text":"the twelve months ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":11,"box":{"x":68,"y":400,"width":606,"height":11}},{"id":"7def6c3b-4a0c-4d71-90cb-e4627bf9024e","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":11,"box":{"x":101,"y":423,"width":771,"height":11}},{"id":"e918c6e7-0eb0-40a3-94a3-5f1d36fd2478","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":11,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"32139fc7-711a-4d18-9d8d-87503ec91fef","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":11,"box":{"x":69,"y":453,"width":833,"height":11}},{"id":"3f35f474-e1d9-44ab-9418-cb622302e13b","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":11,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"84054e82-0c82-4e9f-848d-894ba08c78f0","block_type":"box","text":"in determining that a particular Independent Director was and continues to be qualified to serve as a Director, the","page_number":11,"box":{"x":70,"y":483,"width":811,"height":11}},{"id":"2409d6e1-5ac0-4665-ac3f-c1ddb988a66f","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":11,"box":{"x":70,"y":498,"width":787,"height":11}},{"id":"0d77f41c-8b69-463d-8888-4f48712b233c","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":11,"box":{"x":69,"y":513,"width":807,"height":11}},{"id":"2cf4ea4a-cda1-4486-af69-c666e4ac6d5c","block_type":"box","text":"which allow the Board to operate effectively in governing the Corporation and protecting the interests of shareholders.","page_number":11,"box":{"x":68,"y":528,"width":840,"height":12}},{"id":"5214c478-81b9-439a-be3a-04f50d1afa77","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":11,"box":{"x":68,"y":544,"width":832,"height":11}},{"id":"6a25f855-bcc5-4eca-b3bf-027c714ce0e7","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":11,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"e0de8ca6-8b17-4098-99a6-4cf2ce7bb3ee","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":11,"box":{"x":69,"y":574,"width":771,"height":11}},{"id":"0ce50c66-9f01-4fe5-a1e7-f7302c190f87","block_type":"box","text":"business judgment in the performance of their duties as Directors.","page_number":11,"box":{"x":69,"y":589,"width":475,"height":11}},{"id":"c1cea162-2f6a-4cf6-8a27-7473ea0c0b49","block_type":"box","text":"Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":11,"box":{"x":102,"y":612,"width":794,"height":11}},{"id":"611bae0f-d7a9-4ab8-a1b6-34c5fd9ae23f","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":11,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"fe5fb7f9-d693-4f17-a154-7ad0672189e3","block_type":"box","text":"board member of the Corporation and the other funds in the BlackRock Fund Complexes (and any predecessor","page_number":11,"box":{"x":69,"y":642,"width":787,"height":11}},{"id":"1e01a060-dc5d-45bc-a98c-b9fa3323d5be","block_type":"box","text":"funds), other investment funds, public companies, non-profit entities or other organizations; ongoing commitment to","page_number":11,"box":{"x":68,"y":657,"width":827,"height":11}},{"id":"057f01b4-1122-40f9-8911-97e425e07467","block_type":"box","text":"and participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":11,"box":{"x":69,"y":672,"width":717,"height":11}},{"id":"ad0c26f2-6c30-4ccd-ae08-6e815870b34d","block_type":"box","text":"ad hoc","page_number":11,"box":{"x":793,"y":672,"width":47,"height":9}},{"id":"61361582-feb7-402f-a7ea-419754812df9","block_type":"box","text":"committees throughout the years; or other relevant life experiences.","page_number":11,"box":{"x":69,"y":687,"width":483,"height":11}},{"id":"395659e2-40fd-4352-b5b6-f389d0bcd084","block_type":"box","text":"I-9","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"91bf376e-560f-4564-8c34-358fe845ae90","block_type":"box","text":"NM0926U-5977658-11/228","page_number":11,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f9527aad-c2dd-48ea-838e-ed429b52a7ed","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":12,"box":{"x":101,"y":45,"width":754,"height":11}},{"id":"d2017c29-bd75-42a0-b19d-9f47232124af","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":12,"box":{"x":69,"y":60,"width":494,"height":11}},{"id":"5e55f607-5e13-4f5e-a0c1-754090daae9b","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":12,"box":{"x":69,"y":88,"width":408,"height":9}},{"id":"365cd3c1-8c60-4f42-a58b-d145d0b660e1","block_type":"box","text":"Independent Directors","page_number":12,"box":{"x":70,"y":105,"width":156,"height":10}},{"id":"98f95ba1-890e-4c31-ba9e-f13233c87318","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":12,"box":{"x":69,"y":120,"width":781,"height":11}},{"id":"a7fc28a5-9b76-4268-85e3-e6dc8a3fa0de","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":12,"box":{"x":265,"y":135,"width":604,"height":11}},{"id":"1e0888d6-c538-4213-af8f-07b15c62aff5","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":12,"box":{"x":265,"y":150,"width":623,"height":11}},{"id":"ca7647cb-120d-4385-a6e0-dad39980d031","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":12,"box":{"x":265,"y":165,"width":637,"height":11}},{"id":"86064f69-b57f-4d72-a64d-39212acbcd15","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":12,"box":{"x":265,"y":180,"width":631,"height":11}},{"id":"48cc7f88-9359-451b-9d26-83938f8df7c7","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":12,"box":{"x":264,"y":195,"width":626,"height":11}},{"id":"752d193a-ba2e-4024-9643-93b2292c17f8","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":12,"box":{"x":265,"y":210,"width":639,"height":11}},{"id":"a17dde5d-1210-4f11-8bad-f2d59f868220","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":12,"box":{"x":264,"y":226,"width":637,"height":11}},{"id":"11fed32f-292e-4516-a7ae-88de5e651a8a","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":12,"box":{"x":265,"y":241,"width":586,"height":11}},{"id":"08aec3e8-9818-4f6a-a0e8-37811481f34f","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":12,"box":{"x":265,"y":256,"width":640,"height":11}},{"id":"cd0dc7ba-15da-4021-afbb-ef0fa9b8f52f","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":12,"box":{"x":265,"y":271,"width":389,"height":11}},{"id":"25f7241f-56f4-4ec5-bfec-3f7dc312cad4","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":12,"box":{"x":69,"y":293,"width":806,"height":12}},{"id":"a750ad64-d803-46ed-acc4-cbc31eedcb4c","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":12,"box":{"x":265,"y":309,"width":604,"height":11}},{"id":"1b52f7c6-a778-4fd0-806c-d7ed7de9ff1d","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":12,"box":{"x":265,"y":324,"width":632,"height":11}},{"id":"ee6fad88-4b75-431d-bb3b-2a43bdd362a0","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":12,"box":{"x":265,"y":339,"width":562,"height":9}},{"id":"f8208335-7da7-41b5-86e1-4e0d92139e3f","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":12,"box":{"x":265,"y":354,"width":616,"height":10}},{"id":"0715a59a-45ca-4bb3-94e0-2b52becf61c1","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":12,"box":{"x":264,"y":369,"width":591,"height":11}},{"id":"5dd6da96-9564-4943-92e1-768cad7d5b3d","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":12,"box":{"x":265,"y":384,"width":641,"height":11}},{"id":"fa598c5f-62ea-4f84-aaf3-4e99439ac237","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":12,"box":{"x":264,"y":399,"width":638,"height":12}},{"id":"299e353e-fab5-43e1-a543-496a02590956","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":12,"box":{"x":265,"y":414,"width":584,"height":12}},{"id":"c7c52853-a08f-41b4-8174-5c6768578ac4","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":12,"box":{"x":265,"y":429,"width":630,"height":12}},{"id":"cf21d2cd-0fe0-4150-8574-69d60729334a","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":12,"box":{"x":265,"y":445,"width":634,"height":11}},{"id":"1be4f357-656d-4a50-8689-04d00bbf14c3","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":12,"box":{"x":265,"y":460,"width":599,"height":11}},{"id":"fa68b05e-1907-47ad-a41e-40a5588bf86d","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":12,"box":{"x":265,"y":475,"width":407,"height":11}},{"id":"fa8b0d8b-a240-4009-ac29-783d2be28182","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":12,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"c16c5d17-3346-4892-8d21-b7dbf4947d72","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":12,"box":{"x":265,"y":513,"width":638,"height":11}},{"id":"0a08ab4f-a48e-4ae4-b6e9-fdbb949ce967","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":12,"box":{"x":265,"y":528,"width":642,"height":11}},{"id":"5f2616d9-66f8-4a36-9ee2-0afbe795bfea","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":12,"box":{"x":265,"y":542,"width":601,"height":12}},{"id":"2d947589-e728-4888-a9ce-7d758ce4e4e8","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":12,"box":{"x":265,"y":558,"width":595,"height":11}},{"id":"01f860e1-b245-456a-bb3c-add3fd2ab688","block_type":"box","text":"perspective on the markets and the economy.","page_number":12,"box":{"x":265,"y":573,"width":323,"height":11}},{"id":"9b514307-46f3-487e-92c8-06b701d9852a","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":12,"box":{"x":70,"y":596,"width":798,"height":11}},{"id":"656ed3f4-9642-402b-9894-4f61d8244420","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":12,"box":{"x":265,"y":611,"width":631,"height":11}},{"id":"e6037508-b37b-4073-913c-ffc19f0070e9","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":12,"box":{"x":265,"y":626,"width":633,"height":11}},{"id":"64410a89-a25a-463e-bd77-df7b6f77a9d2","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":12,"box":{"x":265,"y":641,"width":628,"height":11}},{"id":"5b5871ee-658e-4e92-9123-93ac71cae13f","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":12,"box":{"x":265,"y":656,"width":596,"height":12}},{"id":"249825a6-0cc5-4cfb-8fe7-aaa541c269b9","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":12,"box":{"x":265,"y":671,"width":616,"height":12}},{"id":"0c0d8109-f7ff-4849-bb07-ff06d91fae05","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":12,"box":{"x":264,"y":686,"width":368,"height":11}},{"id":"56e11ac2-e98e-400f-b2ff-615891fb3f23","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":12,"box":{"x":69,"y":709,"width":777,"height":11}},{"id":"dcda0364-2b80-451d-bfc5-fec441843936","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":12,"box":{"x":265,"y":724,"width":613,"height":12}},{"id":"3be1cd7a-ca9b-4c8f-a5b1-4704015efdcd","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":12,"box":{"x":265,"y":739,"width":563,"height":12}},{"id":"153b3026-e4fb-4f93-97a1-70c64f61e6eb","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":12,"box":{"x":265,"y":755,"width":607,"height":11}},{"id":"53e124d1-e033-4f31-ad60-40996f932a13","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":12,"box":{"x":265,"y":770,"width":638,"height":11}},{"id":"1011029e-905f-467a-ba01-aa1599a16cd3","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":12,"box":{"x":265,"y":785,"width":626,"height":11}},{"id":"41df10ea-c8a5-4b46-b023-375b243094f0","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":12,"box":{"x":265,"y":800,"width":563,"height":11}},{"id":"474b0faa-12cb-4aca-a720-4748a999e9fe","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Directors prior to becoming an","page_number":12,"box":{"x":265,"y":815,"width":627,"height":11}},{"id":"25786162-ca3a-453b-a67b-7dc24e97b898","block_type":"box","text":"Independent Director. 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He has extensive experience with issues facing complex, global companies","page_number":13,"box":{"x":265,"y":111,"width":638,"height":11}},{"id":"e108f5ab-a591-4d6e-a9ee-15e70b19904a","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":13,"box":{"x":265,"y":126,"width":570,"height":11}},{"id":"ee319961-b71a-4d99-8185-e9c791c4aaf4","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":13,"box":{"x":265,"y":141,"width":642,"height":11}},{"id":"2447c1e7-0ed6-46dc-b66a-c336da1bf61e","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":13,"box":{"x":265,"y":156,"width":626,"height":11}},{"id":"84970a15-b6b7-429a-9c81-e2eeb87c36b5","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":13,"box":{"x":265,"y":171,"width":630,"height":12}},{"id":"cb0401c9-340d-4b48-81af-a9768a9234ff","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":13,"box":{"x":265,"y":186,"width":602,"height":12}},{"id":"d2e5b899-23bc-43ad-ac28-2beb53df6be0","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":13,"box":{"x":264,"y":201,"width":643,"height":12}},{"id":"06472bd3-ea50-43c1-8369-f9ad41747e92","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":13,"box":{"x":264,"y":217,"width":639,"height":11}},{"id":"1137d684-56fa-4398-9d67-3b8311dc7588","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":13,"box":{"x":264,"y":232,"width":641,"height":11}},{"id":"3d4a3a02-a653-4a61-a91a-8c2a2c99d010","block_type":"box","text":"applicable Commission rules.","page_number":13,"box":{"x":265,"y":247,"width":208,"height":11}},{"id":"c1aad06c-8ea4-46a2-9247-2c0bdab2b3ba","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":13,"box":{"x":69,"y":269,"width":769,"height":12}},{"id":"48179124-e304-4636-b2c3-25c0dbbf5aa0","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":13,"box":{"x":265,"y":285,"width":621,"height":11}},{"id":"289a6031-a438-48c7-ad55-b075c5d91471","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":13,"box":{"x":265,"y":300,"width":599,"height":11}},{"id":"61b09555-5d48-462f-8c12-a097ba5c6ee8","block_type":"box","text":"Managers, L.P. (”MLIM“) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":13,"box":{"x":265,"y":315,"width":641,"height":11}},{"id":"e64fb896-1b15-44ad-ab28-c1f03900d64a","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":13,"box":{"x":264,"y":330,"width":602,"height":11}},{"id":"8e14a191-1698-4338-95de-2d61541a3816","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":13,"box":{"x":264,"y":345,"width":617,"height":11}},{"id":"8013a998-3aea-4dfe-b3dd-56a68ad03254","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":13,"box":{"x":265,"y":360,"width":629,"height":12}},{"id":"d9fbc221-f908-4b85-a939-8f96e72a9147","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":13,"box":{"x":264,"y":375,"width":628,"height":11}},{"id":"109fc505-1d37-496f-bcb3-f474919d3f48","block_type":"box","text":"articles and books on these topics.","page_number":13,"box":{"x":265,"y":391,"width":251,"height":10}},{"id":"1c3241d6-aa3a-49ad-a8dd-e82fd10e89c7","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":13,"box":{"x":70,"y":413,"width":764,"height":11}},{"id":"d88cdc48-5402-4f7b-afe1-26805067c2a8","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":13,"box":{"x":265,"y":428,"width":642,"height":12}},{"id":"2b2e10aa-71b7-42c9-94b0-409e3f521989","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":13,"box":{"x":264,"y":443,"width":593,"height":12}},{"id":"a6eb0bc0-daa0-4b97-8d73-8c14bdd8a680","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":13,"box":{"x":265,"y":458,"width":603,"height":12}},{"id":"17286b48-1f08-422a-a7da-6a8553dbb8a9","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":13,"box":{"x":265,"y":474,"width":629,"height":11}},{"id":"1a720d75-caa1-4abf-8904-1c38cdefffee","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":13,"box":{"x":70,"y":496,"width":804,"height":11}},{"id":"45a54712-0639-4315-b539-43233877b69e","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":13,"box":{"x":265,"y":511,"width":552,"height":12}},{"id":"c80bc598-f281-46cc-82c2-603e91865586","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":13,"box":{"x":265,"y":526,"width":636,"height":12}},{"id":"76bacccf-12b2-48f3-9110-84557e05f2f2","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":13,"box":{"x":265,"y":542,"width":639,"height":11}},{"id":"90fabfb9-ad36-48bc-940c-b31cbf941441","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":13,"box":{"x":265,"y":557,"width":576,"height":11}},{"id":"bb49cb41-8552-4ff2-a221-b2db61294b71","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":13,"box":{"x":265,"y":572,"width":626,"height":11}},{"id":"3e5b1e56-42e5-4d69-9523-87f510e077dd","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":13,"box":{"x":265,"y":587,"width":592,"height":11}},{"id":"f8e595ea-9c4e-436d-bc8b-695681a7ff3e","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Arthur","page_number":13,"box":{"x":265,"y":602,"width":629,"height":11}},{"id":"060a9fc0-65bb-46cf-a2c7-4d27ee37645b","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":13,"box":{"x":265,"y":617,"width":626,"height":11}},{"id":"7b5562e4-83fc-48dd-a2ad-026f208903ca","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":13,"box":{"x":264,"y":632,"width":608,"height":12}},{"id":"e727d0d0-8f6d-46f3-a984-5fb222e7885f","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":13,"box":{"x":265,"y":648,"width":575,"height":11}},{"id":"936ea6c3-61b6-4b07-8f5c-07dc3b6042e9","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":13,"box":{"x":264,"y":663,"width":591,"height":11}},{"id":"55e1ed56-372a-4185-8b19-52358db16c53","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":13,"box":{"x":265,"y":678,"width":627,"height":11}},{"id":"44e21d7b-579b-4256-b203-0be88c814050","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":13,"box":{"x":265,"y":693,"width":578,"height":11}},{"id":"84575681-c80b-47bf-b518-d74914095137","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":13,"box":{"x":265,"y":708,"width":607,"height":11}},{"id":"a21b1d65-9ae3-4c41-adb0-a9a9d50ad6bd","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":13,"box":{"x":265,"y":723,"width":615,"height":11}},{"id":"c6c02029-55fe-49c6-9a25-7c42e5266768","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":13,"box":{"x":265,"y":738,"width":638,"height":11}},{"id":"8253d736-a9f1-4281-ac9a-463eb9fda5b9","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":13,"box":{"x":265,"y":753,"width":635,"height":12}},{"id":"7e04de43-0f2a-449b-a6ef-b1c4c90336da","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":13,"box":{"x":265,"y":768,"width":642,"height":12}},{"id":"c0204881-095a-446e-9d69-3ccfd33765ce","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":13,"box":{"x":265,"y":784,"width":627,"height":11}},{"id":"7dc66c10-6f49-4bb6-a861-378c9099fac1","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":13,"box":{"x":265,"y":799,"width":628,"height":11}},{"id":"70d9c91c-daed-4f19-ac84-99b2494772f5","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":13,"box":{"x":265,"y":814,"width":460,"height":11}},{"id":"846e719c-351e-41b5-bedb-0899146c848c","block_type":"box","text":"I-11","page_number":13,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ea5033b0-183e-412e-bf29-dc0c3edcbc76","block_type":"box","text":"NM0926U-5977658-13/228","page_number":13,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"58ee7339-d195-4172-ae1a-569d4963f432","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":14,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"3bfd5ae6-ac57-430b-a896-43ccfb5814e8","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":14,"box":{"x":70,"y":65,"width":818,"height":12}},{"id":"612ff2e0-19f3-45f4-965e-e2df2e826278","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":14,"box":{"x":264,"y":81,"width":603,"height":11}},{"id":"854bb6a7-b674-4794-b1da-21e3575a5c2f","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":14,"box":{"x":265,"y":96,"width":606,"height":11}},{"id":"47d8928d-b939-419e-be23-1a94aaa39ee3","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":14,"box":{"x":265,"y":111,"width":608,"height":9}},{"id":"4848a230-f6cb-483f-8793-f0c3baf7f0e0","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":14,"box":{"x":265,"y":126,"width":626,"height":11}},{"id":"044db356-130e-4dc1-aa43-fbb34f2bf38c","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":14,"box":{"x":265,"y":141,"width":591,"height":11}},{"id":"42ea5d52-e0d0-4fca-a80a-cd1b04da3e6f","block_type":"box","text":"various private and non-profit boards.","page_number":14,"box":{"x":264,"y":156,"width":265,"height":11}},{"id":"67efdd35-b51b-48da-a4b6-c0851d6d702a","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":14,"box":{"x":70,"y":179,"width":833,"height":11}},{"id":"db779095-73a7-4b7e-806a-d4d28d506c32","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":14,"box":{"x":265,"y":194,"width":638,"height":11}},{"id":"3e923d0a-bfe0-4ac1-b904-b44de9dfa54f","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":14,"box":{"x":265,"y":209,"width":608,"height":11}},{"id":"c30ae834-9d12-407b-80a2-06ea8bb122f3","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":14,"box":{"x":264,"y":224,"width":645,"height":11}},{"id":"8d65b2ba-ce3a-4760-8ff0-9c0a6c5b6af3","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":14,"box":{"x":264,"y":239,"width":639,"height":9}},{"id":"74507de0-faa9-46b9-853c-2a3fc117e6dc","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":14,"box":{"x":264,"y":254,"width":573,"height":12}},{"id":"d5e9dbdd-7d17-4088-87c9-0867329bf44d","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":14,"box":{"x":265,"y":269,"width":625,"height":12}},{"id":"9f4a87f1-96ee-406f-a6d2-a637db09c860","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":14,"box":{"x":265,"y":285,"width":610,"height":11}},{"id":"5edc563e-950f-4d76-974d-05553bc427ec","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":14,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"478f8893-dd35-40bb-8b2c-c87954949184","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":14,"box":{"x":265,"y":315,"width":583,"height":11}},{"id":"a81f6318-7c33-4ea0-9dab-5b8ee70b5c5c","block_type":"box","text":"Directors prior to becoming an Independent Director.","page_number":14,"box":{"x":265,"y":330,"width":372,"height":11}},{"id":"55094ce2-e636-4bf2-aade-ee85636264b5","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":14,"box":{"x":70,"y":353,"width":807,"height":11}},{"id":"33ce144b-60e1-4b7b-bff8-451ebac3fe50","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":14,"box":{"x":264,"y":368,"width":641,"height":11}},{"id":"859d405a-14da-4762-89f5-e1b056aa476f","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":14,"box":{"x":265,"y":383,"width":618,"height":11}},{"id":"325b5643-2f70-4334-95e9-11dc9876cc8c","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":14,"box":{"x":265,"y":398,"width":594,"height":11}},{"id":"3bea43a1-16a0-4e5b-b2e5-42aac473a267","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":14,"box":{"x":265,"y":413,"width":639,"height":11}},{"id":"0a92537e-5a1e-46d4-bd49-e0eb7efa212d","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":14,"box":{"x":265,"y":428,"width":575,"height":11}},{"id":"be553619-9320-4b70-82ef-754e7a9318b7","block_type":"box","text":"Commission rules.","page_number":14,"box":{"x":265,"y":443,"width":131,"height":9}},{"id":"7672ee46-98ce-4e97-a222-659028f7c003","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":14,"box":{"x":69,"y":466,"width":808,"height":11}},{"id":"479d4cba-db24-4cd9-b252-26aec0ca5ca4","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":14,"box":{"x":265,"y":481,"width":630,"height":11}},{"id":"5ed44e95-bb6b-4fcd-8aa9-6780ee7dead2","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":14,"box":{"x":265,"y":496,"width":627,"height":12}},{"id":"50963bf5-1e4f-483d-b14e-6eba42be6b07","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":14,"box":{"x":265,"y":512,"width":632,"height":11}},{"id":"48bcdba1-2915-4251-a8b7-f7966577dcda","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":14,"box":{"x":265,"y":526,"width":615,"height":12}},{"id":"ebde2150-c878-4fb2-a902-052791994ba0","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":14,"box":{"x":265,"y":542,"width":608,"height":11}},{"id":"68cec35e-daeb-48c1-aa58-e3091acb1a39","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":14,"box":{"x":264,"y":557,"width":620,"height":11}},{"id":"6e117238-a1a6-42c8-871c-05466740ceaf","block_type":"box","text":"economy. 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Perlowski","page_number":20,"box":{"x":78,"y":566,"width":127,"height":9}},{"id":"e667d0be-1eb1-48ac-b216-5942e49a72b6","block_type":"box","text":".......................................","page_number":20,"box":{"x":208,"y":573,"width":312,"height":2}},{"id":"e68b691c-c132-4378-82a9-c5c3163de476","block_type":"box","text":"None None None","page_number":20,"box":{"x":575,"y":566,"width":296,"height":9}},{"id":"17a9a3a2-0c5a-4303-944b-00927fbfb59f","block_type":"box","text":"1","page_number":20,"box":{"x":69,"y":589,"width":3,"height":4}},{"id":"26ec40e7-4a84-425c-975a-18d9517a6383","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on","page_number":20,"box":{"x":94,"y":589,"width":788,"height":9}},{"id":"812c298e-848c-4fa0-b12a-b97efdf16c9f","block_type":"box","text":"page I-13.","page_number":20,"box":{"x":94,"y":599,"width":55,"height":9}},{"id":"92736881-ad49-4f27-a3e5-0e33365ac2fa","block_type":"box","text":"2","page_number":20,"box":{"x":69,"y":611,"width":3,"height":3}},{"id":"bc16031b-8276-48ba-8aa4-8bca655ff766","block_type":"box","text":"Compensation includes $546 earned as a consultant to the Independent Directors for the period April 1, 2026 to July 1, 2026.","page_number":20,"box":{"x":93,"y":610,"width":726,"height":9}},{"id":"9622ddd3-ac3d-4618-94fe-ef86c5f1d45b","block_type":"box","text":"3","page_number":20,"box":{"x":69,"y":622,"width":3,"height":3}},{"id":"55cc23f2-4785-42ff-9f35-54ee6e486912","block_type":"box","text":"Chair of the Audit Committee.","page_number":20,"box":{"x":93,"y":622,"width":168,"height":7}},{"id":"16b0baec-027b-48c9-874f-a6ad60243a1b","block_type":"box","text":"4","page_number":20,"box":{"x":68,"y":633,"width":4,"height":4}},{"id":"3775dff2-db3d-4103-a1fd-8a8e65d29d09","block_type":"box","text":"Chair of the Governance Committee.","page_number":20,"box":{"x":93,"y":633,"width":206,"height":7}},{"id":"4844af58-beb4-4aa2-b6d6-5c53f1a9d448","block_type":"box","text":"5","page_number":20,"box":{"x":69,"y":645,"width":3,"height":3}},{"id":"c8555fe1-5612-445a-8c4b-73bb0e286da2","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":20,"box":{"x":93,"y":644,"width":269,"height":9}},{"id":"b932e4f3-1499-4c3a-81b7-595b4a30608d","block_type":"box","text":"6","page_number":20,"box":{"x":69,"y":656,"width":3,"height":3}},{"id":"a99ea096-6c66-4bb6-ba6d-2a276ca71be1","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":20,"box":{"x":93,"y":656,"width":352,"height":9}},{"id":"c79d819c-a85e-485c-9c06-77daa85ec84d","block_type":"box","text":"7","page_number":20,"box":{"x":69,"y":667,"width":3,"height":4}},{"id":"95485e12-5982-4393-8c10-7ecd50c34f4e","block_type":"box","text":"Chair of the Compliance Committee.","page_number":20,"box":{"x":93,"y":667,"width":205,"height":9}},{"id":"0d85ceb0-3895-4b51-b771-eeff740c3709","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":20,"box":{"x":69,"y":696,"width":432,"height":11}},{"id":"59adb812-dd4d-419a-b8aa-cb9379a60207","block_type":"box","text":"Management Agreement","page_number":20,"box":{"x":69,"y":726,"width":180,"height":11}},{"id":"018f294d-1b54-4d1a-a69b-69fc8c6c06aa","block_type":"box","text":"The Corporation, on behalf of the Fund, has entered into a management agreement with the Manager (the","page_number":20,"box":{"x":101,"y":748,"width":754,"height":12}},{"id":"88efdf84-10ce-4f3f-aa0f-a71f429dc360","block_type":"box","text":"”Management Agreement“) pursuant to which the Manager provides the Fund with investment advisory and","page_number":20,"box":{"x":70,"y":764,"width":762,"height":11}},{"id":"580899d4-6fb6-4c13-a115-6bbd8b6cb2bc","block_type":"box","text":"management services and receives for its services to the Fund a monthly fee as a percentage of the average daily","page_number":20,"box":{"x":69,"y":779,"width":816,"height":11}},{"id":"b48fc0af-7dc5-4b56-9dd6-052f2f644319","block_type":"box","text":"net assets of the Fund.","page_number":20,"box":{"x":69,"y":794,"width":164,"height":9}},{"id":"966943ea-b446-4d18-8936-5151eb670dce","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s","page_number":20,"box":{"x":102,"y":816,"width":762,"height":12}},{"id":"c9caf4bb-a688-4b26-bde7-b1cfc636f8b3","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":20,"box":{"x":69,"y":832,"width":799,"height":11}},{"id":"15e6ba1d-09e0-48a5-960c-f00c8669f9ab","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":20,"box":{"x":68,"y":847,"width":726,"height":11}},{"id":"88310e9f-f257-49c8-984f-0085791699be","block_type":"box","text":"June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of","page_number":20,"box":{"x":69,"y":862,"width":799,"height":11}},{"id":"7281f4a4-6363-4d09-9e40-c00acf02cd07","block_type":"box","text":"investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds","page_number":20,"box":{"x":70,"y":877,"width":780,"height":11}},{"id":"e882e1ac-24d1-4240-ba91-123bf549b724","block_type":"box","text":"managed by BlackRock or its affiliates, through June 30, 2028.","page_number":20,"box":{"x":69,"y":892,"width":451,"height":11}},{"id":"10207fab-98aa-4521-a0bd-45bdc0c701a0","block_type":"box","text":"I-18","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"db82c1b0-2e4f-47ac-b434-055848499f8f","block_type":"box","text":"NM0926U-5977658-20/228","page_number":20,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2539fe89-e778-4220-8954-f77b58a88a3c","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual","page_number":21,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"a96bac92-0480-4370-8eb1-c0521d27f873","block_type":"box","text":"Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Interest Expense, Dividend","page_number":21,"box":{"x":70,"y":60,"width":823,"height":11}},{"id":"581a392d-588f-4403-92ff-b34f91d24579","block_type":"box","text":"Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as defined in the Fund’s","page_number":21,"box":{"x":70,"y":75,"width":734,"height":11}},{"id":"85b993df-fa3e-44f5-bca2-8f65d17000f3","block_type":"box","text":"Prospectuses) as a percentage of average daily net assets to 0.73% for Investor A Shares, 1.48% for Investor C","page_number":21,"box":{"x":69,"y":90,"width":798,"height":11}},{"id":"0637d062-665a-4a98-8f5c-7fa95bb406b9","block_type":"box","text":"Shares, 0.48% for Institutional Shares, 0.43% for Class K Shares and 0.98% for Class R Shares through","page_number":21,"box":{"x":69,"y":105,"width":746,"height":11}},{"id":"890a31b0-6b6b-41a4-86c0-215c3da5b9d9","block_type":"box","text":"June 30, 2028. This contractual agreement may be terminated upon 90 days’ notice by a majority of the non","page_number":21,"box":{"x":69,"y":120,"width":780,"height":12}},{"id":"76212b8b-7478-4cb2-9baa-14edc38484f3","block_type":"box","text":"interested directors of the Corporation or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":21,"box":{"x":70,"y":135,"width":798,"height":12}},{"id":"406a15cc-4d09-429a-aefb-ccea0fa587d7","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":21,"box":{"x":102,"y":158,"width":800,"height":11}},{"id":"11d15c87-7bfa-43fa-b519-b88a1a004612","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":21,"box":{"x":70,"y":173,"width":834,"height":11}},{"id":"54f8f6be-6311-4734-8d1e-d83a444ff153","block_type":"box","text":"to perform investment advisory services with respect to the Fund. In addition, the Manager may delegate certain of","page_number":21,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"ee792284-4fa3-4c01-9ce0-01ec8624c3d0","block_type":"box","text":"its management functions under the Management Agreement to one or more of its affiliates to the extent permitted","page_number":21,"box":{"x":70,"y":203,"width":824,"height":12}},{"id":"a607f6b2-5fff-4950-a1cf-57720bec4b3f","block_type":"box","text":"by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in its sole","page_number":21,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"8af2529c-d114-4f4e-ad6b-d84bc283b041","block_type":"box","text":"discretion at any time to the extent permitted by applicable law.","page_number":21,"box":{"x":69,"y":234,"width":451,"height":11}},{"id":"52a9b654-aef3-4e36-9a68-ed71af1a4cf9","block_type":"box","text":"The table below sets forth information about the management fees paid by the Fund and the Master Portfolio to","page_number":21,"box":{"x":101,"y":256,"width":799,"height":12}},{"id":"b5c50402-df9d-422a-9f64-9593b0251ed2","block_type":"box","text":"the Manager, and the amounts waived and/or reimbursed, for the periods indicated.","page_number":21,"box":{"x":68,"y":271,"width":600,"height":12}},{"id":"17a2dad4-5753-4a0c-ac81-eaa8fe29800b","block_type":"box","text":"Fees Paid","page_number":21,"box":{"x":586,"y":300,"width":55,"height":7}},{"id":"e2e1f642-1bda-49b5-be28-5a72ce89fa2b","block_type":"box","text":"to BlackRock","page_number":21,"box":{"x":574,"y":310,"width":79,"height":7}},{"id":"f67a0961-ebbf-4029-8112-6b71ad79578e","block_type":"box","text":"Fees Waived","page_number":21,"box":{"x":700,"y":300,"width":72,"height":7}},{"id":"c3bd204a-6ac2-40cc-8d51-123623a27e46","block_type":"box","text":"by BlackRock","page_number":21,"box":{"x":696,"y":310,"width":80,"height":9}},{"id":"f3549caa-bf56-42e5-856c-135f8731e7d7","block_type":"box","text":"Fees Reimbursed","page_number":21,"box":{"x":810,"y":300,"width":99,"height":7}},{"id":"0588d054-34dd-4583-b17a-b33cd1a6c4df","block_type":"box","text":"by BlackRock","page_number":21,"box":{"x":820,"y":310,"width":80,"height":9}},{"id":"bcbf8af8-feaf-4446-a27e-84338994982c","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,625,370 $1,837,765 $1,407,899","page_number":21,"box":{"x":70,"y":327,"width":833,"height":12}},{"id":"8fcdfb62-9cd8-42b0-95a9-cfe6816889f0","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,845,518 $1,742,614 $1,262,262","page_number":21,"box":{"x":70,"y":342,"width":832,"height":12}},{"id":"a921a154-f0ee-4e0b-911c-d9fb8b327d14","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,632,389 $1,682,854 $1,959,467","page_number":21,"box":{"x":70,"y":357,"width":832,"height":12}},{"id":"30e0af51-b797-462f-af9a-e8e17a49991d","block_type":"box","text":"Administration Agreement","page_number":21,"box":{"x":68,"y":389,"width":191,"height":11}},{"id":"7ef8f55b-b3b8-4906-9c88-e3905b1926e9","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":21,"box":{"x":102,"y":412,"width":711,"height":11}},{"id":"6e5b0685-1b91-4f4e-9b87-439b92c77503","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":21,"box":{"x":69,"y":427,"width":838,"height":11}},{"id":"85ffaca5-5373-4212-9213-4618b405c38a","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":21,"box":{"x":68,"y":442,"width":830,"height":11}},{"id":"4061effa-2f55-4359-8a6b-0fa1c8e56deb","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":21,"box":{"x":70,"y":457,"width":813,"height":12}},{"id":"11415e7d-7f5d-4942-9f98-8bc8709cbfa7","block_type":"box","text":"returns; prepare certain reports required by regulatory authorities; calculate various contractual expenses; determine","page_number":21,"box":{"x":69,"y":473,"width":837,"height":11}},{"id":"4b46548c-79ff-4947-be82-c1f1ffdea107","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":21,"box":{"x":68,"y":487,"width":836,"height":12}},{"id":"1040c4ad-f87a-4dc7-bfa8-91ab228799ff","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":21,"box":{"x":68,"y":503,"width":785,"height":11}},{"id":"9eb51f71-ed80-4c03-900d-3076ae0c805a","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Corporation’s officers,","page_number":21,"box":{"x":69,"y":518,"width":811,"height":11}},{"id":"2fa603c9-b9fc-47af-ba53-3dad6b7a56bf","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":21,"box":{"x":70,"y":533,"width":819,"height":11}},{"id":"542ae43b-5db1-4f5e-b257-77b660108e69","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. 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the","page_number":21,"box":{"x":842,"y":768,"width":35,"height":9}},{"id":"dae93756-a3d5-4267-af63-9aec6790f1c8","block_type":"box","text":"Administrator","page_number":21,"box":{"x":820,"y":778,"width":79,"height":7}},{"id":"a6353ac8-2304-4ce8-995d-2ee8e6859217","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":21,"box":{"x":70,"y":796,"width":238,"height":11}},{"id":"10605048-c767-4d36-aaef-3e158fdeadc0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":21,"box":{"x":314,"y":795,"width":288,"height":11}},{"id":"c375de9c-9c62-4355-ad50-a3fb78396952","block_type":"box","text":"969,030 $684,243 $0","page_number":21,"box":{"x":604,"y":795,"width":264,"height":11}},{"id":"f0776396-1be7-4d41-ab88-5387c674973f","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":21,"box":{"x":70,"y":811,"width":238,"height":11}},{"id":"cb7fcb41-cdec-48b8-890d-0568bfe03f13","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":21,"box":{"x":314,"y":810,"width":288,"height":11}},{"id":"c5b33c9a-d52e-49a0-a2c9-121040f17359","block_type":"box","text":"731,077 $597,751 $0","page_number":21,"box":{"x":605,"y":810,"width":263,"height":11}},{"id":"67140e83-07e0-4e67-98f7-d85056cc068f","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":21,"box":{"x":70,"y":826,"width":238,"height":11}},{"id":"e616980d-6f82-460e-bfc6-ce0a9a838f11","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":21,"box":{"x":314,"y":825,"width":288,"height":11}},{"id":"510356e3-47ba-44db-a59f-6690db55103d","block_type":"box","text":"702,906 $587,519 $0","page_number":21,"box":{"x":605,"y":825,"width":263,"height":11}},{"id":"b5024f45-a3bb-4e76-a2ef-7dabdb472f0b","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides 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The Corporation, on behalf","page_number":21,"box":{"x":69,"y":865,"width":829,"height":11}},{"id":"97b8b269-8078-4945-b442-e24ec96e883d","block_type":"box","text":"of the Fund, reimburses BlackRock for its costs in maintaining the service center, which costs include, among other","page_number":21,"box":{"x":69,"y":880,"width":825,"height":11}},{"id":"00a069c8-51a6-4d1d-9f51-77d1eeb691ac","block_type":"box","text":"things, employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":21,"box":{"x":68,"y":895,"width":585,"height":11}},{"id":"185de92d-3af2-4ac9-8430-1585cad89ff3","block_type":"box","text":"I-19","page_number":21,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"4c31f70e-45c7-44dc-a637-195e36f5ccef","block_type":"box","text":"NM0926U-5977658-21/228","page_number":21,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4075d9d0-a58c-4d43-8249-076e194b876a","block_type":"box","text":"For the periods indicated, the Corporation, on behalf of the Fund, reimbursed to BlackRock fees for shareholder","page_number":22,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"359fa457-2f58-470f-bbed-d711907857bd","block_type":"box","text":"liaison services pursuant to such agreement as follows:","page_number":22,"box":{"x":70,"y":60,"width":397,"height":11}},{"id":"f001d39e-692d-4106-8002-6483916efe42","block_type":"box","text":"Fees Paid","page_number":22,"box":{"x":722,"y":88,"width":56,"height":7}},{"id":"c3ea32c8-7efb-4479-86f8-c121b8a93901","block_type":"box","text":"to BlackRock","page_number":22,"box":{"x":710,"y":98,"width":79,"height":7}},{"id":"3c0a3552-0e20-4793-b8e3-d4a759a9ca2a","block_type":"box","text":"Fees Waived by","page_number":22,"box":{"x":820,"y":88,"width":89,"height":9}},{"id":"1f9e4f95-2cf0-4bbe-a949-58fee493c144","block_type":"box","text":"BlackRock","page_number":22,"box":{"x":833,"y":98,"width":63,"height":7}},{"id":"d4011a55-826d-4d14-b805-9ac6f68de14e","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . .","page_number":22,"box":{"x":70,"y":116,"width":283,"height":11}},{"id":"77fa42d0-5d78-459b-8367-85974c608470","block_type":"box","text":"........................................","page_number":22,"box":{"x":360,"y":123,"width":319,"height":2}},{"id":"4378dd05-9f08-494c-bd20-140ab94946f9","block_type":"box","text":"$266,392 $266,392","page_number":22,"box":{"x":714,"y":115,"width":186,"height":11}},{"id":"778c165f-792e-4e28-ae86-fa3c6a0d0555","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . .","page_number":22,"box":{"x":70,"y":131,"width":283,"height":11}},{"id":"5e204dc0-e98c-44a4-ba63-b06aa69886d0","block_type":"box","text":"........................................","page_number":22,"box":{"x":360,"y":138,"width":319,"height":2}},{"id":"edfcaa32-b4d9-4d00-b627-ef59ff2ac8bf","block_type":"box","text":"$140,102 $140,102","page_number":22,"box":{"x":714,"y":130,"width":186,"height":11}},{"id":"5f265924-c737-422a-8997-3bc9fee42fae","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . .","page_number":22,"box":{"x":70,"y":146,"width":283,"height":11}},{"id":"47c7f81a-a904-42cd-aecf-39d5c782eae0","block_type":"box","text":"........................................","page_number":22,"box":{"x":360,"y":154,"width":319,"height":1}},{"id":"af5c19a6-e46b-433f-a329-926ce5ec85fe","block_type":"box","text":"$220,102 $220,102","page_number":22,"box":{"x":714,"y":145,"width":186,"height":12}},{"id":"12613fdc-8975-4f3e-8973-35c3a85a455a","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":22,"box":{"x":69,"y":178,"width":335,"height":11}},{"id":"7edb87e9-312a-4b70-98ea-e9b1e2178114","block_type":"box","text":"Raffaele Savi, Travis Cooke, CFA, and Richard Mathieson are the portfolio managers and are jointly and primarily","page_number":22,"box":{"x":102,"y":200,"width":803,"height":12}},{"id":"87aa9758-92bb-4603-abfc-81d800ba48c3","block_type":"box","text":"responsible for the day-to-day management of the Fund.","page_number":22,"box":{"x":69,"y":215,"width":395,"height":12}},{"id":"e5b17658-459f-45da-952b-f1500d86c22a","block_type":"box","text":"Other Funds and Accounts Managed","page_number":22,"box":{"x":70,"y":246,"width":265,"height":11}},{"id":"42ca0e04-3c77-4c67-87ff-4300a2ba128a","block_type":"box","text":"The following table sets forth information about funds and accounts other than the Fund, for which the portfolio","page_number":22,"box":{"x":101,"y":268,"width":795,"height":12}},{"id":"338e2099-a60b-4097-9b22-8d7de4ff1f93","block_type":"box","text":"managers are primarily responsible for the day-to-day portfolio management as of May 31, 2026.","page_number":22,"box":{"x":69,"y":283,"width":691,"height":12}},{"id":"dfe9ee04-a81b-49f4-9ba7-b7e60116d54c","block_type":"box","text":"Number of Other Accounts Managed","page_number":22,"box":{"x":365,"y":312,"width":211,"height":9}},{"id":"c9b7bace-47c5-40dc-8474-3f932f0e7ccc","block_type":"box","text":"and Assets by Account Type","page_number":22,"box":{"x":388,"y":322,"width":165,"height":9}},{"id":"305bf280-935f-4a81-9272-c82bc7e27601","block_type":"box","text":"Number of Other Accounts and Assets","page_number":22,"box":{"x":655,"y":312,"width":222,"height":7}},{"id":"e9f1d561-de25-4f71-a916-53cfdd7867e7","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":22,"box":{"x":633,"y":322,"width":265,"height":9}},{"id":"429ef6ac-69f7-451f-9910-a7e0c092e4ad","block_type":"box","text":"Name of Portfolio Manager","page_number":22,"box":{"x":74,"y":365,"width":157,"height":8}},{"id":"281a8e4d-3d0b-435c-938d-705853779fd2","block_type":"box","text":"Other","page_number":22,"box":{"x":354,"y":334,"width":31,"height":7}},{"id":"2d8bc22b-fb56-4e62-9978-265ff4b2d07f","block_type":"box","text":"Registered","page_number":22,"box":{"x":338,"y":344,"width":62,"height":9}},{"id":"fe1f06ea-095b-43e9-b27c-21c2a482f4e9","block_type":"box","text":"Investment","page_number":22,"box":{"x":337,"y":355,"width":65,"height":7}},{"id":"14ae40bd-fb0a-40e4-9a2e-7a388ae61879","block_type":"box","text":"Companies","page_number":22,"box":{"x":337,"y":365,"width":64,"height":8}},{"id":"4f4e2bfe-e660-4694-98dd-1e93cde22138","block_type":"box","text":"Other Pooled","page_number":22,"box":{"x":433,"y":344,"width":75,"height":8}},{"id":"5b3b1b34-f80a-4b13-a542-fe8a0de17bb5","block_type":"box","text":"Investment","page_number":22,"box":{"x":439,"y":355,"width":64,"height":7}},{"id":"bad0cb2f-a380-42da-9fc3-7cbcb17672e7","block_type":"box","text":"Vehicles","page_number":22,"box":{"x":446,"y":365,"width":48,"height":7}},{"id":"db983bda-6d99-43c5-9b30-f410a1c7ac57","block_type":"box","text":"Other","page_number":22,"box":{"x":556,"y":355,"width":32,"height":7}},{"id":"af5da449-b4b7-4d6f-aab0-f21729dc8471","block_type":"box","text":"Accounts","page_number":22,"box":{"x":544,"y":365,"width":55,"height":7}},{"id":"c072937b-057b-47a5-beea-17c1e54e0f19","block_type":"box","text":"Other","page_number":22,"box":{"x":649,"y":334,"width":32,"height":7}},{"id":"5886e305-a808-4dfa-b970-2c22a543933f","block_type":"box","text":"Registered","page_number":22,"box":{"x":634,"y":344,"width":62,"height":9}},{"id":"31bb1d85-49ad-4c34-963d-a72652db331e","block_type":"box","text":"Investment","page_number":22,"box":{"x":633,"y":355,"width":64,"height":7}},{"id":"fef3c4b1-ed9d-4143-94fb-d6de28757ae6","block_type":"box","text":"Companies","page_number":22,"box":{"x":633,"y":365,"width":63,"height":8}},{"id":"6fbb3703-846f-4da6-8283-46c3de23e10d","block_type":"box","text":"Other Pooled","page_number":22,"box":{"x":720,"y":344,"width":75,"height":8}},{"id":"a5b21714-e9c6-4832-a23b-47ad7e568cac","block_type":"box","text":"Investment","page_number":22,"box":{"x":726,"y":355,"width":64,"height":7}},{"id":"ce918a53-08b6-4d57-a15a-dc15d375fea2","block_type":"box","text":"Vehicles","page_number":22,"box":{"x":734,"y":365,"width":48,"height":7}},{"id":"65e22a45-ea23-4f11-bc6d-9d78bb680981","block_type":"box","text":"Other","page_number":22,"box":{"x":843,"y":355,"width":32,"height":7}},{"id":"622b1e5b-4e16-4fd6-a4a8-2c607c07f41b","block_type":"box","text":"Accounts","page_number":22,"box":{"x":832,"y":365,"width":54,"height":7}},{"id":"a8ec472c-40c9-46b6-a627-cee9c9b25cf5","block_type":"box","text":"Travis Cooke, CFA 30 129 20 0 4 6","page_number":22,"box":{"x":73,"y":378,"width":789,"height":9}},{"id":"10577407-50fe-47cf-b344-526684ccc565","block_type":"box","text":"$28.33 Billion $32.31 Billion $20.01 Billion $0 $8.44 Billion $6.67 Billion","page_number":22,"box":{"x":329,"y":390,"width":566,"height":9}},{"id":"3698015a-4e3c-4a59-a864-d1b346c3a1fb","block_type":"box","text":"Richard Mathieson 35 423 46 0 5 9","page_number":22,"box":{"x":74,"y":404,"width":788,"height":7}},{"id":"c04a44d5-da72-48d5-8b33-407fb44df036","block_type":"box","text":"$41.05 Billion $51.33 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":22,"box":{"x":329,"y":416,"width":570,"height":8}},{"id":"9d53de7b-5edc-4381-bf7a-3dc5684e6f09","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":22,"box":{"x":74,"y":429,"width":788,"height":7}},{"id":"64b7fce1-cac1-4491-abef-1282619ba297","block_type":"box","text":"$52.15 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":22,"box":{"x":329,"y":441,"width":566,"height":8}},{"id":"1e8bb7b6-7aef-41c3-be7d-11e757b926e9","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":22,"box":{"x":69,"y":475,"width":304,"height":12}},{"id":"7b9a862c-a55f-4e2b-ad08-1dbd014ed2a1","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":22,"box":{"x":101,"y":498,"width":656,"height":11}},{"id":"b1a769e9-4a26-4bbd-8c9a-ee6747673abc","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":22,"box":{"x":102,"y":521,"width":774,"height":11}},{"id":"f5d7adf0-6a0a-4e2a-850e-1b217ddb30bb","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":22,"box":{"x":70,"y":536,"width":837,"height":11}},{"id":"046850c1-0d53-4062-be94-2cdeb4056a47","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":22,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"65297978-d9a8-4290-8a0a-8576a6830703","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":22,"box":{"x":69,"y":566,"width":799,"height":11}},{"id":"7f106f56-1952-4f78-8b65-44e723372064","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":22,"box":{"x":70,"y":581,"width":670,"height":12}},{"id":"36bcbb35-a017-4ffe-9f2c-e0a8679caf1d","block_type":"box","text":"Base Compensation.","page_number":22,"box":{"x":102,"y":604,"width":148,"height":11}},{"id":"65e1f1c9-c081-4d58-9a31-c58b962c8288","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":22,"box":{"x":257,"y":604,"width":640,"height":11}},{"id":"b24c1dec-68d6-4cb5-a8c2-60826cb7d5c3","block_type":"box","text":"firm.","page_number":22,"box":{"x":68,"y":619,"width":32,"height":9}},{"id":"8e7a2451-df81-4a8d-907a-c57f221675e5","block_type":"box","text":"Discretionary Incentive Compensation","page_number":22,"box":{"x":69,"y":649,"width":277,"height":11}},{"id":"2c84e13b-e104-4d53-bd92-50353f6bdf6c","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc.,","page_number":22,"box":{"x":102,"y":672,"width":792,"height":11}},{"id":"5cba248c-fcd7-4ebd-9a33-08ef4a6a4164","block_type":"box","text":"the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk","page_number":22,"box":{"x":68,"y":687,"width":800,"height":11}},{"id":"1f6590bc-5919-4e51-9147-e0cba9946c85","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to","page_number":22,"box":{"x":69,"y":702,"width":777,"height":12}},{"id":"7858a6d3-075c-4e86-9934-2f153138281b","block_type":"box","text":"predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these","page_number":22,"box":{"x":70,"y":717,"width":817,"height":11}},{"id":"708c99b0-67ef-45eb-8fa5-c43f9781dba3","block_type":"box","text":"portfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":22,"box":{"x":70,"y":732,"width":741,"height":12}},{"id":"b9f70c92-2a35-4516-9914-a3bcdebcb294","block_type":"box","text":"determination with respect to each portfolio manager’s compensation based on the performance of the Funds and","page_number":22,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"15e2d33d-6e8b-44bf-b4e9-b8a6251b656a","block_type":"box","text":"other accounts managed by each portfolio manager relative to the various benchmarks. Performance is generally","page_number":22,"box":{"x":69,"y":763,"width":806,"height":11}},{"id":"a3ed3555-433d-4c04-b17d-4876a8b88746","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The performance of Messrs. Savi,","page_number":22,"box":{"x":69,"y":778,"width":836,"height":11}},{"id":"3bb0e99a-d4bd-4f26-ad5a-9ddf36f61c8c","block_type":"box","text":"Cooke and Mathieson is not measured against a specific benchmark.","page_number":22,"box":{"x":69,"y":793,"width":493,"height":11}},{"id":"82e7153e-574e-4568-ad62-b7f9d1c13933","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":22,"box":{"x":102,"y":816,"width":389,"height":11}},{"id":"d7248a13-80ec-49e6-9b52-021bad56b0fb","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":22,"box":{"x":499,"y":816,"width":383,"height":11}},{"id":"a849b495-28b7-4925-bef2-82e7e22efabb","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":22,"box":{"x":70,"y":831,"width":815,"height":11}},{"id":"16a34d72-2252-4c5d-b3e4-da33f60cc1fa","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":22,"box":{"x":68,"y":846,"width":522,"height":11}},{"id":"b26dc3ee-5205-4918-88c4-1a6c1ed024d9","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":22,"box":{"x":102,"y":869,"width":760,"height":11}},{"id":"1498a1fa-7402-4124-bdef-25229db7b8db","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":22,"box":{"x":69,"y":884,"width":795,"height":11}},{"id":"144bf91f-079a-472b-873a-848b4a73c1f7","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":22,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"97b8d4cc-922e-4be7-8623-be3d8589cb04","block_type":"box","text":"I-20","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"6502dd85-e589-4093-a882-8414fbc899fe","block_type":"box","text":"NM0926U-5977658-22/228","page_number":22,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"95b5fbcd-ed2e-46a7-a5d8-53ac39604e84","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":23,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"1790db04-7119-4bac-9e4e-909aebe9d8a6","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":23,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"b54d259b-10cf-4646-91f5-69b85da013d7","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":23,"box":{"x":69,"y":75,"width":802,"height":11}},{"id":"d68fd7f1-0ee3-42ca-8c51-a82e28e5c04f","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":23,"box":{"x":70,"y":90,"width":820,"height":11}},{"id":"2135a002-c69c-46a0-9199-237b55da2d67","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":23,"box":{"x":70,"y":105,"width":801,"height":11}},{"id":"41d37f7b-bbb0-4a16-b7da-6d883c40a601","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":23,"box":{"x":70,"y":120,"width":831,"height":11}},{"id":"7773372c-98cd-49b5-99c3-deea66314402","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":23,"box":{"x":69,"y":135,"width":479,"height":12}},{"id":"0cf30d47-b320-45bd-9535-1bf09820fbcf","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":23,"box":{"x":102,"y":158,"width":785,"height":11}},{"id":"70f3f0fc-1577-4b03-92aa-c0096eb44732","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":23,"box":{"x":68,"y":173,"width":836,"height":11}},{"id":"9c197f8a-0e38-4309-ac63-0a295b256dee","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":23,"box":{"x":68,"y":188,"width":821,"height":12}},{"id":"5da7c407-4e24-4c93-96bb-126e255c2226","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":23,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"437a0d44-ba82-4187-938b-161bcc26bb71","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":23,"box":{"x":70,"y":218,"width":835,"height":12}},{"id":"104565cb-4205-4ae4-9d45-990e3cc1109c","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":23,"box":{"x":69,"y":234,"width":414,"height":11}},{"id":"220a3265-c018-4fef-a695-a751430fb0b2","block_type":"box","text":"Other Compensation Benefits.","page_number":23,"box":{"x":101,"y":256,"width":218,"height":11}},{"id":"613571bc-6088-484c-8018-0dc2ca0b4624","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":23,"box":{"x":327,"y":256,"width":552,"height":11}},{"id":"61a90572-e0db-4000-a60a-0a605a6c4b64","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":23,"box":{"x":69,"y":271,"width":582,"height":12}},{"id":"a5d17d02-c5a1-4e28-879e-9f4fabd369e5","block_type":"box","text":"Incentive Savings Plans","page_number":23,"box":{"x":102,"y":294,"width":167,"height":11}},{"id":"135c3c2d-c1b7-409d-ac57-3595beaad844","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":23,"box":{"x":274,"y":294,"width":614,"height":11}},{"id":"599b2454-0ae6-42f7-a0ac-cc4f7c3b6dfd","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":23,"box":{"x":69,"y":309,"width":831,"height":11}},{"id":"03cf9a6a-7353-49c4-a897-a5c5fde66e1b","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":23,"box":{"x":70,"y":324,"width":785,"height":11}},{"id":"5b041b05-e594-4f79-83ff-62ade5cc1c51","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":23,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"55251c85-fbd4-41d2-82d2-2857dcd86d60","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":23,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"2f8f7842-7914-4046-9bc7-073dd39119f6","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":23,"box":{"x":69,"y":369,"width":831,"height":12}},{"id":"1a79207c-e197-4aab-8285-2ba0a7d03fd6","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":23,"box":{"x":69,"y":385,"width":798,"height":11}},{"id":"81862d90-042c-4623-8dc7-1941c586fe52","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":23,"box":{"x":70,"y":400,"width":809,"height":11}},{"id":"fcc3ecb5-7d9c-4590-a989-b1d5db9080e6","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":23,"box":{"x":68,"y":415,"width":793,"height":11}},{"id":"e7de1d33-59b6-4e02-b4e5-009f6e778f84","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":23,"box":{"x":70,"y":430,"width":832,"height":11}},{"id":"c92859e2-ec51-4f4d-a206-fbeec5a0258b","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":23,"box":{"x":68,"y":445,"width":805,"height":11}},{"id":"b27b1491-3e63-4579-b6af-e04dc3016698","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":23,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"06e6585a-8121-4bc2-9f06-6ca03bef79f1","block_type":"box","text":"participate in these plans.","page_number":23,"box":{"x":70,"y":476,"width":185,"height":10}},{"id":"891af763-e559-411b-8278-65c01d4a90a7","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":23,"box":{"x":69,"y":506,"width":268,"height":11}},{"id":"d5d517c8-c8bf-4d39-ba75-42727db64274","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":23,"box":{"x":101,"y":528,"width":731,"height":12}},{"id":"49b479d0-af22-4cf2-ad64-c8ee94cc3db2","block_type":"box","text":"beneficially owned by the portfolio managers in the Fund is shown below:","page_number":23,"box":{"x":69,"y":543,"width":519,"height":12}},{"id":"ab74b914-88c1-42fb-b9b5-d546da119368","block_type":"box","text":"Portfolio Manager","page_number":23,"box":{"x":69,"y":582,"width":105,"height":9}},{"id":"0f9cc9eb-b2ac-43c6-b413-5d641fa0a91d","block_type":"box","text":"Dollar Range of Equity","page_number":23,"box":{"x":759,"y":572,"width":129,"height":9}},{"id":"7350997f-c08b-48ca-b952-8aa27fe4218e","block_type":"box","text":"Securities Beneficially Owned","page_number":23,"box":{"x":736,"y":582,"width":173,"height":9}},{"id":"e6a5f23a-e4b4-4724-82f2-2f0ab0e0466e","block_type":"box","text":"Raffaele Savi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":23,"box":{"x":70,"y":599,"width":750,"height":11}},{"id":"33c71472-361e-4816-8b57-17ccaf54a635","block_type":"box","text":"000,000","page_number":23,"box":{"x":822,"y":600,"width":63,"height":10}},{"id":"c4731c49-2171-4ec7-8d15-ad66f61c829c","block_type":"box","text":"Travis Cooke, CFA. . .","page_number":23,"box":{"x":68,"y":615,"width":148,"height":10}},{"id":"15c36734-46c1-407c-92ee-abababf0932a","block_type":"box","text":"............................................................","page_number":23,"box":{"x":223,"y":622,"width":482,"height":2}},{"id":"d8f7d6fa-659a-4e33-921a-f5816db686a6","block_type":"box","text":"$100,001 - $500,000","page_number":23,"box":{"x":744,"y":614,"width":158,"height":11}},{"id":"3559b4eb-eee3-46a7-bb27-82ad19d5986d","block_type":"box","text":"Richard Mathieson .","page_number":23,"box":{"x":70,"y":630,"width":138,"height":9}},{"id":"dbc4eb52-a985-48ab-8937-3be749b8af52","block_type":"box","text":".............................................................","page_number":23,"box":{"x":214,"y":637,"width":491,"height":2}},{"id":"8753028a-1b25-4f03-9dce-a9a5593ce266","block_type":"box","text":"$50,001 - $100,000","page_number":23,"box":{"x":749,"y":629,"width":148,"height":11}},{"id":"2a13aca7-f140-47de-9506-bb8636a93b86","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":23,"box":{"x":69,"y":661,"width":403,"height":12}},{"id":"2adb7f81-feb7-4092-888f-5d58987247ef","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":23,"box":{"x":102,"y":684,"width":727,"height":11}},{"id":"7bc7bcbe-3876-4248-a8f6-4746f44d75a7","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":23,"box":{"x":70,"y":699,"width":814,"height":11}},{"id":"34eeb912-751b-4e71-a73b-7126ca4b871a","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":23,"box":{"x":70,"y":714,"width":837,"height":11}},{"id":"75b451cd-fd6a-47f9-b8b2-25e00be7fcad","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":23,"box":{"x":70,"y":729,"width":810,"height":12}},{"id":"c3026d86-836b-4713-b8db-1e201b277399","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":23,"box":{"x":69,"y":744,"width":782,"height":12}},{"id":"40c92cbd-aebb-43a4-b0d0-caa7039660ab","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":23,"box":{"x":69,"y":760,"width":830,"height":11}},{"id":"46ba63e8-5fc4-48be-bbd3-18595de2c6ea","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":23,"box":{"x":69,"y":775,"width":828,"height":11}},{"id":"a1bf0fd3-b602-4a03-bebb-513c363117c0","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":23,"box":{"x":68,"y":790,"width":834,"height":11}},{"id":"90aaadbd-bffb-4c55-b214-d738fb32e45e","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":23,"box":{"x":70,"y":805,"width":777,"height":11}},{"id":"9a1b9d49-5523-4b2b-873d-7b1736a3f2a5","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":23,"box":{"x":70,"y":820,"width":821,"height":11}},{"id":"b862ec1b-3368-4af4-9480-ec334724e3d3","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":23,"box":{"x":69,"y":835,"width":819,"height":11}},{"id":"0e5b683f-1c06-45b8-bff2-71ccf28f3e33","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":23,"box":{"x":69,"y":850,"width":832,"height":12}},{"id":"485a9d15-c3ae-4d64-899c-5184c1593c12","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":23,"box":{"x":68,"y":865,"width":804,"height":12}},{"id":"7b9c2d65-680d-4867-ac5d-5b67ce0b14eb","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":23,"box":{"x":69,"y":881,"width":760,"height":11}},{"id":"71dd5751-842c-4ab6-880c-322af08eb325","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":23,"box":{"x":69,"y":896,"width":834,"height":11}},{"id":"26916ccd-0883-405c-adc5-acc09e213ef4","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":23,"box":{"x":69,"y":911,"width":836,"height":11}},{"id":"5facb3e6-5f85-4563-95d6-048f7cfb8701","block_type":"box","text":"I-21","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c7cf0a08-5d37-4591-9ccc-cecc1da1299b","block_type":"box","text":"NM0926U-5977658-23/228","page_number":23,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4a783104-df55-49d6-86b3-85e3cab60a61","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":24,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"9c5c2aaf-2b5f-4a52-8dae-828c62a938c5","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":24,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"58c92375-d58c-4ec4-a8fe-591b13bc60ec","block_type":"box","text":"be opposed to the strategy utilized for a Fund. It should also be noted that Messrs. Savi, Cooke and Mathieson may","page_number":24,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"735f0e8b-16bc-49f2-8d11-d62fbc58dad1","block_type":"box","text":"be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only","page_number":24,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"aadc56b5-20be-4413-9fae-2929a95fb0cf","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Savi, Cooke and Mathieson may therefore be entitled to receive a","page_number":24,"box":{"x":69,"y":105,"width":788,"height":11}},{"id":"d9f67ea9-3450-4835-b53f-500b736d9808","block_type":"box","text":"portion of any incentive fees earned on such accounts.","page_number":24,"box":{"x":70,"y":120,"width":390,"height":11}},{"id":"06b0d2da-73f1-412e-bfa2-ca1e555f079f","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":24,"box":{"x":101,"y":143,"width":788,"height":11}},{"id":"c21eedcb-ac4d-4071-a977-2fbad09d0d4e","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":24,"box":{"x":70,"y":158,"width":839,"height":11}},{"id":"8530a78c-d2e8-4ec3-91b0-294391cab40f","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":24,"box":{"x":68,"y":173,"width":823,"height":11}},{"id":"a274541d-d7fd-4a99-868a-79259d899029","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":24,"box":{"x":68,"y":188,"width":812,"height":12}},{"id":"0ffbfa17-5735-4441-a064-9dfb1eef4f02","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":24,"box":{"x":69,"y":203,"width":777,"height":12}},{"id":"9dc34bd8-fe94-4776-9258-4fa32e252ad1","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":24,"box":{"x":70,"y":219,"width":826,"height":10}},{"id":"b52949bc-c086-4ca3-99fd-db47d4804e74","block_type":"box","text":"Custodian","page_number":24,"box":{"x":69,"y":249,"width":72,"height":9}},{"id":"9c3be762-24e2-4df8-be59-25de46976b60","block_type":"box","text":"BNY Mellon, which has its principal offices at 240 Greenwich Street, New York, New York 10286, serves as the","page_number":24,"box":{"x":102,"y":271,"width":794,"height":11}},{"id":"9667aa21-f672-411e-be4d-4769b1a187d5","block_type":"box","text":"custodian for the Fund (the ”Custodian“). The Custodian, among other responsibilities, maintains a custody account","page_number":24,"box":{"x":69,"y":286,"width":828,"height":12}},{"id":"adad944e-5cef-4d28-93a3-60c7fd25012c","block_type":"box","text":"or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase and upon sale or","page_number":24,"box":{"x":69,"y":302,"width":820,"height":11}},{"id":"e483ded4-23ea-4c11-b832-1f8158118629","block_type":"box","text":"maturity, and collects and receives all income and other payments and distributions on account of the assets of the","page_number":24,"box":{"x":69,"y":317,"width":825,"height":11}},{"id":"e8cfa071-567b-49b5-ad54-237ec425e047","block_type":"box","text":"Fund.","page_number":24,"box":{"x":70,"y":332,"width":36,"height":9}},{"id":"07d2e388-3944-4e85-99c8-b278efc572f9","block_type":"box","text":"Transfer Agent","page_number":24,"box":{"x":68,"y":362,"width":107,"height":11}},{"id":"a39a4272-94d4-4410-bd81-b930ae701c9b","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (”BNY MIS“), which has its principal place of business at 118","page_number":24,"box":{"x":102,"y":385,"width":745,"height":11}},{"id":"227a37b6-cd76-473f-b0ed-e297c747df24","block_type":"box","text":"Flanders Road, Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursement agent","page_number":24,"box":{"x":70,"y":400,"width":832,"height":11}},{"id":"c6d27f84-a4dc-4aca-8256-3a93e9e3e0c1","block_type":"box","text":"for the Fund.","page_number":24,"box":{"x":68,"y":415,"width":89,"height":9}},{"id":"9246c509-7b94-4f0d-8e59-ac7559787729","block_type":"box","text":"Accounting Services","page_number":24,"box":{"x":68,"y":445,"width":150,"height":11}},{"id":"09ccbbf6-58cc-42da-b549-4c1904c25fe1","block_type":"box","text":"BNY MIS serves as the accounting services provider for the Fund. BNY MIS records investment, capital share","page_number":24,"box":{"x":102,"y":468,"width":780,"height":11}},{"id":"1ac8756a-8d5a-4c09-95b8-0e3675982101","block_type":"box","text":"and income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers for investment","page_number":24,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"b67db790-874c-4d80-a54a-0e3647696016","block_type":"box","text":"securities; maintains tax lots; reconciles cash with the Fund’s custodian; reports cash balances to the Manager;","page_number":24,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"f1c6ce73-f31b-41a6-9f64-bb66d8123002","block_type":"box","text":"prepares certain financial statements; calculates expenses, gains, losses and income; controls disbursements;","page_number":24,"box":{"x":70,"y":513,"width":796,"height":12}},{"id":"98afd38f-cb4f-4af6-97fc-93b1ce8a244c","block_type":"box","text":"works with independent pricing sources; and computes and reports net asset value. In connection with its accounting","page_number":24,"box":{"x":68,"y":529,"width":839,"height":11}},{"id":"0d17818c-83dd-4ff1-921c-9ac5a20769d6","block_type":"box","text":"services, BNY MIS also provides certain administration services.","page_number":24,"box":{"x":69,"y":544,"width":462,"height":10}},{"id":"a7e1c6ec-42d2-42d3-8a6c-9955be84d7ff","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY MIS and the Manager for accounting services for","page_number":24,"box":{"x":101,"y":566,"width":787,"height":11}},{"id":"abd9dd5d-9e3a-41c3-8e95-6ee227a277e5","block_type":"box","text":"the periods indicated.","page_number":24,"box":{"x":68,"y":582,"width":154,"height":10}},{"id":"cb235aa6-c387-44b7-a054-7c0f37338296","block_type":"box","text":"Fees Paid to BNY MIS Fees Paid to the Manager","page_number":24,"box":{"x":601,"y":610,"width":308,"height":8}},{"id":"7d41b794-202d-4853-a46e-7437b30f8e65","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":24,"box":{"x":70,"y":627,"width":466,"height":11}},{"id":"18918121-f572-4d78-a180-0d25970e17f3","block_type":"box","text":"....","page_number":24,"box":{"x":543,"y":635,"width":26,"height":1}},{"id":"48773ed2-01c8-4346-9672-a49663ef8ac2","block_type":"box","text":"$221,148 $0","page_number":24,"box":{"x":629,"y":627,"width":214,"height":11}},{"id":"183507bf-6896-4810-b708-c356f5482006","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":24,"box":{"x":70,"y":643,"width":466,"height":11}},{"id":"b96d0e48-d98d-4065-bd3e-4a8dcd227c7c","block_type":"box","text":"....","page_number":24,"box":{"x":543,"y":650,"width":26,"height":1}},{"id":"fd5159ee-aa3d-4e36-8ea9-3b152f7fc147","block_type":"box","text":"$200,017 $0","page_number":24,"box":{"x":629,"y":642,"width":214,"height":11}},{"id":"b6f5e6ec-64a4-476e-ad14-11146691bd98","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":24,"box":{"x":70,"y":658,"width":466,"height":11}},{"id":"625d549f-27f5-42ce-97db-b4bb27f23541","block_type":"box","text":"....","page_number":24,"box":{"x":543,"y":665,"width":26,"height":1}},{"id":"094defa2-b3a7-4a2b-900f-8516b83a3fd3","block_type":"box","text":"$197,593 $0","page_number":24,"box":{"x":629,"y":657,"width":214,"height":11}},{"id":"54ccc6ce-e0eb-4667-b9f6-b4b0bcf2197b","block_type":"box","text":"Credit Agreement","page_number":24,"box":{"x":70,"y":689,"width":123,"height":11}},{"id":"b6bc8f20-3c41-4bba-9b75-b2fb8c69ba27","block_type":"box","text":"The Corporation, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates","page_number":24,"box":{"x":101,"y":712,"width":804,"height":11}},{"id":"659b605a-7ca9-4baa-a856-8ce8954c60fe","block_type":"box","text":"(”Participating Funds“), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":24,"box":{"x":69,"y":726,"width":817,"height":12}},{"id":"48138e96-12d0-45d1-aa99-65170b3cc605","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":24,"box":{"x":68,"y":742,"width":743,"height":11}},{"id":"3fa48bd1-8713-4780-aaf9-d54eb61b6487","block_type":"box","text":"commitments designated for a certain Participating Funds, the Participating Funds, including the Fund upon","page_number":24,"box":{"x":69,"y":757,"width":767,"height":11}},{"id":"af4624cb-556d-445c-b805-94b833062785","block_type":"box","text":"becoming a party to the Credit Agreement, can borrow up to an aggregate commitment amount of $1.75 billion at any","page_number":24,"box":{"x":69,"y":772,"width":841,"height":11}},{"id":"adb5d77d-20ac-4d80-a7ee-935e8f4004c3","block_type":"box","text":"time outstanding, subject to asset coverage and other limitations as specified in the Credit Agreement. The Fund may","page_number":24,"box":{"x":68,"y":787,"width":840,"height":12}},{"id":"b0a04237-352d-489b-8d5f-dbd3d2927fc7","block_type":"box","text":"borrow under the Credit Agreement to meet shareholder redemptions and for other lawful purposes. However, the","page_number":24,"box":{"x":69,"y":802,"width":808,"height":12}},{"id":"5edec1f8-12eb-4892-9019-e8c215f4906d","block_type":"box","text":"Fund may not borrow under the Credit Agreement for leverage. The Fund may borrow up to the maximum amount","page_number":24,"box":{"x":70,"y":818,"width":801,"height":11}},{"id":"17c3250c-86ee-49b4-a731-792c055c7d6d","block_type":"box","text":"allowable under its current Prospectus and SAI, subject to various other legal, regulatory or contractual limits.","page_number":24,"box":{"x":69,"y":833,"width":781,"height":11}},{"id":"3fb0bc39-eeef-4c4d-b65d-a4f3a171890b","block_type":"box","text":"Borrowing results in interest expense and other fees and expenses, which may impact the net expenses borne by","page_number":24,"box":{"x":70,"y":848,"width":809,"height":11}},{"id":"bfcc7e0c-fff0-4a38-b471-dd2b1d2fb50f","block_type":"box","text":"remaining shareholders of the Fund. The costs of borrowing may reduce the borrower’s return. The Fund is charged","page_number":24,"box":{"x":69,"y":863,"width":821,"height":11}},{"id":"a26a283c-2502-4415-80d8-399072c4007a","block_type":"box","text":"its pro rata share of upfront fees and commitment fees on the aggregate commitment amount based on its net","page_number":24,"box":{"x":70,"y":878,"width":792,"height":11}},{"id":"54394492-2290-4d1d-b8bf-ea03115db16f","block_type":"box","text":"assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be charged interest at a variable rate.","page_number":24,"box":{"x":69,"y":893,"width":810,"height":11}},{"id":"6449609b-485c-4afc-a29b-6b14ae08478b","block_type":"box","text":"I-22","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"482073aa-cf90-4cbb-8e37-0dd1e0d154c7","block_type":"box","text":"NM0926U-5977658-24/228","page_number":24,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f7cee962-b37f-44d0-a3cb-5617fd4c9517","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":25,"box":{"x":68,"y":45,"width":491,"height":11}},{"id":"4eff7a49-d25b-4e37-9b81-cf385abab365","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":25,"box":{"x":102,"y":67,"width":773,"height":12}},{"id":"3a909d39-1158-4a46-b00d-dd39758617be","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of BlackRock (“affiliates”) for the periods indicated.","page_number":25,"box":{"x":69,"y":82,"width":808,"height":12}},{"id":"3aa4f845-ce30-4f0e-a313-77c25ed82eaf","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”), an affiliate of BlackRock, acts as the distributor to the","page_number":25,"box":{"x":70,"y":98,"width":801,"height":11}},{"id":"ceafabdc-818a-47d5-881d-5866cb193002","block_type":"box","text":"Fund.","page_number":25,"box":{"x":70,"y":113,"width":36,"height":9}},{"id":"13473835-7aa0-4924-9771-928fbc6a1099","block_type":"box","text":"Investor A Shares","page_number":25,"box":{"x":613,"y":141,"width":102,"height":7}},{"id":"a9d4be68-ba3f-4f60-b084-f51e720e3f64","block_type":"box","text":"Gross Sales","page_number":25,"box":{"x":437,"y":177,"width":68,"height":7}},{"id":"8e59e4c4-595b-4977-95e7-a8b61501577a","block_type":"box","text":"Charges Collected","page_number":25,"box":{"x":418,"y":187,"width":107,"height":9}},{"id":"b44f3da5-54d9-42a3-9e2c-3ba5286cb4e3","block_type":"box","text":"Sales Charges","page_number":25,"box":{"x":563,"y":177,"width":84,"height":9}},{"id":"bc3bf626-8853-432a-be53-3454df80130f","block_type":"box","text":"Retained by BRIL","page_number":25,"box":{"x":555,"y":187,"width":100,"height":9}},{"id":"d6d69a63-73d7-4d40-9f3e-d43f41aea923","block_type":"box","text":"Sales Charges","page_number":25,"box":{"x":692,"y":177,"width":83,"height":9}},{"id":"646fcb16-24eb-4cf5-ac2d-6ef6365b0d6a","block_type":"box","text":"Paid to Affiliates","page_number":25,"box":{"x":686,"y":187,"width":96,"height":7}},{"id":"ac304c26-a08c-4dd0-85e8-d8c2dbb634cf","block_type":"box","text":"CDSCs Received","page_number":25,"box":{"x":812,"y":157,"width":97,"height":7}},{"id":"f4d4e13c-a512-4952-ad20-4e1c7113ebf1","block_type":"box","text":"on Redemption","page_number":25,"box":{"x":817,"y":167,"width":87,"height":9}},{"id":"52371705-14b7-490b-8479-c3df6ac7f924","block_type":"box","text":"of Load 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.","page_number":25,"box":{"x":70,"y":220,"width":276,"height":11}},{"id":"8dcfc0d6-dec7-4f9e-acbd-0a2d3b689855","block_type":"box","text":".....","page_number":25,"box":{"x":352,"y":227,"width":35,"height":2}},{"id":"24338496-c790-49b3-9c20-9f8e814d94f9","block_type":"box","text":"$429,358 $32,631 $32,631 $11,172","page_number":25,"box":{"x":436,"y":219,"width":456,"height":11}},{"id":"161daa50-5a41-4fc8-9870-7ca055653bcc","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . .","page_number":25,"box":{"x":70,"y":235,"width":276,"height":11}},{"id":"7b99264c-bb2c-4b5e-a3a0-547190d93a10","block_type":"box","text":".....","page_number":25,"box":{"x":352,"y":242,"width":35,"height":2}},{"id":"c6c98ab3-8f7c-4e2c-bd4a-893ddbe42875","block_type":"box","text":"$367,780 $27,448 $27,448 $ 7,200","page_number":25,"box":{"x":436,"y":234,"width":456,"height":11}},{"id":"50919ae7-7e9a-4af7-969d-7ff1c370c55d","block_type":"box","text":"Investor C Shares","page_number":25,"box":{"x":700,"y":264,"width":102,"height":8}},{"id":"b4849ba9-4829-4951-8a10-59d94b1f27f8","block_type":"box","text":"CDSCs Received by BRIL CDSCs Paid to Affiliates","page_number":25,"box":{"x":592,"y":280,"width":317,"height":9}},{"id":"d1993234-0f25-499f-9b9d-da762a36fe24","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":25,"box":{"x":70,"y":298,"width":239,"height":11}},{"id":"cd2a2d98-905d-4a45-acbe-2d85e123beab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,646 $2,646","page_number":25,"box":{"x":315,"y":297,"width":550,"height":11}},{"id":"dd80166f-4adc-43d8-a49c-b0eb0a39f2d0","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":25,"box":{"x":70,"y":313,"width":239,"height":11}},{"id":"dfb8d384-77c1-4bee-aa3f-a625a340daa8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,980 $1,980","page_number":25,"box":{"x":315,"y":312,"width":550,"height":11}},{"id":"3fd3e895-9b0c-4249-87df-b294880bcbb6","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":25,"box":{"x":70,"y":328,"width":239,"height":11}},{"id":"325b42ad-4070-4edb-8e58-d1e559ebca35","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,093 $1,093","page_number":25,"box":{"x":315,"y":327,"width":550,"height":12}},{"id":"257f7831-b824-47b6-80a5-f64550cc7223","block_type":"box","text":"The table below sets forth the 12b-1 fees that were paid by the Fund for the most recent fiscal year ended","page_number":25,"box":{"x":101,"y":352,"width":759,"height":11}},{"id":"3c4eb705-b5dc-4412-8b0a-fd737cee1ec3","block_type":"box","text":"May 31, 2026 pursuant to the Fund’s 12b-1 plan. A portion of the fees collected by BRIL was paid to affiliates for","page_number":25,"box":{"x":70,"y":367,"width":812,"height":11}},{"id":"41d4b702-4456-421c-9639-de6a1debf70d","block_type":"box","text":"providing shareholder servicing activities for Investor A and for providing shareholder servicing and distribution","page_number":25,"box":{"x":70,"y":382,"width":785,"height":12}},{"id":"51e28a35-5107-493f-8dfa-8bc3433f3a28","block_type":"box","text":"related activities and services for Investor C and Class R Shares.","page_number":25,"box":{"x":69,"y":397,"width":464,"height":9}},{"id":"36267f93-cbe0-48a6-90ba-b8538b79bbbe","block_type":"box","text":"Class Name","page_number":25,"box":{"x":69,"y":426,"width":68,"height":7}},{"id":"f099d8da-1d78-475b-880b-96082d12dd9b","block_type":"box","text":"Fees Paid to BRIL","page_number":25,"box":{"x":806,"y":426,"width":103,"height":7}},{"id":"876370ee-a463-4840-bb57-057c689ad501","block_type":"box","text":"Investor A Shares .","page_number":25,"box":{"x":70,"y":443,"width":134,"height":9}},{"id":"f5128af5-b59a-4810-8c16-6a589928bd13","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,","page_number":25,"box":{"x":210,"y":443,"width":626,"height":11}},{"id":"ed33b376-795c-4c33-b62a-2130f5bd609c","block_type":"box","text":"399,637","page_number":25,"box":{"x":838,"y":443,"width":62,"height":11}},{"id":"647de226-cec2-4e8a-ad76-8f5fb3909f4d","block_type":"box","text":"Investor C Shares . . .","page_number":25,"box":{"x":70,"y":459,"width":150,"height":8}},{"id":"1fc84016-ec5b-456a-96ca-dc35f0817a3d","block_type":"box","text":".................................................................... $","page_number":25,"box":{"x":226,"y":458,"width":596,"height":10}},{"id":"e4221ce6-50c8-4d08-af15-1e9bef659d61","block_type":"box","text":"495,171","page_number":25,"box":{"x":838,"y":459,"width":63,"height":10}},{"id":"31ef9e49-ed3b-4172-be9b-62eef15894e5","block_type":"box","text":"Class R Shares","page_number":25,"box":{"x":69,"y":474,"width":109,"height":9}},{"id":"ed463631-723d-4771-b3ec-304ae0cbd002","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,996","page_number":25,"box":{"x":185,"y":473,"width":716,"height":11}},{"id":"30a0ab30-3699-454d-b855-e7a2282d90c8","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":25,"box":{"x":68,"y":505,"width":318,"height":11}},{"id":"ab2e7382-4c0d-4847-bdb7-4200998a24ba","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund based on the","page_number":25,"box":{"x":101,"y":528,"width":790,"height":11}},{"id":"6f89476d-4318-40dc-85f2-193311317ccc","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on","page_number":25,"box":{"x":68,"y":543,"width":731,"height":11}},{"id":"38701d85-17d5-4419-a6df-2d9f613c425b","block_type":"box","text":"May 31, 2026, is set forth below.","page_number":25,"box":{"x":70,"y":558,"width":238,"height":11}},{"id":"7263c8ab-d6b7-4cf0-bd8c-7570e4780a70","block_type":"box","text":"Investor A Shares","page_number":25,"box":{"x":798,"y":586,"width":102,"height":7}},{"id":"f17dfe44-ae28-4770-b91f-cb3f23ba30a0","block_type":"box","text":"Net Assets . . .","page_number":25,"box":{"x":70,"y":604,"width":100,"height":9}},{"id":"57c335b5-5d03-403b-a83c-0e98508caaa2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,958,","page_number":25,"box":{"x":176,"y":603,"width":669,"height":11}},{"id":"1eb8a868-a8f4-4c43-9fc5-402bb143fbdf","block_type":"box","text":"677,724","page_number":25,"box":{"x":847,"y":604,"width":62,"height":10}},{"id":"99fa6a13-4434-416b-8f28-6dbef8f9b111","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . .","page_number":25,"box":{"x":70,"y":619,"width":320,"height":11}},{"id":"1904874e-afa9-4702-a04a-f317fd394112","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,","page_number":25,"box":{"x":396,"y":619,"width":449,"height":11}},{"id":"f0f828d8-37ba-41c2-8346-f9d0a20a6039","block_type":"box","text":"169,097","page_number":25,"box":{"x":847,"y":619,"width":61,"height":11}},{"id":"d09d029f-b259-47c4-9f79-84406bda4697","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":25,"box":{"x":70,"y":634,"width":571,"height":12}},{"id":"035650e4-75b3-4021-924b-4aab63b29e8b","block_type":"box","text":"..............","page_number":25,"box":{"x":649,"y":642,"width":108,"height":1}},{"id":"2a9e27ac-1a02-4e30-a397-b9139e0333d5","block_type":"box","text":"$25.38","page_number":25,"box":{"x":857,"y":634,"width":52,"height":10}},{"id":"56fd5751-bca8-44b2-8cb9-86c83d701de4","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":25,"box":{"x":69,"y":649,"width":534,"height":12}},{"id":"fadec2e4-393c-495d-9ac3-858ffac6bcd0","block_type":"box","text":"1","page_number":25,"box":{"x":604,"y":650,"width":4,"height":4}},{"id":"e1a7a94d-a3c7-4d50-80e5-be3ba39a8560","block_type":"box","text":". . . . . . . . . . . . . . . . . . 1.41","page_number":25,"box":{"x":616,"y":650,"width":293,"height":8}},{"id":"4be5c514-0e70-47df-a264-12f6f743b8a8","block_type":"box","text":"Offering Price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":25,"box":{"x":69,"y":669,"width":687,"height":11}},{"id":"ae54ea7f-67e4-44f9-b03a-37cb22112b62","block_type":"box","text":"$26.79","page_number":25,"box":{"x":857,"y":668,"width":52,"height":11}},{"id":"b220b444-64d5-481c-8e7e-c28911a49899","block_type":"box","text":"1","page_number":25,"box":{"x":69,"y":701,"width":3,"height":4}},{"id":"0a9590de-4013-4a88-a610-d93d4262bf66","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":25,"box":{"x":94,"y":701,"width":541,"height":9}},{"id":"9a5130b0-4722-485b-9843-e8c8bc7b016b","block_type":"box","text":"The offering price for the other share classes of the Fund is equal to the share class’s net asset value computed","page_number":25,"box":{"x":101,"y":722,"width":806,"height":11}},{"id":"1b9bd4aa-5ab3-4031-8aed-666c9f508644","block_type":"box","text":"as set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject","page_number":25,"box":{"x":69,"y":737,"width":837,"height":11}},{"id":"59799063-1774-4465-88f8-f6fa7a511e07","block_type":"box","text":"to a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":25,"box":{"x":68,"y":752,"width":833,"height":11}},{"id":"87b510bd-7bd4-459d-a1de-9cca1d24df10","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":25,"box":{"x":69,"y":767,"width":377,"height":11}},{"id":"b545ef20-7fdf-456e-a68d-f36f5d4d761e","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":25,"box":{"x":68,"y":797,"width":302,"height":12}},{"id":"d7fae644-fc28-4c1e-bc4e-4cd46a13060d","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":25,"box":{"x":102,"y":820,"width":609,"height":11}},{"id":"46fa1781-52c9-4f66-92d2-25dcd5ecbded","block_type":"box","text":"Information about the brokerage commissions, including commissions paid to affiliates, paid by the Fund for the","page_number":25,"box":{"x":102,"y":843,"width":800,"height":11}},{"id":"544db2fc-d260-49f6-852b-ac0e5495c8fd","block_type":"box","text":"periods indicated is set forth below.","page_number":25,"box":{"x":70,"y":858,"width":253,"height":11}},{"id":"9eef7ef1-e6d8-4e5e-9df4-507e9a1440d8","block_type":"box","text":"I-23","page_number":25,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"b19a259a-dc6f-4cab-92f7-fb0ee7f43eb6","block_type":"box","text":"NM0926U-5977658-25/228","page_number":25,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7b69c237-5af3-452a-931c-5496d8daf07e","block_type":"box","text":"Aggregate Brokerage","page_number":26,"box":{"x":613,"y":49,"width":125,"height":9}},{"id":"a94dcdc4-3f9c-404c-be8d-10ffe3c56b08","block_type":"box","text":"Commissions Paid","page_number":26,"box":{"x":623,"y":59,"width":106,"height":7}},{"id":"60adb149-3389-41c0-99b1-f6b537318e76","block_type":"box","text":"Brokerage Commissions","page_number":26,"box":{"x":769,"y":49,"width":140,"height":9}},{"id":"1f68ad67-887a-4b56-8866-e5e035492b06","block_type":"box","text":"Paid to Affiliates","page_number":26,"box":{"x":791,"y":59,"width":96,"height":7}},{"id":"ae1b2623-adce-42b8-8e4f-a8e05de1e8ae","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":26,"box":{"x":70,"y":77,"width":292,"height":11}},{"id":"aec9f158-79c5-4535-a538-07955981787b","block_type":"box","text":"...........................","page_number":26,"box":{"x":369,"y":84,"width":213,"height":2}},{"id":"8ebc9c5f-983f-4663-872d-cc4bb0bdcfa8","block_type":"box","text":"$522,273 $0","page_number":26,"box":{"x":640,"y":76,"width":208,"height":11}},{"id":"61d65535-9a80-4ddb-a85f-cc9c2f29eac6","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":26,"box":{"x":70,"y":92,"width":292,"height":11}},{"id":"8b7d8849-2a92-46ff-ba0d-2de71a7c2da6","block_type":"box","text":"...........................","page_number":26,"box":{"x":369,"y":99,"width":213,"height":2}},{"id":"627034c3-cc43-4a44-963b-e3acc9f546d6","block_type":"box","text":"$497,619 $0","page_number":26,"box":{"x":640,"y":91,"width":208,"height":11}},{"id":"d692722d-7a29-4da4-82c2-4f676a19207e","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":26,"box":{"x":70,"y":107,"width":292,"height":11}},{"id":"9837d554-d346-403c-afde-ec4fafc0bd60","block_type":"box","text":"...........................","page_number":26,"box":{"x":369,"y":114,"width":213,"height":2}},{"id":"9e981406-4c22-49f9-bcb4-fe386251cb1e","block_type":"box","text":"$973,888 $0","page_number":26,"box":{"x":640,"y":106,"width":208,"height":11}},{"id":"84b18e35-8787-40e3-8e27-18bd1099078e","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":26,"box":{"x":101,"y":131,"width":770,"height":11}},{"id":"cefcd0ed-cae0-4d60-ae0c-77fd00020d5f","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":26,"box":{"x":69,"y":146,"width":814,"height":11}},{"id":"44a529db-362b-48cc-94d5-71f9191a9f5d","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":26,"box":{"x":68,"y":161,"width":829,"height":11}},{"id":"7ac8189d-09f2-44a9-9077-80e45e0e7d4b","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":26,"box":{"x":69,"y":176,"width":822,"height":12}},{"id":"e69143ab-501c-4530-b4b6-7c94814090a2","block_type":"box","text":"with such brokers.","page_number":26,"box":{"x":68,"y":192,"width":130,"height":8}},{"id":"8908cd62-ee0a-4e2a-9437-8363517fc4aa","block_type":"box","text":"Amount of Commissions","page_number":26,"box":{"x":289,"y":220,"width":141,"height":7}},{"id":"423b206f-5152-4aa8-b7ad-1684e28fc370","block_type":"box","text":"Paid to Brokers for Providing","page_number":26,"box":{"x":276,"y":230,"width":168,"height":9}},{"id":"f342ace5-cf42-4a93-98fa-24d65ad14bc7","block_type":"box","text":"28(e) Eligible Research Services","page_number":26,"box":{"x":264,"y":240,"width":191,"height":9}},{"id":"08d4f3cf-2cac-4fb3-892f-3757df26c832","block_type":"box","text":"Amount of Brokerage","page_number":26,"box":{"x":588,"y":230,"width":124,"height":9}},{"id":"aa961688-9967-4aac-b0cc-8fa5d56355ad","block_type":"box","text":"Transactions Involved","page_number":26,"box":{"x":587,"y":240,"width":126,"height":7}},{"id":"c5ea13e0-1f77-4f64-9909-b65d0b10dedb","block_type":"box","text":"$287,166 $1,693,524,860","page_number":26,"box":{"x":324,"y":257,"width":387,"height":11}},{"id":"eb13e4b7-440b-4025-a85b-7118525f2957","block_type":"box","text":"The value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers (as defined in Rule","page_number":26,"box":{"x":101,"y":281,"width":796,"height":12}},{"id":"023ebd4e-5b1b-4c6f-ab03-4d1ca2d29461","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents as of May 31, 2026 if any portion of such holdings were","page_number":26,"box":{"x":70,"y":297,"width":821,"height":11}},{"id":"17a0a2fc-073b-41ff-a971-6eef46925bb6","block_type":"box","text":"purchased during the fiscal year ended May 31, 2026, is as follows:","page_number":26,"box":{"x":70,"y":312,"width":485,"height":11}},{"id":"8af4e209-22c7-4886-bd3c-0f1c935bb3ae","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":26,"box":{"x":69,"y":340,"width":840,"height":9}},{"id":"b68b7e9e-0a89-494f-b8b7-f678cf378104","block_type":"box","text":"J.P. Morgan Securities LLC . .","page_number":26,"box":{"x":69,"y":358,"width":209,"height":11}},{"id":"e3b83607-72c6-4846-bff5-0925eebe906f","block_type":"box","text":".................................... E","page_number":26,"box":{"x":284,"y":358,"width":380,"height":9}},{"id":"be780fd2-390d-4e89-a4ce-dfa1507ae291","block_type":"box","text":"$74,063","page_number":26,"box":{"x":797,"y":357,"width":62,"height":11}},{"id":"b8f7774f-0b39-40cf-b834-bd21e72be84c","block_type":"box","text":"Morgan Stanley & Co. LLC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E","page_number":26,"box":{"x":70,"y":373,"width":594,"height":11}},{"id":"607c6655-cca6-4be1-84af-c8517db72cd5","block_type":"box","text":"$71,372","page_number":26,"box":{"x":797,"y":372,"width":62,"height":11}},{"id":"96c60bfc-f65b-4749-9adf-d7d9d0e34567","block_type":"box","text":"BOFA Securities Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E","page_number":26,"box":{"x":70,"y":388,"width":594,"height":9}},{"id":"8820301e-70cd-4f17-af99-80f3e7422efb","block_type":"box","text":"$68,203","page_number":26,"box":{"x":797,"y":387,"width":62,"height":11}},{"id":"16bfa5c4-29ac-467f-824a-26f373317434","block_type":"box","text":"Citi Group Global Markets Inc. . . . . . . . . . .","page_number":26,"box":{"x":69,"y":403,"width":298,"height":11}},{"id":"d8a2c937-a17f-473a-92a2-a2f1c9b7774a","block_type":"box","text":"......................... E","page_number":26,"box":{"x":374,"y":403,"width":290,"height":9}},{"id":"59f960d0-136f-4a18-a65f-8570641c5084","block_type":"box","text":"$12,129","page_number":26,"box":{"x":797,"y":402,"width":62,"height":12}},{"id":"cc180cc5-9ebe-437e-a221-41a2925bde64","block_type":"box","text":"Securities Lending","page_number":26,"box":{"x":68,"y":435,"width":135,"height":11}},{"id":"17aa6636-3705-4b15-b1aa-8c43fa7f7024","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":26,"box":{"x":101,"y":457,"width":807,"height":12}},{"id":"5e89c19e-038c-4fd4-bbf3-f75a99a80f6f","block_type":"box","text":"exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated with the Fund","page_number":26,"box":{"x":69,"y":472,"width":817,"height":12}},{"id":"2d3185b3-65c4-4c97-b0d1-f40c930fbb07","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":26,"box":{"x":69,"y":487,"width":813,"height":12}},{"id":"8bf7120b-8794-4c04-8293-ccb3a1ba9c08","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":26,"box":{"x":70,"y":503,"width":838,"height":11}},{"id":"8c06e84b-32ee-49a5-bd96-bf7afbef2f22","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":26,"box":{"x":69,"y":518,"width":813,"height":11}},{"id":"1c23bc09-fcb9-4681-b82a-d5c660058e19","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board of Directors.","page_number":26,"box":{"x":70,"y":533,"width":734,"height":11}},{"id":"d02f59e6-6158-43b3-8c1f-21127fdc4d7c","block_type":"box","text":"The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as","page_number":26,"box":{"x":101,"y":555,"width":735,"height":12}},{"id":"42e7669d-3f9d-43eb-8fb4-7ce7aa6f3858","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":26,"box":{"x":69,"y":571,"width":834,"height":11}},{"id":"9e9047a9-7e92-4e86-9aee-94dfcc4a256d","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":26,"box":{"x":70,"y":586,"width":822,"height":11}},{"id":"58878ac4-f34f-4d28-a110-f4b86850f3d6","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":26,"box":{"x":69,"y":601,"width":787,"height":11}},{"id":"f7c21fca-d0f7-40d2-a619-83d62b8610ce","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":26,"box":{"x":69,"y":616,"width":783,"height":11}},{"id":"9dc7c6e7-b9a4-4bcc-906b-618fe57062ba","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by the Manager (the","page_number":26,"box":{"x":70,"y":631,"width":816,"height":11}},{"id":"565036fc-1c38-4a75-b95d-d0f3de7a35af","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":26,"box":{"x":70,"y":646,"width":813,"height":11}},{"id":"8408e425-0821-442d-86f4-28de08a6d5a7","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":26,"box":{"x":70,"y":661,"width":830,"height":12}},{"id":"164fe08e-e6df-4502-a1d2-9fe907898a30","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":26,"box":{"x":69,"y":676,"width":773,"height":12}},{"id":"c64b4e7e-80a6-43b4-93bd-fd7d072e77a7","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":26,"box":{"x":101,"y":699,"width":776,"height":11}},{"id":"8e4ef560-260f-48e2-9e99-7a46bfb1668e","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":26,"box":{"x":69,"y":714,"width":831,"height":11}},{"id":"88a2580f-88ae-47ee-b7bc-3cc09c2bcf08","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":26,"box":{"x":68,"y":729,"width":812,"height":12}},{"id":"5c285997-623c-492e-8449-4ae723acacb6","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":26,"box":{"x":69,"y":744,"width":799,"height":12}},{"id":"2670418e-5aec-4d8c-b1cd-e8f8a3370769","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":26,"box":{"x":68,"y":760,"width":835,"height":11}},{"id":"278b18b9-fe9a-4fd7-816d-8a76043414ad","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":26,"box":{"x":69,"y":775,"width":818,"height":11}},{"id":"40f55907-ab6c-4e2a-a6b3-b688e738143d","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":26,"box":{"x":68,"y":790,"width":789,"height":11}},{"id":"fd748b4e-db7f-4a3c-8bcb-d18d3f7da414","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":26,"box":{"x":69,"y":805,"width":829,"height":11}},{"id":"db587dbe-106a-4711-b162-7e5292df51c6","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":26,"box":{"x":69,"y":820,"width":839,"height":11}},{"id":"32268b20-3242-4845-81b1-62bce357a99c","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":26,"box":{"x":69,"y":835,"width":802,"height":11}},{"id":"3699e5fa-51ca-4a44-843e-42c2b9097f9d","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":26,"box":{"x":70,"y":850,"width":830,"height":12}},{"id":"56e3e8a2-9e54-4562-ad19-852595d26de9","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":26,"box":{"x":69,"y":865,"width":838,"height":12}},{"id":"2be48b15-16ea-4705-a8c4-008e35f5c222","block_type":"box","text":"Fund’s returns on securities lending.","page_number":26,"box":{"x":70,"y":881,"width":258,"height":11}},{"id":"6905212d-52ca-45f3-9fef-38248c096801","block_type":"box","text":"I-24","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cf8783bd-367c-47e2-8a02-ededb0bf2011","block_type":"box","text":"NM0926U-5977658-26/228","page_number":26,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6ce9da4f-020e-4bc5-b65b-c1b8a991e888","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":27,"box":{"x":102,"y":45,"width":774,"height":11}},{"id":"48bcd2c3-3fb6-465f-adeb-4824181cddcf","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":27,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"680ae16a-6028-421a-bdb6-013602b8acac","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":27,"box":{"x":68,"y":75,"width":809,"height":11}},{"id":"921d5964-e714-4e3d-86fa-8efc6287c76c","block_type":"box","text":"Corporation and BIM.","page_number":27,"box":{"x":69,"y":90,"width":149,"height":11}},{"id":"858c408c-7ea7-4f2d-a90f-2daeb51c2332","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":27,"box":{"x":102,"y":113,"width":783,"height":11}},{"id":"f9a0dc0a-454b-401e-acf5-9d63a80a057a","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":27,"box":{"x":70,"y":128,"width":815,"height":11}},{"id":"25be0ba7-1bfd-46a6-abe5-0b372b22dcb8","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":27,"box":{"x":69,"y":143,"width":463,"height":11}},{"id":"4aed28f9-dd5c-4cee-a815-5cbf0959c8d7","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":27,"box":{"x":102,"y":166,"width":753,"height":11}},{"id":"9f6b721b-a5dc-4035-8ec2-736c2b1c5edf","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":27,"box":{"x":69,"y":181,"width":778,"height":11}},{"id":"c76d2877-207d-43b3-9e8c-816a58051996","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":27,"box":{"x":70,"y":196,"width":817,"height":11}},{"id":"5fbc1c53-b523-40d1-9882-d2d648ed2798","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":27,"box":{"x":70,"y":211,"width":794,"height":11}},{"id":"07bc01e8-3d7c-4975-9c39-27a6a10fd522","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":27,"box":{"x":69,"y":226,"width":825,"height":11}},{"id":"e7a573e2-82ba-46bb-93a3-4de031e1d6e7","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":27,"box":{"x":102,"y":249,"width":683,"height":11}},{"id":"1e7c86c3-2f3a-4488-8162-6340343aa00d","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":27,"box":{"x":101,"y":271,"width":803,"height":12}},{"id":"615a959b-a603-4034-a57f-1087139872eb","block_type":"box","text":"the following:","page_number":27,"box":{"x":68,"y":286,"width":93,"height":12}},{"id":"131469c1-2f5d-43ff-a586-c16f974518c2","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":27,"box":{"x":69,"y":307,"width":818,"height":11}},{"id":"b47c7253-c4e7-47d3-8416-b876e69a3fa9","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":27,"box":{"x":102,"y":322,"width":333,"height":10}},{"id":"4d90fc00-8397-4d36-8585-2af410813dbe","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":27,"box":{"x":69,"y":342,"width":538,"height":11}},{"id":"bfd110df-b942-4aee-b687-4037ead37da2","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":27,"box":{"x":69,"y":362,"width":330,"height":11}},{"id":"2e1e9bdd-6275-4958-88d0-3cc0480f7fc1","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":27,"box":{"x":69,"y":382,"width":834,"height":12}},{"id":"eeed397b-b2d9-4cf6-9d0e-41b725c9591e","block_type":"box","text":"of excess collateral, as necessary;","page_number":27,"box":{"x":102,"y":397,"width":246,"height":12}},{"id":"08fb06b1-3a1d-418b-b71e-323a295fd7ec","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":27,"box":{"x":69,"y":418,"width":562,"height":11}},{"id":"5390f49b-9562-473e-9ab7-b77974975622","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":27,"box":{"x":69,"y":438,"width":665,"height":11}},{"id":"19c5cdb4-86e4-405d-aae8-003c72d34316","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":27,"box":{"x":69,"y":458,"width":822,"height":11}},{"id":"267b2f70-7658-46e3-8565-e708b3779644","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":27,"box":{"x":101,"y":473,"width":803,"height":11}},{"id":"c553b637-75aa-495a-a70c-7a974d778e7e","block_type":"box","text":"of the loaned securities; and","page_number":27,"box":{"x":102,"y":488,"width":203,"height":11}},{"id":"94fbab1c-f3b7-4734-90b4-4c38238a82b3","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":27,"box":{"x":69,"y":508,"width":808,"height":12}},{"id":"c74bb54d-be0b-47bc-802c-921a6bbcb9e1","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":27,"box":{"x":101,"y":531,"width":805,"height":11}},{"id":"e4873ee7-25fe-4a98-b04f-044f149d2263","block_type":"box","text":"activities of the Fund and the Master Portfolio during the most recent fiscal year ended May 31, 2026.","page_number":27,"box":{"x":69,"y":546,"width":730,"height":11}},{"id":"847292e1-8814-4fd3-989c-31c7f39f447d","block_type":"box","text":"Gross income from securities lending activities","page_number":27,"box":{"x":69,"y":574,"width":343,"height":11}},{"id":"69078b7e-85b3-4364-bf58-89fbeb086e01","block_type":"box","text":"...................................................","page_number":27,"box":{"x":416,"y":581,"width":409,"height":2}},{"id":"10f8ed0a-932a-4db9-812f-ccfefe460020","block_type":"box","text":"$31,512","page_number":27,"box":{"x":847,"y":573,"width":62,"height":12}},{"id":"7f17941b-277f-423e-a78a-10882b428d1f","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":27,"box":{"x":70,"y":593,"width":565,"height":12}},{"id":"f2fe26a8-49f0-4fe5-811e-814ff8e21276","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":27,"box":{"x":79,"y":608,"width":599,"height":12}},{"id":"6ba37f05-e618-4e71-8fb6-7bf9c6759a09","block_type":"box","text":". . . . . . . . . . . . . . . . . . $ 2,501","page_number":27,"box":{"x":685,"y":608,"width":224,"height":11}},{"id":"64522275-a5ef-4e58-a67a-b7d59187f02d","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM. .","page_number":27,"box":{"x":79,"y":624,"width":673,"height":11}},{"id":"71d8bd7c-df18-4d99-bab6-de5187220082","block_type":"box","text":". . . . . . . . . $ 266","page_number":27,"box":{"x":758,"y":623,"width":151,"height":10}},{"id":"6646e8d6-5003-4dba-89d1-f44546faabea","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":27,"box":{"x":78,"y":639,"width":551,"height":11}},{"id":"cc84e8c3-70d1-417b-98f7-e8bb1cc62560","block_type":"box","text":"........................ $ 0","page_number":27,"box":{"x":636,"y":638,"width":273,"height":10}},{"id":"23351d6a-636a-4c6b-92d3-acc64f48072a","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":27,"box":{"x":79,"y":654,"width":567,"height":11}},{"id":"bb966076-3dc5-433a-90fd-73d0c4111e41","block_type":"box","text":"...................... $ 0","page_number":27,"box":{"x":652,"y":653,"width":257,"height":11}},{"id":"ee37eb60-b8b3-4988-a003-0c745805799a","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":669,"width":289,"height":11}},{"id":"022cbd9c-17f7-47aa-a27e-7cbc11e3fe58","block_type":"box","text":"........................................................","page_number":27,"box":{"x":375,"y":676,"width":450,"height":2}},{"id":"b6a3fb20-2cb2-40ad-9eb6-c2a39af4518a","block_type":"box","text":"$18,151","page_number":27,"box":{"x":847,"y":668,"width":62,"height":11}},{"id":"be7e2a1c-9dc7-4237-9acb-8fca3e6b65fe","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":27,"box":{"x":79,"y":684,"width":542,"height":11}},{"id":"5f624607-b7df-4e3d-9f10-a8397a667857","block_type":"box","text":"......................... $ 0","page_number":27,"box":{"x":628,"y":683,"width":281,"height":11}},{"id":"9345e9fa-765b-4a62-90ac-bdaf56511037","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":27,"box":{"x":68,"y":699,"width":455,"height":11}},{"id":"46098b07-6434-4f68-852f-2f4691d2ec9e","block_type":"box","text":".....................................","page_number":27,"box":{"x":530,"y":707,"width":295,"height":1}},{"id":"7cf91b53-3644-449d-a2a0-ed850326b6f5","block_type":"box","text":"$20,918","page_number":27,"box":{"x":847,"y":699,"width":62,"height":11}},{"id":"e3fe4194-7668-4fed-a899-02c40cc166d3","block_type":"box","text":"Net income from securities lending 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Effective September 29, 2006, the Corporation changed its name to BlackRock Large Cap","page_number":28,"box":{"x":68,"y":98,"width":814,"height":11}},{"id":"6e46a4bc-c974-4241-8e03-294fc37ce8b5","block_type":"box","text":"Series Funds, Inc. Currently, the Corporation is comprised of three series: BlackRock Advantage Large Cap Value","page_number":28,"box":{"x":69,"y":113,"width":802,"height":11}},{"id":"25c9e74c-ac8c-49e9-b45c-ac68447d1d37","block_type":"box","text":"Fund, BlackRock Advantage Large Cap Core Fund and BlackRock Event Driven Equity Fund. The Corporation has an","page_number":28,"box":{"x":70,"y":128,"width":814,"height":11}},{"id":"54917a0d-c584-4b06-ae2d-d862c1d79799","block_type":"box","text":"authorized capital of 11,650,000,000 shares of Common Stock, par value $0.10 per share. The number of","page_number":28,"box":{"x":69,"y":142,"width":767,"height":12}},{"id":"3d67bdad-0ae9-4a69-b900-44739ad9780e","block_type":"box","text":"authorized shares of each series of the Corporation is as follows:","page_number":28,"box":{"x":69,"y":158,"width":464,"height":11}},{"id":"1577d2f1-a7d1-46e2-8e2b-ed472354a84e","block_type":"box","text":"Common Stock","page_number":28,"box":{"x":166,"y":217,"width":89,"height":7}},{"id":"f97ac464-7bbe-4523-92ca-f20a0e76691a","block_type":"box","text":"BlackRock","page_number":28,"box":{"x":593,"y":186,"width":62,"height":7}},{"id":"a152f3ba-7de3-4d95-8fd1-5e5adee47bb4","block_type":"box","text":"Advantage","page_number":28,"box":{"x":592,"y":197,"width":62,"height":8}},{"id":"e5adf6cd-cfe6-4f22-9734-3e56634210f4","block_type":"box","text":"Large Cap 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.","page_number":28,"box":{"x":167,"y":234,"width":379,"height":9}},{"id":"d38e4df7-916a-413a-9c3f-72836fb77f40","block_type":"box","text":"400,000,000 300,000,000","page_number":28,"box":{"x":582,"y":234,"width":229,"height":11}},{"id":"e8614992-b49c-4881-a238-f660ccabb818","block_type":"box","text":"Investor C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":28,"box":{"x":167,"y":249,"width":379,"height":9}},{"id":"319d7c15-e5cb-4176-83e8-fd369904cdc5","block_type":"box","text":"400,000,000 400,000,000","page_number":28,"box":{"x":582,"y":249,"width":229,"height":11}},{"id":"4d088542-7024-458f-b4cd-b7e403cfea39","block_type":"box","text":"Institutional . . . . . . . . . . . . . . . . .","page_number":28,"box":{"x":167,"y":265,"width":224,"height":8}},{"id":"53d6a464-34d2-4d6f-be72-8554967e7c35","block_type":"box","text":"...................","page_number":28,"box":{"x":398,"y":272,"width":148,"height":1}},{"id":"5e9ab45a-5e3b-49e9-b7aa-db3ff1c70779","block_type":"box","text":"400,000,000 400,000,000","page_number":28,"box":{"x":582,"y":265,"width":229,"height":10}},{"id":"1ecb7d6b-1520-4c0b-a829-536d17455350","block_type":"box","text":"Class R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":28,"box":{"x":167,"y":280,"width":379,"height":9}},{"id":"4cf0c675-d1ae-411b-9052-8604f7d5ca0b","block_type":"box","text":"200,000,000 200,000,000","page_number":28,"box":{"x":583,"y":280,"width":228,"height":10}},{"id":"cc2a50e1-6403-4e30-9266-1f0f5cd43a81","block_type":"box","text":"Class K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":30,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"3341d3a6-6a30-4d83-8332-50c34902421c","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":30,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"d0acd9ef-47f8-4919-8ae7-24efb8eaf74f","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":30,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"398c6e2a-29e2-476d-b02e-1183c5a7d992","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":30,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"1f61e201-82da-459c-9d0f-49f475e215e8","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":30,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"7ce67e1f-9e4c-4073-9e80-1e9bf4906114","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":30,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"0a8482eb-ddc5-42a8-b020-503df6a2c2af","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":30,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"2d855018-36f6-48fb-b80b-a1ddf2fd6b30","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":30,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"61a111ae-d41b-4c5a-8b9f-64c0138ee898","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":30,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"cd1742f1-4eac-4425-890a-797e0698226c","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":30,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"e281e00f-97eb-495e-98e3-0d9623ade8c6","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":30,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"f970f1c2-cd4e-4d12-a92c-02d93a95e442","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":30,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"a0e990ea-9c97-4265-85f0-e351c4f41afe","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":30,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"481ce24d-515a-4477-a26f-d93d6996f695","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":30,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"5576f471-979d-43bd-a82d-8b57b6dce492","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":30,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"7e28ab16-01c0-4513-8e91-c99c60b77757","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":30,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"8eaa7e35-7a11-4e21-95f9-1f94309adade","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":30,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"91b16871-ee6c-4b38-b65a-d10863283916","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":30,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"b9fae493-291f-4215-a3bb-3d48b12b8971","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":30,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"0928961f-a395-41d4-8fef-bb539a30e254","block_type":"box","text":"particular Fund.","page_number":30,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"6fbeeb8c-8a7e-4ac0-a3ed-8dcdf2f831c6","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":30,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"d19ffe83-b413-4f10-8a0d-db6066365ad7","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":30,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"ef41bf30-97b9-4bce-959e-641224c2bf16","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":30,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"2e595320-baa5-4bda-b7a6-e80f70011e19","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":30,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"d4722ce3-1348-4cb0-8940-51d90537e536","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":30,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"85199faf-df14-471a-8c6d-661114d697a6","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":30,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"65b59918-5ea5-4440-94d9-bf1544997d40","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":30,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"8fca41e4-d658-4888-9201-aa219ae4b0bb","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":30,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"fd36433d-ff3c-4ea4-8f7d-8d10852b2411","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":30,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"27438e0e-01ba-486c-8213-37349609cbd5","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":30,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"6a6af96d-efd6-4172-b6bb-753dd73f82b2","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":30,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"a8971447-a73f-429d-92c6-daa1f37bbeff","block_type":"box","text":"Asset-Backed Securities.","page_number":30,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"400a98e1-b6c5-4b0a-83f1-f5780817b5a9","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":30,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"0fedf3f2-95b4-42b6-906f-c52fa7af79d8","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":30,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"a7bb74d1-8129-4aff-822c-0dd47bb3db7a","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":30,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"4520c58e-7ddb-447b-bd76-51b1115cd3ed","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":30,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"0c4998fe-ec98-463e-af82-82b1fa2e67d4","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":30,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"c5d3eb11-6e36-4824-896a-a29bf4e0614e","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":30,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"1cb882a0-8451-4212-b58c-21c2fd1ddfc2","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":30,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"fdb3621a-5f37-44e2-aff7-535715d4328f","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":30,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"0a5e7e50-c559-484a-a7b7-09dd1c6fcd39","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":30,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"3e3e592c-ac52-454e-af44-0f2776d6dd2f","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":30,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"20d2f969-8a48-44b4-9baa-6ab73a49c299","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":30,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"2d059482-130b-4051-a68a-8705572c4451","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":30,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"00acf4dc-127d-43d2-b460-fbda4985266d","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":30,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"3ddb3cdf-d91d-4ed8-a2cb-8f72a3181c49","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":30,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"7ec767c4-8bdc-4733-8cea-9e94ded3342e","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":30,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"82d2c706-f0a5-430e-8d33-2125b61946b9","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":30,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"89e0c2b7-69b9-4897-aee9-60fbdca7d607","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":30,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"86eb219f-8790-4a2d-90da-008c4fb62bcd","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":30,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"26492069-f061-4ffb-be73-ee34011e60c7","block_type":"box","text":"II-1","page_number":30,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"15e066be-0c03-48aa-b0a4-684d7deaa9a1","block_type":"box","text":"NM0926U-5977658-30/228","page_number":30,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cc961fbb-44e5-4c6c-bd26-5bdba91068d2","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":31,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"df3160ca-76f6-4112-a6d9-6d62d89eca62","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":31,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"d794fff0-a99a-4b49-b64c-399c1c898f3c","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":31,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"33e2cb6f-a5e5-4d18-9a28-213b4de45c50","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":31,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"b3ecc445-add5-43b4-b1ee-25942ce3c4bc","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":31,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"1366173b-d1e8-46f2-8f2a-8bd61d811ee8","block_type":"box","text":"Asset-Based Securities.","page_number":31,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"07945632-ac8f-4877-b57f-f5ba56062a78","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":31,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"e8b311e8-14be-43b7-a62a-5b4930584e88","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":31,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"944ce411-2ee1-4895-8ab6-314232bd8568","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":31,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"cedbe642-e47b-441f-aa94-c1e435a3adff","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":31,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"f8ac31a1-1917-407b-b441-155f8b001c42","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":31,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"23b867b7-9661-403f-bb30-e2bb52ae1546","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":31,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"a247b725-0d3d-4ad7-9a77-d65feb7a43a1","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":31,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"5a927fc5-90ef-4d40-94af-e39c4660d335","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":31,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"55556007-8d96-4640-8d43-ce7dee164285","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":31,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"9655cf2a-dbe8-455f-95a7-396a6e110375","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":31,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"0fdd5076-55c3-4fb0-97b2-ff4cfcc7fe7c","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":31,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"276b0c00-7452-4df9-bd55-7c822ce4f3fd","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":31,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"e8621c9c-6371-4af0-af18-f8a17d26d61c","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":31,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"91a0d7dc-ca32-4b43-8450-5557e76b18a5","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":31,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"b79ebab1-defd-4e6c-93bf-c2204c173071","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":31,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"cc9d0e43-8a99-4853-a07f-4bdd1ce76dc6","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":31,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"26263f45-3727-41e2-91b3-a2d4fb0d3a14","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":31,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"e895861d-f3fb-4c6e-b331-8582d0cb2db1","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":31,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"6debb3d5-d8e4-4ab4-9e87-687305db7dea","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":31,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"4d1e3509-e46c-4e85-bfde-8b63de16755f","block_type":"box","text":"appreciation in the underlying asset.","page_number":31,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"c9776ae3-519b-4bce-81cd-df6613e787f3","block_type":"box","text":"Precious Metal-Related Securities.","page_number":31,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"cb44d9ce-6aa1-47a6-be85-8ff1d9656ba1","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":31,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"73dfb1ac-d632-4776-9ae7-b9699a9d893a","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":31,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"d03e5dbd-7c5c-4a08-99d0-17e1557d2f80","block_type":"box","text":"e.g.","page_number":31,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"dd0a80a7-be4c-459c-9713-b097260e0c13","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":31,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"9a43e74b-dc02-4b60-a482-01b0e39e53dc","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":31,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"6fb79b4d-3801-4bb5-b64d-323b4cbe3f32","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":31,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"fb1a86cd-0f75-4094-bc6f-d785b92406ee","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":31,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"25ac46c3-cadc-48e2-a261-60cdf2507a26","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":31,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"65e3a6d4-2019-4ae6-a1f7-2c681e9d7106","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":31,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"0b6807ec-0da7-4af4-ade1-0d97ab4e92be","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":31,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"78abaa37-110e-459c-a45e-36aa012ed8dc","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":31,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"008055d9-69f1-44a4-b098-dd14493c043a","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":31,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"b23bb5c5-5733-47b4-871c-f5cd93520699","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":31,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"2210bd58-231d-4bfe-9e55-cb0157640e11","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":31,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"d2c4c262-c9f3-48fb-8444-9ad442c990d8","block_type":"box","text":"South African gold production.","page_number":31,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"bb753da4-8450-4b5f-9289-7cbb8834f403","block_type":"box","text":"Borrowing and Leverage.","page_number":31,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"879347df-9eba-4c4e-a240-deaae9729c37","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":31,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"65f8f98d-883d-4e68-bffd-a0adc47b977b","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":31,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"4037fd19-2574-448d-b650-60b8f8f154a9","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":31,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"bcc80d28-0239-4cc4-aa06-8c59823c5e19","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":31,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"fa5cc221-b050-47d8-845c-27c866a8275c","block_type":"box","text":"other securities transactions.","page_number":31,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"b9fa8256-d376-421e-b807-6d2066677416","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":31,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"a0fc269b-c624-4f9e-87a9-1a9049ad7c59","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":31,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"29a3f515-d362-40c1-8910-474051346667","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":31,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"b3c714a9-6efd-4741-af16-9d74066821a4","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":31,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"ab7de62d-3de5-47a8-9a43-0c87a0acec7c","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":31,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"008285f3-38db-46c6-967e-8b2546f805b5","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":31,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"65f04541-bbd3-4658-8507-2b1a40cc776f","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":31,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"61a9f5d3-a03e-4a14-8102-369b9f8aed80","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":31,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"b0ef4645-3f23-4a7d-a3e8-f44ed2f23d80","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":31,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"c4303b98-77b5-4278-8b9c-0e21e360f659","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":31,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"75c727db-fef4-4d69-9fed-7ee34128f519","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":31,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"08c59fda-1c17-4228-96d7-d477fdf8784c","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":31,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"a3d7c42c-157b-4883-a2e9-f0b0d3b6525e","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":31,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"da364fbe-528c-4a1e-9dcf-0879dc864e23","block_type":"box","text":"II-2","page_number":31,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2274bf15-d958-42ae-8aa4-a3384884dfce","block_type":"box","text":"NM0926U-5977658-31/228","page_number":31,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7e0f25d9-9b1c-4551-85bc-5b38032ec0d3","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":32,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"4845f712-eff7-476f-9d63-e6163f3e2e46","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":32,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"96a5b97b-c7fc-40b2-ba3d-6ba20e5d44e7","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":32,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"4db673ed-1157-4499-a588-271ecff152bb","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":32,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"f4bfa4ce-8c95-4fd9-859b-ee4adc94c3b8","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":32,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"c3b4647f-99e1-4f08-af2d-e50590a029e9","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":32,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"4e806c69-d96f-4e6c-a94c-12b43347c381","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":32,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"d04c9d90-4f49-4030-8c2a-cb36184d5f79","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":32,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"dd5e22d4-6ddb-43d2-92f5-5db8d149f082","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":32,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"cebfd086-50a1-490a-96d7-d4ad6bdc12e3","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":32,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"caadce2b-4e41-435d-b8c9-55b5576f6457","block_type":"box","text":"Cash Management.","page_number":32,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"98151d01-934a-41ed-9059-b7df2fa3ab2c","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":32,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"b7f1ee8f-3a8d-48bf-af89-78dd7d38116c","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":32,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"8e559864-c8af-4ee5-af54-4ccf8d0f5680","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":32,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"9354bc3d-0dd3-464f-b476-e64e9edcdcf4","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":32,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"4b7e5949-adeb-4424-94b6-df25ab540eea","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":32,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"1cfc5af2-a398-427d-8eb3-f7c6a407e6c7","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":32,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"143b0cfb-c124-4abd-b61a-24cb86c920a0","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":32,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"e59d640c-4ce6-4f50-b190-633b156ac418","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":32,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"49606529-c5a0-4ad6-965c-ee57e34427b2","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":32,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"a3644fdb-6e7e-4030-806e-43a4df0e1546","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":32,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"b5350795-a1db-4fd8-ad9b-f522e1d52b7f","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":32,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"e2a3604c-f2c0-4324-83d6-2522d338e84d","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":32,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"8d73db15-705b-40bf-b629-0190e1e2a688","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":32,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"dad4c164-704f-4fb8-b55c-3211d98183de","block_type":"box","text":"Collateralized Debt Obligations.","page_number":32,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"ed42a7d0-5ef5-481e-8814-8aad6db2d83d","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":32,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"6b077994-c44c-4524-9d6e-36c82e04cf99","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":32,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"d2b46467-8174-44ef-a753-96c7c8b2d938","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":32,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"8b786f9c-8403-4409-8550-3ab97b4c671a","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":32,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"350599f7-fdd7-4db3-aaa8-57e7a843a64b","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":32,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"98444d00-754f-4f90-9e12-eced84a6db1a","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":32,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"cbfad69e-9f93-4a74-837c-47de4f536d6e","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":32,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"2a07960d-a449-44ca-b732-a418125ab7ee","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":32,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"395fed12-ee83-4f66-b4be-313f511c0775","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":32,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"767b3795-f892-4947-8b04-3d66d8b01504","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":32,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"6e6b8dfc-cb33-4490-bd6a-482a50bfc1df","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":32,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"f48d14e5-3be7-40b1-981d-a2ae3acd2b69","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":32,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"ad7c2821-6c05-451e-9213-8a52e78c52e9","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":32,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"b72379f0-b2c8-46d9-b951-2374a0ec8de4","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":32,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"b2aaa532-f8f6-4099-b42f-14688b2adff0","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":32,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"acfca30e-c270-4646-ad14-604361654027","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":32,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"7f822946-63e6-48f1-b278-7307571e1ae0","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":32,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"e3178214-6de7-46dc-acae-e5b0fd1d7353","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":32,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"a73e7afe-c05f-405e-835f-fe71fa4ea6b1","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":32,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"74f8bef9-e944-4749-a015-740f1c1dea5c","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":32,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"dde1cf3c-5df3-4804-9891-d3985454d6ad","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":32,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"dc328a56-5e47-464f-8626-620f3552b9ef","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":32,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"d15d12a5-fd39-4651-bae0-1dc4c64aff9b","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":32,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"c632be44-ff5d-402b-8197-518f733e0a5b","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":32,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"369f989f-e194-4d57-943a-b12630be6046","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":32,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"059b5d64-671e-4bb0-94c0-62d6c04833e7","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":32,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"ab3eea37-cff4-4b7e-8266-43a8c3cf726b","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":32,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"9f54c3ca-08c6-43c4-bc08-314b73d0d9f1","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":32,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"73a2f23b-5661-4cb5-8e02-343908dd8903","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":32,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"1d831b91-dce6-43d8-9a8d-c5369469e980","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":32,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"527bea16-e27e-456c-99a2-502a5eda788a","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":32,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"7a7829ce-9816-448e-a0e4-b12c17b173a8","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":32,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"1bd394f4-23b6-484b-94e8-572e49dfe8d9","block_type":"box","text":"II-3","page_number":32,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"12e7c486-4c3c-4bbf-beae-936ee3edb65a","block_type":"box","text":"NM0926U-5977658-32/228","page_number":32,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e4f2ed23-5fd1-4d3a-a922-fb361c5a2c32","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":33,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"8f2a7ede-5a45-4bd8-b0f2-9cca98b7bd6b","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":33,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"15483948-35d6-444e-be05-b51dc89370a4","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":33,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"78d4b33d-5617-47e0-9951-cfdd8a63d8b6","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":33,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"c8321ab1-3533-4db8-923a-8002fd165700","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":33,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"0258a7dc-7985-4315-9192-c5cdbcf3d32b","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":33,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"53e6fd17-2e11-465a-9158-22027eb02b0f","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":33,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"d0a7ab4e-ea97-4279-9bc4-4be4062f5203","block_type":"box","text":"Commercial Paper.","page_number":33,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"728cb9be-4bde-4175-9dba-4f84eff7ee71","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":33,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"5dc81db8-bde4-4dcc-872b-8d47064e0cfd","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":33,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"c6ded950-35f1-46b6-90e5-b264e3a82f62","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":33,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"ee51df9a-c802-4f2f-9116-1f19f8896ea4","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":33,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"397332a6-b602-4673-95be-2f0f14b1f5bb","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":33,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"200579b3-8cd6-469d-8016-d092e9349290","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":33,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"1aace437-9d5f-4961-b459-a1f453c86e60","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":33,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"9fbe4cc6-b600-407c-9c49-3f194c2fcc9b","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":33,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"7de837d4-9cd7-42a4-bd68-0d000b9a1c27","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":33,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"aedcc1f8-2852-4c4e-a071-92c6e5b725bb","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":33,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"6cb62f04-a8b8-40c7-aab7-746458f23887","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":33,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"cfb4a112-4989-4818-827f-0277ec81c372","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":33,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"f7da8c63-ae3a-4507-a2c8-2df56e185a89","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":33,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"e038462b-b4d3-4fbe-8fdd-8ee5232fc20b","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":33,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"cbfcacc9-f5bf-40b0-9c3f-c45dc86c0c7f","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":33,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"49ff51e4-d015-4e59-8391-9fa24b9aa50b","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":33,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"3442a673-71ae-4db7-999f-15eccf944e50","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":33,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"d1a41dad-20fc-4d3b-bf29-582cba5d595d","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":33,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"9986a617-e54d-4338-af9c-99b547242c7b","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":33,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"e98d56e1-c4b4-4817-a1f3-89503f6f4fec","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":33,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"664c4778-0000-4e79-8ea4-878cf1c1cba2","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":33,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"bba66f1b-559f-45b0-9510-c1626666718d","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":33,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"a3c296e2-acf5-429d-abce-b3bb8523ccb7","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":33,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"f56f1ea3-8cf5-4f98-86dd-7c7545df9098","block_type":"box","text":"variable.","page_number":33,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"180e683f-4044-45e8-97f9-d63fa8980c9b","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":33,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"18d14c82-742c-433f-9a12-10a1cc3dfcb9","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":33,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"984bb05d-851e-4d67-b5be-6ed40ac0ec24","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":33,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"cfaddb4d-8f11-4bc5-8a1a-77cca4065fff","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":33,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"9caa07f0-2104-41b1-9c71-74d5ad2406ef","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":33,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"4a8b5754-e3e0-4083-a792-dde210c244ed","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":33,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"4d3e3604-4a63-4f24-86e2-b5c197c60a41","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":33,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"15fe4df1-bc27-4dba-b4e0-1d6343c3a733","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":33,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"d172fb60-6896-479e-900e-3feb6cecead6","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":33,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"ccd48c1a-6434-4872-8144-7e25bc0fc560","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":33,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"316b53fc-f544-4645-9ef3-4bd767fe146c","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":33,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"f75d5c47-7027-4ae1-8f71-c6d8870630eb","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":33,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"9677793e-a8bc-45b6-ba69-790a580225ab","block_type":"box","text":"correlation with stocks and bonds.","page_number":33,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"51ff55d8-996b-4c22-b67b-b8c7046b88f4","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":33,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"30b7af4d-aec6-4982-a988-e707118c58c7","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":33,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"c58229c3-6374-436e-8ecc-fbaba8d2f65b","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":33,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"fcb902a7-16b0-4500-9ca6-474e77431b8c","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":33,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"f6cfc2b5-c601-4ced-a487-665fa8dd683f","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":33,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"e46d5ee0-2ee9-4e4c-90a0-5070ef5f3f7a","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":33,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"c695ec1a-f43b-47e4-8ebc-4289ccb51c94","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":33,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"705127f0-4601-4096-b87c-cb8bcd811ffc","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":33,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"450574c7-c5bd-4aa9-b05f-11af507bf4f3","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":33,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"12564a51-85cf-4b59-bab6-f8eb423adf57","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":33,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"c5aa694a-e80d-4594-9ecb-2f019d035723","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":33,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"b97a6ddc-aa75-4d3f-ab87-c6a4b42561a1","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":33,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"5704cbdf-70d7-4ee7-8cf8-e21051401431","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":33,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"d217de2d-e4e7-44da-b1d9-5b4bb54362d6","block_type":"box","text":"II-4","page_number":33,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d95b4843-e476-4369-a070-0b6510210382","block_type":"box","text":"NM0926U-5977658-33/228","page_number":33,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a912b6c3-286e-444d-99c1-23786fa855ec","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":34,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"255cee9d-6c30-48e0-8a2a-6022462bf2d6","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":34,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"74fd5702-3bc2-4d22-82af-1dc0ab3de9d5","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":34,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"6b5d7842-946e-4c7d-91e0-f6e2089c0395","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":34,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"fe17aea2-cc06-4e64-9efc-cd4d241e58a5","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":34,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"d51450f9-8005-4095-b28d-67fcb2ef95b5","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":34,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"4358d814-2ef0-4d5d-bae8-994e3fe41f52","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":34,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"2f4cac70-06cf-4523-be5c-7edae8a74faf","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":34,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"630c7432-b893-4f8b-9d32-214a1c652f03","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":34,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"d109f1f9-7381-4129-b93d-71b829213c4f","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":34,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"729c50f9-d265-4ae0-8de5-20036613e4dc","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":34,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"4ea4dc22-d597-464b-9462-e6491ada6828","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":34,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"9dbde26a-ff9c-4942-8b17-4116c96af3cc","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":34,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"10aedac0-0cf7-4b78-95ae-a95d2571772f","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":34,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"317b4bfd-30a7-4404-97ae-9a7e819d4e35","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":34,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"00263e48-6a1a-46bd-8c04-28bcf0a67d24","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":34,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"c5d5d6ce-21aa-4ef7-bfc2-e471385a7770","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":34,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"3a9b4550-6b49-4232-b865-b25eb9cf9cc8","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":34,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"a7bb1aba-87e8-4461-9291-9576b2c39e5e","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":34,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"5126f00f-1e71-41b8-ba3f-d5ec7b3aaaa2","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":34,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"5c8f2a73-f928-4143-808c-6c281a9caeb1","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":34,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"97b8e63e-099b-4f8c-9944-a229034875db","block_type":"box","text":"the Manager believes are relevant.","page_number":34,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"7c4f2436-e37e-4e79-a72b-5e7bf7741cec","block_type":"box","text":"Limitations on Leverage.","page_number":34,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"a48f6946-4cf7-4f1f-bde7-c990273bdd0e","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":34,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"b60970d1-9919-4e78-ab94-7d01496c1447","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":34,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"5d042cb1-661e-4ad1-b081-81ba7a6bf07f","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":34,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"43a1854f-25cc-4349-9066-f2dfa6b26f6a","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":34,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"32a20fef-7a4b-449d-87cf-38e07871d867","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":34,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"6b68ef46-4010-4a37-b2a3-8a3e6f6596f3","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":34,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"b2a71da7-161c-4f26-a70d-cb0aec64b112","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":34,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"a0f65a86-cb62-4e20-b03c-a9b087bc4d2d","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":34,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"fbb79044-236f-4dd7-a0df-f07985049202","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":34,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"93fc789c-a2f2-4b48-9031-984ae0a24321","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":34,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"7135fa82-0682-4f26-bb28-97fd83ad882b","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":34,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"f1e0707f-0bb0-470a-9117-408f58aeb762","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":34,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"34bee03f-09d8-4b3b-a4e6-b25c751425da","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":34,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"66c4f417-360a-4ac0-97bb-adc1322dcdd4","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":34,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"e269a33d-bed7-4d00-846c-9727a6f2601a","block_type":"box","text":"Counterpar ty Risk.","page_number":34,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"2a80a4df-f937-4e7f-a92a-cb8b109a61ea","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":34,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"6f9dc5de-ff21-423b-bfe2-6ca2471b9bf5","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":34,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"3710a103-41b5-4579-b865-4263a5b8a914","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":34,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"5e8d9983-dd38-4d22-86b0-aeb840ff09ad","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":34,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"ac6345fe-3e4c-4ea5-91ed-556c6317e358","block_type":"box","text":"e.g.","page_number":34,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"17d038f2-197f-48ad-a0f9-4bf16a232953","block_type":"box","text":",","page_number":34,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"db09ab29-9458-4ed3-8e38-b34cfde5d250","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":34,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"fdb560ac-4ccc-4a07-b146-950b65df3ab1","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":34,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"7075bde1-b5e8-4908-8e05-e6e1b1ab35d4","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":34,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"cf7d28c6-7060-4ec9-a649-f2fa2ae2a6bd","block_type":"box","text":"obligations under the structured note.","page_number":34,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"1fb8a835-5ecc-4e7e-8784-5b000a9041b8","block_type":"box","text":"Convertible Securities.","page_number":34,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"24d0b0a2-23d8-43c4-8ece-c5143e5e1c79","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":34,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"04ae0247-6b3b-4567-a1ff-e3d007d54b71","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":34,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"d1bf5391-b49e-4379-aa30-050e567c337a","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":34,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"a8f73682-ee0e-4692-b65d-f41af437c931","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":34,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"ac4a4f3a-b693-4019-9014-e4023976d8ac","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":34,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"d9e7dfd7-2e78-4973-a160-23e2760a2eec","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":34,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"0a10900a-c23b-4fce-a108-c16982db3f8d","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":34,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"a6931a49-3b78-4134-8bda-ca93d3ee8b1a","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":34,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"c7527ee1-8f88-4d7d-948e-32796acb2933","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":34,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"f22b7679-b6cf-40eb-802e-1783ef4bf80e","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":34,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"33d32d56-2382-45e6-83d8-8e35c79c522d","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":34,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"caf92d4e-4cc7-44d6-a7ad-9fd21d1df371","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":34,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"b314cd1e-25f8-4dda-8aa3-926370d9bd21","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":34,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"8fa82c65-b189-4b06-a013-650b96e94c25","block_type":"box","text":"II-5","page_number":34,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6b6d688b-af0a-45ad-9331-080dd8e9b125","block_type":"box","text":"NM0926U-5977658-34/228","page_number":34,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9cdddf14-6942-452b-873e-438b8436dc00","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":35,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"c26742b9-0a3d-4c99-ab4f-7d71dc49fdce","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":35,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"486cd91d-6df4-4cef-8f99-1d1c6e0a1c7d","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":35,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"5e800364-ff27-466c-9f0d-468a9b414fc8","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":35,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"b480a3ab-1cce-4c46-95fe-c58e12a91891","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":35,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"7fb536a5-c166-42f3-8db5-88f361fee40f","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":35,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"cd2191cf-d666-49fa-a7c5-f23a121be54e","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":35,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"df9c837d-18d4-4a7a-a8e6-8c12d900559a","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":35,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"9cbde98c-8dc0-45d8-83a7-3343f9bf2a94","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":35,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"a798a0cb-bee1-4d7a-a505-2ff5f0c4189c","block_type":"box","text":"things.","page_number":35,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"992f3c53-217e-4e3f-8a82-884d461ce671","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":35,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"e611e2db-5b4a-492f-a72a-472dfec89fe5","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":35,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"53db7161-af9e-4610-b2ea-e632a53fe603","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":35,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"1c493c8a-08d7-4501-96a8-5e31d139ca67","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":35,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"f2f0ee09-627b-40eb-ab20-8909b4b0cefa","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":35,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"c780066d-98da-4a2f-b305-8aa7bddf41bf","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":35,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"a77e5d91-af56-4975-a560-959010be5ba3","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":35,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"e9237da3-f6b7-4f9f-ab4b-a06e4de7a330","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":35,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"ba81e24a-b3d4-4e05-b3ba-fb20b690f2e2","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":35,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"1b95e728-c1db-4700-a423-8b48215ea16c","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":35,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"746a7baa-47c7-4628-9c1e-ad0717992f6e","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":35,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"94cb059b-b123-4bc6-9124-da9a526aeb94","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":35,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"641ef470-e7de-4b01-88b8-fa4bb6a65ec5","block_type":"box","text":"i.e.","page_number":35,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"7448456e-cc81-4979-a271-dee642c9597a","block_type":"box","text":", strictly on the basis of its yield) is","page_number":35,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"240f8679-481e-4091-8fdb-5b22ecb70cbc","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":35,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"b03eb5d6-956a-4ec6-98a3-261253482253","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":35,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"0f9bad25-e27a-4174-aba4-1e10561cdaaa","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":35,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"1af991e1-c5cf-405f-955e-8de43064bf38","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":35,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"f7336bf4-a9d7-4bff-9264-dbe85458737a","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":35,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"c396b715-5bcb-4df3-aa92-1d808ba32ee1","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":35,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"962a1af6-92bf-4b9f-be5f-fecd6ddd2725","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":35,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"ba351b63-86ff-49fb-9261-33c92553adfc","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":35,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"837fa869-693b-442c-b2d3-bb037d41c72b","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":35,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"503c3a80-05c9-403f-ad7b-74e63da9d327","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":35,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"255d1b6b-d962-44a7-bef5-d919beb5298b","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":35,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"22ba1d21-aff6-43d0-9643-1c9f6f09547c","block_type":"box","text":"than the securities’ investment value.","page_number":35,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"02de798f-f767-43fb-9d7f-62b0c7e3e302","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":35,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"a572143c-ee5c-4c1e-bd9d-b30a07c56e31","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":35,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"cf1ba731-df87-412a-8a16-99a4308e6380","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":35,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"fb1229d8-63ea-4427-99d1-29de9b987e67","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":35,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"b7d6b4e7-317c-45a5-be9c-f5e784df9f94","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":35,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"84945c30-4fad-4909-9c50-5e161ac94e0e","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":35,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"e54c13d8-54bc-4c88-b086-82586ad806fc","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":35,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"e1abccf3-df78-4385-9b51-5d8342a2d14e","block_type":"box","text":"security under certain circumstances.","page_number":35,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"3998611b-bf80-4552-b70d-4b1313384308","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":35,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"6b0c2139-0424-4150-8b64-5520e1fe320b","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":35,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"4c02db79-55e5-48ce-b7c9-64ccbf573b8f","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":35,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"08b3d306-fa25-4b0b-8a8d-248754095086","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":35,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"ce7b4e52-647d-44c1-a2f3-88f400ddd472","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":35,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"f6b1d9f2-5caf-4d46-96eb-3d0738cf9800","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":35,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"ff61d7b5-7ac9-4913-a4eb-a651daa5355f","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":35,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"433f4688-2a55-4478-a451-f556a9babfdf","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":35,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"19ee31fb-1adb-46c3-976d-174976526b80","block_type":"box","text":"i.e.","page_number":35,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"e4a42b89-f252-4797-a5ac-7338d9560a26","block_type":"box","text":", fixed-income (“fixed","page_number":35,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"fbfe6985-463b-4ffe-a425-ae38c709faa0","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":35,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"202af6a9-0ac6-4cca-b8a7-be731c2dd13c","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":35,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"86882698-1aa8-4a09-9b59-3e89b81b4d9d","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":35,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"a18458c4-4e11-4a07-aeeb-e6cbe6736c47","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":35,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"8b162914-520e-4066-b4e4-4ac11fd5f21b","block_type":"box","text":"II-6","page_number":35,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3e6525e1-28af-4092-9eff-1718365351ef","block_type":"box","text":"NM0926U-5977658-35/228","page_number":35,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"2ba0ae6b-6600-4971-8c0b-cdf5a48bf12a","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":36,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"49f33c13-5c3d-4115-9080-5094312382b0","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":36,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"14f4b4bf-2fc3-4fe4-b911-70a428fc0a38","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":36,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"4fec549b-863a-4f56-ac68-5508a7a9e5bf","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":36,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"a855fe32-00aa-45b5-b633-4c9200967859","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":36,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"a84b7a8d-f6aa-4232-9fa1-c65c6fe11757","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":36,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"40f2d0a8-7178-46fb-b53b-ca1b820bd9bc","block_type":"box","text":"component.","page_number":36,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"3d9049f7-fabd-4497-b893-918d0e3a826d","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":36,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"b7b5eaff-917a-4e53-bcd1-61d24b9f91d4","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":36,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"44ea746f-2a3f-407a-9e31-5c3357ccbcbf","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":36,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"9b379eb0-5711-4ef6-9cf2-164cbace2d3c","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":36,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"2fbc7061-6878-451f-b7ae-a00f07df6603","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":36,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"2ecdd60c-df6d-422b-800c-8c45c110c2e2","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":36,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"eb60b77b-a448-4877-b32c-da10eba0e227","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":36,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"4a131150-142a-40f2-bcd9-7165ceb2a7d3","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":36,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"3868ce3f-c87c-49e2-af55-2b9fed76f604","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":36,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"9d8c2286-0b1b-4ba8-bc0e-6293b1bbff98","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":36,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"44e00319-7e9e-4f43-8dbc-45a413ea594b","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":36,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"0a70d17a-ba99-4952-bf0e-e34d8dc5cba9","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":36,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"fe991eb2-b9f6-4397-b30b-65f78cce00a2","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":36,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"f5801400-f410-446d-be7a-a092c197c696","block_type":"box","text":"favorable market conditions.","page_number":36,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"9dba80cd-621f-46c3-b878-bad830f07a17","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":36,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"e548e0a6-c1c2-4c77-b877-629fd4e8470d","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":36,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"f696428f-df01-442b-86f7-a7d5cf5d44a1","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":36,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"7ba48eed-3183-4a2f-b142-61b5045a4bb7","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":36,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"93aacc69-536a-4330-832a-da94e44c0ef6","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":36,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"bd2a9bf6-7b88-4e58-ac25-a3ed8339ccc5","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":36,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"d287886a-3968-4271-94d1-fed7f383d88d","block_type":"box","text":"Corporate Loans.","page_number":36,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"abd35d55-df94-49e2-b464-f5b848c01100","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":36,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"03f32f8f-5b3b-4b32-9691-91d8b34afd44","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":36,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"033b1d6a-25ea-46a0-9f21-d38ad4a844d6","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":36,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"1523c868-b48b-40b3-a397-4ce53736a378","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":36,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"e827c903-3d45-4379-ac71-29ced4e5957f","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":36,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"f0176508-d221-4d4c-9839-2390702b5806","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":36,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"7328b020-b1fc-43a1-9ad5-a9285f2b5f32","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":36,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"7f41ecb8-16a0-45ed-bde8-7397bcc30c30","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":36,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"b0dd27d7-4fe2-48ea-ab37-b782bda61f59","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":36,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"7dc6088d-d2a0-45c5-8f4e-fb94deefdbc4","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":36,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"aae84500-c88f-42bf-8f4d-9fec67a092fd","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":36,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"281da3a9-b949-49df-9a77-419d85fdfc67","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":36,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"aa261cab-0228-42cc-9bcd-e4303f091801","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":36,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"3d52d641-3db6-48cd-8eaa-d7503cdefd02","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":36,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"19591208-236a-4ec2-a14c-63a28b2e6942","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":36,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"c7daf07d-4b03-4310-9cdd-0d8774d704a9","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":36,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"48ed1956-06fd-4546-bfa6-be54e85ebe37","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":36,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"f1d3a16e-4f92-45a8-8174-715796799c8b","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":36,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"8e34d4df-b3af-41c6-8536-4bb146cca470","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":36,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"2f36f4ae-5f30-414a-9e47-193c72f7e5e4","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":36,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"3ed3daf2-a5d7-4650-b67b-104baa291469","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":36,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"1bc74100-f062-4ff8-873b-9bdc47303f7f","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":36,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"77ce1afc-4044-490d-9cdf-cbb6b6cd426d","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":36,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"63980e07-33cc-49b0-850d-ac09302a76c1","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":36,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"42497148-62a6-4639-9f7c-82d960cbe550","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":36,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"d3133d57-9626-4cd4-9a12-7194a3a15cce","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":36,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"05d307e2-e27b-448e-9d89-8333399f5077","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":36,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"14cbf5a0-35b6-450c-b77e-2ec1ae61a46d","block_type":"box","text":"of the borrower.","page_number":36,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"7600f699-64d5-4bb4-9f25-294a49ffb1e8","block_type":"box","text":"II-7","page_number":36,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b75208e6-28fe-478c-99a6-c9a1614f1af4","block_type":"box","text":"NM0926U-5977658-36/228","page_number":36,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6bb8e22d-d71e-407a-a350-73714547cb78","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":37,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"71792c93-7c01-4d07-9245-23fe128f5ef8","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":37,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"aaa8e48b-c0a5-404e-a17f-4332e5451a7d","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":37,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"d089b76f-a120-41f7-a1dc-ff2dfa46b7da","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":37,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"186fc5de-7b4f-4e81-8667-780249b720ea","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":37,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"a3d7ca72-fd36-4c22-aad8-6e99ff98be28","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":37,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"2f753d5b-d838-4038-a822-2ccb01ee1aa0","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":37,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"09849262-995d-4a0b-bd9e-b1bac49c94a6","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":37,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"6c14e40f-3ec9-41a3-8df1-4d791eb1c286","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":37,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"3b6a568a-0a92-431d-a618-e59f3ac947ed","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":37,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"ee39502a-bad5-46b1-b152-62f9981f9e8b","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":37,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"d211e554-f7f9-46c6-b517-94043d40cf52","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":37,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"f55fd59b-39b8-418c-8eba-129892e0d302","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":37,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"716bf7ff-fcd8-4acf-aabd-e0b71174c561","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":37,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"75e739db-f29a-4515-aa54-f802f4106699","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":37,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"ec8f860a-4312-4cb9-a586-5897debfe36b","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":37,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"23f344a2-0f7a-4777-91b7-3ef416b8164e","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":37,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"4c9910a7-0d56-41b6-889b-ee256aad5c8e","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":37,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"b8189e16-cbb8-49d4-bfd9-420bcd0ff1d2","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":37,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"027c7ab5-5d61-47fa-9f9c-9b4b8f3caacc","block_type":"box","text":"state law.","page_number":37,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"7a1a9889-7355-4212-b1b0-ac5d9b9073b5","block_type":"box","text":"Direct Lending.","page_number":37,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"1faddac1-58f2-4320-9419-b59ba7d7d808","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":37,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"e47bd4bc-ae98-4da2-aa65-8f901a2219bb","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":37,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"e8fda12d-6bca-4f0c-a093-560f3f5a408c","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":37,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"788a3e2b-2de0-4cb5-b41a-ead4c7950f80","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":37,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"3c93fff4-0aab-4c16-8bbf-5be9f4dfcfc2","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":37,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"c617c175-9a86-4375-8e5b-8ba99bb4aace","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":37,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"5bde78cd-f8aa-4a9e-b474-52b1591150f1","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":37,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"fd236212-ef51-4920-85ed-fc40a81968e5","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":37,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"678b634b-ea82-4c1d-ae2e-f55e1657f917","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":37,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"0d05936a-0527-4b29-9420-c15af15cff18","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":37,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"aac306e5-90c4-4031-af8a-562c78a8d9c0","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":37,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"9e56a0dc-0048-4261-a5f9-52b64afdf525","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":37,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"f56620ea-55a9-423e-bc78-fe268b972567","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":37,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"1d62b5d0-4683-41cb-8b31-6e045e6467ce","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":37,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"221b80b3-3029-4f13-b2dd-b552f5634a50","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":37,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"d64bbf83-12dc-4549-86e4-2a5a67abdce5","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":37,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"c017b3eb-8fd9-488b-b051-d241e039065b","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":37,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"4a58f4c1-314e-423c-bcdf-3fa6361c1dd8","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":37,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"55509cee-8297-4bc3-99cf-1ef02ba16f12","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":37,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"33b98be2-605b-41b0-8de6-6612cb086b85","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":37,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"7a9587e1-1757-4d11-9d2f-21e5005048a7","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":37,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"04e2fc99-b9ae-4979-8ec0-41706f099116","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":37,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"89785a6e-bc4b-4a93-9868-a0afd61803d0","block_type":"box","text":"Credit Linked Securities.","page_number":37,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"78e29299-d5b3-4b89-81e7-2cf8dbc62023","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":37,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"1349f5c7-03a1-4488-8442-b6c9adf4c8d3","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":37,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"112819fa-d72b-443a-b5ee-4de9a0f344c9","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":37,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"02ba9b8f-f291-47be-8d0a-faa690f956c2","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":37,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"84b12af9-033c-4a80-9339-c3f419b4888e","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":37,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"6708e76d-4b1a-466f-a248-77e3df27162a","block_type":"box","text":"traditional income producing securities are not available.","page_number":37,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"416f7eee-56a5-471e-a0de-6ca5104ecfd4","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":37,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"7bf5561c-83c9-4b3b-b5f2-c357eafb3d33","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":37,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"99505067-81b4-4d84-a114-ad04ca02ad73","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":37,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"ad68785f-ff90-485f-bece-33e888bb719e","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":37,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"857a9d16-8ac2-47de-9c2d-fe7a18f78477","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":37,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"a977995b-3327-40ce-abdf-ec267f5f1bc7","block_type":"box","text":"II-8","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e627dc27-cfdf-41a6-8c15-a3a9be128849","block_type":"box","text":"NM0926U-5977658-37/228","page_number":37,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d693633a-72fd-40fe-b895-f014d162f9f6","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":38,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"32293af7-7f1f-47c0-9f75-35fe234fd52b","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":38,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"db10ef72-32ea-4977-a363-ad40b04690e3","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":38,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"3dcb091e-288d-486e-b0bf-f9bf7c2a357f","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":38,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"68757dd8-3b76-41a6-b432-8fcf209c4317","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":38,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"d329075d-0727-408e-a1d7-c9570aef8e9a","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":38,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"f3cb5187-4f64-4bee-8ef9-129552750cd0","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":38,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"2ae72f97-bab5-4de8-b252-fe14a034cdee","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":38,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"51d87736-4a7f-4497-8d17-873c9fd96c50","block_type":"box","text":"investments.","page_number":38,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"0df31eef-54f6-44e4-996b-bab36a091b5a","block_type":"box","text":"Debt Securities.","page_number":38,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"30632234-6c16-470e-ae27-51211e0ef711","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":38,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"b13d2b31-d6dc-4eba-be6f-20bcd8dc1a37","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":38,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"3315a62a-f757-47f1-b6ba-53d06a4041f7","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":38,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"822c19ae-b7ef-4af7-9fc5-971c8ae19edb","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":38,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"2d2824f7-54a2-4ae6-8af8-930e50d2006c","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":38,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"13ef72eb-af8c-44f0-bf7c-2315d238b9c7","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":38,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"755b5608-5fde-41d9-84b9-aeb1153ddecb","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":38,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"2c48a0f4-6f5b-4405-84ac-783e5e5f5e12","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":38,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"7eb0194d-c720-4457-803f-92872e2d28c5","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":38,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"a36fb5e7-62d5-460e-a45e-f8dbe5fa98aa","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":38,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"c5c9a903-ddb7-41e0-9626-97462dbf5e40","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":38,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"b8db413d-db3e-41d4-8597-9d600aaeaa99","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":38,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"ace1392a-001c-4788-848a-3d8267f7ff68","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":38,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"8c7e7128-cad4-468a-a74e-93f02aeddd9a","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":38,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"9b82cf46-fe63-4f3a-bad6-4a0aa997182e","block_type":"box","text":"lose value. This is known as extension risk.","page_number":38,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"6e6b63d0-38a4-4e55-9ad5-9bde0f9797a6","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":38,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"c0ea6ab3-8e37-4cb2-9a7c-852246b52bd0","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":38,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"cd265991-b765-461c-b3bd-3054babc3f15","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":38,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"8995d97a-e9d0-440f-80a1-d27611b36bf9","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":38,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"4f039b0d-1442-425d-b803-c2b9a5566274","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":38,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"6d12aec2-6c0d-4b5f-938e-bf5f61de1d18","block_type":"box","text":"Floating and Variable Rate Securities","page_number":38,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"c3564581-c6e4-4edc-af97-022cbf4f2539","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":38,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"1ab5a7fe-e052-4451-ac82-35ad44e11bfe","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":38,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"1b155088-1be9-44f0-a696-d6a52d514241","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":38,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"63d07fe9-3965-4913-8499-a20830488d3d","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":38,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"7baf41cb-6264-49d5-96ed-f64858cd0827","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":38,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"7864eddc-9700-41f8-b92a-683416c612d0","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":38,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"7cc5dbd0-e171-45dc-a2f7-ad5f3c24cb9d","block_type":"box","text":"market interest rates.","page_number":38,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"aeb80bc5-b1f1-4942-93c2-34f4b16e5e36","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":38,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"55bdccd2-e37c-425d-ad78-46f019fb0697","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":38,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"cde55dd1-dcb3-4721-b937-c38e87162328","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":38,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"d44e615d-665e-46c9-9488-82a45c19c0a9","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":38,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"a8ab07a4-aefd-4a58-b8b2-eb626856aad0","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":38,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"b05126bc-b5c4-4339-b34d-d998075a13e2","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":38,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"516eeb99-39b9-4a3c-9144-fdad49d0ef40","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":38,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"5b5939e2-8e6d-424a-b5f3-79d79eedce22","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":38,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"ca5212b1-4336-4a20-b014-24523d25ae68","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":38,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"cb0bf015-ed33-4b69-98fd-15784e409e9d","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":38,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"ffe7c6e5-7f44-426b-8d8f-c028b020d594","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":38,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"7536f6ef-8b9a-477f-8091-27a039293da7","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":38,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"2ee81647-7f85-4498-a4a7-967056a07887","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":38,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"0e8d073f-9fbe-4ad8-bf29-db5d96d33987","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":38,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"95ac586c-d14e-4cd6-bd91-10bcffc71762","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":38,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"fef636e0-3210-479c-bec6-68070d9993f8","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":38,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"822975f1-6b62-467f-a712-f1c4b93a595c","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":38,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"7b1d3b97-464a-4ede-87e4-ce05609ea8e1","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":38,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"5b5e1f27-c81c-4c16-aa24-f5db3a08b576","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":38,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"ede52e57-fc3e-4ec6-a540-e5a3211caa02","block_type":"box","text":"II-9","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"fe1658fe-1a71-4f36-9e99-f21910198c51","block_type":"box","text":"NM0926U-5977658-38/228","page_number":38,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8d76c8f6-2afe-4d86-8be6-602207b7c85b","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":39,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"a9d2fdfc-f95f-4a19-8220-cf3f02043f1b","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":39,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"972987f5-5ded-496d-baaa-832c8e0d1f8d","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":39,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"ffea0e7b-2449-4047-8c60-d5b4268bd7b3","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":39,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"1b72367f-dd01-4da2-bf33-69ef9561f2ea","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":39,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"83305c1b-74af-4273-8e85-b17bc99f046f","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":39,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"c13acff2-5a20-492f-a8c9-bfd34dbf888f","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":39,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"907127cc-0cdf-486b-a705-83b52d6f9ee9","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":39,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"39eb305b-27c1-4274-981f-9fa5462d92ab","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":39,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"9e675aac-aa6b-4a65-9e35-8f6ee302231d","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":39,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"1da8a610-548e-4eef-9f7a-506a42e1044a","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":39,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"6fa6d2aa-3f67-4c33-8084-1f85e772d63c","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":39,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"f3ce70ec-c570-4670-8e65-ce85dcb9eb5d","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":39,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"897fe23c-dda6-4ac7-bf6d-ea9cea47d12e","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":39,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"901939a7-f586-4fe2-bab7-ca64e4c00c79","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":39,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"dce3f9a0-13e8-48bb-ab07-22d185a33e22","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":39,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"e621d309-46c0-409b-a934-e0dff312bc74","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":39,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"2988197d-81fe-44e5-a727-8e5f7ab4c076","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":39,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"3abd4f8e-a285-42cf-b48d-5fe504ae2319","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":39,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"f089b4d3-009f-4b8b-8274-1ea47dad94dd","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":39,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"9ac3caea-81bf-4e13-bda2-be292d3f501e","block_type":"box","text":"United States.","page_number":39,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"957e39f2-c1ae-41d6-ad58-ab71e8928303","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":39,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"8ec59419-e7fe-4ea0-a301-69a2f329746b","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":39,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"f8079fa2-962e-44ed-9156-c469c9c13468","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":39,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"211f6f18-b1f4-4f25-9f94-25383df047cc","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":39,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"a9ea8093-084a-4f52-a8fd-cdf77bff3aad","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":39,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"c65d3397-25e7-4ca0-b739-c885a23f49f6","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":39,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"01ce1cdb-2e4a-4c2a-b2db-1c3a3d3a77f3","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":39,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"f1cc269f-cc69-40b8-a29c-eef290577bb1","block_type":"box","text":"i.e.","page_number":39,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"7e341e24-7ec7-4c07-9e3a-38724ac4713c","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":39,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"38baf7c4-f0f6-409f-8205-fc17299e5d64","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":39,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"06db9030-99a9-488c-bc0e-2977c0df4603","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":39,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"2a2264aa-df11-454f-8dae-2bf7473ca320","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":39,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"218e8dd6-66a3-4f64-85aa-6f3daa33dd03","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":39,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"b5c6d4e3-ab44-4e69-a84a-d0b7c5d29760","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":39,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"6a9ed497-3a61-4fbc-b50e-00895842e5ab","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":39,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"bf6b7708-4c93-40fb-afb9-7991ab7632b6","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":39,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"b0f07460-eb0c-4ffb-965a-53160096ab4f","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":39,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"82717957-dd70-479f-a523-8c5698501658","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":39,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"bde54219-60df-45fe-b282-8ee50285dcd4","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":39,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"b23fc2be-e90a-46c6-a22e-71d73b481b2c","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":39,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"1067080a-719c-47bd-a55e-500ad2419383","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":39,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"56d0e2f8-3c2a-4015-948f-be98b112c329","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":39,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"fca8a3c5-a802-4b88-82c1-df4da55e3a6e","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":39,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"3b6edb7a-a48a-46a2-a2cf-7cb7b8fc8b19","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":39,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"c086b84a-3e36-4170-a4d3-8bc657592052","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":39,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"b0d79123-4c15-44fc-9d03-a2dce72f8596","block_type":"box","text":"risk than higher rated securities.","page_number":39,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"75ccab30-7ae1-41fd-845c-42a05d5440ff","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":39,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"b417a859-ce09-424e-b29a-7129ebc22d11","block_type":"box","text":"•","page_number":39,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"44f9cd7b-77d2-41e3-8a95-74eb8e105fad","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":39,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"2690ae3b-f2bd-4707-9196-17771c2e01f1","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":39,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"77383a03-d287-478a-9464-b4540668f1ff","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":39,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"f6b94ff9-290e-4f42-8d79-8f81091e7343","block_type":"box","text":"unavailability of additional financing.","page_number":39,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"cd2f7aef-e575-46a6-b106-ad2119dfc79f","block_type":"box","text":"•","page_number":39,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"b652b5bb-710f-4632-8ea9-f6df9a0d49a7","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":39,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"3e67fc3d-b561-486e-8e6a-06f52f53d0fc","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":39,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"2ece262f-bdc2-40aa-a9f6-96f52bbce777","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":39,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"2f40f359-0bd5-46bb-acb8-7a27c97b0862","block_type":"box","text":"II-10","page_number":39,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dab18ab4-88f8-485b-9111-4deaaa875463","block_type":"box","text":"NM0926U-5977658-39/228","page_number":39,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"02216bd7-5397-412a-b5e1-8d186f85c614","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":40,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"c799a03a-04d1-4dcb-aad0-c9414a415e13","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":40,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"7e5eb5ae-15a1-46f3-b53b-9724eba2ec78","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"16f55063-6350-4847-91b9-387e380faa75","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":40,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"c54d9391-4a17-41d6-910d-62c265068327","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":40,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"4e28998b-195a-4078-8638-45c8415cea63","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":40,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"f90e02f5-e0f4-42bb-9ee6-44106c274347","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":40,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"0606b6bb-b5e4-4a66-a494-04dcbef0dc1b","block_type":"box","text":"investors in higher rated securities.","page_number":40,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"1420b2c3-9b4b-4104-af54-ed2db02e28eb","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"05412e94-7b75-4810-b4f8-8e2cc69bd040","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":40,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"f7268ae8-ddc2-4043-8874-fe5dd87e8228","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":40,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"7eec8a57-46b0-4e9f-a7a8-c4a94883bd70","block_type":"box","text":"lower yields and may lose income.","page_number":40,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"1ced3c0a-305e-424b-a5df-0573513db035","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"c075907c-c688-4f33-a32c-406bcb2d5e87","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":40,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"a2d65a83-5451-4489-a2a2-e4fbcc30a1da","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":40,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"d6eb5f89-2a5e-4232-95b9-5cc2439e3f5a","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"45e596f6-bb7a-430c-8629-92525c1d13de","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":40,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"8ec4b3c4-19f4-477f-a75d-da21a54d8497","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":40,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"ac5dffc7-5545-4f67-9e37-148612cfd4ad","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":40,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"da66d903-41df-4fd5-b07a-b41ff201ba22","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":40,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"88c07c08-c900-4750-a73e-27f86b3a8d36","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":40,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"ee52756e-4923-45d5-a117-b48736a7b7e2","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":40,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"93669a51-51c0-4f14-86f2-cddf912707bc","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":40,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"a79ea3fc-b912-42c5-8436-f8288f43881e","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"d80795d1-9f9e-4834-97f6-fe32446c0f08","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":40,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"8958c580-c146-49f6-8434-cb017ce433f1","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":40,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"68070ca2-6d1a-438c-acb7-e3526182c827","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":40,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"285908d3-472e-4f2f-be66-456911d85224","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":40,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"01c20634-4727-481f-8f62-2e3d2f77e716","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":40,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"8a936e94-3cbf-41c3-b139-ccc5f17f70ba","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":40,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"e9e3e540-ab8f-4e01-ab86-bc6e8d3a871e","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":40,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"bfc2e346-b554-4295-9d47-ac4e3cdc4eaa","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":40,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"ee37c08c-53e3-420e-a221-88235821cf20","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":40,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"d2bd9bd5-155b-45c8-9cdd-c657d7a66a64","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":40,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"257e710e-b0e9-45d0-932e-9da40f6cbc44","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":40,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"a3f660e2-982c-4471-8c67-dbbfec0896d5","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":40,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"ee452694-db8f-416e-9313-1850bdbf6309","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":40,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"6a8e7cd0-e309-4813-8cd8-409a49013db1","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":40,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"00f3fb90-8119-4174-8b56-92c9ab1dc4b8","block_type":"box","text":"role in determining such valuations.","page_number":40,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"2a759d49-e2ce-4371-9b7f-494b783de96d","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"2703a8fd-b2e5-45be-8102-9275f18b8e8a","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":40,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"75fd25d5-09cc-400e-a1a4-36534b148ace","block_type":"box","text":"a defaulting issuer.","page_number":40,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"eff09539-1ee8-4a53-ae65-2c1747434b85","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"0678f5af-d7d3-4d4d-8905-af7b3d7dfded","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":40,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"a0219aa3-9fd5-42e2-ac16-9d16c2087104","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":40,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"d58e0111-c166-4d6b-ad67-505465a829a1","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":40,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"473fd71b-b264-4abf-9478-29bead309ccc","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":40,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"94accd21-16e7-4bdb-9ce4-ad06efa67323","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":40,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"81a3cfba-0f79-4e4d-804b-6c2ee6ae4dce","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":40,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"f316f487-16d5-482c-b63c-8c7c2ff2a41f","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":40,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"191273dc-c86d-4b02-905d-230279516f3b","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":40,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"0fc11b53-898b-4bb3-ab5b-42b56d6b9243","block_type":"box","text":"•","page_number":40,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"7aa9f077-1655-4059-a6cd-566bd1a211c8","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":40,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"554800ff-f40b-4c17-bd70-91891db5be61","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":40,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"d4096633-6d68-43ee-b20f-d5dbd2346a4b","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":40,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"d5f8570e-ef5f-4497-bd86-56c3b9482d52","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":40,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"ccf0fb78-165c-44c2-bcd9-fde411d4d715","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":40,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"b1331ff4-7d5c-4f3f-9112-fa50c7cf4b48","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":40,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"c26ce436-4b94-45e5-b063-137ebade9258","block_type":"box","text":"higher-rated securities.","page_number":40,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"e279f8fd-02f9-425b-a8c2-df17ed9e776b","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":40,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"66848e3a-2ed7-48af-9737-b7d6785fd465","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":40,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"f7c96446-122b-4ecf-be1a-4e60adecc99f","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":40,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"830798fe-a9f7-4bbf-807f-6c659698fe97","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":40,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"0f66f491-75c5-463e-81e4-a10c8dc661f0","block_type":"box","text":"II-11","page_number":40,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8e732059-b9b1-40dd-a5e5-fe044a70f151","block_type":"box","text":"NM0926U-5977658-40/228","page_number":40,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"bab52ec5-11ad-4255-9fb8-4475ca7b031d","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":41,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"dfc44598-1b76-45e1-84de-f5070562c9b1","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":41,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"9b42cde9-865c-453e-ab92-6b6b601f59e2","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":41,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"f6ca30f2-ee45-44ea-bf49-36f2a2de443b","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":41,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"875d6374-7922-4d4f-be76-d7405341130c","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":41,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"3f36fab3-215e-467d-a8aa-93f2b745b3dd","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":41,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"2f64f361-12c3-44f2-8e58-7ba9a254d46e","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":41,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"a36d6728-f15b-4d3e-80b2-f56b15dcd31c","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":41,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"f4060306-5d93-45c0-8caa-4eac94ccdb0f","block_type":"box","text":"Mezzanine Investments.","page_number":41,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"ffac7153-823a-428f-8312-66ccb8ab2b1d","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":41,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"9953e730-1656-4b23-a74e-67e3900ee140","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":41,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"25238cd6-46e2-4551-bc9f-883d404237b6","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":41,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"17ae93a4-2e69-43d3-84f5-0b2d74f50d89","block_type":"box","text":"e.g.","page_number":41,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"1bdf5a60-1891-4163-b0bc-1ce5d1268953","block_type":"box","text":", with","page_number":41,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"bd4cd00a-a74b-42ee-ba07-e62246600264","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":41,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"ee5822ee-183a-4661-beb3-6ea571397cd4","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":41,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"80ef9c12-3f51-4acc-aef1-4a410976f856","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":41,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"cb0e9a57-73a0-4262-ac4c-020eae854ded","block_type":"box","text":"other obligations of the issuer.","page_number":41,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"3bf74f49-f996-484f-b7ce-8dbc6169b3b0","block_type":"box","text":"Pay-in-kind Bonds.","page_number":41,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"c97b80ff-839e-4b63-8c4c-b45ab6840037","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":41,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"73b269d4-c71e-4486-9771-1b9bc9db39eb","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":41,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"f8b93537-ae54-4d5f-80f0-e92f4f8d1843","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":41,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"671ed8fd-5ebe-4d3a-a93c-20af4155ca92","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":41,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"e6de7e85-5614-433f-b249-224400c66c66","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":41,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"918cb927-b964-4f4d-bd0c-8acd95476180","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":41,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"20f0e98b-f3c4-4592-b036-d8f4f2fcea68","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":41,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"e64e9ba4-4894-40e0-ad43-fb599e77f758","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":41,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"3d16b118-7a6f-4470-b9f6-69c41a62ba97","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":41,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"7452b64f-9c13-461b-90ae-64a49830eb6e","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":41,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"c70471eb-b23a-458c-bbf4-501c5b97dcdd","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":41,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"598105bb-2bb1-4bb4-899e-0348816c0648","block_type":"box","text":"Supranational Entities.","page_number":41,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"765db2d4-63bb-4604-9f69-a9e2a470eae3","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":41,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"c91c7e38-5d47-4923-a767-7fd6de8d48e7","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":41,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"e73a279c-b7bf-4527-a3f9-ebea341fb35a","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":41,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"dd7c3fca-ddf1-429d-a245-a8a46a5846f5","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":41,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"fa078c64-1a31-4ec4-b40a-98223402c214","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":41,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"ca2eb404-e210-4fb8-84ec-88a1e2abb918","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":41,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"de7d3868-fc98-42a6-a5fa-348c3c15cc16","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":41,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"baab26f6-0a7b-4520-909d-69e40a2a7bff","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":41,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"67b859c7-f18b-42df-8d78-27eff0b22f43","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":41,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"6589d371-c1b3-47e1-84d9-7e836d8580ac","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":41,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"1bdb523c-37e9-436a-b880-1ae585a87f79","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":41,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"25c02473-9d9c-44a6-81c3-3a631a68a8d8","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":41,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"82381355-e9ed-4a82-b532-93d09616c476","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":41,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"da170538-aaa0-40e1-96f7-f17dc1576f22","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":41,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"9dee7810-b476-4e60-82cb-87393163f41f","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":41,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"f8500f8f-a070-4a38-bad1-c727df280799","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":41,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"8a5de559-3389-4aff-bb97-4ceaf338b69d","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":41,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"baeb4df3-3f4d-4c7e-916f-e49bae867053","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":41,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"2424fb68-c319-4379-8e80-ae1ebbfa2825","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":41,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"992b2ac9-d582-477a-b927-32b73830a8f2","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":41,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"94dc48dc-c12f-4e34-beef-906336884ac2","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":41,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"1503e618-aceb-4193-85f8-c603d13e560d","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":41,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"92def9fc-9e26-4f03-834f-f5564a6dcb18","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":41,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"64513520-6db6-40d0-b382-bcc11be13bb7","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":41,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"c6efc574-2a32-4913-ac52-50f6364a66cf","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":41,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"db1a1c21-6f22-48dc-86d8-cd32d0708fa7","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":41,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"689b3b14-42c0-43e9-8a8d-6f9083ef4739","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":41,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"5c3a807a-803a-40d9-9069-f2250e4159ac","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":41,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"ba76862d-179d-498c-a675-63615c7f9921","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":41,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"a97c554b-7cf9-401b-9956-7e51fc7a1e8f","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":41,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"c07d454a-fdf4-4634-b28a-df7b9694a124","block_type":"box","text":"II-12","page_number":41,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"712ac291-0ed4-47a3-b251-0b4d212fb323","block_type":"box","text":"NM0926U-5977658-41/228","page_number":41,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0e29416f-142c-4e33-8577-09373c836c01","block_type":"box","text":"Derivatives.","page_number":42,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"c8ea4cdf-5b01-4f2a-b8ac-73b2f63f50e5","block_type":"box","text":"General.","page_number":42,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"4301de4a-8ecf-4e78-b481-02c7a2b88186","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":42,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"16c835c1-6b16-49f0-b97b-cc6c517d3cd2","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":42,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"79da7670-7f76-403a-a200-b4a5d93fb840","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":42,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"46107fc1-a4c4-4b57-a35d-132a650af595","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":42,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"70a07a83-326d-456c-9d8f-2dc1f0dc0ccf","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":42,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"4d53d1f8-de99-4c4e-9a63-6920fef2cd49","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":42,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"385c0583-378b-4dda-8e7c-12c16257a8d1","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":42,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"d52b8c9a-6f38-44af-aae2-e2dd4970a45d","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":42,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"c06caeb4-709f-4791-b04f-11b4ee74447e","block_type":"box","text":"i.e.","page_number":42,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"75413bae-ac3c-4f0d-8876-333534592d09","block_type":"box","text":", the payment","page_number":42,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"5e8df029-ec3e-4ea7-997d-bffe2774d167","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":42,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"10e84622-1a1b-40af-92eb-9a660274597e","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":42,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"63067786-96fd-496e-827f-63d5ab8ebf4d","block_type":"box","text":"Hedging.","page_number":42,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"6dff1552-25e2-4acb-b190-c3e70ed927e6","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":42,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"76b2ca63-1fc9-4986-a3cd-07391f597931","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":42,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"2273702a-588d-4aa3-925f-cef8456c27c9","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":42,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"ba2790a8-8089-4953-8e44-43781e4ff2f3","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":42,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"da6dbe95-d9e7-4fba-8d27-aa85b3a5f87f","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":42,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"97e974c9-817b-4f8c-832f-cd08800dd6e6","block_type":"box","text":"correlation risk,","page_number":42,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"c86103ce-ae09-48ec-a5b3-d46d755cbe5b","block_type":"box","text":"i.e.","page_number":42,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"f40d7e19-66e2-460e-8230-b32c201c2365","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":42,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"688c72e4-a77e-4fa6-ac79-e4d742af65a8","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":42,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"ff46cd80-792b-4d22-857a-9569249133be","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":42,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"2358e631-f1ad-4a0a-9729-5c4100040860","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":42,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"b1d3fb0e-b4ae-43cb-8df8-838a95cc9e0d","block_type":"box","text":"Speculation.","page_number":42,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"2450b53b-4c7e-420c-8266-78045662e5da","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":42,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"259b51c9-b227-49ca-b5df-d6384973d7b2","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":42,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"8ef08ef9-185e-447f-95ab-d3fbda6d1d81","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":42,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"d4cf44f7-12e6-4a7e-b6c2-7424a4dc3d0e","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":42,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"ddcd82b3-5442-4a2a-816b-09f140789219","block_type":"box","text":"in certain cases may be unlimited.","page_number":42,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"37ba1a20-387e-43bc-9c5d-ff4702779ad3","block_type":"box","text":"Regulation of Derivatives.","page_number":42,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"48b055f4-6629-4643-b3c2-c6de41eaa91f","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":42,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"2de476a4-60ee-481c-87aa-ef425a7ef4d1","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":42,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"0f0027b7-7afb-46c6-8735-0dfdaac374a6","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":42,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"64b74f57-4811-412d-b519-c437e44ae0c5","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":42,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"fe52d332-e64c-4611-8db1-a17be6baa783","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":42,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"064bc1fe-a788-4143-9f61-00c8f7a9fbaa","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":42,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"3f1d62ec-64ac-4f30-8800-a84cd0d0274a","block_type":"box","text":"coverage”).","page_number":42,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"c22dd436-72f3-4f5f-8db6-a947cdb63c72","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":42,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"f1b34b3e-41d8-4bb6-86bc-58b2d4744ec8","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":42,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"f42944de-a5c2-451b-8aa4-de3ef313020d","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":42,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"2b54cbb4-1618-499e-952e-21822661c596","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":42,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"d2513379-221e-47f1-96fa-0cf66f3a7569","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":42,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"b2dd6759-00b0-4e26-9d9e-ed0c667c5e20","block_type":"box","text":"financing transactions (","page_number":42,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"792557a6-9b45-40c5-98b8-f21dc80f3414","block_type":"box","text":"e.g.","page_number":42,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"32d1be74-8c2d-4e2d-b4a4-0b22203ac257","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":42,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"d263a5b8-e99f-4acb-b1ac-3d42c7e8857d","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":42,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"09479558-a986-4878-b1e2-1862c88cb5e8","block_type":"box","text":"securities (","page_number":42,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"e0a8f2ce-1e5c-4c79-b4b1-4eac86bcdb98","block_type":"box","text":"e.g.","page_number":42,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"fdd19a82-3eee-462d-9934-bbdd6431de2b","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":42,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"3da414aa-c1f5-4d98-8673-4f697bb24d3b","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":42,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"821b4847-623a-45d7-ad8d-05dd13ec58c0","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":42,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"f3292f2d-a584-45c2-ae01-806fa0d32dea","block_type":"box","text":"Commitments”).","page_number":42,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"b3b31edb-8610-460b-b30a-076b3bdc4abe","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":42,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"5500a1cf-cd2b-4d79-a798-fd97b6de2af4","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":42,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"64a364e9-a4ea-4d3d-8f17-1de4d31f0165","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":42,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"4cad4848-144e-4b27-a380-6f8885d0025d","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":42,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"28800b82-e840-4b8e-8ad0-e5c7ace86b56","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":42,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"bd99f7d4-6e71-4e08-86ce-875a4060096e","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":42,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"1f85403e-88d7-4add-b8aa-75d6a9092181","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":42,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"4a28a822-07e1-48f2-84b0-24fc23bf2a18","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":42,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"d5d7d547-e9a4-431f-b363-0c770b8a09f0","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":42,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"bdaaea57-430e-493d-84c7-7553f7c0e137","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":42,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"4bd92cda-4820-434b-9998-6ff51e76bff0","block_type":"box","text":"II-13","page_number":42,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f89240e5-f6d0-4217-9839-65d0b5cb57e1","block_type":"box","text":"NM0926U-5977658-42/228","page_number":42,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"40860eda-5cce-4681-a027-f1286e1d8448","block_type":"box","text":"Dodd-Frank Regulations.","page_number":43,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"58c9709b-163c-4fc3-9602-ac9509eb964c","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":43,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"5f5a1230-3772-4b49-b4ec-36969b338ee3","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":43,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"fd3270e1-3381-4338-aa2a-35b756b488e0","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":43,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"179aec34-add6-429c-b2cf-4100c648106e","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":43,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"2ada22a2-bc96-4067-899c-61455664795b","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":43,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"600d0708-5e95-480d-abd8-1fb811c1bc81","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":43,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"6456d1ed-2f27-4d86-8f89-4b364faa924c","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":43,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"0562e042-4bef-40ee-a669-858db009eb98","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":43,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"9fd41e6e-5f03-40c6-ab7c-d26f36dc8041","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":43,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"a73ecb18-b825-471a-9b8c-030355535ed6","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":43,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"3c76c18d-2ff5-4dcb-8a5f-0a780a302d82","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":43,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"34aad9cb-63aa-4e4a-b992-7ddbb3764b85","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":43,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"3cebf522-8411-41b4-b0b4-15bee1ed4b65","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":43,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"ecceac11-fcc6-471e-a9ca-20d38d2da3c5","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":43,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"a967e839-3f19-4630-acf1-b357cfb7153b","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":43,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"7a21d749-3e38-4ae0-94ab-9fae5b31b218","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":43,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"1e75facd-f637-4938-bf50-d07f538f7e77","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":43,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"4b376c94-e934-4796-86c1-8305fef45aec","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":43,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"24df799e-5db7-4115-9042-236ab282c09f","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":43,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"2fc2cf30-1b2a-47f6-973d-6d1b07d3a40e","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":43,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"43d38ba0-8926-426c-ae5a-db2bad5ab7c7","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":43,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"fdef4529-ab0f-4512-bfc9-37339f0784d5","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":43,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"c8e3098a-31b1-4eb7-a05b-7b92108c5270","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":43,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"a0fa23e0-3185-4900-af92-99f210778cc8","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":43,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"994978a5-0987-47e9-9b9b-d580ac9d56ce","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":43,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"881c9441-f9ca-4ae9-a2d1-fa650fffab88","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":43,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"117f8aba-df60-4f72-9f45-f6fb70a1288b","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":43,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"913da2f5-aca2-44ec-a25e-2def2dbc9e72","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":43,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"c72ca680-a513-47fa-a436-b4ad899ff50a","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":43,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"b011f25b-e31e-4584-a0d3-b21e80e4f095","block_type":"box","text":"member.","page_number":43,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"61c9d233-c98a-4595-b017-ff5f65eda26c","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":43,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"43e93de9-276e-4d51-a195-8cc40123357b","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":43,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"638c7301-340d-4028-877b-594df1fa20bb","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":43,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"3233c27c-bb4b-491e-8a3b-9d0c0050aa68","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":43,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"47f8d731-7126-406c-aa3a-b3979bb6a358","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":43,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"63c5ec56-fbac-4c33-911f-566d45402813","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":43,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"b7e66c6f-ca3b-400f-9148-2d5046a565aa","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":43,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"bf5d216d-9c6c-4990-80d4-01fad8e0a580","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":43,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"ad175dfe-0f5e-4911-9b8d-4e5498de99fe","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":43,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"11921c15-9cb2-48ee-97c4-fe17d123765c","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":43,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"dbf50fda-c5cb-4da6-af13-1fb5a0e926b6","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":43,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"7a9df41e-0bf9-4941-a242-1267d18e46f8","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":43,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"077ff4bc-9eec-4fd0-bac7-56d02866015f","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":43,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"58c2b431-05d5-4f64-9ee9-c8ce04e574f0","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":43,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"8436d203-8dc7-40ec-9061-68863c208176","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":43,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"c617597a-2388-4fa2-aff0-0b52c7d11717","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":43,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"b4de9644-054a-49fb-9015-7bb9d6f05c2a","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":43,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"0e40a9b8-4b3c-4e49-9ba9-f00b9c1c7d4c","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":43,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"6cb0d709-ae53-4371-bfcc-75e4622fd390","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":43,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"0d15fb15-44a7-4ce4-b2da-ef183c388642","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":43,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"e8b96be5-ab79-43f8-902f-e4e6c7f76352","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":43,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"ed955955-5b8f-426f-8902-4f5ec295d108","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":43,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"a67f6353-6a45-46fd-9860-310711d84745","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":43,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"af388ec5-aa66-40e9-aa41-50022b4a8728","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":43,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"f011c40e-bcf5-4d40-81b3-c064e3630a8a","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":43,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"a50b3106-57ad-4d74-88c4-0829a1aca7b5","block_type":"box","text":"II-14","page_number":43,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2eae36a-7c0c-465e-a00c-d015568463fc","block_type":"box","text":"NM0926U-5977658-43/228","page_number":43,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"fe74b6b4-7ddd-4e34-ac29-aa428e424027","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":44,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"e20ff3f8-be8b-41a0-9f3a-55e4d6797b32","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":44,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"041ee421-7eaf-4ac7-b1b8-54b3f0f9f76a","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":44,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"c24d08f8-83da-47a2-b93e-e30cb45abeb0","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":44,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"eddd1667-3097-4a7d-ad76-53e9087f4904","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":44,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"1215977c-c236-41e8-943f-d3829ffc6d3a","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":44,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"b4db33d6-895a-47e5-804e-fb6b4bda3c3a","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":44,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"46760893-0a7e-4e19-bdb0-aff212231aef","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":44,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"624f6d45-d9c7-437d-b30c-1aa5900f0f8c","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":44,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"57fe2197-8c78-44d0-bcc9-c43d276cba11","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":44,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"9c06b805-7857-43ff-9734-d014eeb55b9b","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":44,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"7970b8e6-157d-433d-8618-26e0a86b2629","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":44,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"aee13731-b5d2-495c-bc7c-87d4f86de5ee","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":44,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"7768a184-10a1-4432-97c3-3c5e7302fa97","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":44,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"baa39218-ba7a-4257-9084-198e160f3e5c","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":44,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"d9360c5a-e424-4169-a91c-db4de0ce1384","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":44,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"88b921f8-dca6-4e43-a5ad-6d99b0edeb80","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":44,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"09391d5e-6b70-4001-9d47-b554aba60523","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":44,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"882c22b0-f78d-4d08-a486-9e031ad4b3ba","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":44,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"1a0d6924-d791-47a3-9d2a-7591692e7249","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":44,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"12402037-7f16-439b-82cd-6ccb08048312","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":44,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"5edf962c-111f-44dd-8146-18b394fd49b6","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":44,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"ad4bb8cd-30b5-499a-9cba-d9202a710ff0","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":44,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"c88f29c3-3594-448c-924c-57de93e230cb","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":44,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"854043de-d1ed-45dc-a0f6-57843365f38d","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":44,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"8cb6d900-177e-4b51-9b0f-ebecbb2259a5","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":44,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"b9834322-b7d6-4d47-b2a5-ed1db2a751ec","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":44,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"aef88899-4a83-4259-88e0-30c29ebe3a18","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":44,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"87413797-3f97-4a05-add1-2ef52e80272c","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":44,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"05431fb5-6dfa-421d-acbf-909ee372b8ba","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":44,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"b8241bed-df39-4afa-ae3a-a31f0f4ad693","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":44,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"450d6292-2d7e-49e6-873f-005e658f046b","block_type":"box","text":"collateral received under such contracts.","page_number":44,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"b21152d2-1ddd-448b-b2a5-45546a712fd1","block_type":"box","text":"Risk Factors in Derivatives.","page_number":44,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"94f95ee9-fd6f-4393-91f8-6b22bf236668","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":44,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"a136c926-2c29-4408-9aa8-5be57ee94e84","block_type":"box","text":"Correlation Risk","page_number":44,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"0ec578b0-26b2-494c-ba52-62de25df915a","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":44,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"80dd70e9-64f5-4032-abc2-1243160ec222","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":44,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"852e9d50-c74a-4b41-b427-631c0074476f","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":44,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"c54279e4-fad7-407c-baf9-56c3b944973c","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":44,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"b57a0400-6265-498f-ac5c-d44af5ee4007","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":44,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"94a30e71-9670-4de1-baa4-41d11566568e","block_type":"box","text":"Counterpar ty Risk","page_number":44,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"12b891bc-162b-4d8f-8d89-087bf1a91081","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":44,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"e0374588-e4ea-4d23-af3f-373b3693ddb3","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":44,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"5cb44171-37ec-4de7-a435-49c89ef5e5e3","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":44,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"f14c5f1b-b54e-4dae-9128-16ae9194e16d","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":44,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"97344337-7ee8-4e77-885c-340a5b704134","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":44,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"8e7af074-8f06-441a-a559-1e40e3f09ee9","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":44,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"42758441-15bb-46c8-b661-660ed3c571e1","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":44,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"b3933237-6e77-4ba7-acb6-5c2f9585d7cb","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":44,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"450404b6-9e67-47fc-a043-70b8ac306b5e","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":44,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"796a7432-ef04-4255-afe7-bc70e9b88303","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":44,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"8ab6277a-4560-472b-90c5-724f659d3cce","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":44,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"714c97a5-482f-4b6b-994b-2a54cd15a7d9","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":44,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"dcec9870-b16c-486b-a49e-25adede551a0","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":44,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"3a8ed1a0-83bb-4f17-bd5c-efd813f31fe7","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":44,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"9bcafac5-221c-46bf-9139-8efaab8f3e86","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":44,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"87d23dad-b012-4b98-8847-62869d943432","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":44,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"d3a96717-07a2-4f29-8d5e-20370674db8d","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":44,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"492445c7-bba0-4a93-8190-7e783c75c37d","block_type":"box","text":"II-15","page_number":44,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3f9ac7e5-9121-46cd-9b2c-52ae8c9d570a","block_type":"box","text":"NM0926U-5977658-44/228","page_number":44,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"45c5d0f3-29b3-4187-beae-077f6a8fc9aa","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":45,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"87c9e79a-d84a-417f-a4c7-b1fe3b1d076b","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":45,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d2ce2b04-2ff0-46e5-b71f-d14366f5d80b","block_type":"box","text":"by the clearing member.","page_number":45,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"1da063a5-b0bd-4141-aa4d-40c9387b8e01","block_type":"box","text":"Credit Risk","page_number":45,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"8e8cae66-eba7-49d9-9f62-f00b0238025d","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":45,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"97ebc4de-1374-4df6-9a26-211599dfb9be","block_type":"box","text":"honor its financial obligations.","page_number":45,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"a3599c1f-846a-43d2-8d13-0f14af738c98","block_type":"box","text":"Currency Risk","page_number":45,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"475b1159-ac6e-434a-b602-40bbc4651ea5","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":45,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"e77ca40a-a520-46d0-baa0-7c1ff67e5f15","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":45,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"ee6e01ae-bfc8-4d5d-b69a-adbb12994703","block_type":"box","text":"Illiquidity Risk","page_number":45,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"f02904ae-f66d-45ba-81f7-6d138fb12e3c","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":45,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"157477e3-da16-48bc-8f53-532ddde90387","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":45,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"4259f93a-174f-44cd-998d-5105dec62925","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":45,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"083c0c11-4052-4119-a152-41111e19de2d","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":45,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"6747bb15-57f5-461f-b9dc-f01a80c5dc5d","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":45,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"5b770f0b-97d2-4497-bde9-49d6dcf49d3e","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":45,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"b2a27fa0-dc49-4d74-95bc-5317e38ed1d8","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":45,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"3ffdcddc-200d-4206-ab8c-e79e3490e5d5","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":45,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"0ff7eedf-4b7f-4cf2-87da-adbfaae8d2ef","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":45,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"79e536cb-557d-4312-b9bd-0cdc2a819f5f","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":45,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"0e26c937-d769-4543-b914-6242af4e392c","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":45,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"0187fdaa-a2ff-4789-8fb3-541cdf562fea","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":45,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"41cd0971-8a49-4555-9b4d-3c38843e5a02","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":45,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"ae2cebe1-3194-4661-8f1a-7a0ecc5137ce","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":45,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"db76ff73-3b19-44b4-be28-fd9c1712d400","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":45,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"679fad06-94ee-453a-8714-47075ace3d23","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":45,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"bf5bf694-0960-4cbf-bb74-7cbcc1d3713e","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":45,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"818b4972-9b2a-4894-99ac-042ce3f9a8df","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":45,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"624670ab-3f42-4fb4-a3dd-d3452b438c38","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":45,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"24075d8e-8aef-477b-ad67-fbe78a3be178","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":45,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"5e49f3e9-82a7-4c1f-95e4-39c56a2be7ea","block_type":"box","text":"may be disadvantageous to do so.","page_number":45,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"d4bee3c8-c297-47eb-8816-52f71f5600ed","block_type":"box","text":"Index Risk","page_number":45,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"15f7fc25-e3fd-469f-adf9-5a2a4e9c0155","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":45,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"4d751d66-bae5-4df2-8b0b-d99ee4cd59f8","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":45,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"38b761e3-428d-410d-b160-f023074c3fbd","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":45,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"eee217f2-7767-41cc-9b00-3aed4d748496","block_type":"box","text":"Legal Risk","page_number":45,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"2aa2a67d-d918-455b-8412-9194772d930e","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":45,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"6ff6e41c-4ba5-444f-bd2c-1dda68a9ea5c","block_type":"box","text":"or enforceability of a contract.","page_number":45,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"3c9903c9-6278-46c7-8edc-1cb81ebc972d","block_type":"box","text":"Leverage Risk","page_number":45,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"6dc23a20-f35f-4d0b-a61d-cee70e8489b7","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":45,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"28487ceb-831b-4433-abd6-300973034f4f","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":45,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"20da5f4a-3e40-42e2-9db8-384f3ae74465","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":45,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"de4fa948-1036-4db6-80c7-01096e52f28b","block_type":"box","text":"Market Risk","page_number":45,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"6639c4ed-3bd7-4d60-8b8c-461c22d4d468","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":45,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"075c93cc-f47d-407f-9fb9-e8833c07199c","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":45,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"611943e9-af73-43f7-849c-7402289423e2","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":45,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"bbc08039-8619-470d-a460-de6cdf70fb10","block_type":"box","text":"affected.","page_number":45,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"f2217474-1c87-410d-82f1-640b9c087e99","block_type":"box","text":"Operational Risk","page_number":45,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"6b4197e6-7a65-404b-b8c7-c521b2c04c02","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":45,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"0a7cf7a1-0d8e-48af-b8fd-0a1c6e017a87","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":45,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"079000af-705e-4f16-8b3d-ea2d6809b4a7","block_type":"box","text":"Valuation Risk","page_number":45,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"205c8a44-116c-48c8-9e46-f27fd0294489","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":45,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"6db8f17a-0bb6-4ea0-9f4a-9ed7fa2d98d2","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":45,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"c4cd45e8-b3ff-4adc-9098-af9c00acb69e","block_type":"box","text":"complex instruments or quote prices for them.","page_number":45,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"90af7f06-447e-43da-bd90-06babd19d875","block_type":"box","text":"Volatility Risk","page_number":45,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"fec1f4ea-f162-4479-926b-7e91f25a845e","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":45,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"844c8390-0ed5-42f6-80bd-a621995bc30d","block_type":"box","text":"Types of Derivatives Transactions.","page_number":45,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"99af4893-0d0e-4713-a85a-ba3a6eb7d992","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":45,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"18b1bdf1-d2c0-43ac-9a0d-e4327b576f35","block_type":"box","text":"including the following:","page_number":45,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"5e17ee44-b8af-4583-904f-48eb611252cf","block_type":"box","text":"Futures.","page_number":45,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"4139e695-9096-4a17-9146-59402e613c39","block_type":"box","text":"II-16","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"44960e66-6c04-4632-b16b-a3da06dc0228","block_type":"box","text":"NM0926U-5977658-45/228","page_number":45,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8ef99e97-c04c-4089-be2c-ec7843a59e6b","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":46,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"958f2ca4-aa89-4042-a4a4-6a2ce9c468b4","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":46,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"a951fd6b-c0f0-4db2-b752-2b7edde2a00c","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":46,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"eae5a7b0-3ce3-4297-8de7-b52831965caf","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":46,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"bc19da1f-e13a-423b-91ca-1bedd31c2ed5","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":46,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"8da158c6-a266-4b2c-b34b-91feb4c2cdde","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":46,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"9d4f6988-56ca-41bf-b9ad-bd23959d530c","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":46,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"81ba654b-ae39-4e30-bfa0-3d5738f1382d","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":46,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"73742da4-b8a1-4317-8d51-99571b15309b","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":46,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"bb386586-0106-4f54-b1bf-9af023fd23d9","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":46,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"b003d636-ac79-461d-9600-d4ed0291deb6","block_type":"box","text":"of the futures contract.","page_number":46,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"939f89cf-d7aa-4772-a03d-4a84df308130","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":46,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"f4dca229-a190-49a5-971e-08926f77b952","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":46,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"a3d7f3f6-6096-4068-b337-6dde4b68d0d4","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":46,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"7b11623b-e2b9-468d-b015-d5a332f00cdb","block_type":"box","text":"relating to the futures position.","page_number":46,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"84906f68-fd53-4e5e-91f2-48fd174cb885","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":46,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"29a39b7a-31cf-47c0-b14a-447ca4245518","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":46,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"6257a1ab-5877-4597-9601-940bf129feaf","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":46,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"730e387c-5948-48af-ae78-3d7387a4f5bb","block_type":"box","text":"Regulations” above.","page_number":46,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"31a8f191-2ec7-4d70-88b7-3e4f2e7da5c3","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":46,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"c55619c1-e228-46ca-bde7-50bbe9cc7fdc","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":46,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"247698ad-e4e3-4f21-ba6e-60ea10bc5535","block_type":"box","text":"(","page_number":46,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"2fedb1a6-f83b-48d2-a15b-8f2e896c3e49","block_type":"box","text":"i.e.","page_number":46,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"0cc769ef-119a-429a-ba7e-00d876fdb14d","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":46,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"be6f1cff-a28e-4485-aaa3-baa3544e1f05","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":46,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"b1a999bf-e23b-4bfc-a844-0304dec2755e","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":46,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"44c4783d-6800-4a3a-a289-25baefee63df","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":46,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"48de9b67-2bf3-4cc0-ad96-e86a78d98e29","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":46,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"357bcb9b-99e5-4040-a6da-6ba7f77ffc68","block_type":"box","text":"Fund intends to purchase.","page_number":46,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"940d16dd-98f7-4769-98de-cdbd7c565a80","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":46,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"39528e98-f7c9-4531-8716-e4b0fc588ba0","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":46,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"495e6849-5e51-4b16-8ac2-55cf2500b4f2","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":46,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"68ed7bda-6e21-4f37-bf7b-3610476a1209","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":46,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"b4948edb-19f7-49ad-9e22-b5f0ddbf90ae","block_type":"box","text":"illiquidity.","page_number":46,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"811b852a-858b-47b6-8dd8-16d6027cf717","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":46,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"a7e1ee94-1c09-47a0-ad7d-79292f1157c1","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":46,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"3d341c8f-6002-4021-9c95-d2daec13d3f1","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":46,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"148ddf00-154f-46eb-8cd8-2e487e7ee539","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":46,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"6713515a-0f0a-447c-afc4-4009f78c47e8","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":46,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"8f1d1fe7-fc2c-4f8d-81da-82359a7c0c70","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":46,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"05a910a0-13c6-4cb8-af90-83feeadbd7d1","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":46,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"7624118f-c411-47e3-9d88-f1a99ba61d2d","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":46,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"07fca1a2-3c59-4cc2-bffb-11d83304d397","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":46,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"8040851e-81db-4b92-88de-dc6c90634fc6","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":46,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"c2ec1f18-8fe0-491f-8f99-f4c546752a7a","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":46,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"a36574e2-a605-4d52-8034-810c827e8506","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":46,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"443896f0-73ff-4147-999e-85f29cddec8e","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":46,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"c8cc0074-8d1b-451a-ad56-ec4099a99ce5","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":46,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"30050b0b-43e3-4343-8607-df482c36f8f5","block_type":"box","text":"Swap Agreements.","page_number":46,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"328a9175-e475-407d-ac37-b682c50036db","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":46,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"2e9d234b-51b2-4495-8a0c-863c8d1973ca","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":46,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"4f87921d-16c0-4fb0-9ef3-f3a23f111c2a","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":46,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"54d3b0fa-8c4d-4693-8189-5ececb78120f","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":46,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"1d3af600-4231-4c43-b268-79ffecfc01d4","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":46,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"5d0e1eb6-5d13-4f37-ae37-1f8af7393ab8","block_type":"box","text":"a “notional amount,”","page_number":46,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"922a3a3a-5115-4d8d-a791-7b9772f3c967","block_type":"box","text":"e.g.","page_number":46,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"4844a9c7-3994-48ea-8098-732e9c1b3bb5","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":46,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"eed8e4de-5422-4ef5-9b38-8c0621d138a5","block_type":"box","text":"II-17","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"827749ac-779c-4667-8d26-d33eb3af8698","block_type":"box","text":"NM0926U-5977658-46/228","page_number":46,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"72722b6d-560f-4591-a577-66efae3188aa","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":47,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"127eaecb-65fc-4f71-8b3d-4c3002004256","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":47,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"06e35703-ac77-45ee-b9e8-2ef46595678c","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":47,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"3e3b74c1-1b85-4d14-803d-39da2e67126f","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":47,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"baa095d7-6d46-4f66-a708-bb12746ffe8a","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":47,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"e29cdadd-e8c2-4212-ac7d-539bbb7b2f01","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":47,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"f6814979-cf34-430b-963c-ccded8ad0d02","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":47,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"39e93f77-9a23-4951-9536-35bb736255b4","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":47,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"9e858143-32fe-42d9-85a2-475678cd6b78","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":47,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"7e0ecce8-d028-4d15-aabe-262a16a1fb6d","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":47,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"886b5818-b120-489d-88d6-b0a32124b564","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":47,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"c6ec3fd6-5651-4036-a8e5-6040044c44b3","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":47,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"7875d669-f15e-4dfa-bb49-bf676a314fd6","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":47,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"46ec00d7-822b-4f28-a573-9bffdb5814d2","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":47,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"72acda6c-0492-4e21-ad17-32b68f39dfe3","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":47,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"66052601-0aee-4bde-a244-9c478de64744","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":47,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"6549b9ff-13df-4238-8a65-a71e2b48ee04","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":47,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"15cbcb90-ac03-4272-b6fd-19b6cd0064d6","block_type":"box","text":"index CDS.","page_number":47,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"803d8bae-6a5d-4e1b-a627-bcc0dcb2985a","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":47,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"494a9d42-0c22-4817-994f-4e18151eee60","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":47,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"0ddd98a2-fac7-407e-8e8b-4c6522f090c5","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":47,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"080bff4a-579a-4c4a-a21e-592c820bfec1","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":47,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"1dccc57d-20bb-43e5-8523-f91d8496d377","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":47,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"23331ab2-dc11-445a-88dc-bdf8432134b7","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":47,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"ee4c27e4-8965-48a7-8cb5-40857736a0f0","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":47,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"372d3ac9-fd66-48e1-8dde-cd7644f04097","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":47,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"92c65c5b-b8f6-4e37-b2c2-20ece9310f0d","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":47,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"4fdf3c94-666b-4fd5-a833-65630c182aa4","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":47,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"801d2b15-fb84-40dc-bca7-bbac02480e89","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":47,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"1118b043-8c32-4c2b-b5b8-55b5f88ab9b8","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":47,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"4305c510-537a-4cbc-8147-afea55c0389b","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":47,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"0c90e96a-d311-4968-b82f-c36ceee0dea1","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":47,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"2270e832-1d54-4924-b321-e5a274e75086","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":47,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"d935bcb3-63ea-4c42-af0d-9c684ae224eb","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":47,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"e33b69ad-b3ab-4bab-a557-0b0ee5222849","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":47,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"1292103b-1682-41f4-b64c-70922d1b7c33","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":47,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"59ed0ea4-94fc-4177-8a06-5f1ceb0285c3","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":47,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"cfe301b8-35d1-4fc8-9e34-13a53ea97e75","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":47,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"b7e0727d-d92a-4971-a59f-ff6e037dba47","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":47,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"94d3fcc8-8eeb-4548-910b-7e20986389f1","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":47,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"508e91d5-0276-482e-9540-d063ce007301","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":47,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"ee68c97d-a8d1-4df8-81c3-cacc0202e4dd","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":47,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"46106c60-c0a7-41d4-b728-607869d02d53","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":47,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"a23e7700-c7d5-48db-b1fc-9e2c9c613fc4","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":47,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"9fdd8b3e-6bfd-41c4-a017-249557683625","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":47,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"9fcdb4ec-5a7f-4e00-8fb2-ab2a46f639cb","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":47,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"ee9b4eb1-1730-4e83-aed9-9d87f90f5197","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":47,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"a0a50307-3548-41e9-9eac-c946219a5897","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":47,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"61315bd6-297f-4537-9f03-49ef81200c7e","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":47,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"d3386332-d892-4606-9cba-1318bf7cd4de","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":47,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"fd48fb7d-90ae-4c10-acea-dfa0e05f8ab7","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":47,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"c86a17a8-3295-44eb-83f8-b78c79d7aa00","block_type":"box","text":"conditions.","page_number":47,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"f100517b-06a4-435c-88ef-f4f5ae011f52","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":47,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"fd4367c3-8fd5-4e66-9edf-551deadc92a8","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":47,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"d12d70da-3a48-45fe-8a9a-65527a60f404","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":47,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"dafdd5ff-b59a-4f66-9bff-7f0c64dce6b6","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":47,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"e1d074ab-cd11-4d87-a538-af35a32f71d3","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":47,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"7d51de86-33e8-4ab2-9b72-95839686fed2","block_type":"box","text":"II-18","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"04805d31-217c-4c7b-ab60-bce7da08f511","block_type":"box","text":"NM0926U-5977658-47/228","page_number":47,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8dc54314-5e06-4d7a-a811-8d370610b722","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":48,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"17ec6898-9ac5-487d-9ff3-7a64df83fdf1","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":48,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"fcec086d-1d4d-454c-b043-ae82fc88881f","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":48,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"b333a9d0-3b7a-4ba0-9bb9-9382f12f960f","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":48,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"ad29e7e6-abb1-4813-b28e-46eb31f95fd4","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":48,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"c2984348-3fbe-4a15-9100-8932d6d7af5f","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":48,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"2c78bbac-7c89-4f5e-876c-0f401b247b44","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":48,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"6d8ed632-e39e-4b07-81c8-40f15206dc56","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":48,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"4d1e1595-2f35-45a2-9eac-8344760ab0fd","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":48,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"bb62239e-a0cc-42fc-92a3-556e904553fe","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":48,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"f6a52a29-e6b0-4578-a261-8fd12f0e065b","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":48,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"6cac13a4-41a9-4dff-ab88-94ffcebf2d59","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":48,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"d55569a2-46ae-4b7c-9357-0de6c48411ed","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":48,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"1b5781d2-9789-438d-9806-79508f956cb5","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":48,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"23ce4962-a48d-4ff8-94db-c229eb893ded","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":48,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"4a9a70eb-71d0-43e5-bd0f-c1c430b784ab","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":48,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"3747bbc2-bcac-4f10-aa2a-c358d2cd8f91","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":48,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"51e68b3d-92c6-4669-a731-c6cec851bd80","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":48,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"d6caccf6-930d-490a-934a-3b4a5684054c","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":48,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"25235baa-e516-4af1-a216-5c22a9e45ab4","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":48,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"3ac7d679-3ca1-43c0-8ac1-b8cfe916a2e7","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":48,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"6ec2ed66-022e-4c8e-8fc9-cd353b04a168","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":48,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"1cf48800-b63b-4cd3-893a-5f40a7e1ee33","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":48,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"3ded1bc2-c5de-4bcf-b3d7-38d5e378c953","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":48,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"3734d463-768d-4f94-a0f6-bd79ed61748a","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":48,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"9b388ff1-c88a-4775-ab08-04b1faea6eab","block_type":"box","text":"cleared interest rate swaps.","page_number":48,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"b8dc2463-4507-474b-acd7-014a2a7a7148","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":48,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"735e860d-3415-4073-b88d-1ade78a58284","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":48,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"7d3e5f9f-42fd-4648-86af-3ecdc266b74f","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":48,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"02b76d2b-65b2-4577-9699-9c20c87b2113","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":48,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"d22d219e-1f13-448e-84af-8c4c58f19b49","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction but there can be no guarantee that the Fund will","page_number":48,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"12e14811-1865-44fd-b89e-fbf3b09847a5","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":48,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"7a64a37e-d283-473f-9ebd-cf1d78e1c431","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":48,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"e9246c42-5d08-47e8-8308-07bb47bf71b1","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":48,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"f6ef4143-568b-4296-8ae1-7d662cd1185c","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":48,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"b7311509-22d1-487f-b877-73b39cd5b390","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":48,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"e5eeb01a-d76a-4411-8e48-f95f289514d4","block_type":"box","text":"or variable interest rate, index or asset.","page_number":48,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"3e17119e-c159-4b12-99a6-0cb8deeea132","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":48,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"d8ecde72-2e4b-4f9c-9bef-dee93bd11df6","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":48,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"11d51a02-c9ef-4702-a8a3-b2210e3d82a1","block_type":"box","text":"such interest rate floor.","page_number":48,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"1aefae1c-fcc4-47e5-8a82-e3dd28c4a795","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":48,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"bab70f70-655f-4783-bc59-6df186f72cff","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":48,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"8077da54-f85e-41c1-af92-94f3ff62c304","block_type":"box","text":"such interest rate cap.","page_number":48,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"7d5fa079-c271-4cf9-86c7-0f96397e3aba","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":48,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"6374a871-6636-4782-8946-bede77b47271","block_type":"box","text":"commitments to pay or receive interest,","page_number":48,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"9ea5634b-2c98-4995-9395-3342d20eac66","block_type":"box","text":"e.g.","page_number":48,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"e111c1aa-f2c8-4dd2-a7b9-e40c1c97df9d","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":48,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"083d80d0-45b0-406b-aa95-78471a35c2f7","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":48,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"54c55700-58b0-4dd5-9d26-431326444bc4","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":48,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"109aceb4-5324-45a3-bb95-73b2d336a512","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":48,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"cc9a990b-12e9-4ab4-9e67-bd0d055cd51a","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":48,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"2d0c289d-8ed2-48c7-9290-d9ef806a6eef","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":48,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"a250eff3-194d-47f2-871f-60a5b5bba298","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":48,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"eef48766-ee07-4be0-bf38-4ea6e63411ad","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":48,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"8c213465-82f7-49a4-8e2c-56b3486ccd59","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":48,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"eb34a666-ac4a-466a-8714-2f44741ff1a8","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":48,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"f289e7c1-012f-47e2-a903-07a72c1cb9a0","block_type":"box","text":"II-19","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"40635180-55bc-42de-a92e-8f8709257342","block_type":"box","text":"NM0926U-5977658-48/228","page_number":48,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"554ea8a1-4902-46d2-886d-c5ac5547937d","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":49,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"ba985862-a3bc-49f4-91cc-c7ab5de40d23","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":49,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"28a18cb5-2b5b-4989-8827-4b5c78442d3a","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":49,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"414982ab-5321-441b-8a44-10d335035052","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":49,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"7d58a59d-65b4-45fd-9e23-75d9abc481e7","block_type":"box","text":"Total Return Swaps.","page_number":49,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"2079db92-cc81-4694-a150-387be8207062","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":49,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"28a38c88-2621-4151-8973-4ea01ac348e8","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":49,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"3c9ca006-f59a-462f-91c6-60b63e8eccff","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":49,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"ce4f77e5-f50b-4fee-aac5-52853e421683","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":49,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"1f8c6ed9-bb87-4a76-8182-7e5009852598","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":49,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"002b47c1-8139-469e-a89a-669286201d53","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":49,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"ffdc6f19-8b7b-482e-a91c-57046b4abc86","block_type":"box","text":"“contracts for difference.”","page_number":49,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"88d2962f-ecb5-49c9-ab29-e5e72294fd88","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":49,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"2515c22a-4a71-4486-bdc8-5a031d5bd53e","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":49,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"4fb207ca-fae5-4634-bfdd-b59eb60ce376","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":49,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"c315ca7c-db87-4136-891a-54619cb6ecc2","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":49,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"e0f5e33a-92e3-4dbe-b865-67d5a94aae88","block_type":"box","text":"the notional amount of the swap.","page_number":49,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"6f369e98-801c-4aaf-a587-45139732d2fd","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":49,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"40b8a394-9cb9-48d3-bae7-9adae803874c","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":49,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"24e0e26a-d833-4c50-a8f5-03a39d3871e0","block_type":"box","text":"Options.","page_number":49,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"32009449-66a6-4581-8e97-2f77df3d5cca","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":49,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"0e0fde09-4387-4a68-a24b-9521e9cf769b","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":49,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"9bf7e45f-4aa5-4884-9908-720fdbfe0c21","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":49,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"84d86dcd-8115-4b6f-a648-9246c67c90ea","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":49,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"9cb49331-bb4a-493e-ba8e-d80daeed8e23","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":49,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"d9172927-8c1b-43b5-a731-627b447a24ea","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":49,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"9dd27cc2-0c7e-4adb-a8a1-de04294206f6","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":49,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"635e2ef0-bec5-4b0a-9f62-10ddef9df494","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":49,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"144dab66-d3b8-4cbe-b424-54a00e529f26","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":49,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"7e778073-d222-45ad-9e7d-1462223ec0f5","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":49,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"6a24954a-d1ac-4ceb-a423-8f339a0574b7","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":49,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"aefde91d-2820-462a-8e2a-e1be72bb7142","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":49,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"cc45949d-3c59-45f8-9cf1-eb73074403de","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":49,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"af0c88bb-068c-486d-a73d-f94cdbbd32db","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":49,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"6c5a9d00-da06-459a-aa6a-4dca24c77148","block_type":"box","text":"OTC markets.","page_number":49,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"780f8c55-ec40-4a8a-af5a-358d6f4d9bbd","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":49,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"94b00c84-e239-4ac5-9edd-8b0f8d9d4a36","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":49,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"e4ef0873-7923-439b-b22c-ee8f5db9ae47","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":49,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"014f2c64-f13a-4d2f-9647-7df1ddc93e44","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":49,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"78d2f512-e925-4329-b95f-ad69a403f09b","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":49,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"f3a38170-863b-4a72-ac4f-001308f2bb19","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":49,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"4f14f34f-aeec-4290-b65f-925278c8f20e","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":49,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"f6dc17bb-881b-45b9-9d55-f32f2ff5e5b8","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":49,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"7adac5e6-9e4f-423f-9de9-498992298605","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":49,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"e65b94f7-61e8-44c6-a4c4-578d83bb1816","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":49,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"deeaff46-ad36-4a6a-8293-f0314d1e4d47","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":49,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"628c4a9f-cfbe-4bef-9167-60becee9c53f","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":49,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"2bfc3e02-06e3-4dc2-9b6d-29ca8fa85554","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":49,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"824d4ba3-24dd-4023-a577-dbb5c4f58f39","block_type":"box","text":"terms.","page_number":49,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"1e3049f2-ca8a-4652-af7c-11af0d456f96","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":49,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"2da3a4aa-f197-42fc-bb23-c4a39a8d1249","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":49,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"a708da3a-cb97-4c6d-b2c1-5573e9a52a20","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":49,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"034ddab1-ef34-4151-a145-e3530aab4633","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":49,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"720f2542-9254-4db3-abbc-552e41910298","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":49,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"9a34321a-53e4-4d20-a094-af49e671c679","block_type":"box","text":"II-20","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d3c1a06-099c-4a77-a2fe-09bc6e2c9568","block_type":"box","text":"NM0926U-5977658-49/228","page_number":49,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cc2bc96f-fa9c-4c64-a897-c6f5a24cc8a3","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":50,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"83f311cf-ab71-4031-8f26-72d3b3d2c609","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":50,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"54b47ab3-4a7b-4400-ad9e-c7933d995a01","block_type":"box","text":"Call Options.","page_number":50,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"cf2a060c-a947-43f8-bbfa-1d8dc82291f5","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":50,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"d45cded2-a0da-4221-8d68-af2702596bd6","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":50,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"763facaf-490b-487d-96eb-b395192da973","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":50,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"0ad9b1c6-aff4-4168-91d2-7dda0585b88f","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":50,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"59521016-7081-48ba-8644-969fa63ea08a","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":50,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"1d7ba4c8-599c-4688-b52e-c0335e692952","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":50,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"8d0d832c-943d-443e-907f-0b46092e953f","block_type":"box","text":"of the option.","page_number":50,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"7ad66ffa-2870-4414-a555-edf0611ce3dc","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":50,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"9ebbb5a3-055c-41e2-8266-fe9cf7661a94","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":50,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"93fc51eb-15e1-4ce8-b5e9-2491526af2ef","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":50,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"33f77b98-4023-4e77-84d0-e0bb12ea2ca7","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":50,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"21d8cbf3-db7f-43df-a3c6-ef23e9223b32","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":50,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"11d16b7e-e508-4d5b-8cf4-00af1771baa1","block_type":"box","text":"A Fund may write (","page_number":50,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"01e00058-0c9b-41ac-8538-6fe684b2de1c","block_type":"box","text":"i.e.","page_number":50,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"9715a883-61ac-45d8-86b9-fa3beb00e14b","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":50,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"2a112618-8a82-4c9a-ad14-be01c0d99720","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":50,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"88c36a94-c289-4be5-afce-e1b41e535d77","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":50,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"f34e97be-343a-4c01-8fb3-c99a998bcaee","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":50,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"c406be31-2c17-4eff-8026-4393264529f4","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":50,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"88f529e9-5ef0-45cf-a115-157da26f07eb","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":50,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"63dccfba-6468-400e-8864-cc96520c441b","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":50,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"91896dbe-e7ec-494c-8811-f597c34a01ea","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":50,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"86c3ba22-605e-436b-92e5-89db1697865d","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":50,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"130bd2f2-0ac3-41af-a68b-d1576d277f78","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":50,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"02442b09-bb20-451c-a5bb-64124735158f","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":50,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"cf982086-3647-4501-945d-59ecad7f1eff","block_type":"box","text":"A Fund may write","page_number":50,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"6acde49b-ed83-47a3-87fa-c077e6c5c12a","block_type":"box","text":"(i.e.","page_number":50,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"a8d80469-4e51-47e9-be9b-eb16772f8531","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":50,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"73e8749d-a5ee-4339-b5a9-44fb0cc3cd7f","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":50,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"ad06d921-180c-41d1-ad57-522459caac12","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":50,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"27c78ce8-ee7e-4114-b135-04c1642b8820","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":50,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"c531a488-13dd-4acd-aeed-834acc36b94d","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":50,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"fb52b4ae-2805-4711-90ce-c3ec10d899ac","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":50,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"36fb4d77-627c-43af-9e48-c446f6b486db","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":50,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"c19bba27-ba42-4939-851f-2551dbe3326d","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":50,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"348cc0da-c469-4d1d-bed3-50a3bfc647e0","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":50,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"d83360f6-9128-438b-9f7a-587889d9f816","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":50,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"c2af0c87-7f2d-4a23-9d52-e56953c2bf3f","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":50,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"b67d0ebc-0b15-42ef-8879-b78d47d3e955","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":50,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"18a3a57b-4326-4204-9a47-aea15b66c647","block_type":"box","text":"Put Options.","page_number":50,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"a3e18237-2520-4d07-b777-885bbe28cb2c","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":50,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"42ba8740-2e12-486c-8d70-73d25078f42a","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":50,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"5cf48c7f-1583-498d-b82b-9ac5e0d5907b","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":50,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"dca50793-6b24-43e6-9d56-7f434efa08ab","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":50,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"fab00697-4edd-40ad-ad43-22008c6ece95","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":50,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"9d254eea-c720-4e92-8780-3746eecae69e","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":50,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"375cbd3d-e9cf-4a3a-8e39-58dcad4da9af","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":50,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"f7b321e6-485c-4c9f-9592-133733cb6ef9","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":50,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"e78440a7-1540-40d2-8752-75993f5c3824","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":50,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"fde96e15-3d8e-441a-807a-e6e2538a9772","block_type":"box","text":"purchase uncovered put options.","page_number":50,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"79d3dc8a-a634-40c6-9947-32061553f231","block_type":"box","text":"A Fund also may write (","page_number":50,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"c6713128-37db-4cfc-8410-d8f70431c4b5","block_type":"box","text":"i.e.","page_number":50,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"ae256b13-e4fe-4b39-8bf0-31e061608f25","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":50,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"a2928180-2dcb-4ecb-aec2-9d70e41ef70f","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":50,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"82f76426-36d8-465a-ac11-99c5c600ca19","block_type":"box","text":"A Fund also may write (","page_number":50,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"827c0934-3e6e-4cbf-b095-ef24915e3a61","block_type":"box","text":"i.e.","page_number":50,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"4fe62dfa-97e9-48ef-b5c6-6db28938ced7","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":50,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"00f7c12d-d433-4bd6-b931-fd3d311739d8","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":50,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"def0a2e2-c23a-4097-8acc-699e099be90e","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":50,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"2408a16c-4043-4771-920a-b88bb5514dcf","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":50,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"6fa01097-8617-4b0c-bc71-677c7abac05b","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":50,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"1ffde572-db35-40b5-9936-d4a616c1c666","block_type":"box","text":"II-21","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5f10cf43-1c06-429a-a86c-515a3bbee295","block_type":"box","text":"NM0926U-5977658-50/228","page_number":50,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"33949fbb-f3ef-463f-99d8-3a0dc84c0e87","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":51,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"df57c305-6f98-4254-9dd2-bceb1e0e22f4","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":51,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"c41f0ff1-7df8-406e-85aa-4d276ae710de","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":51,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"0f368f84-85d5-4928-b3db-5700a5f4c9ab","block_type":"box","text":"the exercise price.","page_number":51,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"572d74ce-83c7-4c0a-aa80-a31e0a0f2971","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":51,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"1c188316-991b-4242-9f50-017f168c1790","block_type":"box","text":"The following information relates","page_number":51,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"71fadc4f-1adf-4b80-88ed-c390371182fe","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":51,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"66a6d22a-8694-4e3a-a78c-2f5c67c59420","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":51,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"29a3073b-fb3d-48bb-aba0-1e983d41dcfa","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":51,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"ec9da60b-5ef5-4bcd-b61f-aee069710616","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":51,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"18891690-1f73-45f8-b12b-99f199fc5872","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":51,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"1daa8ada-d073-4fbc-b592-e21b81f48980","block_type":"box","text":"market in order to maintain its “cover.”","page_number":51,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"5d863b24-d05c-4214-9f9b-3e6ed7bd0886","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":51,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"385ed77c-242b-4776-9dba-7f8214f478c8","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":51,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"379fd036-4bfa-4088-b77b-14e25f5c95d4","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":51,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"27d5103c-45bf-45c2-9dc7-7d9196e6f534","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":51,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"531a3e7b-0f25-4833-a60a-7ac778f97e3a","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":51,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"34dee06d-3b5a-4925-8e49-a53929744644","block_type":"box","text":"and incur transaction costs.","page_number":51,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"ba0bfeb0-fc98-4822-9fda-1e7e01176582","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":51,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"df8ffb0b-ad22-466f-9351-6ee073d6ce81","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":51,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"5da324f9-0f29-4267-9281-7708972dcfa0","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":51,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"865359f4-d8a5-444e-b4f2-69d0a9bc8820","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":51,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"8d7bd6ac-003a-438c-a505-0f570cd5577c","block_type":"box","text":"i.e.","page_number":51,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"ea11b2d4-1270-4e57-8c98-2077620f4eb5","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":51,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"563a7066-8620-467c-9778-38e86528971c","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":51,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"8f39113b-e69e-4804-bd2c-4b6cf77f9d76","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":51,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"e4dcf9ff-e204-49cf-aaf0-96c79865523f","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":51,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"1ae4db7a-6b88-4ad3-8d60-176deb80ffa4","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":51,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"ec9615e3-387c-4d0a-9e6b-19e1d3598cb7","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":51,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"4e231111-d433-49a7-af47-dde06be26ad0","block_type":"box","text":"required, to be cleared.","page_number":51,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"d9a43ea8-2205-4acc-bbb0-a44e9995e109","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":51,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"85e0e1c2-0c81-4d01-8188-e66a5c619124","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":51,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"5726fd26-250b-47a1-b367-28facb33d1c1","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":51,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"2cc87e89-6e87-4b0b-9aa8-db78ea161ed3","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":51,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"7474eca6-0e1f-436c-94a1-0ab2abf70d01","block_type":"box","text":"Derivatives” above.","page_number":51,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"f59fc0a9-35f1-4b80-8624-c1033927c924","block_type":"box","text":"FLEX Options.","page_number":51,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"5e1335e0-5047-445d-acf6-8cfe33515f3c","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":51,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"22bb0a9b-ffd9-4119-8b9f-5f1117bc9b43","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":51,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"6e187e79-1bab-4f67-9693-a36c16b3edb8","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":51,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"3a967582-aa09-471d-ba91-91f9673b4da7","block_type":"box","text":"exercise prices, exercise styles (","page_number":51,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"8fe66c1b-d524-4897-b0c9-a76cb93e1852","block_type":"box","text":"i.e.","page_number":51,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"08a6fdf8-c6d9-44d0-85a7-56ff999e8cbb","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":51,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"596ba097-506d-4480-819a-16ed114a91c3","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":51,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"ddc8dd07-4493-43f5-b850-1575eca931a6","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":51,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"540d9e00-3c80-4625-87a1-fb7b85ba1b0c","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":51,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"3232792f-7515-42a0-8d63-639da3c5dea1","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":51,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"57986889-e501-41d1-86cc-0117e49b576a","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":51,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"9548bf61-a64c-4dae-b45c-e9998c7ac554","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":51,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"bd70f6fc-6067-46d8-b5d7-47c6934d6308","block_type":"box","text":"FLEX Option’s expiration date.","page_number":51,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"536cb8b7-b4bd-4df6-b1e1-a54504d414b1","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":51,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"e7b7aa1f-33f2-4468-a927-bd0ff0daebe8","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":51,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"09539980-676a-4870-83c6-fd5bea88565b","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":51,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"d893b18a-1587-405d-94f1-8fcb66875769","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":51,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"95ecb030-2d53-45cb-bb7f-9c2a2bf77df9","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":51,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"9e49efc7-fb2d-4e72-99f4-87e6eaa0cd0b","block_type":"box","text":"FLEX Options contracts.","page_number":51,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"3da09f1d-8c2a-4688-8584-8a8adc7c4722","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":51,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"fca1c4b0-047c-468c-9aa1-19aebd36d4d2","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":51,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"d5203b1a-8c57-45c0-8548-4c8ee221ae79","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":51,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"513f9c22-0a41-4ea4-a90a-2a5d66cc01ab","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":51,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"8c1958aa-8f4b-4ced-b1e7-94b1efc0e69f","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":51,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"f84c21cf-f637-4ec1-aa9e-9a142fb8f06d","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":51,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"bb3d059d-4a53-4978-b658-445acd34cd03","block_type":"box","text":"II-22","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"642ce1c1-4229-42e0-971e-7b435476787b","block_type":"box","text":"NM0926U-5977658-51/228","page_number":51,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d6d44a33-2a35-4d27-8458-581f44194e5c","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":52,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"e978cd1d-761e-424d-90f5-ef7a2c352dd1","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":52,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"32204f95-c19d-4f54-aa48-55ef25f5414d","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":52,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"c2f8c747-f3d6-4aef-b936-c7742366c7bd","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":52,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"f5806249-80a4-49f2-a9ab-c1d59b857079","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":52,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"8c7fac8d-2941-4814-bec2-738a679bf63c","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":52,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"3c022b65-8049-4d13-a933-a35d2ad2f384","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":52,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"2a3cf405-968a-4078-b167-6f21319144ca","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":52,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"2d7da1e2-7763-4e2a-9bd4-6ac1d02977f3","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":52,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"aa6ebf04-c09d-40f6-acb6-efb6cfd80ad2","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":52,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"6ba5b9af-eb7c-4510-83cd-1bfd776cf145","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":52,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"98b6ec7b-7ec0-479f-ae23-bd083ca647c8","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":52,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"5572619c-fe2b-419e-9619-95195a3f8526","block_type":"box","text":"expire unexercised have no value.","page_number":52,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"d45128d2-517b-4cca-ba2e-50972f299e7f","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":52,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"f394ed15-ac78-46f1-97d0-397eca3925d8","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":52,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"d890991b-5b9c-4540-a0ab-b9a0ae1fb190","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":52,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"e4849024-ea8e-4dae-be41-276889692011","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":52,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"31185faa-3322-4be4-a025-688ad4a3006c","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":52,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"36dac820-13d1-4b85-afd8-949fd30eaccd","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":52,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"d8ff305e-1a92-4777-869e-c8df545e8311","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":52,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"76e5302a-c372-4c82-bca7-7addc3668dca","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":52,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"6b7242e4-9bea-4d1f-86e6-020e2a26e841","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":52,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"0e196439-10d4-45fb-a8cb-d83e52070243","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":52,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"81f9eeff-d989-47d5-b327-4b42a5e9edc8","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":52,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"d81e196f-33e4-49db-b1fd-9304794701d9","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":52,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"1ee4fb56-f9c7-431d-ba2a-a07f42c50775","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":52,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"13147748-7b6f-43e8-87b9-15c8399752ef","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":52,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"25aae287-f5df-4c21-b957-026fb922b984","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":52,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"29631959-161a-443a-808b-5f9a6473ad56","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":52,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"dafcb8c3-a2a9-48f1-a712-42468dc9696b","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":52,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"abe6c081-d265-4dd6-a0f0-24d812b9bbb7","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":52,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"2f723d8f-66a4-4bb0-ba52-b9fd8bc3cfcd","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":52,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"61ccefab-54b6-4bb4-a404-d2921bede3af","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":52,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"5d726137-c78e-4ed7-87b5-2e44d6628ae4","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":52,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"21f7556f-55e0-423c-b780-9ef3e73c5e71","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":52,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"b9929d8a-b0f9-4a41-bbc0-9e867a05b8d5","block_type":"box","text":"Foreign Exchange Transactions.","page_number":52,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"001ac700-fa36-45fa-97b0-3e37351e0496","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":52,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"4c666ff7-4ca0-4033-b329-fc52ff445d00","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":52,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"c1a08991-0b05-4210-b4d3-26ba7bf77c2e","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":52,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"7f918923-995d-4f9c-a75f-a970e5ce85a1","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":52,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"dc0d01fe-84ac-4e46-90d8-59d707096332","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":52,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"f0e546fc-bbeb-40a8-a0ca-cdf162753c9f","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":52,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"a5b3e9d7-c072-430f-a386-0dde688412ee","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":52,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"2d2d3ab6-3378-4189-8881-ae335204e032","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":52,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"d58d0efe-9f42-4202-967f-2341ee48bbfa","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":52,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"a92dd801-718e-4fac-9732-fe1719b8660f","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":52,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"8d30ac44-d880-4ab8-b432-511c8d08d7d0","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":52,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"7082cc19-ee80-4f50-b7f1-11b4d6874bdd","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":52,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"00029245-45a4-4e61-9e16-0fac55561505","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":52,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"35c20246-5b4c-4ed6-b6ad-70353c95ae0a","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":52,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"ceac0e71-654d-4703-9b39-1caea7d1da06","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":52,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"cd853535-9033-4cfd-b50c-a3fee001dc2f","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":52,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"369450e8-6b6c-4e94-99b4-b03976669542","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":52,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"81d26924-fbba-4214-91e2-52b6053db824","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":52,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"d5c4a6ed-2e66-4eea-b3b7-2fa11347d8e4","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":52,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"51eb2e2f-c0bd-48c2-86a0-53b70b6d9f39","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":52,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"0438578c-16e2-4521-88c4-5afe2fb8b033","block_type":"box","text":"II-23","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"692da49c-cc72-4314-aa26-5f62aa9710de","block_type":"box","text":"NM0926U-5977658-52/228","page_number":52,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"9dcb9dfa-09ed-43b2-972c-7dae60db7ffa","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":53,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"887c835c-31fd-4cd6-b56e-8f6341c8d67d","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":53,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"771aefb6-c276-4bec-b27e-98672b5a4df2","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":53,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"b2d7d12a-c3ec-41a2-b69f-04494a7fdccd","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":53,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"a0d60aff-c0f5-4bda-b4d2-7f11b98015cc","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":53,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"c7ae9d4e-4475-4bd3-a57f-f9310046a00d","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":53,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"e1a5e81c-82a4-4800-bdbe-e66ea49d5b82","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":53,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"f3b3dec6-0002-4749-bde6-f23c57df18a1","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":53,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"1c7da963-8ba0-49e4-a916-4ec314b00faa","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":53,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"9d0767db-dbe6-4fea-988d-85e529507259","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":53,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"69897ef0-28e1-46c6-a4f5-204e022b9450","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":53,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"c97829b0-5ea5-4eb6-9246-6bedb6a91458","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":53,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"0e1133f7-c57e-4120-bc90-2cc766141e1b","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":53,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"4f9d6989-eb6d-494e-9184-6ed995b03edd","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":53,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"341bb4c9-0cbd-454a-a08b-7190cf5c3aa9","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":53,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"9e3f6a8b-497b-411e-abee-d4bfad4f476b","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":53,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"834dd6fb-a97d-4590-9580-9c0ff92285a2","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":53,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"55eee16b-31a4-4781-a880-09105bca9246","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":53,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"bc62186b-14e1-42e9-8ede-e58dea0c5e65","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":53,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"06181aff-d59b-4874-83ff-c3726cf817a0","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":53,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"a91270ed-4503-4f3f-8304-9dae0d97624d","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":53,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"90e672d1-9f18-4bb3-a746-30d0b9a1e599","block_type":"box","text":"involved.","page_number":53,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"0bff250d-0b3e-43a3-b783-9ffadf756d3b","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":53,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"d06e63be-8a01-4fe8-846f-23b86b34dd41","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":53,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"8d9f1fe0-4c20-4319-9c62-1d5d1f7cea81","block_type":"box","text":"denominated in such currency.","page_number":53,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"a7be3949-918e-443e-a29b-ce28f9ae2f5c","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":53,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"b42cfc02-2d11-4af2-8d00-b4b1766a74be","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":53,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"1a386fd3-d453-4c7e-9f3c-4ed89f659c04","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":53,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"91f3c8f9-25fe-41e5-895b-97246f08d702","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":53,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"f9063b92-e693-40ba-8a43-2669c837f8cb","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":53,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"99b94b72-ef80-47eb-a07b-37fd929cf1b2","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":53,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"3b7c41a0-e614-48d5-bf47-9f22a0a6cc04","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":53,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"dbd3a46e-4723-4c65-9a75-dfaccc4e2e2e","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":53,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"a8d5b9aa-592b-41ed-873b-0e301d81100e","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":53,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"9e4b1671-f6f4-40bd-9449-becea1637073","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":53,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"3cbe9b88-2984-44f2-97dd-2b839d9dab4a","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":53,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"b08a88de-8b99-497a-a886-de451535db20","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":53,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"36e7837a-1865-44b5-96a9-4f8ccc40f69e","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":53,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"51d609ea-18bc-4a43-b6cc-93caedb91f07","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":53,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"c79b07db-f97a-4144-ab08-d5be543592d1","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":53,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"8564b177-2718-4d11-b098-d0ecb0bd05c3","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":53,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"cc1d000c-5022-4515-b0cd-df197eb2d205","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":53,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"a9523754-4e0e-486c-9f04-f4f6cd0db480","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":53,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"7519d635-026c-439a-9842-87742e1a3197","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":53,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"4b9da8f2-b7f2-4265-85ea-853ee803aef3","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":53,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"3f12dd4a-274f-47eb-a83f-199e393725b6","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":53,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"eaf04e25-fcef-46c8-912c-56bcea5d816c","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":53,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"c33d869e-d549-4fc2-93a5-b780f10b9f86","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":53,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"c6c0d431-db3c-4742-b232-dd9869469dd2","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":53,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"672a41b1-6807-4ce2-a983-e816a228a8af","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":53,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"8e26437b-f360-41a1-9d90-60c12a6bc34a","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":53,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"b450443c-1ba2-440b-be55-245d559bbc70","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":53,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"07df325f-ccf2-49b8-ba42-45b75ebbf85c","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":53,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"2ca9a53b-d625-47b3-bca9-24f0dfefe685","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":53,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"d8aff2a7-929c-4f18-89c1-5d2ad044cac0","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":53,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"591f2256-e935-4237-9709-421c56589e9f","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":53,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"510b8488-6d6e-49dd-82e0-c89a826155ab","block_type":"box","text":"II-24","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0d3f65fa-3e68-43a4-8456-b527926d09c9","block_type":"box","text":"NM0926U-5977658-53/228","page_number":53,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0e70f722-012f-4de3-be9e-1e546e5aa794","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":54,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"69db9b29-6020-4959-b8e5-64ee04f0a81f","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":54,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"4e18c629-7b1e-407c-8351-a134a975b713","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":54,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"51bd889c-4b1a-4099-8961-653ad6a0e953","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":54,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"1335183f-99e3-47de-ae22-13c643cf4da0","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":54,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"ee11fd2c-beca-4d98-a061-a47929b2839f","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":54,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"a8f8d77b-9817-4daf-b039-0a73c9095fb3","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":54,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"393ce15b-b093-45ad-95fd-b6543227d27e","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":54,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"0320d65a-63b1-44d1-8e6f-304a1a8d5604","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":54,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"ba688be5-ae7e-4355-b11e-2f197305c38e","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":54,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"86e2ff80-cb17-466e-9f91-a18f09e89abb","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":54,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"6a7f901a-c3b0-45bc-941e-833eec5395cf","block_type":"box","text":"traded.","page_number":54,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"6168b8d1-87e9-4771-a8a3-4eb51930058a","block_type":"box","text":"Currency Futures.","page_number":54,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"467a2662-7d3d-444b-bbd8-435f7091f114","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":54,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"89c226bb-a5cd-4ce4-b1a9-792be595f6ff","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":54,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"983e83d3-70af-407e-aab0-6cfd9229ba5f","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":54,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"515b8e53-eb8c-4111-9527-ade2523f252a","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":54,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"1be0799a-308e-490f-8e67-b197e9f0713e","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":54,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"97118286-cb3b-4f4f-822f-64ce786263ed","block_type":"box","text":"Currency Options.","page_number":54,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"32ca9685-92e6-4af7-bc7f-df32edf4fbfe","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":54,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"c62bd3eb-27a7-42c7-beef-65b7f0565a83","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":54,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"6b0ef291-6726-4fc0-a475-dffe31b7d152","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":54,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"63636260-2173-4a67-9a74-c68c4171438b","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":54,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"76112807-0839-40b9-ad71-059103e22e17","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":54,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"61d6ac99-76d9-47b6-ae03-e46b5e6fcc99","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":54,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"ef28dc6d-0540-4cc0-9f03-112210d56a32","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":54,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"f0277b4f-29fe-4ff0-8e1f-d9bb9f9c63ae","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":54,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"1751d7fd-f1f5-420e-8ed5-ba0d701f3a87","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":54,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"96446910-8fa9-4b21-b8ae-3ff15b1a7841","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":54,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"34c24dec-f32c-4793-9fde-9dd5b994d521","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":54,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"9667e2e3-7f39-4168-9b35-7761bde7a717","block_type":"box","text":"Currency Swaps.","page_number":54,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"30b9c2df-0aff-456f-8546-741a84c902d0","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":54,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"a6aab983-98c2-41e1-b6ee-277fe10027e6","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":54,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"bd03472a-ec5f-479a-b4e7-a220f8d1fadb","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":54,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"b867dc47-39ea-450a-bf5f-8d108ba102c8","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":54,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"4bfa9635-c620-48c5-8ce2-71a020c66d6b","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":54,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"727bcef4-a0ad-4fae-b88d-1b229040413f","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":54,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"5cd1d5ae-d01d-4485-8a90-fdf2c866bce7","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":54,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"f6fad2af-a5aa-4a20-9709-5686d51a6034","block_type":"box","text":"Distressed Securities.","page_number":54,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"280eb707-adb5-466d-8d9f-faa272a84695","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":54,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"742d591f-2356-4caa-8cbf-2b9a05c7a5a5","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":54,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"d146869a-ecf3-444d-b6e0-8fab87c2e4ba","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":54,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"3a6c957a-6c86-4bc9-b9f5-a1b30f6d3a11","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":54,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"0978d490-e829-4fca-84e1-079a4715ef1c","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":54,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"ad941987-a5ed-4599-8fba-3a10c1fb1277","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":54,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"29520c22-f8eb-4cee-a2ae-3cf0fb64e159","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":54,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"170c5957-93f3-4b89-8e80-0c8daef1d01d","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":54,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"0cf321df-04d3-4349-b4cf-778ee5f3068a","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":54,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"ab7dc41b-6cee-4732-b173-b3290fe09bd2","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":54,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"017f4a39-351c-4c91-ab5e-140927844b28","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":54,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"d83e0c87-10d7-4e65-bdbe-127d85b8044e","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":54,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"8acadf46-06f2-416b-bd16-fd6bb268816b","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":54,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"e3035fd3-17fe-479a-93e4-dbdd916e56a4","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":54,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"a4535f18-a91b-40db-8a15-cc73582fa339","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":54,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"a56d3d07-f10a-42d1-a240-f578048d32a5","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":54,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"0e3b8b65-0dc5-4b07-a2b5-575fccb99858","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":54,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"2e6782f3-fde3-4f1f-8407-193f25f62d03","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":54,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"d1f3d021-1ae2-4abc-be0a-493dfa3a219d","block_type":"box","text":"satisfied (","page_number":54,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"d4d1cfcd-b7c3-46fe-a5f6-7db3434495af","block_type":"box","text":"e.g.","page_number":54,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"b367091d-c6d3-4b85-a718-76eb6b6f7f80","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":54,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"51cd1c7f-a193-41d6-acc0-466cb0fa69ed","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":54,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"7e2aa635-787f-4e82-b4fb-04527f64436a","block_type":"box","text":"II-25","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"62bf02fe-1a96-4cbe-a59d-bb011ed065dd","block_type":"box","text":"NM0926U-5977658-54/228","page_number":54,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"66cb328c-070b-4640-b30b-ac6bf3e182c1","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":55,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"3bfc7cba-f7e5-4733-a05d-b243e0377ad2","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":55,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"b6c8bf15-2d4f-4dd7-94f8-bb711920a232","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":55,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"c9a6d2c9-a51b-43a5-8e62-3ba5537f0c44","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":55,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"80679075-f681-4598-bd35-b30d92f8d2d5","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":55,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"d0cea39c-d561-4820-a849-107c5c664faa","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":55,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"ce0611ff-0f8d-44b2-8145-259bee58ca60","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":55,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"25c0098d-a751-4e42-a58e-b382d0ffdee2","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":55,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"2e7653fd-7bd8-4737-a5df-52a3093ed97a","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":55,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"223ddcf7-36d1-4bdb-86d3-11b3b02cb96d","block_type":"box","text":"affairs.","page_number":55,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"2b737345-39c0-4084-8f99-956b2af90b24","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":55,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"dd30b408-4798-4c2f-b6c5-e6fc3e7427db","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":55,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"8df75d7a-d9e6-4bd9-b898-d2b3844cff2d","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":55,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"6a4110a8-bd4b-4fcd-94a1-df9650183ef8","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":55,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"5a36bbbd-1973-4af3-aceb-3b9866533190","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":55,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"8c2b82e3-932b-4d32-9258-9095fd59d30e","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":55,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"9df0e7cc-3a4c-4087-aa37-57540f32579e","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":55,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"1cafd408-57f4-4040-a520-c39d4a98761d","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":55,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"bfba252f-1cd8-4c2b-9fd4-7771e9006a4b","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":55,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"84c13ae6-0381-407f-adfe-1fc897f671f9","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":55,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"1c7c9bee-b603-4a91-8470-b61cc4503b39","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":55,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"17fe9e09-59cb-49e3-8dbc-51a1ff46a284","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":55,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"bf9fea50-64fa-4a55-900f-77644ddad97f","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":55,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"98bd5db3-1d7d-4b12-982a-12c0bd6480e5","block_type":"box","text":"Equity Securities.","page_number":55,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"88d5550c-7c6f-4f96-bc9f-3922a249aa4d","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":55,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"800e5ffd-b846-4062-bace-d2595eecd724","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":55,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"9973ad80-c858-4c6a-a0ee-7abbef28f480","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":55,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"89e1a808-74fa-4819-8740-7e200e0af599","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":55,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"268a70a8-2348-42ae-a078-74eb8c7779c2","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":55,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"9fc74472-f9c1-43d8-9b48-bd6eb5defcb5","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":55,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"cdbffd0b-cdba-4a74-9838-f6d61b7d6691","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":55,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"c80937f9-3311-4827-8046-b1931f150fe5","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":55,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"caa6c7f6-9992-4ce6-b65c-81fe6c521e15","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":55,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"e3689f3e-db5e-4a7a-bdd9-820ac8d8048d","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":55,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"31bb4a3b-e3e5-44a6-b01c-45f62ba7aec9","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":55,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"d5251afb-13bc-4c56-8a10-b5ca7df6f701","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":55,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"444a1368-6158-459e-a3e7-75cfcd1398f4","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":55,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"1b98c742-d45d-4cec-87dc-a36a3f9b2cc2","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":55,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"26e04c41-4f1c-4dd9-b923-f5c78e9a9259","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":55,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"7671ca0c-a20f-43a1-b0f5-0a80d7940e2d","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":55,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"7ee1c884-ddf6-44eb-9228-fa164b290d00","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":55,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"b566121d-4c8c-41a6-9b54-3d4c34d54be8","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":55,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"bb31a7c7-e5a3-41d1-9a8c-a393778d54c7","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":55,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"4509d25e-7e20-4282-a523-f595efc082b4","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":55,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"7721e71a-45ca-4200-a55a-b26853555b4a","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":55,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"fa1da0d7-171d-4b5d-9929-fe4011e78abf","block_type":"box","text":"initial public offering.","page_number":55,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"0a1de30f-14e4-470c-b0ef-699b7afb1e6d","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":55,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"9a63c831-1629-4201-bc0f-a857975b11db","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":55,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"0e71fbf5-433e-42c2-ab85-c9140e0acbe0","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":55,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"d89e1aa7-9af4-46ed-8f9b-ca38ee5de334","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":55,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"3562d37e-6349-41dd-bb8e-9e1e199b4e2b","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":55,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"a2b02398-c3eb-48ac-9a3f-6aa2fe3fbb2b","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":55,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"16e782a5-5e7d-48b0-bf9d-df32cb8bc47b","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":55,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"e6bb9d42-8d52-4759-9172-fe906b3ef02d","block_type":"box","text":"more established companies.","page_number":55,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"12421d7e-2850-4364-a9fa-0e3c928cb18a","block_type":"box","text":"II-26","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a3b365bc-143b-4bef-98da-5a400cf883cf","block_type":"box","text":"NM0926U-5977658-55/228","page_number":55,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"67148b13-8502-445d-86be-579aafe07d8a","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":56,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"de6db8ce-2f75-4816-8b68-30870a4f0b91","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":56,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"150f69bc-607a-41a3-b41f-9b5ca1eb2cdb","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":56,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"6084426f-a0b4-48a0-a549-13f01416d18b","block_type":"box","text":"below.","page_number":56,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"8b69adfa-6be5-4b22-85a8-b42e20d09169","block_type":"box","text":"Real Estate-Related Securities.","page_number":56,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"e28b9be8-fec0-4d3f-a0ad-20dcf315cbf4","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":56,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"7adca804-4942-423d-8f99-53985fd3222c","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":56,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"97e6f14f-7d4d-452f-b580-5347c2254302","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. 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The securities","page_number":56,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"6773050d-51bf-4294-9101-866c0b7dc491","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":56,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"740e4f2f-629b-434a-a9fd-df9af27f913a","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":56,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"0772a76d-605f-4302-855b-9846cb8a46dd","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":56,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"aca2ef3d-6bdf-49cc-b214-e4cfa7892815","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":56,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"c8ddd462-19df-47ca-acf7-8137717d5f77","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":56,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"a85817f5-dc18-43b5-8ef9-52f48fec47d1","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":56,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"8aa66acb-d468-447e-9eb9-282b30c3e5a1","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":56,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"0a926aae-9933-4eb6-8c87-543349fb7451","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":56,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"5fe5a749-367d-4246-8f95-4867398835b4","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":56,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"132cbf0d-97a9-452d-84c1-a0e88670fa8b","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":56,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"8fee0620-8e94-4101-8544-8118711d0479","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":56,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"9e24b978-c604-45ac-9735-d2e2a3228b21","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":56,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"34982f57-d2ef-485f-a5b3-9f15737a5433","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":56,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"d31e7f76-f583-4a76-ae79-2d7ad9721234","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":56,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"4e7f64bf-3498-4865-923c-4a1e56239522","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":56,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"b0149115-35d9-45b5-aeb1-6220de023cb7","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":56,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"4ba5c532-9db3-4d5b-ab31-a4b468242ca8","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":56,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"6afd4fbc-a673-4d5b-9e0d-697030b41779","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":56,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"e3c542f3-d6fa-4fda-aa27-00b9cb8a6813","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":56,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"c017513b-89c4-47f6-8805-a56628f11ae6","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":56,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"92296f96-2dee-4bb1-a795-1a41de035eab","block_type":"box","text":"cycles.","page_number":56,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"6398015a-c5db-4830-82ef-bedd309b76a8","block_type":"box","text":"Tracking Stocks","page_number":56,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"04fd3144-5789-435c-be04-7ccee2b96e44","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":56,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"b2183939-fdde-43b5-9efc-7f2cd79ed779","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":56,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"5dbab9cc-f62b-43c5-b74a-4867edc23b4a","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":56,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"20064cb1-7a85-4ca0-9a25-02fad32142f9","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":56,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"4dc2906f-c4a9-47e3-9828-918bef94b1b9","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":56,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"6122a957-bf1b-44ea-be74-80012050c1db","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":56,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"8c70086a-2a6b-4618-9bd1-92bbf25015af","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":56,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"5bf878ff-504c-4254-8cdd-42e3cff70e64","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":56,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"fa08e96d-f469-4141-bde7-930e595a5ae2","block_type":"box","text":"II-27","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"353f4a79-1804-481f-80cb-5274bb2fdd1b","block_type":"box","text":"NM0926U-5977658-56/228","page_number":56,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1ee9c5ea-c73e-43df-b80a-f8dd8153e94c","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":57,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"eea34b3a-7860-422e-817a-470a6f9a1bb3","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":57,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"8439c298-01df-4e79-a1f9-3e641c5c980f","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":57,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"da3bb4cc-b51c-4c1f-ae1f-5634ab10fde0","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":57,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"876c6911-c1f7-49f9-94b7-051b9de18d1c","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":57,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"ff7c2e50-c8ed-417c-a903-bd1ccc3aed5d","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":57,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"ce5f048e-5aeb-4ced-b03a-b081e937e6f5","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":57,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"005f4f44-8178-4d04-a0b0-8f2776e3e430","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":57,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"cb7c12c0-a950-4cd1-8719-388fb909cb8f","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":57,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"fbf0e5f3-b38b-41ae-9566-1c60123b90f7","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":57,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"a5ec0069-6fc5-4b89-998b-2fc4174ec253","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":57,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"e41aac7e-c6f7-4902-a0e0-521903cbc504","block_type":"box","text":"ETN.","page_number":57,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"b85ba86f-1b98-48c8-b8d1-395a9d1d9f9b","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":57,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"db1b5456-4e78-45f7-a321-aa93aadadd04","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":57,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"934e02b3-6ac7-41f7-a5de-facd3e12cd22","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":57,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"a9b3cec1-080e-41b4-9280-d8867188178e","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":57,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"b6267ee9-5b84-40d9-835b-6ba35deec22e","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":57,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"e914542d-b477-48f1-85f4-86a891015ba3","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":57,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"1ae8635f-a8c3-4f94-adb0-38a2ee723d33","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":57,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"2d0c12c2-9ccc-4b45-bddd-43e05b108780","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":57,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"30cce1b6-e802-497c-9960-d1bf54fb9101","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":57,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"a67b494a-a496-4801-a2c8-ddf36b63be99","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":57,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"470fde4d-b699-4fba-a014-172f9619ba79","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":57,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"0eaa8768-c9c3-4f39-8e88-3ec1f2685234","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":57,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"001e7d0f-7db1-493b-b803-cc83cfafa858","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":57,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"5295c377-6d12-452e-9ff0-f84d8288d1a1","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":57,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"53db5125-5e6e-4599-9c99-b39257cfd520","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":57,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"61a93f7c-9074-4e3c-8062-f08e3bdc9c1b","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":57,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"3706d338-f877-4395-827f-520ae075bee7","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":57,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"f10c9ab4-9dda-46d8-ae64-08988d2935ae","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":57,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"18426396-22c7-41c9-9e9c-cc1e41e73737","block_type":"box","text":"Foreign Investments.","page_number":57,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"750567ac-702f-4be9-8e0c-aa94fe87d474","block_type":"box","text":"Foreign Investment Risks.","page_number":57,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"8641c428-e3c2-492a-849f-d8e174cbfc6e","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":57,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"905ce106-570e-4e38-9edf-f927b8a9fa90","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":57,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"fe1b4cf0-1b29-4e88-9ff5-96b0c67fb796","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":57,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"15561308-a0af-4c1c-8852-e480c4a2c136","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":57,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"d57eefc7-fdfb-488e-b29b-9ffc6b1a3739","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":57,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"5e84aab3-1b15-4e8a-9973-04701d8aba6c","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":57,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"edee9374-b666-4d8a-a12a-225f98838c0f","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":57,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"fb5fb3ef-d146-4fb5-a6af-b7c78f706fb7","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":57,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"cec94f42-c023-4278-a020-3651f0ed1bf9","block_type":"box","text":"benchmark index.","page_number":57,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"bb10cd65-0b75-4743-b0b4-a1e804f51ca6","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":57,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"ef21e5cf-391d-410d-aace-04640ff48547","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":57,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"d96f32da-89b9-4d01-84fa-5d604d7069cd","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":57,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"47539cb1-fb51-4dff-b34a-04ef8d70b27b","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":57,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"e696d1dc-8cd4-493c-b554-e1bf39ec9ca7","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":57,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"c956e009-0ecd-472d-ba36-98d3210ca6f9","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":57,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"7b3cec4f-07d2-4adb-a32f-42d4c304790c","block_type":"box","text":"securities and zero-coupon securities.","page_number":57,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"06fba39e-ca5b-4eb4-bc57-5df7327a280e","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":57,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"1a4a1516-ad74-4020-821f-eba390143964","block_type":"box","text":"taxes.","page_number":57,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"93dd64c0-d167-41d7-95b0-34734d3bd91b","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":57,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"2fce1a15-9419-4009-8893-1e610ed7063b","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":57,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"55064fb8-2f43-4e5d-aad0-b51befe2aa23","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":57,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"409de272-0ed7-4e25-ada6-da2e5026b7f5","block_type":"box","text":"II-28","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c47e78c-1c5a-4848-a92f-b798001d7b68","block_type":"box","text":"NM0926U-5977658-57/228","page_number":57,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"1b08c055-79dd-4116-8764-47d9d0af02c4","block_type":"box","text":"underlying security (","page_number":58,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"904f27d9-d162-4089-bb39-ee3a593d7bd7","block_type":"box","text":"i.e.","page_number":58,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"2693703b-ea7a-426d-9648-dfa24243a549","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":58,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"01117550-c41f-4bc3-8229-0515b45b0d50","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":58,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"2578a606-b194-46fa-8dae-677f576f5900","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":58,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"012625c3-57e0-4a8c-8475-9619d1b59627","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":58,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"b9ffe8a1-5ba0-4ced-a190-1c5f8b18991c","block_type":"box","text":"Foreign Market Risk.","page_number":58,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"b3c2576c-8c83-4c0d-9237-7b0264781294","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":58,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"d9223e0d-7cab-4146-8d81-8862295d91ce","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":58,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"b0fe1eba-793b-416b-a890-d95555dbbc8f","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":58,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"41badaf6-96c5-4d8f-9a69-41bde73349ca","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":58,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"35b92a53-25bd-4f4e-a0fd-38c417d88c37","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":58,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"1a23f524-debe-4e01-a2ee-4545fd675a68","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":58,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"c2773f1a-7d02-4e37-9480-c80247947967","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":58,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"a26dd91a-6e18-410f-bdd0-e87955551b26","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":58,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"81ee3eeb-aaa7-437d-8256-867707c6cb79","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":58,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"9e1e9164-6887-42fe-9383-3611cece48e3","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":58,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"4b221567-b35f-479e-a93b-cdd99ad22f35","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":58,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"802605d0-5aea-4570-98b3-6344ad827822","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":58,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"be9cff18-9f91-43e6-9314-574b0dbd35be","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":58,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"ad6935a7-aaca-4f0e-ad60-9c1412ee058f","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":58,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"acc301a3-d589-45c8-8560-6b0433c45eed","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":58,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"0420f516-a05c-41f8-bfdb-c860f72e01ea","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":58,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"24408e6c-28f5-4522-b59e-b3b4e4c41c0d","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":58,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"108f2dca-3dad-4c92-86f8-4a517672e309","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":58,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"89441ed6-15b4-4221-adcc-3466d2302ab7","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":58,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"9a0e532c-e8cf-445a-837e-96963052b65b","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":58,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"3188df28-6bba-4d97-bcb2-497253887e23","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":58,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"1cc01d21-64d4-4d4c-bd12-906ea51826b3","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":58,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"c23d383a-0981-4d94-a002-2ee1454325fb","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":58,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"f6fa686e-3f49-409b-abc8-fb0a7b46498e","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":58,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"42149780-b07b-49ed-aece-b0cdc8b02d33","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":58,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"e66442a3-4eff-4afb-a490-cb6502a9921d","block_type":"box","text":"Fund’s operations.","page_number":58,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"93264c64-fac1-4567-a2eb-e1c7c15bc687","block_type":"box","text":"Foreign Economy Risk.","page_number":58,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"acd92a49-0145-424a-9c70-185a47ce1298","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":58,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"4c672f01-4617-4f27-ae71-7fab724f682f","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":58,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"f8ea05ec-d38b-4efe-ad8d-ea2987550866","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":58,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"29937259-d6a7-4fc8-9c1e-0a495c040ff8","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":58,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"2954f480-f8ea-417d-b129-f50212798e54","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":58,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"5acdddbf-29ae-4e8c-bfc7-ad4403d97428","block_type":"box","text":"measures.","page_number":58,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"ee6ba498-8c6b-4f35-95c4-02d275b0caa3","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":58,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"460e1fbd-fc8e-428e-809e-c1eb5d7935b6","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":58,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"80d38ff2-a19b-4675-8635-c517af4df383","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":58,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"39309754-c462-476e-a004-e1d81b1be5e2","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":58,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"70937cec-772a-4995-bad2-7ef4572db0b3","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":58,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"7da09fad-c9d3-4eac-a5f1-15a7c56cdc9c","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":58,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"626e0134-48e3-46b6-a720-131b7709cf13","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":58,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"af66b0f8-e2d0-46f4-bb22-e2f8b7db2760","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":58,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"abaf7054-c193-497f-882e-e10cd6b171b9","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":58,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"0ade36dc-a87d-4e3c-9bc1-e3f390b1ef1a","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":58,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"060040ad-ce32-40aa-b817-12b0f7a83c1e","block_type":"box","text":"United States or abroad.","page_number":58,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"c1464169-820f-4629-9d2a-b123f1226196","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":58,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"591d48e6-09fb-4f1d-a4cb-3d38a8534d28","block_type":"box","text":"Many foreign governments supervise and","page_number":58,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"e7983776-9049-4c2e-b036-953873773329","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":58,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"c2cd9ffc-32dd-4358-ac19-83f3e35e6c04","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":58,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"00a37a41-9f60-4490-a557-cef071d86d5d","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":58,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"3ae75724-621e-4564-a837-482301f2e983","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":58,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"994c9318-10f2-45a0-8d29-944d288d5aae","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":58,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"934a62c4-9522-479a-bfb3-3c9b784ecc88","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":58,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"23abce7b-6e27-41b6-a255-3707bcc4f9f4","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":58,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"dbc53f26-a643-45df-ad76-0bccabd2f050","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":58,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"c96295d2-8be3-4d3d-ac29-5e27d1779e34","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":58,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"f4b5f09f-a08e-42ce-95d9-a9949c25a20f","block_type":"box","text":"II-29","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b220f2f9-47bb-4c6d-9cb8-2f6c3e141c81","block_type":"box","text":"NM0926U-5977658-58/228","page_number":58,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ebd4ee0a-409a-4ef3-8309-d92d20979090","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":59,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"0a80071e-c229-4511-9ea3-85237a000612","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":59,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"8bd74efd-c38f-43d0-88d8-b98c2f6e4d73","block_type":"box","text":"investments.","page_number":59,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"c808a1e1-080e-4242-9dea-bba1aa05563c","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":59,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"882b9bcd-fd59-4c46-a68f-6554aaa4d9d0","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":59,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"3f9fd0f6-97b2-4fb6-af01-02ab77944b55","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":59,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"943bac5e-2ad1-494e-9201-5e90076653d1","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":59,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"6a607f6a-5dd5-4b3e-a5a5-e7e7dc0bc016","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":59,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"0a0140a0-07a2-4956-bf71-90185ec2cebb","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":59,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"7d495225-11ef-4129-95b5-6695a1459e20","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":59,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"84e565ed-c4fd-41f8-aef9-406d8d34e5aa","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":59,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"87c489fe-df50-4ee5-b0b7-ae4f5f42a3dc","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":59,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"8e09e515-018b-4c06-ae2a-981fbf8724ee","block_type":"box","text":"States.","page_number":59,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"89564918-5669-4f4a-a61b-ea3c1e896b3a","block_type":"box","text":"Publicly Available Information.","page_number":59,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"304f2f79-8adb-417e-aa39-64f07a115dea","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":59,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"c4dd300a-7020-4a5c-862d-97eb2f7631eb","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":59,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"7f268997-4b9e-48c3-bbc6-0fce0693f5eb","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":59,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"a1e22aa1-a04b-4e00-b590-18f1ef3e8e6c","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":59,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"6e729994-fc1d-4331-828b-918fce74baa2","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":59,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"1e0dfebb-db6d-4bdb-b725-3342c7ffa517","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":59,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"e6375fad-ceda-4a4d-92cf-07eb251cd1a7","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":59,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"ab2d48a1-e7e3-4803-a8cd-a37a493555f7","block_type":"box","text":"United States.","page_number":59,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"5621e0a8-dd5a-4f49-95d4-f409578891fa","block_type":"box","text":"Settlement Risk.","page_number":59,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"0ed64cc9-dff3-4fa9-b531-a15ab9ba825d","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":59,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"c4998949-827c-4f72-bc39-db8e8a749d26","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":59,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"6cb6e2f5-0466-4708-aabd-0c7d555abd4f","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":59,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"060e2262-2c7b-4edc-880c-64611f9b95fb","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":59,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"ea653b93-5b8c-47ad-8a6e-7148c7a74320","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":59,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"8b7192a4-6009-40e9-904e-ac14f6030d56","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":59,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"8d65a5d0-953a-4941-adbc-251fc8317a82","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":59,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"35ff627e-b5c8-474b-94b7-ada342655413","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":59,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"dcf79c1c-adbd-4243-a861-36216a9df1e7","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":59,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"0d9e7ff6-db46-43c8-aa46-5cf6d2a8fc52","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":59,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"b43a0f58-c2ee-4c4f-a844-a144782c30b4","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":59,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"c9488b9d-2aaf-407b-a6d1-4af5bc9d4168","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":59,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"3fa1b649-64f8-4d85-8631-10fd7d374428","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":59,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"0888ecfe-7339-4aec-aaff-5b59ccfce3c0","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":59,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"fa27b745-c953-4e24-9d72-e7699c771c14","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":59,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"235ab03b-e8bf-4fbb-b599-ad778afc566f","block_type":"box","text":"Sovereign Debt.","page_number":59,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"73a5bb32-3148-480a-880e-7a0eadc67c6c","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":59,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"9b25a5ed-9c9a-4e1b-ae90-6405ed86c3a1","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":59,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"4d877c5c-1178-43ba-bd01-a676dec9ddeb","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":59,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"595f1b9b-a714-46f8-a909-c06dcd141484","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":59,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"2fdfcb31-f4f3-44d5-961e-1274aeb0d0b7","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":59,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"9639e6ea-2b36-4ea6-abc2-d12d08d5e0b5","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":59,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"6f5c3274-f898-4557-8871-821d43c35da7","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":59,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"a5195eac-2032-46d9-b4cf-c3488a33740c","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":59,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"8f17e40d-d4b8-4b87-89af-2440fa82f02c","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":59,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"4ff94382-459d-475d-bd49-cd9b68884c1d","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":59,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"0ea33f70-81d4-4a3b-a3ba-c74823221592","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":59,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"6ad0fd5e-5767-427f-8cee-7cd253652f14","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":59,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"edbcb528-d726-4b0d-9ac2-bfe210540fe2","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":59,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"75606384-315e-428f-88db-0e53a8d6928c","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":59,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"877eb2e6-30da-4be0-9141-3f52faf1147b","block_type":"box","text":"debt.","page_number":59,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"56c08355-3726-49a4-a0f3-9bcee781e328","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":59,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"9408a0de-9623-4be4-9f35-c6b44ec5c830","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":59,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"c93e654d-7800-43f1-a796-693ae6bdafd2","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":59,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"864c6479-2852-4839-883f-112dfeb9b30e","block_type":"box","text":"II-30","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"177816e9-bb84-4fef-88aa-4978266d9e14","block_type":"box","text":"NM0926U-5977658-59/228","page_number":59,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"12503899-7cb6-4644-bf84-f5b5e556d8f7","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":60,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"a750bfe2-00df-4477-8d85-262506ec5b8a","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":60,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"d8773d2c-2fdb-44d5-98e9-2a12e6054a43","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":60,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"6fd45c63-8c9c-4884-b225-51dcb3b3514d","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":60,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"b37dc2ab-3981-4868-aa13-0c1d44b66c31","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":60,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"7c6ef083-f99a-4064-bcdf-7586f451fc60","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":60,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"66a70452-1263-43dc-b919-12ad4c27082e","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":60,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"6477b746-6521-443c-b7a9-69fd6e634da8","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":60,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"3749dba9-3bcb-4dec-b289-32382f1ede29","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":60,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"257e29a6-ca9d-4765-b6ac-c5766fce6ff5","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":60,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"88d49826-66b2-431a-82b3-f92408da9945","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":60,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"48e3537d-0a85-433c-be64-436e739ca25e","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":60,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"337f9a71-5c55-4c08-86a6-a14027d8aefb","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":60,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"589f86df-090f-4335-aaff-a36fdfd330be","block_type":"box","text":"in the Fund’s net asset value.","page_number":60,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"41c7f1fd-d722-45b6-af0c-a5b0e3f3ef72","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":60,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"84533cb1-4632-49a3-971f-a89d164a2c67","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":60,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"10341f0f-fde1-49d1-80d9-256b6881d542","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":60,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"b0f11ce3-77c9-4f32-9261-41cb8eb3f4b5","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":60,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"bd639ed4-a5aa-4de2-8ad6-20abd995a352","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":60,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"e47ebfe9-7350-437c-a9a5-0897ca3da006","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":60,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"eedd063a-b993-4a70-9a1a-76859cd2752a","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":60,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"11101ae7-210f-4e24-9f54-ebe029623630","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":60,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"9aa477df-d1c9-4ff7-af4d-531b4c6568cc","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":60,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"2c731b73-4f82-4999-b7ed-85c540a4706d","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":60,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"7fe50bcb-4942-40cb-bab1-c10ddb838081","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":60,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"cf16d5fd-9c78-425a-9c4f-69e767ceea47","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":60,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"3bde31ef-22f2-44f6-88fe-3307491ab551","block_type":"box","text":"United States for trade. 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If these","page_number":60,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"f36df738-9374-4421-b046-2e13c5940cdd","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":60,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"792d107e-a3a1-4424-83a3-73aa5f2350f5","block_type":"box","text":"Fund may invest.","page_number":60,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"7b40f406-5c23-4366-a606-54ed2f6117f0","block_type":"box","text":"Funding Agreements.","page_number":60,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"c02aba33-ce2d-459d-97cf-970994ec1aef","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":60,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"6f6c06db-e424-4727-9f98-dc0eea8dc950","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":60,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"dbd9d26c-7afe-4390-aaca-2709ca534080","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":60,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"a6952c4a-fada-48f2-8236-025334a0d818","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":60,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"6049e641-d844-47ac-8155-5d22b12573e8","block_type":"box","text":"not be less than a certain minimum rate. 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Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":60,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"0952a3be-333b-4f14-b49c-8fbc1ab3ac98","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":60,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"c82ba08d-2a03-4022-8853-1038250259e7","block_type":"box","text":"Illiquid Investments.","page_number":60,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"1305f099-1a1d-43e9-acee-2c1b2091c5f3","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":60,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"68c549e1-60b0-4f0d-91a9-861b057ede11","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":60,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"ca5f05e7-2369-44e1-81f3-0cd1594c488e","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":60,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"04c5303c-cc32-4d1e-8ed9-94b27d0409f1","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":60,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"83ff9ec9-c598-4269-9320-36abf745d6f6","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":60,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"e9481c1f-7868-49a1-9bf4-4dc00dfbc333","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":60,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"63d73080-0fd0-4125-ad4c-812492e136e7","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":60,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"b0fd7e2b-e16d-4574-a96f-c3d741914157","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":60,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"2b991ce8-1ab8-4ea6-8531-77ecf8614989","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":60,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"5f07b733-d644-4d72-9b86-d8161981896d","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":60,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"9d6ab782-3580-44e4-b89d-149749608961","block_type":"box","text":"selling their shares, or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":60,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"a0336daf-b9c6-435d-9e5e-4dc3d0a4ddc8","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. If illiquid","page_number":60,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"6cf81479-8c2f-4899-b6db-4b3320e2969e","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":60,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"ccbc3522-96de-4273-b5c1-50ae8e9b1a8c","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":60,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"b06f98ed-7bce-4f33-ac63-5c212d21c477","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":60,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"6cd166a8-47fa-42ed-a619-ef3b778a426f","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":60,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"1c8dfdad-ca9f-4cf4-b4a6-f5d04eb6ae69","block_type":"box","text":"market opportunities. The risks associated with illiquidity will be particularly acute where a Fund’s operations require","page_number":60,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"84c2e1ca-c8fb-4d0d-8979-26671bf579df","block_type":"box","text":"II-31","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1cfe169a-d636-4528-a3eb-aee0f2eb1162","block_type":"box","text":"NM0926U-5977658-60/228","page_number":60,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3fb04294-d617-490e-9ea5-687285c14f11","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":61,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"283d5ac2-0e5a-4bd8-9128-ef2b034485c4","block_type":"box","text":"short-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":61,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"97af58ad-5e8c-4de4-8c34-f883484c2e79","block_type":"box","text":"Index Funds.","page_number":61,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"7d989686-b68e-45a6-bef6-633d4e4af689","block_type":"box","text":"Cash Flows; Expenses.","page_number":61,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"76c6cf1e-fc12-448b-bcbf-2fe0c5abce0f","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":61,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"cc6d2578-5ac5-469d-bd07-b2e9fec7148a","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":61,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"667b0a48-5e5a-427a-983c-1c10900d789d","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":61,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"36410553-b1fb-4ba0-9a42-b8389ac5588d","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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Finally, since each Fund seeks to","page_number":61,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"de29809e-a2a4-488a-85f5-c45986cefb5a","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":61,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"ff5324b2-f1d6-4335-b148-cc1e83f5815a","block_type":"box","text":"particular security as an investment.","page_number":61,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"099268ee-5dd1-46ef-b602-b7cab262de46","block_type":"box","text":"Tracking Error Risk","page_number":61,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"282a0f4b-b6f9-4545-98dd-8d4abf485662","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":61,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"e2dbe13d-b900-4a3c-8926-9f8820d8371f","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":61,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"59b0001b-c4ef-480d-b04d-b1f02ab57626","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":61,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"51e3fabd-aef8-49a0-9dfd-840e1740656d","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":61,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"69986f2c-8079-4797-a0b8-7cc59a6d2698","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":61,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"3dcf3eb0-e7b5-4e11-859d-08f49b0a0ce3","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":61,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"d2c63f1d-3b09-4b8a-8f5f-555faf19c3d2","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":61,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"d649c8cd-116c-4f95-b6ce-47c445a57794","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":61,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"0928b766-24fd-46a8-9492-5b86fd657dfd","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":61,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"8bd8c4e9-de23-4f32-8535-f3d62866907b","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":61,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"02d37bb7-ba29-45d1-a08e-fc057d7f336f","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":61,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"40629002-5889-4e5f-84cc-3abad85a9a6b","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":61,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"875f4a22-45f4-488e-87f6-6e9184ee81e0","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":61,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"6aba8ef5-ae1d-4991-a85e-be36a73cd103","block_type":"box","text":"price growth that does not appear to be supported by publicly available information on the business and assets of","page_number":61,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"7a03175e-752a-43aa-a64a-ba94a0483038","block_type":"box","text":"the issuer, unusual or significant short interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":61,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"05683d51-5088-4158-943c-992a84aa180b","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":61,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"eea71a4d-afa1-451e-b3ba-000b4643959f","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, alert the index provider as to the alleged issue. The","page_number":61,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"e51eb464-3588-4184-82c4-ff1f2e633c18","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":61,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"265720b1-0ec4-4614-871c-929790be8415","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":61,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"b992ae72-46ad-4371-b328-b55e2d52c606","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":61,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"ad7a9bb2-264c-46ea-ab37-fe8aef4ae9c8","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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BofA is","page_number":63,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"c45e8f86-7f30-491f-86cd-b9450791192b","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":63,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"3d0464b4-36fe-4481-b40e-f0ccc1464a3e","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":63,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"0730b321-0f59-4176-ba11-d63970ab6832","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":63,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"7f01abdc-fe5e-404f-9223-bf57b8626ca9","block_type":"box","text":"completeness, or otherwise.","page_number":63,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"b27bd32c-d0c0-4dd7-a8b7-2870dc14d525","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":63,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"f63722ce-8725-4d31-9dc0-6df94b09f163","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":63,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"bb3578d6-7138-4521-998d-20994be61069","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":63,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"a0da840d-a50e-41fe-bee7-d4cf68e3f0a3","block_type":"box","text":"Indexed and Inverse Securities.","page_number":63,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"2c87b461-4adc-4846-a495-20a628b414a7","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":63,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"76021de2-29c6-466f-9854-fd79596ddbad","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":63,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"b06375cd-fb25-4933-a0e2-e7c686719514","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":63,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"2fe3ba9a-55b9-4dc5-a745-b1f8d0fd3f39","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":63,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"db687650-38c3-49fd-b734-654b8ebd533c","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":63,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"a51274eb-f49c-47d3-bff6-6621bd59a395","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":63,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"69ccf9a4-312d-4de4-b51b-102fabcb0f92","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":63,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"c3cb8de4-e191-4a1a-851e-24165db3bccc","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":63,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"2899b780-a8bd-49f5-b08d-3b97c8a42899","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":63,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"cf059bce-4c91-45e8-8ebf-de0a1d42a984","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":63,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"c934e667-0aaf-4964-a05b-a8f0fd7afc00","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":63,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"c1538dae-682f-4a44-ad0d-21779c9e6d19","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":63,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"812043d2-4831-49ac-aae8-e18d18baafef","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":63,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"45e13d0a-c81e-401d-a588-c432b9bf3ff4","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":63,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"357c251a-67a2-4f5f-923a-843b71ec4f4c","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":63,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"a793f870-0a5c-4c4d-847e-60b40768474d","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":63,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"b10dd343-3282-45df-be15-2066a79844ac","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":63,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"c524e9fe-fe6c-4889-bd5f-1b612b09c0b9","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":63,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"e2472ebf-e8cb-4287-98ba-5b73e95efe6d","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":63,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"68e79c75-ba84-48e2-8cb0-9db883a8523d","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":63,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"3346b970-1984-4a79-9b4d-108dd54c17fe","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. 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Furthermore, where such a security","page_number":63,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"77449209-6820-4d9a-b58a-81d8b505fe63","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":63,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"e0e6e976-00ec-467f-9027-35e08a984b49","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":63,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"7fb9767f-dce8-4147-8873-17110ba32c0e","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":63,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"53c897c3-bd09-470b-a20f-4570d271c839","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":63,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"24fdced0-e0f5-4246-83fc-83f336a13873","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":63,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"1f0cef08-7a66-49cd-92f6-3d73892640ae","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":63,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"a24f8f88-d72c-425d-b806-80c7bce4d2fd","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":63,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"f537bbd8-df88-4187-96fb-ddd60fab53c8","block_type":"box","text":"Inflation Risk.","page_number":63,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"80af3215-d15e-4c4f-a992-cd9d60083586","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":63,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"fdcffe23-c986-416b-b936-a0dd4523c9b0","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":63,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"024e0d5f-2dd8-474b-9dfa-e140f2b10322","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":63,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"cc199bba-0c57-445a-a753-274fd1e65364","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":63,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"14f8ab39-49ae-425e-9577-1519c5e884a1","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":63,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"182005ff-2b2d-461e-aeaf-78d1721b1866","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":63,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"3ff03199-b074-4841-bfa9-1720747de3a2","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":63,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"b64ad273-92f1-4fda-9e28-594699634e78","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":63,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"9f09584d-ed2f-4bcd-9565-5bcf856ecd47","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":63,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"ae1cd7a5-b5cd-4a21-aa60-d5a2f94d67a5","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":63,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"5b4a62c3-2e89-4a99-9bc1-77751bf2db8e","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":63,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"1fe742bc-ca4e-4be8-b375-322f25befac6","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":63,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"c3e2913d-1d2a-4874-b18a-57bfdbcee8c9","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":63,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"7394ba32-b182-4332-b9ab-c19d628e3f04","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":63,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"6ecb8715-5588-4559-a2f7-84bdc19c8d8f","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":63,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"8165fd5d-6270-437e-99dd-75cdc05450c1","block_type":"box","text":"II-34","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5553dfec-8847-4176-8948-737125aab746","block_type":"box","text":"NM0926U-5977658-63/228","page_number":63,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"4325b0ac-a0e2-416b-9c3e-fe29c21df978","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":64,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"ba9862cb-3326-47ac-a5ec-52aa1b853da5","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":64,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"82a626d5-f46b-4091-ad5f-a732409e5b9c","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":64,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"77ecc1f7-c52b-47d4-93c6-fc992b182371","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":64,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"66141903-e42f-40e7-acc3-871fa9a46f93","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":64,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"d9d2e69c-3219-4247-a56b-a59de5b14009","block_type":"box","text":"be available for very limited periods.","page_number":64,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"33555466-8b5c-491b-8ebe-1a303eb80eec","block_type":"box","text":"Investment in Emerging Markets.","page_number":64,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"24b71613-c52e-4b1f-8ba2-5a8fdfc79bf6","block_type":"box","text":"General.","page_number":64,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"c830fb36-c398-48a3-af25-c71ba4c61e70","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":64,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"a8a846d1-81dd-461b-9ac4-b7617eb7e0fd","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":64,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"37a2c49b-1e8c-4074-9ed4-1982adc4d697","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":64,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"aa6c57ff-2d08-4ad7-a2e9-af0a7526d1f0","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":64,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"0f67ce42-b059-4bcb-a746-eeaac075d9bf","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":64,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"4ad22938-e936-47e4-a9fe-ef3471480a32","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":64,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"916cb07c-6f26-4866-805f-c0b63f7dec03","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":64,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"8b85ce54-e344-4e84-8ada-3a44d237e54f","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":64,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"eb44febc-43e8-419f-85ab-e2da506751d4","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":64,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"89aca896-9d97-4e35-9fcf-96b49ac346d2","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":64,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"fa8bde9f-4073-43ec-be5a-865c323be5ae","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":64,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"efe1408f-2454-49c0-9e01-b6cddcf83198","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":64,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"3af05e6f-17c7-4e28-816a-c8e5868b7cf2","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":64,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"07bcaf07-0ffa-42d7-a6e5-b5823886b2db","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":64,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"bc3b365f-f573-4641-b386-fd1bf2eea3a8","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":64,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"7bcd6e17-a91e-4a95-87d3-1a2247ab1526","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":64,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"c484b62d-bb64-4a8e-ac10-ccf4e2f4a28e","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":64,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"0a5e4c9c-52fc-4048-ac6c-1e76d029e879","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":64,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"af8b2d0b-042e-4d5c-b530-b4d2761503af","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":64,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"c9790331-8d34-4331-a2c8-37bf1777f95f","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":64,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"5b9dd4b8-16e2-4033-8c0e-90fa7011d799","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":64,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"236dcf08-3312-4b25-ad57-8bfe0aee8f26","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":64,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"e61a0453-6acd-4f0a-8412-2d4e2c9cffaf","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":64,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"781b3bd0-cc66-41c2-a816-72b29b446701","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":64,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"df751bda-3787-4c1a-a062-20312c1ed0f5","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":64,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"0ac3164c-4a26-42c7-aed9-f25d3a67c93d","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":64,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"36d53c5a-bcc9-41f5-ac11-0ee8456f935e","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":64,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"bfe48479-0f0c-44a3-9253-21e856d14ccc","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":64,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"266ec920-e670-4af4-ad13-8a5f7804a2ab","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":64,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"45103ee2-bc0f-44a4-9105-375dbd521027","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":64,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"4f1cda45-c18b-4699-a131-73384203f01a","block_type":"box","text":"volatile than investments in more established markets.","page_number":64,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"c2eb14ba-3cdd-4294-a4d8-927242d826ec","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":64,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"1a9c272e-0d5c-49b5-998d-9e629f515377","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":64,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"976f010c-374b-440b-99b9-3a6f98545288","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":64,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"126e8aef-d686-4d92-8a3f-6e34395c5d94","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":64,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"7dc702cf-3227-42ec-8c00-3613b316ddac","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":64,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"87005ae4-8834-498c-9951-67aeb652d010","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":64,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"79842ae8-e077-4eda-8e61-bc5b0a017836","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":64,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"88ca50ce-2f15-403b-b360-312a394b92da","block_type":"box","text":"acquisition or disposal of securities.","page_number":64,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"bd255f8a-3019-4362-820f-e3ed42df79eb","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":64,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"d8384b22-310c-42a0-8777-8ee57af8e708","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":64,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"b046f562-4c28-47de-9aec-147ad77f4cde","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":64,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"5783212b-e551-45f8-adac-efc502bef476","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":64,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"67dc29df-9b8c-4d5f-a1b1-d4be8a19a0ab","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":64,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"4c6a0106-4099-491e-b751-e13ab48eb3e5","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":64,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"704923e3-7550-44e8-992d-d104f240318e","block_type":"box","text":"II-35","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"519f181a-f149-43c1-8e7d-6d422e51d5c7","block_type":"box","text":"NM0926U-5977658-64/228","page_number":64,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f694f3f7-0e52-49c6-9286-6ce163449c1e","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":65,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"b86b6eed-131b-4cba-9657-df1969f99ac7","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":65,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"90a1dfd4-1976-4843-a60b-660735aaad7f","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":65,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"8b19d23f-4340-4227-bad8-a7d5cdfb4274","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":65,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"956541ba-5358-4c3a-a55c-67e2bdcd067d","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":65,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"6da705fa-84c2-4bde-9599-db69d12d7c6b","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":65,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"6e822026-979f-4e11-8333-e8e5752c42da","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":65,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"aac354dc-c145-4c78-9445-6d0e3dc4801e","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":65,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"c42e543a-9160-4638-a37d-8f0ae5a7d357","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":65,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"6a8c3bc9-b880-4109-9ded-5ca58ffbf167","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":65,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"7ac86652-534a-4d22-9a65-b132eb1326b7","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":65,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"ab6ad641-f184-46e6-b021-aeaecaf3bdf7","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":65,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"93e274d3-cba9-43e2-b94e-7f62b7413ed2","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":65,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"6416a462-972e-4ec9-b396-7a772b1f8491","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":65,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"3a6f293e-7053-4fbc-93fb-501d0709e363","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":65,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"7cb935cd-a9a5-4b0c-8da8-b6c85aa0c007","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":65,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"935556f2-dd9d-40ad-9298-5056341b7a09","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":65,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"682677bc-c854-4403-be86-fabbc73bdc34","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":65,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"0ae48f4a-0768-4ca5-9504-745055fcea03","block_type":"box","text":"performance of the Fund.","page_number":65,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"16be622b-eb56-4794-8275-54f09b346752","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":65,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"f81bcb6b-e4b1-4793-bd55-f7ac5b90d4fe","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":65,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"8f8d6c32-4eda-4339-a858-616c9424dead","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":65,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"ad6b6efa-1243-4a8c-8ada-33f4f020f16f","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":65,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"266868df-e589-4ffe-b4fa-7d3908978cce","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":65,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"cbf54c29-d3b8-49e3-9ed2-410c9ab0ead7","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":65,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"a4fb059f-537c-4647-b77a-e469ef8ec53e","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":65,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"b16b52ed-196b-427d-a3d4-2948780a63c8","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":65,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"2891d517-99ad-474f-9b43-0a15f0432882","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":65,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"700b8b98-eb9f-4ec4-84fe-ce46b0b8785d","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":65,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"5e2ab0b0-8db2-40d6-9a36-22d0172e4c45","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":65,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"26fb52d5-5781-4947-84f4-a0734407c66f","block_type":"box","text":"affected by a variety of factors.","page_number":65,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"e8a5e05a-e8fc-4aa3-a002-c01b855bc5bb","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":65,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"5dc93d44-0ba3-49e7-94cf-2a76c4afd41e","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":65,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"ddd9dfd3-6655-4b26-9a71-fbc3bd152ab4","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":65,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"a0598615-a89a-498c-9c43-198a5436617d","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":65,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"0d2c3de2-dafa-4c9f-b123-a634053dbfd4","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":65,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"706c10d2-cff4-4beb-8aaa-b9998ec22fdd","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":65,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"f8410aff-838e-46bb-b307-8015cf6baced","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":65,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"fa0198f1-15bd-43d0-84aa-336a6201acc1","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":65,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"02366d2c-8795-4410-bf05-7b199ae0dfe9","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":65,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"ebbbf3ba-4854-47af-9113-e7a121dee72b","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":65,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"23c63fd6-853a-49ff-80ba-81c940fc928c","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":65,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"d6dab4eb-7d2f-43a9-9c3c-2dc131eaeb56","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":65,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"7dd76e6c-d7ad-44a5-9f36-862d27ec9b88","block_type":"box","text":"nations.","page_number":65,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"97b384a6-d21e-49ab-844a-cb839a6ccfe8","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":65,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"4efefcba-e286-4ead-8280-a7d059856d46","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":65,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"ae37061e-78a1-458d-a654-b6ffc08426fc","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":65,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"40a816c8-f356-4280-a447-8c78ab6bf0c1","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":65,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"a82738cd-c2cf-4059-9849-5b6ff7ba2bc6","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":65,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"33ea3510-cc62-4fc4-b313-413aea33f3ee","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":65,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"192fc6b6-22f8-411f-9c94-6b9f10834f1b","block_type":"box","text":"market Asia-Pacific companies.","page_number":65,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"79f0552d-52b2-4f8f-97ef-92a57fd50b1a","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":65,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"4998742d-d47d-4bf4-acd3-9a245ba8dc31","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":65,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"0d235487-eebe-42a6-8daf-4e9dd25d007e","block_type":"box","text":"services for such securities outside such countries.","page_number":65,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"0c8c8b80-ef04-45aa-a494-699ef226fc97","block_type":"box","text":"II-36","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"87bffe8c-7c0b-4cb9-8554-4bc975e6a0db","block_type":"box","text":"NM0926U-5977658-65/228","page_number":65,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f85bdea1-8191-4cdc-8091-41d9e4ba74a3","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":66,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"35c354a9-646a-4f52-8d1f-9578ad7bb08d","block_type":"box","text":"to commercial banks and foreign governments.","page_number":66,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"fbed4775-0098-4187-9f62-73881549a7ba","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":66,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"d15a4fc9-6e9d-4ae2-97b2-a0f04c8c02af","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":66,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"35f755ad-f123-472e-b9e2-6b3e0c367567","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":66,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"e3076f2a-48d6-47b1-a2aa-3fe5f75efaef","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":66,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"bebc517f-eb92-480d-9c70-23c866e84d2a","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":66,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"b6e3cf48-92f3-4a64-b709-5f6d0cb94f4d","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":66,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"53de8081-c639-47be-83c7-5e219a4e3c41","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":66,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"8246da56-0ed5-4e80-93d8-b52b5a83b72a","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":66,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"cb8177d8-edb4-4e72-9604-07ae5e78f8eb","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":66,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"8af5a7d9-2345-44ae-a501-44374473ef69","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":66,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"44c0555b-c44f-40c2-8e3f-a1a6345f5579","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":66,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"0f68ee44-53de-48c8-9acf-35be17c550ed","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":66,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"dfec0bcc-b770-460f-bc70-00e8908f6f6a","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":66,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"b5e2c20e-90de-4bc4-9d9d-a2585bc5b337","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":66,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"7addf511-47b9-4c67-8fdc-58493e51b9e4","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":66,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"74eddc19-7a6b-413b-b1a8-06369976ee2e","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":66,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"8bd42799-af60-4a40-8617-0499496aeb7a","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":66,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"084c40ca-3184-468f-aa2b-9f62adc9e947","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":66,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"fe6a4006-cc9a-44b1-9d6b-298404fab9a2","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":66,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"78164cf4-51ea-49a1-b275-0bd859728eca","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":66,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"dac612bf-51f9-40ef-94ad-e7f63296d439","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":66,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"000a4e52-e7b1-45ac-b8f8-4f0ef367c2a2","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":66,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"3fb5088f-ba0b-48dc-815e-d315371a029f","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":66,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"3a7f990e-f9b6-4c71-8328-dbd3f3f74b92","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":66,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"002e25a0-7a8a-49f0-9ed1-7ccdd4b83ca3","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":66,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"3d648dc5-970a-455a-a3dc-884853005458","block_type":"box","text":"investment at that time.","page_number":66,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"fd90e293-f4dd-44fe-9d22-ed9398b3c476","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":66,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"153b5b9c-34fc-4351-a720-ba6dc15a921b","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":66,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"648151c9-c57e-4682-bf1f-097f6208f136","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":66,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"ffa68651-2549-48b4-aac8-66155276cb0e","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":66,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"b8a2ed58-a50a-4737-a061-3ffe4b44dca8","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":66,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"00bd3dbf-0820-4cfc-bdc7-27e82ecf9d7e","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":66,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"41a35b3a-0e6c-4fbd-82dd-c1d8e8108e0f","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":66,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"a4f03824-5994-4805-9596-3caf81baaa99","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":66,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"d0da523c-d863-4bf0-8adf-33e5c7977b4f","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":66,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"1c4bc1b6-9ca4-426a-93e2-f5a24ddb0ed6","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":66,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"3fbd2ecf-0618-4717-b9d6-16ff9e84dbec","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":66,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"e8cfc15f-0e5c-4afb-8fbd-a830d4891037","block_type":"box","text":"government).","page_number":66,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"ebfc09e7-2a86-4726-892e-e677181453a4","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":66,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"c9215da4-566d-42ae-89b1-4f1a7ba233b3","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":66,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"f536a1e8-d530-4f2c-a0d6-1bca5a52fbe3","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":66,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"f40dd797-b24c-4a3f-bcdf-1ca7211757bc","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":66,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"64f25186-648f-43cf-90ac-7f667e82780a","block_type":"box","text":"foreign banks and other financial institutions.","page_number":66,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"08e5396f-34b8-4870-8439-f695c6f3abf2","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":66,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"ceb316b6-cef8-4602-a5f8-745cfdd3a6e9","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":66,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"62c85598-d6ea-472c-8c7f-fd4a3338bfae","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":66,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"500d3a9b-fef6-4e4b-a766-24c3740a3b58","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":66,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"d2474c47-1613-4b77-b829-99b333dee806","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":66,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"884a4648-2e60-403c-82fe-7be379d6da6b","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":66,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"bd6a8ec7-1891-49e4-b73b-47ff39d2e3a4","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":66,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"cfc6b6a5-ca8d-4031-84cc-dd20791b657b","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":66,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"2b38bcac-3e1d-4ee9-8db3-7d8208adb257","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":66,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"473bd08d-524e-4b19-a540-9e7fedf4c12e","block_type":"box","text":"II-37","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"54085f64-4114-453e-9374-b57463a5bb67","block_type":"box","text":"NM0926U-5977658-66/228","page_number":66,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"36bedf0f-99a3-404a-bdf3-cb1747c2dce5","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":67,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"6d3693c5-662e-4f9f-9da2-95cd72cdba63","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":67,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"e513cc71-291b-4acb-913f-a54b954b0f29","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":67,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"cab2c3d5-fe13-42de-a4aa-718f6e9d3b8a","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":67,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"4ed69f40-3ed6-4ac0-920d-7c9d00cb4b1c","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":67,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"ad87def5-8ac6-415c-a48f-0eac49d4b5dc","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":67,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"d17b3ad4-f7ad-46ae-9376-e8206a04d9db","block_type":"box","text":"foreign securities.","page_number":67,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"0ba25942-14ca-4676-bf66-07a2befb8ac4","block_type":"box","text":"Risks of Investments in Russia.","page_number":67,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"722c4c3d-b435-4008-bd8e-856da731aa71","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":67,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"a3733316-216d-4b16-ad96-e057e7f958a4","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":67,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"3ce24928-bd70-4a5f-9f37-96ee0bc31be5","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":67,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"0eb5e921-3005-464b-9804-168981b04e3e","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":67,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"d39afbdd-ecae-4577-90b3-ed8412115276","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":67,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"9d3eed8e-ef68-43f4-9967-d952263dfcb6","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":67,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"fcaa74d2-fba1-4f38-884d-31ad9e62779e","block_type":"box","text":"developed markets.","page_number":67,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"f60fd252-bbbf-4287-97c2-fa0f7a1a0610","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":67,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"21d7235d-968c-4da1-bff9-29d3224fce4d","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":67,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"ac11f292-1bee-4ad1-9288-2adb9c9ea374","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":67,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"d1277137-8c1a-4695-84d1-0a8a1d468722","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":67,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"b72decb8-5f83-442a-a090-6910cde3f125","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":67,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"2835d152-7267-40a9-92b9-8cfb324fdc74","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":67,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"dcb76d4e-860d-4787-82bf-80ed83a8dc8a","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":67,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"9616e867-a9f2-44b8-a340-62379f2d75dd","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":67,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"2b082e57-e0e8-411c-9eed-83478ffcf7b0","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":67,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"595ccc81-63f6-4b12-b60c-97d06e89bd11","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":67,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"a740c01c-a0f1-43a7-857d-f1bdd39efaaf","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":67,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"d09a7b8c-ff88-470d-9fe4-d39a4e56a5b2","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":67,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"0919c7bb-2778-42b7-af7b-8a619d8ef56c","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":67,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"b0809918-ac99-44c3-83cf-1b87c52db033","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":67,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"7718395d-6e9c-413b-9d66-6dd974a27792","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":67,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"fe5e8691-e54f-42f8-952e-2121af42c31a","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":67,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"9939e983-7dea-405d-b0ff-316779784fd3","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":67,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"f1d80597-3105-4143-b61b-d9aa325ccd8c","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":67,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"06f8dd8c-d422-43ff-8f61-1dedaa2a763d","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":67,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"5b21afff-76d6-4eb5-9f8f-52bca6853c5f","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":67,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"1ec62c90-594e-4638-916e-5d9cc4a5d7bd","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":67,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"aef5db5e-9422-456e-b58f-7b0c4563cb00","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":67,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"ee470358-e5c1-4e43-8aa9-cd07f64f095f","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":67,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"9d61ceb5-2b7b-425c-961c-2554b52c305d","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":67,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"b2ce36fa-0ad8-4ac2-b218-cebe562fbb31","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":67,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"20973610-3055-4117-9db5-de8049bf19d5","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":67,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"518596b5-a4dd-445f-b3a0-00ae05fb44ec","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":67,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"04a496e9-2877-44ac-8e4b-d14d0b619514","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":67,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"671e43db-cd65-4991-8cfd-55d910e369cd","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":67,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"c7b1734d-b6bf-4c80-94d7-9e143c287722","block_type":"box","text":"sectors globally.","page_number":67,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"6d3c3b90-8f59-409c-9ff1-ce6f7274029f","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":67,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"5bb7d493-28b7-4775-8755-4952934eba6b","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":67,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"962fe9e5-fa2e-4981-8567-0c355cfa0051","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":67,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"b78b4a6b-2cd0-4d30-9e60-c72c81e77155","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":67,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"856c26df-1104-4a18-a3ed-ed71ab13f198","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":67,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"cc1d3f56-71d4-48e6-8aeb-b99c878d9187","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":67,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"a9e57537-8d46-499d-abbb-f40d07a3b64d","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":67,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"916d37f6-5499-493e-b9fc-a81741367643","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":67,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"676b7980-b4b2-4566-b72e-9e98fdcbc339","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":67,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"329681af-b9da-45f2-8d4d-04a0681fe03c","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":67,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"9e265ce6-fbdd-4445-87af-7433369abe28","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":67,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"b51b92f0-0ed6-487b-a8ea-718a24434df5","block_type":"box","text":"II-38","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6ae1f702-bec8-4767-b869-4865ad3d96e3","block_type":"box","text":"NM0926U-5977658-67/228","page_number":67,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e485f5fa-dfb8-4d1c-b047-59eb9c2bdfb6","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":68,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"148c1e93-f469-4817-8b55-c6beb53fe51e","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":68,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"fcfc7185-539a-4228-89e5-543efd073ead","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":68,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"f08bc12f-550f-406f-8956-6c3840a90493","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":68,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"f9fdf753-b286-49e9-bdd8-81d6fcdf0f19","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":68,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"df267eeb-0c22-4c71-8c74-8c41a486fac9","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":68,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"3a8a1aba-cdc7-49ba-89cf-8e8e62e2506a","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":68,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"f9688185-7e8e-474e-bfcc-45621a0bd916","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":68,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"45271c08-da54-4f68-96bd-579725778998","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":68,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"1b271222-66c5-47a3-989c-5817a855372b","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":68,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"3640d318-ef01-469d-bec0-488f31632502","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":68,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"989d6dfa-cd47-4c8d-ad64-f09c58e6d4ea","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":68,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"bef629e6-1155-4be5-8064-ee537bfeea26","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":68,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"ec29fd42-3c3f-433c-b3fc-957251e657b3","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":68,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"7ce4b2b5-1ca2-46a2-aaf2-c849f02ec02f","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":68,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"0c6712f9-8003-478b-aaad-d5e169e23d01","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":68,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"9e26e13a-63f9-4b1f-b09e-bc1857e66ee0","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":68,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"3d474287-a282-48da-b902-62e074585e87","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":68,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"d3b68868-84b5-419b-bab0-548469feef21","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":68,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"6b71d387-e5da-4029-a505-fa0f6efdba0b","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":68,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"18891467-ed81-429d-a199-0477a079356d","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":68,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"7a9ec276-b796-45dc-bd10-a022a5cacba3","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":68,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"bcdf22b7-4c8e-4a12-bf39-d50262097444","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":68,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"2312d2f1-e503-404f-9e4b-b48efb670f61","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":68,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"1577948a-0f3b-40fc-9448-e82ad16cb5e2","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":68,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"2f08027a-c615-46a9-8a26-82a0c1ac000c","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":68,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"836f2625-4fdd-4051-9953-b69a48f298d1","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":68,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"01ab8946-0213-4a34-9b23-2d2e7104b720","block_type":"box","text":"impacted.","page_number":68,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"0f73d5fd-6c23-4a28-bcce-ae3f726a3e26","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":68,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"24bb17d6-35e7-4dd4-9009-112e44443ce1","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":68,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"b835d212-1e82-48f3-956a-3a6c181dba6e","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":68,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"ae188c4a-afba-47e6-9eba-d1a34007d2a0","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":68,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"94f6ee73-c2cc-47c0-ace2-f3c85a5f4c1e","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":68,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"338fcb92-48a3-4cbc-86dc-b3c0c6124bd9","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":68,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"a57cdd6b-6371-4013-922f-0994c428ac9d","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":68,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"8fd24e73-992c-4fe5-b2c6-1e13af0a3066","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":68,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"225a6a15-f2f0-4d2a-b170-694e9ffa3176","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":68,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"7fa078ad-748f-4ebd-8409-5730ee48fb77","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":68,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"58396cd7-f3dc-4d72-8288-4336846e84fe","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":68,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"b9f76b9d-97b0-4579-9fde-bea6ce706bac","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":68,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"b17960f6-a2c0-4648-98b9-565c5961e192","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":68,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"3c9d43e7-f966-4389-be21-2d5a4e0130d7","block_type":"box","text":"economy.","page_number":68,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"426cb12a-5083-4db3-b5ed-72f44cb60682","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":68,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"83333890-93cf-4dee-aaa5-455d776126dc","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":68,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"d0174c03-0451-4dbe-9112-ddfa6abf867b","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":68,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"69f570f3-ac71-42fd-8fc4-6a8a478e0730","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":68,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"5f03994a-fe51-42a9-825b-3817170cd5c4","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":68,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"84c20eea-5445-4c52-9591-9d6618e46e4a","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":68,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"f9437d31-3968-42c1-ace2-2d0a7e7eb8b1","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":68,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"b23c7f12-b1dc-479f-8b52-1e6e13168a85","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":68,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"f30ee2cc-05f5-4bb6-b005-0b22066bd9a6","block_type":"box","text":"typically the case for investment managers.","page_number":68,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"7b886d36-7317-4fa2-b571-69beca78ef04","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":68,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"d10b62a6-a118-4cfc-a3b1-107681efc990","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":68,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"d6b5df41-b44c-4a56-9dd9-39b160cafe6b","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":68,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"639a6564-f479-4ed8-b356-37b6c9fdfc40","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":68,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"086ad99d-d857-450d-94cb-f4420f8f2d9b","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":68,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"3cb004ca-a1d5-446a-9b35-3cd11e31807b","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":68,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"1d0f1930-e46c-442b-8a83-57a057d47e25","block_type":"box","text":"II-39","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2644bcda-0345-4c16-9e57-4b52afcb0f93","block_type":"box","text":"NM0926U-5977658-68/228","page_number":68,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"68ab3a45-93a8-4a78-b51a-8272ee0565fc","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":69,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"bce1c25e-8828-4236-9e34-d19b408511bd","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":69,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"41c482da-6761-49af-b324-c4bbb5eb57d5","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":69,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"a55c070c-2fe7-414b-ae27-53ed7e33afc3","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":69,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"e9b99e04-e6c1-44e7-9426-caedc7fa95a2","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":69,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"b0c1f5c9-8155-4c41-a3bb-d80297ac89fd","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":69,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"4d1993f9-d6d0-43cb-a78a-e096fe436011","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":69,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"cf323fc8-71d7-4263-88db-974b68391238","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":69,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"232ad455-f1bf-4faf-8bcc-8768bcf2a539","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":69,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"c2f7bb0d-25ff-4bf3-b4ad-3850c5a87200","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":69,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"7c3e235b-a593-4085-805b-808d6917d419","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":69,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"9e48131a-a596-4ae1-8058-aad323d22920","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":69,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"4d3b9e0c-2c35-4c6b-8df2-2b453c92c95c","block_type":"box","text":"will be indirectly subject to those risks.","page_number":69,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"a4e7b2cb-0aa4-41df-8d2e-8faef555ab76","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":69,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"8742fc9c-667b-435e-9ebb-27d67d41a911","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":69,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"48d396bb-5f24-45dd-b553-30d44ee42dc7","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":69,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"bc1a2c2a-a603-4198-bb5a-671c45d5a9a7","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":69,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"b1651fa9-614c-4989-a0b6-f92d8663ecdb","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":69,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"2f8d3cb0-d6b8-40e8-8cd6-31280c0eed46","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":69,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"1a989cf8-87f0-4be5-b0b1-be561fc00890","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":69,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"638c3e3b-c16a-4ab8-9deb-e87d779ab9e2","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":69,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"370ce231-ead6-498b-a8ce-1e7d33149afd","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":69,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"33d08391-25f4-40fc-ada7-ae717ce2ca33","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":69,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"bf85f170-99d2-4207-afac-50bae20df452","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":69,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"5959ed32-9234-42df-a6f5-3ffbaa32c1ac","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":69,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"fdc19aea-1d32-46ff-bdeb-f6d197e54477","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":69,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"0ec5126d-ea35-4f7e-a300-790851d9b43e","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":69,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"18435123-6cd1-412a-bb58-36885865e602","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":69,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"7c948621-466d-4dfd-8b60-61e0697adeed","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":69,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"195178df-771b-4af1-a970-00316a274fb8","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":69,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"dc2257e4-dcaa-455e-8fc7-b1a06a55d516","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":69,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"b7447b3a-cfef-4cae-8532-09b54881921d","block_type":"box","text":"impact on a Fund’s investments.","page_number":69,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"c04bb085-6ef2-4124-8581-e8441cbd45de","block_type":"box","text":"Brady Bonds.","page_number":69,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"0f7f7ec2-5d5b-4740-a6b4-54fa8706c9d4","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":69,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"9f39712c-bbdd-4cfb-a0d1-8bb27708c89a","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":69,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"d882e78d-d126-4101-94c1-8d7f09459d68","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":69,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"24f6e228-1ea6-49ea-abf4-9132697d038a","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":69,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"4a785578-6f08-4783-9487-4f436e45b1e1","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":69,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"6650b278-4580-4eae-a11d-9e5969020f59","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":69,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"42bf4454-026d-4df9-8ecc-ec0b92a808d8","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":69,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"ea03c114-72ef-4ad9-b70b-c85bda30d5da","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":69,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"8e7852b7-20e1-40c8-bf04-449d2dfbf996","block_type":"box","text":"Venezuela.","page_number":69,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"9d123e61-1266-4d32-b17b-55c631ecc484","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":69,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"e4bdd7df-c668-466f-9baf-eae195fd27c7","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":69,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"ff65c63f-a05b-43ca-8c4f-6684c0220f08","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":69,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"d6599531-3495-43b1-a40e-9f851bb1d95c","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":69,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"2060a200-c6f0-43da-a1cd-99fa9d2f6ea6","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":69,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"6b9b68f3-d5bd-4df1-abd9-0e9b56c8047f","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":69,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"f4f47292-a596-4462-a5c2-79b36350f3c9","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":69,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"2a22a1da-522b-4a2a-b8a8-df1fc50346a8","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":69,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"27e08e90-7cb8-4a0d-90ed-64577418c6fc","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":69,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"d76277e5-eb7e-42cb-b1cf-3cdafb8a1a39","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":69,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"f9927309-bc2c-4ce1-a67b-ee4ead84f861","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":69,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"e81d752f-e326-4d4e-9b2e-7ee6778c064c","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":69,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"ffe1d422-21cc-4655-a9ca-88dd2bde7739","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":69,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"1a47d60a-8500-458c-abd5-0caaab1feab3","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":69,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"bac0f908-8982-4ab4-937d-86903b3ef059","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":69,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"a9af6f71-6129-4b95-8e15-3a2fc7416c3a","block_type":"box","text":"II-40","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2334599a-6459-4a63-80aa-0fd8eee0d69c","block_type":"box","text":"NM0926U-5977658-69/228","page_number":69,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e27b51e7-ce40-4e02-a674-43622aa93f3e","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":70,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"3470f241-4579-4075-8e07-c4d42456e52b","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":70,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"827a8690-44bc-4de3-8ea9-ac8a378fd163","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":70,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"34a66781-0c13-4266-8e77-1219f5c7ed63","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":70,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"4cda751b-c39b-47de-8203-73b3e74d0af3","block_type":"box","text":"China Investments Risk.","page_number":70,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"6e094deb-fcfd-48cd-8f6d-fac30c2cbea4","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":70,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"f1ffedef-ff53-47e8-818d-28526b642f3c","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":70,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"996eaed2-8f91-4b9c-8146-b07321748eef","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":70,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"179a2f83-68a9-4201-9e30-5451416f546f","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":70,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"aba2feab-7311-4754-94ac-e964e92a6309","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":70,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"16309b13-2622-4bea-b913-3897bae0dbc0","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":70,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"cf347c22-a1e7-4ee6-8ebe-c952fe310424","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":70,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"3e54fb4e-32c3-4cc3-9fc9-88fa17ab5ffa","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":70,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"59fa6a4d-1cdf-4ab8-87e4-0da9c17c1899","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":70,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"09ae55f5-111c-408a-a2f3-e77c0f570bcc","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":70,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"3d4b61a3-d42e-4914-b2da-b3d5e52427ea","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":70,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"dfbd0b5d-dbe3-4920-b7b2-73d66a85ce9f","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":70,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"53a0b983-ac3d-4cd4-b8f3-c8dbae55505e","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":70,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"4959c599-e493-4083-986f-0c7025bc6dc7","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":70,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"766169c9-63d4-4a1a-9fca-a16339ba1e96","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":70,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"8d6de9a3-86b5-406c-a06d-d8711359954c","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":70,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"62508ff0-6398-4881-be70-50c28c0a1105","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":70,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"63ecf515-10fc-4a1f-ab22-e78b129e5990","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":70,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"fceaaa39-e7ed-4d84-930a-90cd995b6928","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":70,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"dc7b9182-5f69-4995-9f3e-303a1d83a35f","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":70,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"96f864f2-16ce-48c3-bf7d-6dc86ff5990e","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":70,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"7dbabc9d-103a-416f-92ca-46c291dc004f","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":70,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"e637859e-3aa7-4910-b2e7-9f7f04b37bcb","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":70,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"38688b00-e078-4a11-85e3-555cd3cdf907","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":70,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"d9a27332-158d-4272-97eb-89c3d9f3d402","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":70,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"ec881432-7a56-45ee-bf88-2b0b8f87aea1","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":70,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"74e8c954-d82b-40b6-9407-83b3215fda23","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":70,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"c7759544-d0ab-44fd-8634-5d1d39f0b268","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":70,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"6e3507e0-eb47-45ac-bda4-a38b7bbc301f","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":70,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"ed32047e-d498-429e-8b41-eaf91232d32a","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":70,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"02121690-fce7-49af-8924-248488bf0af9","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":70,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"63773808-26d1-4daf-ad7d-f1b03b39a59c","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":70,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"9d9a4652-28af-474d-865b-ef04c0634025","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":70,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"782b04eb-20a8-4c95-aa44-53de7da77e96","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":70,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"3e67f40d-fc5a-4ffa-93c0-689d86140928","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":70,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"ae72163b-f3a1-44ce-bee9-1bbd3ded61f5","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":70,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"56f1b9b1-7b4c-4c0a-88e8-cae6b5def1c0","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":70,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"202da63e-1ca2-409c-8f18-e9168d85626d","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":70,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"fb9e9bd6-433b-4486-b5a6-1ebab80f5b1c","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":70,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"428bbd1b-33db-4353-a627-0e6321b25dc0","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":70,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"278adb61-8265-4242-9797-dbc50cfb0ec0","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":70,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"b44de57f-af3d-41eb-a6a7-ef374a861d4c","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":70,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"1ce68d98-0c18-4e07-be44-8723f818ac18","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":70,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"f5524ad7-00f1-4f4d-847c-881ebbff6a21","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":70,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"831ea165-98b4-4737-b48e-3b891f2ed3fc","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":70,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"9b7da7e3-8ecc-4624-8268-be870af00591","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":70,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"0d692d86-4f74-4f9f-9edb-a2709eec1e1f","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":70,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"bc1897cd-77b5-4217-9e18-7d1693f5e87b","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":70,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"a3143107-d581-4b99-b806-081c9d6e0b3d","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":70,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"1d20fcd5-6e7b-44e6-a9c3-0ea94f9603f7","block_type":"box","text":"sub-custodian.","page_number":70,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"c23ac8db-9f1b-4c47-8019-2d9b2f776384","block_type":"box","text":"II-41","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d8aa7e98-3584-4084-b211-fdf52532d0d4","block_type":"box","text":"NM0926U-5977658-70/228","page_number":70,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"7a514419-e57c-475a-927c-a917dc3a34cb","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":71,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"a80c23ba-1941-4170-83c6-1aa7e8d1d81b","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":71,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"0cd1de0f-2b95-4b3a-a9a7-5405ca391d11","block_type":"box","text":"on investor protection considerations.","page_number":71,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"d96360a1-1186-470a-bf23-b3e7ed83d63a","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":71,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"04968469-d3f3-493e-89d7-4807ced8594c","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":71,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"092f9741-db4f-4016-9d11-5c19b1687eb9","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":71,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"60124bc3-32fe-4e10-92c7-6ef5e06f6335","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":71,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"3f03e377-2f59-417b-99cd-515b764688f3","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":71,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"ec865cc9-0279-4958-85e7-28b058412e10","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":71,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"c920ae82-19ca-4a95-8dbe-041f7817f262","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":71,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"26bc2f52-7514-4a9b-a276-8c4f489911dc","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":71,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"bbc805ad-0073-475d-9856-3c68e8488537","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":71,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"5e2e62fd-f451-425b-8ffd-c90528e77d43","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":71,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"13da3f86-bc2e-49b9-8827-850fff254648","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":71,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"adfa6b81-780a-4a0a-a98e-f4538ff4fdde","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":71,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"b0dd37f7-283c-484a-910a-02761a7ed367","block_type":"box","text":"accounting firm.","page_number":71,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"45a37b66-ffd2-44b7-b23a-65defd7c740e","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":71,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"134d1d73-e718-40e1-a131-b1726674ca63","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":71,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"564fc5f2-6e10-4835-b10d-b1f9599682cb","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":71,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"295ff4f0-1e6b-46c2-b8cb-9e0953295a45","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":71,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"6faf8300-5063-452d-97b8-a55efbf8526e","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":71,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"d4dd93d2-2842-4714-afc1-ef22c9676640","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":71,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"890cccc2-c455-41e2-8190-0dceca2ceb51","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":71,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"b841845e-e900-4bfc-a217-991960621466","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":71,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"de5f0181-4cb0-470b-bb00-f2fe953a8ab6","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":71,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"df89aa01-5565-4254-95df-abce99491010","block_type":"box","text":"RMB (“CNH”).","page_number":71,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"7bd2446a-4178-4d76-90d5-6e42b444f58e","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":71,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"4195066c-503a-4ef0-8255-57d17f682409","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":71,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"ea604602-66ce-476d-aa0f-63c3a4b97614","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":71,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"13017951-ee3b-4d35-876b-d0f6d2a8f62d","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":71,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"dfae0c95-911f-4026-84ba-cab9c5f9b7fd","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":71,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"3ac440c6-bfab-440d-b406-93a9926869bb","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":71,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"aeba1cff-2341-4e97-acd7-5da3c835a6a7","block_type":"box","text":"represent equity ownership in the operating company.","page_number":71,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"0c902822-5cb2-4d8b-808f-8bc0c1faa178","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":71,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"b15bd78a-a3c3-49ec-bf4b-3ceb2791e665","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":71,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"474d76e9-80db-47cc-998c-54be1493d95d","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":71,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"1671d153-cb8a-4a06-8940-2695710a86d9","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":71,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"aeeb1bb8-d456-4987-9a7d-445e4e34c5ec","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":71,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"ee701b92-4260-4dc1-b9b4-dbc9ad1e35ff","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":71,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"99c19912-7e27-45c9-88d8-d07b88508495","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":71,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"2915b3df-2f62-4b7d-9a09-c242bf726e84","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":71,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"bef56118-168e-4cc0-bc13-262dae0172bd","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":71,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"11f9858e-474c-4901-b1ad-b11cced32e83","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":71,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"8b731fa3-1e23-4f8a-9d0a-969ae8e10335","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":71,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"8c1905f7-f6cb-4732-8cbe-f15b990a1cec","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":71,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"f4fe1b71-1cd4-4a93-93fc-d1dd19f835c5","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":71,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"9d9d1807-8c01-4b28-98df-79b1440b8bde","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":71,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"31141f94-6882-442c-b331-35eec6764029","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":71,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"e9944439-ccf2-4238-bed1-d936cc248838","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":71,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"19fbd619-ac86-479c-844e-c84d62b2e536","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":71,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"990e6fce-e03b-4a2f-ba13-07765337a0e7","block_type":"box","text":"losses to a Fund.","page_number":71,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"efac188f-7f51-454e-8dc1-7295d8cce99d","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":71,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"1ef49356-b5a5-4bd3-9dab-61bc4c4ebf64","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":71,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"51df78b7-0888-4815-9600-080eca8888ee","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":71,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"b058b569-d500-49b0-8dfa-3219a4c7262a","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":71,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"ddb99f2f-49c0-41bb-9f64-0d7e2589cc37","block_type":"box","text":"II-42","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2057a809-71dd-4dd0-b45f-1a87695246cb","block_type":"box","text":"NM0926U-5977658-71/228","page_number":71,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"e22f0a71-10f1-45f5-9123-c9ef91f7e784","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":72,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"73de224c-4d77-46a0-8d6d-b766af5594fa","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":72,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"e6c3ebe9-ca41-4b2f-bb51-cc26e899e3fb","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":72,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"33bf9808-056c-41e9-858a-45c2f463105f","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":72,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"c29ef084-456a-4f7c-992f-6d99aa9a9198","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":72,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"f27afbed-e3b7-4691-8216-64f9f03b2141","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":72,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"6bbb9c52-f03b-470e-8f77-739820668552","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":72,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"6dba304b-566a-4423-9920-374c764b62c9","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":72,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"250ec664-60b8-41cd-9777-5fba05bb07f1","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":72,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"6a353503-dd1c-4631-b661-feb4ab06fe55","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":72,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"0b800356-a46e-41aa-a6fd-73d42ceb89e2","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":72,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"615e3a6a-e2f8-48b6-bcfa-194a9863c225","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":72,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"514afa34-89ab-47cb-a8f9-a299d154e470","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":72,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"779fb639-8015-4918-963b-d50844f711c5","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":72,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"8220d5be-fee4-411e-b385-25756e91428b","block_type":"box","text":"such companies.","page_number":72,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"55f6493b-e82b-4c42-96f4-d34cec34ff81","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":72,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"27b07993-4a14-4678-aefa-217c8536e178","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":72,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"09e61862-59b0-466c-b4c0-266aca22a94b","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":72,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"1284378c-421f-4d72-aec8-90a76aabc810","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":72,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"d509005a-c701-4f07-aebb-29ca29fcbdcb","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":72,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"86f9c766-665a-41bb-943d-d4b02ede7b90","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":72,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"d568b8e3-d3b2-4490-ba52-948fc27c4199","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":72,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"a0564481-edd7-40c9-98d9-26b14f179003","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":72,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"d80f06da-9066-470d-88ec-18bad58b41af","block_type":"box","text":"standards.","page_number":72,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"38ae7fc1-6895-4b30-9c03-54d0a2994dd0","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":72,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"686af4bb-86f6-46d1-9016-2f19276dc117","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":72,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"03ae63cf-c2a2-4aaa-bafe-93968d67c7c3","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":72,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"42ba3a67-6531-4d25-8d43-b536a7e23a21","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":72,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"ea3241e6-c26e-4f94-a713-cb15bb4289f0","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":72,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"0291ed50-45c6-4808-9966-9f849bdf2b87","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":72,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"bd7ed26d-6f01-481f-916c-3a5a91ff51f5","block_type":"box","text":"General","page_number":72,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"9c9b48f0-b847-4639-b237-b371ac46be58","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":72,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"78014d73-7434-4217-854c-23166ce3bbe1","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":72,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"a4f126e6-4340-40f9-90c1-648afaecb2a8","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":72,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"7a3240e2-3110-4eff-9219-2fe09cc96b0d","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":72,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"2ed0f043-3039-46da-902b-4e88051c936b","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":72,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"3612141d-933a-4691-a4e7-403197bd3f2f","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":72,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"a3edc0bb-7a65-42f1-9b28-21e95ed4d891","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":72,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"c7eff9a6-b75b-4100-8dfb-d7f531a709a7","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":72,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"eac60765-a171-4916-b9b7-c1100f147f43","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":72,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"2fa06e18-1fff-45d3-8f91-0436482ebaa4","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":72,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"3162b76d-8998-40fb-8da4-7e8055235708","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":72,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"54b17cab-3eaa-41ff-9520-3125a293d6a9","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":72,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"e4644a95-1e90-4fdc-8988-07d7d1d40737","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":72,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"c1ee0da7-f22a-4509-9976-e5467f136f47","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":72,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"de576497-cd55-4d47-95c2-168be7b46d69","block_type":"box","text":"company established by SEHK.","page_number":72,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"9a354c5f-c7c1-4ad9-a72c-305bec36854c","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":72,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"e4a57472-15cc-4088-964b-227e40530cdf","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":72,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"e4a94bd1-3c83-4c94-814c-de3daf257bf6","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":72,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"ad5af19a-3e7d-431f-ae20-426a999a8195","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":72,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"087a7ddb-5314-4645-997d-4c9dd46224bf","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":72,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"10530494-3f90-4e82-b8df-d11821b5ee20","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":72,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"73ecada0-399d-41d2-b1ae-ee41d10d36ad","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":72,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"643db0c7-8c7c-4329-aa5f-9352afadb577","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":72,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"ee28a5be-83fc-4088-b51d-fa1e63f33c42","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":72,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"d9626f8b-4e9b-45f9-b8f2-3b3be14734d3","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":72,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"e1a11275-2a2d-4330-871c-7010bc29591a","block_type":"box","text":"II-43","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e295fd56-b5af-49e1-b968-937d56c94753","block_type":"box","text":"NM0926U-5977658-72/228","page_number":72,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"d928ee31-ffdb-4c4d-b3fe-1fe2a34b9379","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":73,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"6e7a6938-6a41-4608-ae4b-d9f33ee17a69","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":73,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"8f10af40-dbb6-45ca-9f63-fed24d848301","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":73,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"7277bb95-af97-40d5-80c2-1ab3d4bc693a","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":73,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"a560e928-6bdf-464e-9b21-61ec226ccd77","block_type":"box","text":"i.e.","page_number":73,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"6d55dad1-15dd-4937-bb4c-46dc3dfca544","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":73,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"68e07133-303b-41b4-962e-6a1cf93efd02","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":73,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"95a632eb-c7fd-4bde-b2e6-0c024451b298","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":73,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"836cfc2e-57bb-4e08-a339-bb17d800ad1d","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":73,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"73592c37-f006-4c46-8fad-433064780600","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":73,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"0cb74c2e-ab4b-444f-8223-31665cf4a91a","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":73,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"73f3793b-9a7a-4ed1-8929-84a741930872","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":73,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"545df8f2-daf6-42fc-86de-f338b5e5f7eb","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":73,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"5266772e-8a68-4bfc-830d-e5dce307b764","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":73,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"12a7a66a-22dd-44e0-b18a-6c1247cfad8b","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":73,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"cd39a207-f7b9-4bd6-a8ec-727a60a72146","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":73,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"411512cc-7986-4702-b071-9fe1ec11b5e5","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":73,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"e99e2b62-e6a7-4639-8b9a-2b5b97e669b3","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":73,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"bc0b2bf6-529b-4ce9-8f97-382e68da00c0","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":73,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"3fc3b250-cea4-46eb-a529-c59f584be710","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":73,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"01ee3d34-702c-4cce-b4fe-45cd513615c9","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":73,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"85fa8da3-bb52-48b9-97d8-791e1777474a","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":73,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"4acf1fa7-95de-4e3a-afff-0aeaeed32d58","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":73,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"78d89263-297d-4966-b5ba-f3e74c311134","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":73,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"a49d88e3-d721-467a-bd19-050d56d3532f","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":73,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"3c112df4-a661-4bb4-a5e3-79f2a35701ed","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":73,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"a912e337-3568-447a-af12-2344038dbbd2","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":73,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"f0a77d1b-c1a5-490a-a2d2-82564cb80181","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":73,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"03778395-784c-4f86-86e7-88285de03102","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":73,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"d37c338f-6dfb-46c7-8414-f15398391265","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":73,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"63eb63f6-5413-47c6-9562-40f1037f898a","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":73,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"e2112bc4-684f-4bf4-90c8-4aa2aff5c696","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":73,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"da20da89-4337-4d29-bb20-b639d22abd3e","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":73,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"dc3992a3-bad8-4564-a014-58198f7d69ea","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":73,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"335bb3b9-5cb4-436a-9975-66719d5ea4d7","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":73,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"84dd31ad-f3bd-47aa-8076-95f16c5a923f","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":73,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"40bb555f-7f91-4128-bb5e-612889536732","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":73,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"8a2e983e-ce13-4042-a15c-74c4b104c0ac","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":73,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"48722cbc-dcba-4410-a355-d0aeabfccf3e","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":73,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"a69b9032-d62f-4cdd-a091-eb661f6469ba","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":73,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"848597d0-f4ff-4316-81b0-0e87ee9d8d60","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":73,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"4c74b72c-b45c-4f90-a9fd-0d238283246a","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":73,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"b1cfcb4f-de92-41f7-93d2-f1b0544b907b","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":73,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"e7304b03-5d08-4f29-b386-667190b0e3e8","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":73,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"dcb1f171-3be8-4411-aaed-82ddd8ffca8b","block_type":"box","text":"PRC.","page_number":73,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"1340aaa7-004b-4860-9afe-a650c94ec4b4","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":73,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"16e80c74-b985-4640-99a1-1aaf17d91a74","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":73,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"2510353b-7b4f-421c-8d39-08b3f92c30ab","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":73,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"548f2f4d-e3e1-46d3-8e58-8552a7e69dd9","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":73,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"b3e3ebe1-efbc-44e4-90b0-9eb89367aeb2","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":73,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"a4cafedd-9824-4b26-b097-de25325edf44","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":73,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"cc1c1829-38ac-43ec-9121-36575c0eb4dc","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":73,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"8ef3a5b7-1a30-453f-b71c-b12deddbc5e9","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":73,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"62292c6d-3a73-473f-864e-6c2812e7e601","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":73,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"7ecf4a37-1292-41b7-8ae4-e1cdfe8c4fc0","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":73,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"e7189b34-71de-4df0-b6e0-9c30c67bb665","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":73,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"3d733698-7801-4805-a2bc-2f70e41a5479","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":73,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"1e82f444-48c6-41e3-99ab-5a89270a4d33","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":73,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"a89ad859-e28d-4fa0-bbba-928801c47050","block_type":"box","text":"II-44","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"59b8eaf7-4704-4c86-820d-11e1c95f37b1","block_type":"box","text":"NM0926U-5977658-73/228","page_number":73,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"df24ff31-b862-4117-b4be-801e599a3676","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":74,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"2497e94f-3ded-4f98-a02b-766a16ef7a1b","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":74,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"c1fcaf72-771e-4b7c-8551-dcfe46df7f2b","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":74,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"3da0c3a3-dd17-4d5f-8f6b-f1226209476c","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":74,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"bc6f1c7f-94c2-4069-8099-f8e93ca46a3d","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":74,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"c27854eb-3054-4662-ab52-0a7c17efc447","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":74,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"df3ad43f-1c9a-49c8-894a-595604848d4a","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":74,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"78cff2e6-8983-4fbc-a8ae-8782023675e7","block_type":"box","text":"Suspension Risk.","page_number":74,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"cffda06c-90b1-4235-b8ef-d7a6f9cc9658","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":74,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"040119ef-f214-4d04-ac32-afdcdc4dc3f9","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":74,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"6d07003b-dd73-421d-99a3-2834aa6deee9","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":74,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"670e4f57-90dd-459e-980b-b1bfb6edfb32","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":74,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"614c9b4e-c7b5-46d7-9384-46121c01edbb","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":74,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"7e0d5c2f-7c87-4c40-8543-ca3dc4b91c2a","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":74,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"df6b60c6-7d75-4617-b646-973a35a4562c","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":74,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"e38ca523-e19d-4ff2-8399-df5559468f54","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":74,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"7a057a8c-10d3-4654-89bf-b4a699e40af8","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":74,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"87b12b2f-6904-43ff-bf0e-a9426b624a4e","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":74,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"9464ef06-2912-4d75-a80c-5c3b9fc44b3d","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":74,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"e17baef1-f884-47c0-aff3-5982a9fb3c4c","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":74,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"d20b5141-3d72-499f-b52f-b7b95a4cd2e9","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":74,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"d3f30165-aa38-4319-bd52-b454dd5a5847","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":74,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"70434740-7ef0-4afc-bff1-62470586ee0f","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":74,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"b60bb651-aab4-4d3b-a0c4-4385cf2fc225","block_type":"box","text":"A Fund may invest directly in the","page_number":74,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"83caea2e-5b28-461f-aa0b-03ca31bc73c7","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":74,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"eb17c070-4871-4c27-8d70-6696a8770cbf","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":74,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"c1246314-7027-4da4-8944-350caf860f8e","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":74,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"ffa631e4-8b1f-4138-9e32-619429c3fa07","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":74,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"877ea971-3bc8-43ce-9f89-cc2222c977f9","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":74,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"9bc4e055-4dbe-4790-a610-4090e044dabd","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":74,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"ed1aa787-37bc-47d4-8219-39db9bb7db4a","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":74,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"223bc875-9a3c-4f0d-bbf3-4ad352bdcab9","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":74,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"32f76868-9817-4467-b0a1-c103b5af6257","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":74,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"4b4ce5a3-33ab-429d-9db0-f9f89e8546a1","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":74,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"828697f1-d271-4d3f-907e-2219875ce657","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":74,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"e5031152-618e-417b-9ab8-20d3783f8f4a","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":74,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"ec684fb2-0439-4225-97cd-71229679fb86","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":74,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"58c41ccf-1745-46d7-b8ca-470b3f2375fa","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":74,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"38138d03-07ad-4443-96f3-8da3183f6809","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":74,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"91310544-42b1-4be4-9595-38a4a711f252","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":74,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"38d1a1d5-36a6-495b-aea1-a9ade9547eae","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":74,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"72b425e8-023b-4d54-abbd-ce985558e96c","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":74,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"a7911443-a954-488c-a714-9ff6e2705255","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":74,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"00733c4a-cd5a-4b0f-9824-0c6797da934d","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":74,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"ab48adb5-47f4-4b7a-8c05-85f51b68c4fa","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":74,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"0f6ab101-ebdd-4451-9f24-74bc68cacfda","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":74,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"14551966-ced2-4f66-85fe-4668c21d860c","block_type":"box","text":"i.e.","page_number":74,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"e420f66a-fef0-4894-993c-3ba0bc37a5bd","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":74,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"6432ff56-adac-4a2f-be36-3be91cc70ae6","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":74,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"2381e2fd-b7e0-4997-8079-accf35eb21e0","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":74,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"ed90d5e3-f2d0-4379-bae4-72e060d953d4","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":74,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"77fd4968-e1d2-4a6e-9b51-2f7534a394ca","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":74,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"60682aff-ded2-4da9-958f-5ec786cad6f8","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":74,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"e018e799-a991-4900-8ed6-4a1d62a71f35","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":74,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"59bc96da-9f5e-45c5-95e3-d32c3c24ce69","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":74,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"a3eb874f-5c56-427b-b6f0-9a4233ccba78","block_type":"box","text":"parties.","page_number":74,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"ba5769c2-418d-49d9-b050-1fd14ac23219","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":74,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"170d6957-1ed0-46a5-8f85-cbbf2750041c","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":74,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"d24db8c7-0eeb-42fd-a55b-06ff61a72a0c","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":74,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"4d3f6f09-3a29-4aea-aa94-96eab99fc529","block_type":"box","text":"II-45","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"45454866-3de0-42d5-9c91-ae489fb868d4","block_type":"box","text":"NM0926U-5977658-74/228","page_number":74,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cfed32b2-b553-4355-8794-0a8bf47a90a9","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":75,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"8539331e-d668-4982-a2dd-821563bc8758","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":75,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"298ce70e-cfee-40a5-8ca5-8d172ce238b8","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":75,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"02b6e8fd-59ab-4075-aa5b-d0d2f2d6347a","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":75,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"1d2f9326-c6c8-4df6-a5bc-8e6a5e753266","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":75,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"60235f85-da5c-4fa0-b711-e46ab4acd110","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":75,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"a7965e70-42c9-486e-a562-a16b7cf3f159","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":75,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"184b374e-13a4-425e-92ce-5db406cbbf7b","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":75,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"64486f98-5a13-4287-94db-9841d08fa0ba","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":75,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"c0fdf5d6-c64a-442b-b31f-a9c0cbbcce53","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":75,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"17f18836-b483-4dc6-bb38-94120aa85cfd","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":75,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"b8a8cce1-5f70-4efa-b856-250439a675c5","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":75,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"cde6749c-52eb-4119-8178-f2ea9a100b0c","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":75,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"1770ac27-3127-45ac-8080-2fb4f72f88b3","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":75,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"46f04f3c-6678-4c33-b222-cc677cdd660b","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":75,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"f8ac096f-d1f8-463f-8a62-e4b5ed60fcf9","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":75,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"a16505b1-2531-4c09-b8d0-0700dddf3c89","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":75,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"3613b0de-4dc3-4812-81ff-db4c82efb89a","block_type":"box","text":"performance.","page_number":75,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"2116ba18-7721-454c-963a-88e51151bbc6","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":75,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"1a8cc2fe-a6f1-4d87-8b05-708b8ff807b3","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":75,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"23a9c52e-c4b8-494e-8ec3-8fbdb7974f8d","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":75,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"0cdd9598-fa4b-4fcc-b03f-67732585d2ef","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":75,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"a363b6c1-dd71-4bfd-a1f0-464f59d59155","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":75,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"0a1628bc-04e3-428a-a5df-34232c30e0ab","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":75,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"b7caf742-bf33-442c-b118-98e400e8ab24","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":75,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"a136440a-2732-444a-abc3-40c98a470053","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":75,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"602a177e-d370-4da0-bb4b-20ff71a8d9c7","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":75,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"a4b52805-80cd-4c36-b03b-ff2b2e77eaa7","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":75,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"69e8951f-aa03-4604-83dc-83263392d09d","block_type":"box","text":".","page_number":75,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"761ea42e-8844-47f2-adb0-2c997e77e7d6","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":75,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"ebd7735e-aa9d-49ff-9efb-2c4ad087eac1","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":75,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"1d2d7370-2d68-4ef7-afc7-7d78c7e194ac","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":75,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"1ff49d38-f21b-428a-b0b0-363b9e314bf0","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":75,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"8b5653ba-b899-4031-8eed-772399509c17","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":75,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"4e041320-5942-44f8-a268-90a7229073d0","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":75,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"6dbf509c-9e2d-4ff0-bcfe-9bdf5272c852","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":75,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"e6baf8eb-da1f-4839-a36f-6ac91e922908","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":75,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"75ce8ead-20fd-4149-b1ab-db95e3c78611","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":75,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"78bdc246-61c5-49ce-ad6e-c3dc9ab794e1","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":75,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"0eeb4d11-3647-462a-973e-39f0a2759594","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":75,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"cf1d1684-0b7c-4849-b1eb-756a0bad1824","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":75,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"6acbee50-923b-4cb0-8959-a1550eb4b936","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":75,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"70b3b266-61c1-4dda-97a3-e0bb11cf4698","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":75,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"aec693d2-90cf-4d6b-a709-7c1b1ebdc463","block_type":"box","text":"without notice.","page_number":75,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"9a5abe71-deab-4505-bf2c-92497c226d0c","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":75,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"aec839d3-0209-4ac4-8a57-4c4df995fb42","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":75,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"8f85788a-4956-4e14-9def-ea6d8840a0c3","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":75,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"22caa9c4-d05c-4d88-a5a8-5f25836f474e","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":75,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"1fa989ec-ea54-4ffa-b250-bcce4b1b6f5b","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":75,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"0c990b9b-1a3f-46d3-8c62-3099eb31a745","block_type":"box","text":"December 31, 2027.","page_number":75,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"74940339-0860-43c9-8258-d5b8cafbf0a2","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":75,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"e1898008-f80b-4500-ae77-f48bc55f7b29","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":75,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"1c3b570a-0ed5-4a46-b243-3ae7dfdb3a10","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":75,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"f49c68ba-5000-476a-ba39-38e611e7dc17","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":75,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"cdfabbf2-bdcd-4abf-8f48-bc8ddfcbca10","block_type":"box","text":"II-46","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1db983a2-4f67-4b74-9e76-70df96ab2f39","block_type":"box","text":"NM0926U-5977658-75/228","page_number":75,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"585e8077-40f2-4c6b-8644-03fceb36f083","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":76,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"5ab8fd4e-e746-466b-b649-b39ff86f75e9","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":76,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"2c106329-ce10-4078-a9d7-344253197e2d","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":76,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"86571fdc-6ef1-473e-beea-451a8ee6c1ee","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":76,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"59dad792-a5f0-4bb6-a55d-0b68c3ed65fc","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":76,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"0719c698-38a1-4fcc-b227-8070a1ac0ed5","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":76,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"da77393c-a12a-4327-b9f0-dcccb47d2ea1","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":76,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"6ae2846f-e847-4154-92dd-fc722b298cd9","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":76,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"a991338f-0a89-4e24-a167-8de12a48546a","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":76,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"25f6a0af-2911-4040-a328-cdb3d97ec5b9","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":76,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"a31ca910-364e-409e-b247-01e45ae51718","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":76,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"774671e9-8f43-43dc-864b-a41dfa729845","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":76,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"52abfb3a-8817-426a-890c-63d1b84602a3","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":76,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"85a529c8-f62c-4be5-915f-42f3d92b549f","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":76,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"eabef8fc-e642-40d0-a76b-c39dcb570fbe","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":76,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"bde41c06-d11e-44b8-808e-951447139ce8","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":76,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"14e7a7c9-9889-4363-9b09-eae48f6649a0","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":76,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"27e1b47c-f849-479c-9a02-6f29fac5aabb","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":76,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"ba967b08-9fd0-4bef-b237-2d0a5c22ae6d","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":76,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"77853ed3-f9ee-47e9-a38f-52b9cde31c8f","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":76,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"9753f46f-d93a-476d-90c4-fddfb999b7f7","block_type":"box","text":"the PRC in notifications.","page_number":76,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"aaf52034-ea03-4d29-8066-0b6b69ff22b8","block_type":"box","text":"Investment in Other Investment Companies.","page_number":76,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"8e3709bc-fc38-4360-a862-9a2de13056b4","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":76,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"dd40d550-2201-4d30-9317-539cf80b1fa7","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":76,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"3505df21-a982-4c36-9cb9-af2f1e753a52","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":76,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"ed5d7300-4d26-4ab2-adac-7eed868b8f8d","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":76,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"f36065b1-8a8a-41c9-87d0-b28da864b43b","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":76,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"d70fcec0-2903-4eb3-8c00-7d74f0fdaba1","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":76,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"625a5cd1-1c3b-4d78-aa17-2b1f2ae4440d","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":76,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"2707eb9d-1c4e-4aef-a3ff-a4746a0b5b31","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":76,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"e8455e83-8335-42e3-a0c1-89b0deaae525","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":76,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"f58d122d-9a69-41de-845c-8797c1ea9704","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":76,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"4fd69092-d7fa-4fd6-a0bf-43f1618a10c7","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":76,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"82eca5eb-0b9a-487f-b883-f6eb326ac625","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":76,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"49f95e0a-e6ff-4fe7-a43e-d10c0c01d6e1","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":76,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"b2177d2c-33f9-404f-afd7-2a164eb4bc2c","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":76,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"f27b4721-a7a1-4cac-aa91-2c6da4db71a3","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":76,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"ddf67a99-ae29-401b-abe0-e4ffd789812b","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":76,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"3e5777b6-c792-4d16-bf63-b171b6d02c02","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":76,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"2ec0161e-57f3-4f6a-af9f-35598733d24d","block_type":"box","text":"subject to certain conditions.","page_number":76,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"08ac6778-18d0-407c-9d89-ec5860be10fe","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":76,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"9a88013d-4fd3-4a25-80ac-792bee86d1b3","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":76,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"a413a40d-8ad7-4032-bde8-2df2c76a538e","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":76,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"46785c69-19fb-4065-b13b-898e71fa5d27","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":76,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"2a041167-7f40-4701-9b12-7ebc34c3bc72","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":76,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"e890a74e-cb1f-4848-a038-63b21cb1ed59","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":76,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"cbc4661f-09a1-4249-9b44-3039a393f646","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":76,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"5763901d-911d-477a-a88c-5ada40a56478","block_type":"box","text":"loss.","page_number":76,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"b1aa5e29-332b-44ba-badc-d1862094f525","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":76,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"8c6cb032-d731-449c-bea3-021bf799445a","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":76,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"b88ce212-342d-43eb-8a4e-8360c727d529","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":76,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"ab265c4c-3e3b-488b-9fb7-f2180bd8d3b9","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":76,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"ad267d4d-4b3d-4462-81fc-a4b13602a935","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":76,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"644447d9-5db3-4388-aa2f-7a46776c9005","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":76,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"76841d20-a3ac-465d-b82f-3f61fb97e5d1","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":76,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"5adeb373-55b9-4e3c-851a-44d7f0ace73e","block_type":"box","text":"II-47","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"71936183-c6d3-4169-89a7-7dc44b883b80","block_type":"box","text":"NM0926U-5977658-76/228","page_number":76,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"ff446132-bb50-4e25-a25a-ce9968cd9753","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":77,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"6b7e09a3-44d6-414e-9c79-a0208a3a9e50","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":77,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"430dd8d4-b353-4694-b30e-97c14601c7cc","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":77,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"a9bda8fa-39e8-4341-8e1e-9566508dfbe6","block_type":"box","text":"assets.","page_number":77,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"7f4efb4f-52c8-4438-a60c-f993831e821c","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":77,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"84ebcdb6-382d-4a24-a046-b48853c03735","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":77,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"9c25cc65-5b9c-453e-9284-8877c8d9d589","block_type":"box","text":"e.g.","page_number":77,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"9360022f-6a14-47fa-bd63-d7be127015ba","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":77,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"e53eea0f-94ec-44ac-ba67-c26ffc22388f","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":77,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"e4fbfb74-aa20-466f-bafb-f4a12a4d5abc","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":77,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"ea8c9615-6c5d-462f-9c7c-fd96eae31e4d","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":77,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"2df27e34-3970-4fd6-a90e-78b53eedb74b","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":77,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"44a7e1f6-2bc4-4cfb-8ce3-855e49768a8a","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":77,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"ceea3613-6d7d-4b1c-ae02-1a8b0ffd2718","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":77,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"7f995eeb-00ea-4936-83cc-eb7f0c1b6934","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":77,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"38285530-6805-4065-a981-42ddd3738408","block_type":"box","text":"countries.","page_number":77,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"f2d0b5e5-c754-43a3-8bee-c1670225bac0","block_type":"box","text":"Issuer Insolvency Risk.","page_number":77,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"31cc4342-302a-4494-80a2-374743f6c1a6","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":77,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"bc71f757-33e2-446a-b5cf-0f99ea2ed5bf","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":77,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"1399ab99-cf0a-4dde-a00d-6772459e2707","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":77,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"2cc0ad95-54b6-49ed-a42d-b6f2a361ac96","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":77,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"82cff537-7546-40e8-8a40-d796fd97b303","block_type":"box","text":"issuer uncertain.","page_number":77,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"8b95b693-7649-4108-88f6-d54ea6ef57f4","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":77,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"1bfbb498-af91-4680-8d74-3483f1911337","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":77,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"e4b77aee-51ed-4bee-82d3-86ec2e5ea783","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":77,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"dfee7541-daea-4b11-aa9f-5b3a93069993","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":77,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"5c4eec09-805b-49bd-b64d-271af40555b4","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":77,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"06f0c209-69aa-488e-bb69-cc92078c779c","block_type":"box","text":"eventually be satisfied.","page_number":77,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"0e1d7a61-e793-4128-9c8a-084213fd08d1","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":77,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"9925596f-52a2-4f11-96c7-43eae41867c4","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":77,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"14e230a8-1b90-4f25-a745-04826c3a8062","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":77,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"ff720f64-5a63-48e6-9197-0b355cdc5333","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":77,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"8793b4b6-b936-477b-83c2-bdcdfb720027","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":77,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"ad92e2b2-ebd1-4017-92ea-b576f998fd1e","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":77,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"75b72b55-6c7e-44f8-a838-76c1e4b120fb","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":77,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"bb2ee2c8-7015-4b4c-900f-acf77c74de27","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":77,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"a3d67dc1-7c0e-475e-b0b9-1fdfbe6a04df","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":77,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"a838c19f-dd05-4052-aea4-521f072a4b7f","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":77,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"9ca4f936-1d59-4fad-9710-7ab30dec8c27","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":77,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"97efc1b5-8b57-4590-a7e8-fc39f55e5f94","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":77,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"2655994c-de76-4eae-b3ba-b1429c21e5a9","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":77,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"5b110d25-f055-44ac-9074-15eec21a9e7a","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":77,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"a6a18e1e-288c-4a8f-93bd-ea661f48d48c","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":77,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"ec8559b0-1da2-4f4a-929e-68f7e14f59e3","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":77,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"90a884b5-e797-4e2f-ba29-ecd1b64f978b","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":77,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"daba2853-a378-4a9e-9b06-12470d2cc60b","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":77,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"22cc9fde-8537-4d29-85c2-9e74584e1f63","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":77,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"96730514-101d-41a4-9733-24c0a8ac3703","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":77,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"2a1c7ac8-a417-461e-86d5-f41b053bdfc0","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":77,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"370accd3-8f37-4783-b9ec-c0cdf63c5bad","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":77,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"72e28364-dd58-4f17-981b-15aee4a9b493","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":77,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"17e855c2-cdc9-4b74-ae1c-60ca5e4cf4dd","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":77,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"893f829e-262f-44a2-84d5-1b55951b1520","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":77,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"178228aa-1830-4de1-858f-c2e3885fbbbb","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":77,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"f354ceba-514c-4d37-a423-51a8902ebf6b","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":77,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"5135b658-3638-45a4-aedd-270e8119195e","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":77,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"2cefdfad-481b-4b29-81e0-999bc5d0d4e8","block_type":"box","text":"that assumed generally by an investor.","page_number":77,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"d48391e4-b1b2-4c3f-8c5c-bf4e6a1ce6ca","block_type":"box","text":"II-48","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f06196b-b18f-438a-bcd3-d2f7e1d499ba","block_type":"box","text":"NM0926U-5977658-77/228","page_number":77,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"6470388f-54e1-432f-bc02-3c73d578e1b5","block_type":"box","text":"Lease Obligations.","page_number":78,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"75472078-559a-4bc6-8927-79d4b9a97d04","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":78,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"5b9c94a0-597e-44f9-87e8-08b5ecd8fe3e","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":78,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"f2337307-72d4-4268-b3d7-ab176696918d","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":78,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"46f25e8c-0e1e-4379-b5cc-5ddddeadc139","block_type":"box","text":"Life Settlement Investments.","page_number":78,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"3058affe-1e0e-4eec-8715-2f910d00531e","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":78,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"238c2c8c-5b1f-4f1b-8242-a2a619397845","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":78,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"1efd7b88-7f0e-42d6-8d8d-b204da8b0bb1","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":78,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"f9852a1d-30e8-4ce3-8804-a29db40949b9","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":78,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"a83ec909-89f0-4734-8cdf-bd59f59017b0","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":78,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"52a265ae-9ce3-4280-a146-6da83d79395d","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":78,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"77fa2715-c2e9-409b-92b8-30d946f239fb","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":78,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"991c23aa-19a9-4417-ac9b-0943d23834f1","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":78,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"90c45ce5-e9b4-4496-bc29-82c17d79c4b9","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":78,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"6f8997d9-73e2-4974-95b8-896d989765d2","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":78,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"c64e63bd-9237-469e-8bc8-79587047b9a8","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":78,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"2ef5064d-5fd3-479f-b44d-018fd9682165","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":78,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"2b5bddb5-a90b-418d-9a69-63d26f2e056b","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":78,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"6a2c7386-0c74-424d-bc6b-88cfcd929366","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":78,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"a202dd84-74bd-4c53-a15b-56fdc114e98c","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":78,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"d4aa7332-6430-4fde-8328-479ae69500a1","block_type":"box","text":"Liquidity Risk Management.","page_number":78,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"b15c927c-b52c-4906-b22c-8d16e1f2d423","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":78,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"7f0ccea6-af6a-4d65-9179-cfc6973bbcb2","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":78,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"283cd1d2-3091-4156-9dc5-dc8ed22474eb","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":78,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"a41cd1fb-4e9e-4a39-88a0-0a8aca1bb149","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":78,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"98a0e785-7aa2-4321-9384-4a70cec65032","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":78,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"3737c536-5d83-4a03-ae64-439afcdde023","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":78,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"a469367b-d256-40d1-b56a-add8b5787d9f","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":78,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"d75f52cc-fffe-485f-8da6-37305a491358","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":78,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"0500d23c-e780-4f19-9bda-9c0099dd74df","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":78,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"6fe7c57d-8be4-4102-9bba-3cb5d3a389c1","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":78,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"30136063-2594-431a-bcf2-c3e84f453ceb","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":78,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"ccba044e-f240-4c1c-82d7-9dd8cea16633","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":78,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"0520e94f-bef2-4569-aff8-72893919e918","block_type":"box","text":"Master Limited Partnerships.","page_number":78,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"b6dc6174-ae98-47c9-b361-4bc7ca2047eb","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":78,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"df81c758-657a-4925-9213-b42e586b7480","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":78,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"1f58b905-7a99-47b4-92f2-1f2351ad9e9d","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":78,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"a7e0d1c9-6c49-4d8b-a6df-72aa6b35647f","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":78,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"f8dd424d-eecf-4871-8537-d42d66478044","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":78,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"54c2d9cb-f354-488d-bc42-ed4398ccb43b","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":78,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"4a03e9e0-ccc6-4c03-a53e-0bfedbf9b6d1","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":78,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"9f9cd6c7-d838-4d35-8cfa-c200116c4a87","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":78,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"476eaf99-e54e-4019-a9b8-8bbd01e7c0ea","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":78,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"4ac10f45-3fd1-4a9e-990c-131424348887","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":78,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"bd9ef68b-7445-4931-9f85-0eca211e4727","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":78,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"a712cc38-227d-459d-8bca-da03f93fee33","block_type":"box","text":"in the partnership’s operations and management.","page_number":78,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"c3e83396-1d6a-4b79-a714-61407e495315","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":78,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"48a70129-1349-4bee-961b-b856440227a7","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":78,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"a0f8d3f4-2a8b-4506-b896-045bf83e8ee8","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":78,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"beb8321a-d22c-45da-941a-e478dfe6731d","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":78,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"cd38f8cd-bfe5-44d9-829e-853a0c95acf3","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":78,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"b093250e-d4b9-4519-a346-8f970dd5e471","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":78,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"9cbe8849-223a-4cfa-b1b5-08b2a60c46da","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":78,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"0ab37fc0-7169-47be-9923-8d9404debfad","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":78,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"06248509-eee8-40a1-bbdf-b16fba05e060","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":78,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"047bd067-7637-4aaf-a2ea-cea996a68430","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":78,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"a4c138bc-f6f8-4dcf-9e50-82dd8167f7d7","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":78,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"2e7dec05-4286-43f4-825e-d70b83a23ac4","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":78,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"e1f62252-389c-4d7c-9595-8eabe77cd972","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":78,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c2a1f508-06ba-4945-b632-296be3a553e8","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":78,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"8f4d53e6-4030-48c8-9010-403c5c2efb75","block_type":"box","text":"II-49","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"33a57efd-15f9-453c-aa7f-5d7e6a9c8018","block_type":"box","text":"NM0926U-5977658-78/228","page_number":78,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"5ec52378-9f83-431d-9222-30d58d460020","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":79,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"d5f7a180-7a8b-4cd2-99c0-60acea472231","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":79,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"7ca81710-3979-4f49-b1e2-651275a85bdf","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":79,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"4cdc4928-2f01-484d-9b46-c6731ebdbff5","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":79,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"47d00f16-8a78-4ec0-96cc-2655596328fa","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":79,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"2738b6fc-0897-416a-b61b-bc36a16f2714","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":79,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"8e49e1d7-b92a-4fb4-880b-9bfbecf59b44","block_type":"box","text":"Merger Transaction Risk.","page_number":79,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"4a47c856-20ef-4ed3-9f39-4942b73b256c","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":79,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"a18e70d7-d9f8-4ecf-be3e-19032eb0d382","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":79,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"2af78c77-aea9-40d3-858a-e1692a6d5fbc","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":79,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"7edf9518-9e25-4c3f-93da-d23928b9b451","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":79,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"bb3b38f1-29d9-4dc8-92c7-0c8e7385ecef","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":79,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"4c60a72d-8a14-4eab-85eb-d7c66f4a2104","block_type":"box","text":"the Fund and may lose significant value.","page_number":79,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"f2d1f23b-a700-4ecd-bf74-e78eed786d35","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":79,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"63f60821-6db4-4a52-b741-3a98c3ef8000","block_type":"box","text":"Certain","page_number":79,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"d74631c0-e18a-444b-8eec-fde6c91aec7f","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":79,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"9b5d9db0-1c20-4bee-810f-4d3e48a955c6","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":79,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"dc8ab472-dc47-4825-ae5e-7b392feba4a3","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":79,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"821d1599-8cfc-4110-a452-fe9326c3a950","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":79,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"f5d18616-f83f-4aa9-9440-44a540a74d2e","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":79,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"6fc87f86-45ef-4977-a484-2bc10e8926c7","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":79,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"7c04b4c9-b59a-4a50-ba2d-c07a7d6d5557","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":79,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"478f0656-4029-42a8-88ce-9968fac92031","block_type":"box","text":"branches of domestic banks.","page_number":79,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"43347041-0223-4b48-8061-df72b3ee9d8a","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":79,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"e8c7268d-9939-4b6b-b154-f66f00c89342","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":79,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"397e8a98-5f6c-4cb7-adab-75c401acf5e3","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":79,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"03fed316-c317-4cfc-a0b0-055d6dc2a2fb","block_type":"box","text":"paper of a foreign issuer.","page_number":79,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"1efb2214-87a9-4af5-9929-eb7d18675e25","block_type":"box","text":"Money Market Securities.","page_number":79,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"b44c3c20-a793-465e-8135-11b77a4a5d06","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":79,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"c34e257c-9fd4-4e48-929c-e7410e63f6a4","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":79,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"313b01b1-de2a-4c03-971a-7f497176930d","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":79,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"7a637cd9-7b7c-4601-ae71-b05c201c5a1e","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":79,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"bd4ac106-31bc-4b31-a78e-8366811878b6","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":79,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"3842c0d9-4f19-4d1f-b0d4-610f90dfd9df","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":79,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"05adf0ff-f938-49ad-ae5f-cea2b5c34587","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":79,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"f7f69405-7181-4b45-a7dc-d934221dbd72","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":79,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"69e9ca6b-25a0-48a9-a557-b2e991141b54","block_type":"box","text":"agencies;","page_number":79,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"c98404e1-afcb-4641-9ba9-614052e037f7","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":79,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"17535095-2fd7-453c-be85-6900c2e0490a","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":79,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"c23ac31a-6f9d-4030-953e-3bb2e3a4f0bd","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":79,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"c7f756c3-77bc-4cb4-993f-dc1a2f73cef8","block_type":"box","text":"obligations and credit card receivables);","page_number":79,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"5e1c48c1-9117-4598-8420-731752c117a7","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":79,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"9530943e-1387-4ec8-b975-c9bda0f5459c","block_type":"box","text":"authorities and related custodial receipts;","page_number":79,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"f304bd78-c2e4-417d-b644-b56e8051e35c","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":79,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"281b1f1a-fe5d-4ebc-a671-a90114d7c98c","block_type":"box","text":"agencies or authorities;","page_number":79,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"714f866f-5b75-4b92-9ff8-b7c5ebdab1e9","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":79,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"b1d42313-d815-4687-8ea5-266321c1a221","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":79,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"390024fa-dcce-4fe6-9d99-02b177bbbb7b","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":79,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"7239aa14-6b66-4486-b7f6-11cfd8de17b8","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":79,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"ed9fc10e-6551-4fe6-bde1-ca7c77bd83d0","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":79,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"e13e040a-06aa-423f-914e-21025bb407db","block_type":"box","text":"States;","page_number":79,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"dacb1424-b619-49d4-a1cf-449fb98003bf","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":79,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"bc14e57c-362c-4e79-870b-d85cc6631f3b","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":79,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"e83e27a4-973b-4fa1-9b4a-b0d11ba90122","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":79,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"f2b8ba23-4305-484b-9a2d-1f0540c4a9d1","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":79,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"cc9b1fd5-4814-446e-b09e-f0d682977f27","block_type":"box","text":"II-50","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a0301dc6-b943-472d-a1d6-d5c125d90332","block_type":"box","text":"NM0926U-5977658-79/228","page_number":79,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"c13f2fd7-9c31-48b0-8c1c-f13758970b52","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":80,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"2edde186-1e2d-49b6-8c23-03346fff17f1","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":80,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"60bd2019-735c-4c1f-9c1a-5aa08eb1d4b0","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":80,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"0f670921-9508-4aea-b22c-890ed5b14f80","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":80,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"b082d702-9e9d-40ec-852e-b6cede50344d","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":80,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"545f2951-24ee-4460-8b34-1b3159e04415","block_type":"box","text":"States.","page_number":80,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"058ba20a-2c5d-4bd0-ba8a-b9957623155a","block_type":"box","text":"Mortgage-Related Securities.","page_number":80,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"d7034946-62e3-4bfb-a13e-598701c147c7","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":80,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"b9c48c6b-55f8-416f-b6f1-56b550bcce39","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":80,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"e3a7777a-df21-4347-ac5e-6951dd5369eb","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":80,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"226de275-01e2-473c-a592-82be1a733ec5","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":80,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"bc56fb9a-e6ae-4732-8d29-e06c62a0265f","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":80,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"4ca130b3-517e-48f2-956f-baf18e223435","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":80,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"2cf56781-f426-4ded-a042-1f98d66d5d74","block_type":"box","text":"maturity or specified call dates.","page_number":80,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"f4681608-dbd0-4d0b-9d51-4b3d58590bac","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":80,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"73f3a955-46de-4333-a57f-11cecd8ac777","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":80,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"aa6a7e04-f6a9-4d68-b103-ea6351ffe4d8","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":80,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"db7d4106-6caa-4c5e-bf65-75920a402012","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":80,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"92b688ac-a4e5-4606-a518-3d741ab4ec43","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":80,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"8d3be7e0-0344-42c1-bda8-a2568129acfd","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":80,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"c4831711-fc2d-441a-8a32-ebc0e3d1f289","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":80,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"dff53166-d47a-4cd1-a682-9a75771272a8","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":80,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"8cf6e4bc-c880-46de-8788-ea5b39f2e571","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":80,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"b0c8f795-0f56-45e4-a291-1608044839c3","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":80,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"a967e0c3-4915-4bcb-8bf3-5bd1a8d55193","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":80,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"f51a626d-2fe6-42b1-b2f4-4bfd7e322a12","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":80,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"4c977d0b-17c6-4f1f-9756-354cb1e096e8","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":80,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"760e61ed-384f-4d1f-b3de-63cd158588ce","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":80,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"81d40ef4-ad90-46c4-9c97-f532a1e24865","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":80,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"80143d67-ada9-46c3-923e-78fcdbee94b1","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":80,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"2616ea1e-5803-4879-aec8-725b04df7274","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":80,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"caeb769c-d793-49a1-bee0-9faa2c19f079","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":80,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"c6fd3cf4-6dd3-476b-9b99-53ea5c8759e5","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":80,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"df04eac8-abbe-4927-a504-f71252723f33","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":80,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"671ad98b-527b-4e18-9714-bca8cacae86e","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":80,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"46a9d621-fc77-4b96-a5ec-87bb39e84f59","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":80,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"b9602427-29bf-424b-b781-d3bab038d3ad","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":80,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"ba11129a-30d2-4942-890c-aadd7bb14a5b","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":80,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"1d528f49-cb01-48ea-adf5-bb80f3b9c06b","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":80,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"a73aca36-54a7-40cf-b2e0-76f9fd7ef4fd","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":80,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"40905436-01d0-44b4-a070-ddd2811a94e2","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":80,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"44ced6a4-1e42-4408-bd69-dbc0c2dde4d1","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":80,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"2d21cf92-bf1c-4f4f-ad3f-2c258ff7c286","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":80,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"769636bf-4872-4f36-b583-d09e6e25ad1d","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":80,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"9007b867-66f8-4104-87bc-ca31b499b20f","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":80,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"49f50a25-78fd-4af7-9226-122afaa3c4d9","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":80,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"61358914-426f-46d1-afeb-afdacddee447","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":80,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"b8b22c7b-f788-453d-abf1-550dfccc5d6d","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":80,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"8f5e25ac-362c-4e9f-95c9-5f0f8a6bdcfe","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":80,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"0d18c6cb-5525-4420-99ca-9eac7dc407a5","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":80,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"0093724f-cf61-4841-84f0-1cf1cfb3e7c7","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":80,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"c068cbe8-85cb-4397-a11c-9bf7fe93be51","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":80,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"f1a3f021-a830-4172-84ca-6eb3f26bbb26","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":80,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"e96cc21e-6fb3-429e-85e0-6a956a1b3aba","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":80,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"8a504256-5d86-4e26-bf40-daee1c834e78","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":80,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"eb7efee6-cdf0-4c9c-acfb-3be1385718d4","block_type":"box","text":"II-51","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1789e158-a848-4466-9464-5d9e2b023999","block_type":"box","text":"NM0926U-5977658-80/228","page_number":80,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"8dbc4a6f-ef34-4581-9a85-3127777cd53b","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":81,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"bb4ad1a2-b5f5-4be6-ad72-9272b68ed4e4","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":81,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"c5dea3c2-df71-469b-a1f4-76d068639d0c","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":81,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"a8e74c66-b451-4c81-8706-75fa000648f6","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":81,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"55058d54-797e-4724-8bb2-f26485415ed9","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":81,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"98bc4631-bb18-4d6d-a703-aa71a3fbb5ad","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":81,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"3ea98b72-e4c8-47e2-99ed-38d9d2a43841","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":81,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"a8f62eb8-5643-49a7-ba78-ac6458c01a83","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":81,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"924ed71d-1144-4b01-a4b6-73de26b42609","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":81,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"2f8c4e80-50d6-40e8-a637-1a68d047c055","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":81,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"d9428755-0c88-419e-bbb3-8851c37230d0","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":81,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"ec2d33d7-68d0-4468-90e2-c0f8badc7066","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":81,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"843cbc94-14c9-4f32-8f1b-83df9c981b1b","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":81,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"4a38b53c-46f4-4f03-9980-4cfbec9319c7","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":81,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"7c0024c0-9d01-4b47-8f73-ccc23f9d3850","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":81,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"1f5f8827-efc2-4b4d-bfb2-2a77c947ffb1","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":81,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"5ce71339-98b5-44f3-afaa-3000b7b412f7","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":81,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"ae5715f1-6e3e-4535-898d-b4695a379144","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":81,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"a4008f55-803a-4bbc-893b-25ef0a7594d4","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":81,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"facc79cc-6cba-48ff-865b-5399383f4aac","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":81,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"f4eb9c3d-76da-4a00-8c75-9835f1cf7812","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":81,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"7a7335bb-f7c0-4bc6-bd89-f333e6b28a97","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":81,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"86346465-f70a-446f-8c6b-746bdd1e704e","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":81,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"b113704a-454d-4fa1-9f37-d609f407e1ff","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":81,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"9ad2b5f7-d3a7-4782-aef0-1f5d093a1827","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":81,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"5a02f5b8-e3fe-4316-8836-569d5b6de894","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":81,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"95ac0cc5-2f90-41e0-a443-024e3456c957","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":81,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"6f44c0a5-ce11-47ea-8a37-5a4b83866ca7","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":81,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"0cb70c34-b929-4947-9b7a-c9dc99f2f716","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":81,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"a456dd49-007a-4358-aeb0-6eb3009a5bca","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":81,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"f2b2dc6d-aa90-4a13-816d-42659bc762fd","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":81,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"358fd3bc-8964-4782-a9c4-0970fa73bfa0","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":81,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"3083190e-5946-4050-a146-c1c7b160c8b5","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":81,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"63b9f036-945c-4239-84b0-836c8eb86c7c","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":81,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"20c452bf-f099-46c5-a4e9-0ec8b8f58034","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":81,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"688e9892-bd01-456a-b3b5-f73c258cfe57","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":81,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"ab704858-673d-4a96-8749-cc4ded12e04e","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":81,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"96c8df5a-d3fa-40cb-9ba3-80be9c89d75a","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":81,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"4b419514-9cfe-410a-ad2e-0ab621c59834","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":81,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"7c27bec3-c692-4379-9cee-2d20c9410199","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":81,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"bf159c0c-3b5d-4bde-8685-c9c277b1c8fe","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":81,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"39f4cca5-c151-45bd-adb9-52ae17f8562a","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":81,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"8fb57730-f09e-48be-bea6-689fe7fa845b","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":81,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"d7704e8b-71c2-41b0-8c57-bb93449e9e06","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":81,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"cd308794-be16-4ab6-8519-4b826727d305","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":81,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"8f3fcb6e-1db7-4341-8222-b6fa763fd5ec","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":81,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"c54ec6d0-ba30-4f10-ba38-bf0cff8cab47","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":81,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"aea836d6-4f39-421e-bf04-8ca676829261","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":81,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"7c0b7541-8b0e-44eb-bf1c-7f15f896756f","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":81,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"f65b6352-7e31-4f69-8171-b39ee77d2c71","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":81,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"5f74e32a-a0b8-4241-a28f-4ac245ecdda9","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":81,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"508ef430-58e0-4cab-b0ec-72ee0b957e21","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":81,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"8ebe8e5e-359e-4a94-9d8d-6d5a3b8e19ed","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":81,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"991df686-b7b5-4251-b1d8-b7c1449217a9","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":81,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"950a7e97-934d-4a72-85d9-656b39bb9d50","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":81,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"3663c8cc-7bbf-4eb7-86e8-5200495546f0","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":81,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"74768cd0-0b94-4b4a-9038-863605312384","block_type":"box","text":"II-52","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b87f79cc-4d07-4e73-a59d-e112a7b71d52","block_type":"box","text":"NM0926U-5977658-81/228","page_number":81,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"89f623d7-6e43-4b00-9e3e-2ba07aa4c0b5","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":82,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"4e8f3dbf-c49f-44c4-9dd2-952628e6925a","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":82,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"40dcd5a8-12e4-49be-b2b7-38fc0729b7a5","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":82,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"8155838b-f9ea-4368-9ddc-6304ce702596","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":82,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"695b22ac-a00c-4674-aa81-da53f470992e","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":82,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"6204c7bb-5904-4eab-8762-29ef4c47195c","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":82,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"0dc72890-a477-402b-9692-45b98569ef87","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":82,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"e54d9f03-895a-42cc-8216-eeb4389f39bd","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":82,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"aa1a2cdd-078d-4d21-979b-00665f62c0f8","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":82,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"fba5e9e4-d59d-44d3-a98e-0bff9ac93514","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":82,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"b8445ced-d3db-4b73-9c81-8ad0a4404edb","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":82,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"6d2701fe-639f-4b53-9127-4917f0267399","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":82,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"178825f2-d42d-4821-92be-005f441eef4f","block_type":"box","text":"of principal because of the sequential payments.","page_number":82,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"a5a94b16-eb5f-4987-8b44-3abb46598a8c","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":82,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"63f30585-d35b-48c9-a139-01b5cfa392dd","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":82,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"e9868ffd-01c1-4a7d-a357-627d79730c1c","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":82,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"8c8203ad-1172-4ef5-9035-7d7697d1136c","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":82,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"8fdaa936-3cf4-4447-9c46-3804cb43218c","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":82,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"bcbfc601-c7ac-40e2-a014-f846e8e98a20","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":82,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"2a54d9c4-a45d-493a-abb7-4b1e41adf0e5","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":82,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"9d6da467-3032-46a5-9c32-b773223d5d81","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":82,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"7bd92b38-9377-461d-b671-8c98f922effc","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":82,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"ec81b5d2-08e1-4040-909e-67ebfe5992c2","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":82,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"bc7ee398-bf6d-4d16-9e3f-cbfaa01d120c","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":82,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"dcf0c602-dc20-4baa-b3bc-5a2dad77a3aa","block_type":"box","text":"securities of any single such entity.","page_number":82,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"1e9a3ee8-1fdb-41f3-b872-98e4179ab096","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":82,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"290e92dd-a2fa-4593-8ea9-8c7a26931445","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":82,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"9ab22556-3e2e-42f9-89ed-5d77e3f3db2b","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":82,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"84d79bd6-79a1-4171-bc44-f132e9089fbc","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":82,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"e6a3de48-9e5d-427b-a13a-ec9a228258d9","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":82,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"37d9b216-89df-42c3-ba4a-43a56768d608","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":82,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"80e7fa15-bb02-4b02-82ee-f32a8ac35436","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":82,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"135ea990-6abb-4cdb-8822-0f3bb4d008bf","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":82,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"a57284bd-bcf5-4f7e-82cf-ae203feb3afe","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":82,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"6b57bfed-cf83-423e-b7da-d802d6e734ba","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":82,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"25be3825-78a2-447b-8d5d-10403da91ae6","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":82,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"845b93d3-8cc7-4433-a1ec-4771a46a3bf5","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":82,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"2bb88fc5-9516-4605-a228-d77e186132c6","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":82,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"90878e8f-45d1-4e8a-87b4-08b66ef48d06","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":82,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"59b0f1d5-694a-4e9c-854d-e4ffb11de6a9","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":82,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"8d18d38f-f6d0-4fd4-8899-7315f2cfe7ee","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":82,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"87badbd3-64cb-4679-a2b3-d5ad1ee2ca52","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":82,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"f0a1ff9a-2bc0-4d36-a563-23c6c772fa6b","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":82,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"02620e89-f4af-4589-97d7-200ef398096c","block_type":"box","text":"classes.","page_number":82,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"5b6d6345-827f-49fb-902d-a644dbb0dcc6","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":82,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"41e8d475-fe47-4bf6-8dd8-9eca0105defd","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":82,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"c39c7bdd-7f93-4207-9566-0f007baa751e","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":82,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"1c498234-aaca-43e2-9c3d-6a81d4eed7f6","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":82,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"6715ed61-66a5-42ef-a466-80477e92fcae","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":82,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"354adbce-657a-4ee2-8be4-44f03c26377d","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":82,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"61692e0e-2265-41af-b9e1-522cd1db476e","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":82,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"b778f247-cbd8-4b73-8b2c-1cd41027f3d0","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":82,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"67a3222b-cdf5-44e0-9c67-ecb80cea39f1","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":82,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"1d06f100-6cd6-4ecd-9d12-dbf23f59e815","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":82,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"4bcee24f-33f2-41ce-9d76-a03e6e7b4054","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":82,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c43f664a-61b7-4730-b2c1-828b6cf348e8","block_type":"box","text":"to a designated benchmark index.","page_number":82,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"392b28d3-be96-444d-8dfd-8d3c9e0f3023","block_type":"box","text":"II-53","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c1b201e6-0bda-4dae-947a-8f5e94677504","block_type":"box","text":"NM0926U-5977658-82/228","page_number":82,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"05123cb3-9996-4030-b5bf-59cf33d99fe8","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":83,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"9c79fd4c-ff7f-4567-b4ab-9448e6e136d7","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":83,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"0b794205-e1af-41cc-b1a3-99bcc134edf2","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":83,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"542afe42-2c62-4759-adb0-840da888ef33","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":83,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"63e11bff-5e3b-44dd-98e0-90fa85445f56","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":83,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"d34ee7b1-93ca-44cb-a117-1c5f0cdc5239","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":83,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"645f6e71-80a2-43e0-84e1-60f7d7f0f587","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":83,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"dbff719a-a8d0-4e02-ae9e-0295ee925361","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":83,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"68950f2a-413c-4c22-8136-b48856a3ecb6","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":83,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"2e9a30c6-9c2a-4184-8553-ddb3e0bd02ca","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":83,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"46481446-93be-4dff-8022-a0faa9f5ffaf","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":83,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"56178e78-dec3-47cb-b1e6-395a9543c0de","block_type":"box","text":"CMO Residuals.","page_number":83,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"9a9d20c6-4ec9-4364-8205-871153c5abe5","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":83,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"b9396696-c5f8-4b21-b34e-179edb2a1723","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":83,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"cc072f5b-9615-4602-80c1-6f71c04fce5d","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":83,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"71cf9a23-0919-46d9-8de7-2d74b64056d1","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":83,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"491831b4-4f62-4a68-a43d-20019b03dd2b","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":83,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"ecb4c19e-b383-46fb-aad6-87a4968606b3","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":83,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"f66ecd40-d8ab-41e6-87d4-95eab1886f06","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":83,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"d441a108-ea79-4f2a-abf9-931fa0fe74f4","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":83,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"3c955d51-7e26-42ea-97c3-1b619267b53a","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":83,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"47556888-3149-4161-be79-6eef6fab87c5","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":83,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"339ab9fe-2b87-466f-b8f6-73a9dd1e9b84","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":83,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"b594defa-c1ee-4429-bf95-d7ac91e643c9","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":83,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"fd5b7dcf-ffe4-4ff0-bf64-801ec7eb8092","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":83,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"595f5143-036b-43c7-a8ea-bc01d2a4ab86","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":83,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"e951172d-58cc-4cc9-a368-b55af6e21fcd","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":83,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"3816fd6d-fb11-4a60-bd31-bb5c60f7240e","block_type":"box","text":"a CMO residual.","page_number":83,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"1bae3a8d-0459-47ae-b071-f91f09d9be65","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":83,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"11d4abaf-9cba-4b77-8c26-500df63eeab5","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":83,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"a7f34493-8daa-4f81-b82e-689825049e00","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":83,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"d6e0d35c-e65e-4671-bac5-e73ea5d028a9","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":83,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"f2b5c3f1-72a8-4664-92af-f37ab914a0bc","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":83,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"4042cfdc-d971-4e4d-93c9-6ab010c1a534","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":83,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"83564be0-cb7a-4b92-8da1-ed975df80fae","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":83,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"864a61a4-8dbe-4b07-b806-c566a4e61c1c","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":83,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"52bb256d-4f4a-4efe-98af-98e4c33fe5fc","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":83,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"d5c6deea-5616-4037-bec7-e49b3173a1e5","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":83,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"9b7e41ff-cf1f-4370-bee2-f1a524797904","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":83,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"52d92f29-7297-4bd3-8160-598211e56858","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":83,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"64ab3842-f891-44bb-9438-838d9c0e9e55","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":83,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"22cff234-97fb-49d9-90cb-965d7cba458d","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":83,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"24bf1a11-ff93-4717-9850-2dca1a99f939","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":83,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"051e4ba0-9d2c-4a29-b61b-0e3eed60876d","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":83,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"21bfef26-f06a-41e2-b52f-08e7cfc55b15","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":83,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"0a14b887-8016-4843-9be6-b8d0910a5f77","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":83,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"f44a2d0c-627d-4467-a3d4-34ff53f0f905","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":83,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"76b734ad-9400-41c5-986d-3674d4ec932b","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":83,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"d18bc2f7-ecfc-4c94-a040-9f419637fd23","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":83,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"36ba7549-2c0f-43a6-b0c7-4f32f118ee7c","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":83,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"178af5cb-83de-420c-81ae-5e449c326dd9","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":83,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"870a9c04-78f7-4aa8-b4c2-ff4f51f9f8f4","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":83,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"fd7e8f44-73cb-4479-887f-478e43e42328","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":83,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"5e89e0a4-460b-4e08-b3a6-96aafab87020","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":83,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"98aa2360-508e-49a7-9ccd-606ec320bf54","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":83,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"80065aaf-02a1-4290-b950-8f0adc695063","block_type":"box","text":"Tiered Index Bonds.","page_number":83,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"795ca1a2-80fe-474c-8eb1-32a17d7e88c2","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":83,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"d70789ef-f0b0-4599-a6ba-2ccae22898d6","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":83,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"92ef1aab-ffb9-46a1-b71f-421c3edaec47","block_type":"box","text":"II-54","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"58dae926-5598-424b-b0a5-807b1ed5a7a7","block_type":"box","text":"NM0926U-5977658-83/228","page_number":83,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"669f8fae-5381-49c7-8d3d-59902dc1a492","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":84,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"2bb7ea1b-6f85-4361-8a86-12148774d563","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":84,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"5878c683-56db-4257-aa54-7b08f30b0173","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":84,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"5730fe8d-cb2f-4e95-aacd-7a35d250b6db","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":84,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"b4316f68-4481-4f7a-8f38-fb2edbd85ad7","block_type":"box","text":"that of a fixed-rate bond.","page_number":84,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"2054ba57-3b04-403a-b129-5cb6ffecc738","block_type":"box","text":"TBA Commitments.","page_number":84,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"a4c6776a-67c8-4659-a501-5bd2d34e3c24","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":84,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"22d8cb84-d382-47d0-8258-4c25cca1bd59","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":84,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"49d47cba-1aab-4118-b81c-ee939fef58dd","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":84,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"5c063af3-6417-4af1-b1af-2c7c8dc6ed8b","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":84,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"b8c35da7-31aa-4983-bc49-5f74dc3946f9","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":84,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"81a3ea56-2dbc-4c8c-a3f8-85a2f8f979a9","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":84,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"c1971a6e-c7d2-44d0-8475-db1b9c34a709","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":84,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"ff016f4d-c0fe-4bf9-b7d8-4e4abe8b1ee3","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":84,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"e2d81272-5a00-4b81-8d92-4692ed465b93","block_type":"box","text":"below.","page_number":84,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"16187021-c666-4cbb-8a7d-f2b791a810d6","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":84,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"a875733d-458f-4d44-8440-595d0cefd49e","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":84,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"ad7414e7-77c5-465d-9ec4-2d3e4e0f52f4","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":84,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"9b1309e2-ef69-4d5f-a4ef-981e9d93eb67","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":84,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"c87b3fb6-d69f-4b58-a214-b9a88d7d6bd0","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":84,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"0d2bb20d-5621-4054-86a8-f314e0d0d100","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":84,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"91853dcc-f115-4393-b8f8-d9adae746704","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":84,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"9a1bf03b-01a7-480b-8237-aebff2930150","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":84,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"210e79d5-c4aa-400d-920e-c59bc1372447","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":84,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"db085dff-8659-4ec6-8ed4-6ba03d3c882b","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":84,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"a2bcd8cf-0f52-4b9a-91d0-b3bf00e3a5db","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":84,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"a38a5867-61e8-41f2-b0ec-28ff0153a205","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":84,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"d186b93a-cd01-4a84-a04a-8d83e2314f39","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":84,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"5c4995f2-e8ae-4ac1-a677-4a5af531b631","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":84,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"39f1b4a5-4150-4fb9-8cd9-7f895da13068","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":84,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"6c3b60e5-a9ce-48b6-9547-8a9827b00251","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":84,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"3e3e9cec-e30d-4efa-92a1-1ad8f7d5bc7b","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":84,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"ba63dd06-42f1-4183-9e70-21724d1e4db6","block_type":"box","text":"securities in the forward transaction.","page_number":84,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"47efedd9-93f5-4e6a-9cdc-5bcfccb1914b","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":84,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"9228c59f-5a9f-47da-a9f3-820219fe0035","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":84,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"5e34782d-5621-48da-a7d8-bbe39dd1198c","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":84,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"a153a4f8-5aee-44d2-9d56-141c21776962","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":84,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"eaded9d8-9fc5-49c6-8707-2e770f993bb9","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":84,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"3566d1f8-1764-4b2a-8836-2520ed0b31d6","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":84,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"c14d20d9-0d74-4ded-b135-0088904ea8e7","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":84,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"96fe2e0c-f695-4087-b515-15cfa8ba3a6f","block_type":"box","text":"securities (","page_number":84,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"7fe4f29c-4380-4a5b-bcf1-aa4d846e2981","block_type":"box","text":"e.g.","page_number":84,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"4a41f0e7-be21-4d88-a591-c251415805e7","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":84,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"13f12a4a-a173-4768-af4c-4109af9a77af","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":84,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"12cad56d-e521-41dc-be2f-013150d9cc4c","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":84,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"ba5a7c4d-6f3f-4852-9fe1-2d83e0a73900","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":84,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"dd2bcecd-5192-4fa5-8917-87dd6155cbb6","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":84,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"5f318e86-fdae-4ec3-8aaf-7a5d9581cfdb","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":84,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"3de073b2-5011-47d1-8696-07dec3f6cec2","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":84,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"fa1daf78-8c87-4832-ac3d-0360cd983a50","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":84,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"d21d8821-3697-46b4-9f1c-c119bec62bf6","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":84,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"fd581f5c-37b3-46ca-9024-d1b04aa1f85b","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":84,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"fea35727-a0e5-4ca1-8a97-021bd6b040ba","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":84,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"401e8078-16e0-4d7b-863d-bd78850606d4","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":84,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"51d8c81e-db56-474f-b49c-95a44f54514e","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":84,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"a4ea3091-4aea-4187-a0eb-438c7ea4de76","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":84,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"ade5913c-0758-43cd-be99-5f3ea8c370e4","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":84,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"0df950d4-89ed-4c56-96ad-186e871a355e","block_type":"box","text":"Municipal Investments.","page_number":84,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"efafe5eb-2987-4117-ac87-9bfe27651e22","block_type":"box","text":"II-55","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"61c3e8de-d1cd-4e86-897d-7cc56e590d8e","block_type":"box","text":"NM0926U-5977658-84/228","page_number":84,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"f8dea25d-13ca-4ccd-9bfc-619041336a32","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":85,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"663fdd44-4b5f-424a-8db2-ea14cf6925c4","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":85,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"ed069b6a-ce57-4de3-92bd-1cefc27ede26","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":85,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"dbfb0419-0fe6-49e9-9e53-28018c3eb784","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":85,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"7e84866a-df0e-410b-8cc9-37c98e3e981b","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":85,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"5d497602-3b01-49b1-8f42-dbf5c77e2aed","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":85,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"16f768df-34a2-4b6a-9cc2-df28b3e7b3f0","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":85,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"a2fbd03e-0459-4e5f-b95b-db03c006dbb9","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":85,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"3e6ae5fb-576c-4b3c-9cdd-5d26e58deab9","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":85,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"309e8969-0ab9-49d7-a072-751c15d50dd3","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":85,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"be235644-4f5d-4a35-bdcd-f5b65b12ab4d","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":85,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"0078baf8-9802-4b51-94b2-2c9ada197d7f","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":85,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"c6de2423-c126-4fdd-9c1e-6b701dad8a37","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":85,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"ffefdcd3-a679-4255-a321-3b56ca96b8c8","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":85,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"0e98fa57-8783-46c9-8a1a-8ea7dadfaf3a","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":85,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"3535f0ab-33bb-45c8-9e32-94fb9e0f7a63","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":85,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"9282847a-1607-47fa-bf75-f9c692b12937","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":85,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"a442b0cb-20d3-43fd-bdbc-13a8952f3bb4","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":85,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"9a165828-1982-4a97-b6d2-3231cdd7990b","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":85,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"b8bfa75c-1973-4ac1-8210-bebb100e5cb3","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":85,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"c4ec0c10-e6a0-4dc2-9464-06803862a168","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":85,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"b0145a37-1b4b-4eba-80d3-ec3d216ef0cd","block_type":"box","text":"The risks and special considerations","page_number":85,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"baa230f3-ace9-4f41-829f-0d25a32d170f","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":85,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"4afd41b7-d63e-4edb-a673-5230b134c356","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":85,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"4326a0c0-a868-47d4-a8a4-1086756860a1","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":85,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"8d035511-84dc-47a1-9b56-13f995afb981","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":85,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"4fecf371-0547-441f-b0f8-3b0718e86226","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":85,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"50566e78-de34-460b-b8a1-bd403aae633d","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":85,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3bbe7544-4512-435c-a031-a2e46deda36b","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":85,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"8bb35342-75ab-46d7-8015-0bc55e966158","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":85,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"ac3bcac1-b629-427b-b8e2-439877cba6a6","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":85,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"0bc878d7-fe27-4606-87f9-293640e46aac","block_type":"box","text":"II-56","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"37f4c828-743c-4271-9af6-958563b037bb","block_type":"box","text":"NM0926U-5977658-85/228","page_number":85,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"10b1a0a8-7465-435a-a89d-45fd40a52c31","block_type":"box","text":"Description of Municipal Bonds.","page_number":86,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"8cd699cc-b3c0-4ce6-a335-4c85acc0993b","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":86,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"4f70290a-cc7c-4377-9363-141ab45f42cb","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":86,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"f7c206d3-8371-4974-bba6-707c3ecc6df8","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":86,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"efdbcbc2-8ac1-4669-8c4f-509f80849995","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":86,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"b4bb07ee-cf27-453d-b247-3809fd183012","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":86,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"5d533752-ac3e-4683-9331-f1b84c1fb9f3","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":86,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"b55db1f2-5c9e-4ceb-9644-cf603950b959","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":86,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"c8443a2b-2f04-40b7-aa3a-254980fa12c2","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":86,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"82e81ba4-ea74-4848-8276-464f01216e03","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":86,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"0f4440bc-0f33-4503-b5b2-0180804ddb5b","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":86,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"56d4f8d2-8bec-4175-ba53-fbd986044868","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":86,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"de898c8f-e7f2-413a-a132-f23da041aa8e","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":86,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"ad7e0b9b-23b0-4c9a-bc1f-d75ec4de5e24","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":86,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"29b1fd0a-a946-491a-a3d6-0ad72d2de596","block_type":"box","text":"General Obligation Bonds.","page_number":86,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"37acbffe-4adf-4585-abff-7b2e7245b562","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":86,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"7d079047-4133-43a4-9375-d90ef2a7359b","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":86,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"04692f8b-2e13-4e46-ac77-45d614ab3c8c","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":86,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"b3f15cc4-5df6-4223-91fc-6edaff40ec76","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":86,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"5ae2c011-7473-4213-896b-819943399a04","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":86,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"031216c4-ee59-4cff-822f-4156abfa544f","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":86,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"ee451aa1-7777-4dc4-9230-15ec50145a22","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":86,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"7c959f18-9f88-4ba9-809f-ee95f79fc95e","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":86,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"a61acc2f-8c0e-46a2-be5c-846c08d035a3","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":86,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"890bc060-4149-4e4a-bf69-f1a3de424deb","block_type":"box","text":"Revenue Bonds.","page_number":86,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"f74f8ebd-65d9-4807-98a2-27bc568916f9","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":86,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"f8489b26-2a67-464a-9d28-171ad040356a","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":86,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"6ad00810-24dd-43a0-aefd-5cc21650016c","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":86,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"b1690ebc-33aa-4625-9ab1-5262fe8d9f57","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":86,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"ddce0fca-0243-412e-85e4-9082404710c9","block_type":"box","text":"viability of such facility or such revenue source.","page_number":86,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"7fd85c19-cce5-4a76-b600-adb319da4d70","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":86,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"02fcfba1-c421-4875-aa08-c3ba8bc8fda1","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":86,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"b137ab07-9929-4224-9c2d-5f894f317acc","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":86,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"cd4c8303-b194-4d87-b8db-b4be614f0270","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":86,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"30ee145f-fb0c-4478-9b7e-386a2aaefa1d","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":86,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"194acecf-8209-4105-9a54-bf8f9c35e0d8","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":86,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"37a121a9-037f-4540-9e68-67b21318179c","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":86,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"0a074aba-08e7-478c-904a-b17b17f344c2","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":86,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"fe3233e2-f271-4e13-a4cf-dcea68bf7ca8","block_type":"box","text":"PABs.","page_number":86,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"b84e1a3a-62ab-48b8-8350-04db4288af01","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":86,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"bf0dd298-33be-4acb-85b5-078bdc8751ec","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":86,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"fd79e93e-d69e-4f9c-a26c-e51228c81110","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":86,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"b0e1c11d-0738-4b5f-a2fd-df83b3435b58","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":86,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"1b1f913a-8808-43ab-831c-66afb92aab58","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":86,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"8bfafbfa-28b2-4cc0-a75a-cbda6f272ffd","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":86,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"7f752d75-2aeb-482e-a691-0508b6338219","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":86,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"bf82d01a-6738-4120-b551-7fe868e03d51","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":86,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"cf5518fe-da08-4fd5-9b21-04a72991d3b5","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":86,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"34be7e7e-5285-410a-8575-c883a4ebb9be","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":86,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"b6c3844f-9a50-49f1-afc0-f6c313c2f24b","block_type":"box","text":"the particular facility being financed.","page_number":86,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"b0b9dde0-d38b-436b-9b69-c68ad684d1ac","block_type":"box","text":"Moral Obligation Bonds.","page_number":86,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"5b84aca1-06b5-4466-a6a7-173899147fa7","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":86,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"03f101f4-16e9-47b2-a736-00db633def33","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":86,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"e910ef01-0eea-4d06-b6cf-678b85dfb520","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":86,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"04ff9d03-6063-4237-8e83-c7004368b2d0","block_type":"box","text":"that issued the bonds.","page_number":86,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"5f6f0427-010e-41c9-a26e-ac5e23b0ac58","block_type":"box","text":"Municipal Notes.","page_number":86,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"29aeac9f-c524-4f16-8e1c-fa82813d511b","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":86,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"7cb07f11-fdc7-4c7f-99d6-a1b7d176430b","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":86,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"5222b778-3262-4590-a5e3-4ede3dc16de5","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":86,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"67163e58-4762-4be2-a3ea-4196bedae623","block_type":"box","text":"II-57","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"68dd4a3c-ae34-4dc7-bee8-81f0c9a9f037","block_type":"box","text":"NM0926U-5977658-86/228","page_number":86,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"df5c8b41-5b83-459f-9ae9-c5822021e432","block_type":"box","text":"Municipal Commercial Paper.","page_number":87,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"be0a2a01-aa77-4005-b2cf-d48c13ecaff0","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":87,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"e75fa15c-5f74-4414-9347-ed618dd695ba","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":87,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"045b5b9c-4551-4dae-907a-a1d799ade68c","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":87,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"e8ab09d3-c8b9-4bf8-bf6a-0e32fd33b08f","block_type":"box","text":"Municipal Lease Obligations.","page_number":87,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"779d14ba-f0f6-4523-87bc-56fcbb97f3c5","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":87,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"21421fd8-1620-4199-b7a3-b66bc0199052","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":87,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"85ee6b7d-9941-4ceb-946e-6df39ebdb513","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":87,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"70874115-a44c-425d-a0cc-9e3e1b269049","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":87,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"f8968bff-4ade-4999-b825-7f09e48b1f0e","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":87,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"a49780f7-0331-47b3-838b-198b1f6f001f","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":87,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"c32ef4da-10b4-44b3-b41f-2f7812185379","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":87,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"2e3f2401-054c-4219-a67a-93f5d0e7497d","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":87,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"9fb9bea1-844c-408c-be10-35fec231ccc1","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":87,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"c56d42ff-6add-4e72-bd19-ab9887426e23","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":87,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"d5b06249-1bbe-4dbc-95da-72c9cafde0dd","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":87,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"4c077d9b-eb9d-4235-9528-baa18b09c8f7","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":87,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"27de4066-120d-4b09-bc77-5faac803272c","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":87,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"ebe9e30f-84d9-4613-8cfe-11b0e9023e9d","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":87,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"10eaa37e-3470-4b4d-9147-4cbc4629074d","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":87,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"8f8e64f5-b4b8-4136-a31b-9dd9666f4874","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":87,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"38b9d0c7-dafa-4123-969f-3708fe86c742","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":87,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"55d4d53f-3ad2-4988-aa39-1bd1e62340b7","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":87,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"4cfdbbec-7ec0-455c-91b8-6d974dd246b9","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":87,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"009fbcd0-2ff1-4369-81a0-845b9a7dc4df","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":87,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"448d58db-3b03-45d0-b4b4-4b4ce57942c1","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":87,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"13a27050-3370-46d2-9536-ad85c7eb51dc","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":87,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"9e001c48-a933-4c26-ae00-b9aa9a9e9919","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":87,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"2e972a93-068f-4b39-b290-18f22dc1b4bb","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":87,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"c2a56be1-11c3-4b26-a90a-42566e094122","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":87,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"f33d9fde-0321-42f4-8bd3-62c2eca16767","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":87,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"9377e463-d091-4164-ad00-da0ec6da55c4","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":87,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"39dfd33c-a504-4a0f-83c7-f69eac0732fa","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":87,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"15c2a4f5-ead4-4b66-aad4-54b4bfed7a95","block_type":"box","text":"Tender Option Bonds.","page_number":87,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"9c43637d-aa77-485f-91eb-63e61df32e95","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":87,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"07407ce2-c0f7-45d9-87f7-c27d9a7d26e7","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":87,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"3ff72dbc-3b33-471e-8ec6-bfa05af1269d","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":87,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"83576cb3-b808-40a0-9246-f5322504c1e3","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":87,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"ea9657bb-a76a-4b3f-93a0-e4f765a51f9b","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":87,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"de6d17bc-b32b-4b5c-8aeb-0d93c665e937","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":87,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"a21e9379-ec3a-4a81-893d-f218d1151f2a","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":87,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"0cdb58e6-ecfb-40a8-b72a-b0da3b328294","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":87,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"22b95fee-80d5-4489-856d-7bac68cde7a4","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":87,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"c8e2f455-d8a0-470d-b94e-845e61803dca","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":87,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"f2e01ac8-e2e2-478c-bb1b-c282a104eab8","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":87,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"bf899bad-7cde-4815-af36-59ed26462596","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":87,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"e8167d8b-3de3-40b0-8aab-78e7358f49ed","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":87,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"777b336c-d01d-4a75-802f-d6ad30b49fa0","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":87,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"8a934f15-ac25-420c-8d3e-e4e4bf53965a","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":87,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"bd7cefe1-67f9-4b27-98cd-b39d11fb68ed","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":87,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"88630da8-891d-4951-90e9-877cd56256a7","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":87,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"04f0096a-f678-4d82-8ea9-04bd55ec0dd6","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":87,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"901c0909-a086-4ad3-9655-3cc6a39d448e","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":87,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"0873a10b-e1f6-4dd5-98f5-01c005e3dcd0","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":87,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"e4d03713-1bc3-4a77-93c7-999cdb0eaf4a","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":87,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"d88c382b-fde7-4c14-ac4a-37e2ebc14b97","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":87,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"bfa42e1d-f5cd-45c7-bbf7-c6b20f780546","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":87,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"e54a93e5-719d-42b3-95da-e5e6c385234d","block_type":"box","text":"participation in the TOB Trust.","page_number":87,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"9e7d7e66-b440-4dc6-846b-c63d68ca9b93","block_type":"box","text":"II-58","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d111a7e5-f241-45a8-8401-cdf3aac313a9","block_type":"box","text":"NM0926U-5977658-87/228","page_number":87,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"cc191529-bc28-4298-8e73-b985b4796b2e","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":88,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"e02615df-e2c5-4b6e-9ede-83b7c7ca0a55","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":88,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"356429dc-cf00-44a7-a319-d5a783cb0faf","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":88,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"ee3e4607-674c-42f5-91b8-8ceeaee16847","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":88,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"3630c591-fce5-4f2b-bcd0-3bbe19ddbca4","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":88,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"ca3b33e1-e4b4-4e90-b1c3-770fdc114c4a","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":88,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"002c71ac-d5df-42a5-9ea3-0bdf20a69d13","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":88,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"3fb35471-1ae1-4419-b0bd-9a599b5523f7","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":88,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"b58b7497-d0f0-4d4c-b458-41e9d88b2098","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":88,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"dac5949a-746c-44ff-b48d-98bd4c507f0b","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":88,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"57a66778-17b3-40b1-8605-8a70efeb54f8","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":88,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"e4fa34eb-bd8d-4842-be09-0dc6317845d8","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":88,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"ac40bfe2-b947-4844-90c3-49ee8be011ae","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":88,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"cb240d7b-0edc-44c6-8fbb-23063254a11d","block_type":"box","text":"issues.","page_number":88,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"0d141670-865b-4ad3-acc6-ef31606b7e2d","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":88,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"8655d2e4-fe88-40b6-820b-239df695d48e","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":88,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"397bb497-2606-42a6-b6be-49f7115a3f9b","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":88,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"226b90dc-4c4b-4bbc-bab8-0d94dd443d04","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":88,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"dac09d9d-4fef-4952-b706-fd6b5b4f72e8","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":88,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"d1945d70-0c05-47e5-be2b-557f032f1178","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":88,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"33a0bf9b-668d-44a1-9bf7-01ce1173d2e5","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":88,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"4fe57728-f879-43cd-9f17-5f51fe6204af","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":88,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"04eaba2b-6479-43e5-b45a-aadf1ea5ecae","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":88,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"cc8845de-464b-429d-9e62-c10db314c063","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":88,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"e2b8ecba-90ba-4a83-a87e-86f30d212cd5","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":88,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"ea6d4322-c0aa-4b8a-9c8e-eaa5dba7baa9","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":88,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"417354f0-3e5d-46f8-8168-e3c1e0be1324","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":88,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"589b1e1b-2a99-4041-ae26-5c8df276a107","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":88,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"811e3e6c-1674-4281-9523-e9cd866855ed","block_type":"box","text":"i.e.","page_number":88,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"24118e13-c244-4c24-961a-ef90d8a61cf6","block_type":"box","text":", the Fund). In contrast, in the","page_number":88,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"387a4de4-f7d4-485a-a4f0-0bacc3adb3a4","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":88,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"a214deb3-f0d6-46a8-9f39-ab467cf8c4cd","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":88,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"867e76a1-485e-4965-b9b2-d446715efa2e","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":88,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"94be646d-5962-40b8-89f5-683a0de48b10","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":88,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"147ff3dc-c61c-4175-8b5b-830ef190f615","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":88,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"ba9d0a1a-5b4d-4b96-9a1b-988badf42221","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":88,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"f14dbc7a-58ce-44de-8c8f-3830541e29b3","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":88,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"31130fb2-6469-4ec7-bc17-e3076ff642c2","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":88,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"0e3d6714-36c0-4acb-9a77-cc8fc1cc9bbf","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":88,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"b89afbe7-bbd1-4dce-abea-822ea52d301b","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":88,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"2bce155b-4b5a-4ddc-8d5c-37fe9f9431d9","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":88,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"d955264f-1cdd-4fb4-8ed6-185cd4b58bb4","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":88,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"fbfcf91b-32ea-4f7d-b0c6-4b5224c79a7e","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":88,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"f409d210-b11a-4c46-af71-a18b33138c33","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":88,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"2a5c8f58-d8d9-412f-a98d-9d26d99088e8","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":88,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"441d6e5d-f370-4995-acdc-5f0981a72374","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":88,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"ba8bcb71-dfb1-4765-a020-41eb3d703b1d","block_type":"box","text":"Trust.","page_number":88,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"4f57dbec-2218-4342-bebf-4338a26f4d9a","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":88,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"2c9ee94a-b2c4-4f78-88c0-66b214008ae3","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":88,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"d1c02f51-1558-4b5a-8209-e278a893585c","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":88,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"b28c395e-cc27-4e29-a3af-d0c08cbc579d","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":88,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"1622f051-642a-4238-8c81-962e8b3c20fd","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":88,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"24265567-6d7d-4ac2-9dff-6766f29b7d5d","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":88,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"597fb81c-f1a2-48f0-b1bc-9bf6ead35893","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":88,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"057c8f05-e4ed-4b9a-b047-5a5bec2b78d3","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":88,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"5710ae2b-6f4a-4dd9-8312-701f67a16384","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":88,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"966cc08d-4f25-4c5e-8327-f04d78e28e05","block_type":"box","text":"II-59","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a1c48ad5-bc24-4b93-ab24-69d45b8b7161","block_type":"box","text":"NM0926U-5977658-88/228","page_number":88,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"96739805-8e2e-410e-bbf7-2a8a634ab91b","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":89,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"20b8661b-72a8-4c10-8f8b-8345b63dd793","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":89,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"6e915dc1-3b88-42ee-ab75-a35b3459a257","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":89,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"f23774db-77f7-4739-a9e9-d5e467864648","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":89,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"7c74bbf7-096c-4c56-a86f-eb0d85662b7e","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":89,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"2b60fdd0-f119-40a1-859d-84136b7caea0","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":89,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"391c83a4-4f71-404e-8607-cb413bb9ad6c","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":89,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"5dc393f6-c749-44bf-a959-c3b35951f311","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":89,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"5d854d0d-b377-4614-b57a-6f2dd4f9d840","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":89,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"e0ece0d6-2e76-47f2-88ca-2b8c4f7aedb6","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":89,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"428ee509-52a4-4eaa-8490-cf1aab64c7cf","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":89,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"4da29ed5-cc11-4dff-8eab-a5281c467312","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":89,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"a3e9a285-245f-4a23-ac54-5054b2c50752","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":89,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"e970b9e3-30fb-4568-99e9-0534c8f131a1","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":89,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"b9b1c16d-5bb3-4acc-be10-8560f3405b58","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":89,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"0772bd43-8f48-4750-b9f6-a3ab08b1fc6d","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":89,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"160d37a3-f74e-4712-9080-0d46b0387967","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":89,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"80135c55-f08b-43fe-a4f9-4b55b85ea7b9","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":89,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"1fc8aaa6-8854-4561-a142-7c158887a37e","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":89,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"e3dcf6c0-ef17-443e-8de0-af185d05816a","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":89,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"d319de1b-d3e1-4c04-af57-26f5619c5424","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":89,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"fd45f8f7-1350-42b6-9206-cffa25c0234d","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":89,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"3b7e0aac-dc3a-4900-93e3-e93ac699ab82","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":89,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"d240d404-02cf-43ee-b392-0a50ff269f32","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":89,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"7040620e-d0e1-4df0-a91e-397ac0061840","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":89,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"adb18905-cf66-462a-acb2-e9bc59b8ec6a","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":89,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"9c54a061-f229-49af-bfb5-5c594c202dad","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":89,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"997de683-4e33-46c0-8051-f8f7be8dfc51","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":89,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"31197cb4-0f02-42b2-a80e-a732e729b6af","block_type":"box","text":"i.e.","page_number":89,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"da8e404a-ad2b-4bba-83fd-04858f79d1b6","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":89,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"313c1687-e7ce-49f6-b085-20037f89407d","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":89,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"96d4db82-f32b-4af5-8a5c-a966c59e33b2","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":89,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"c3719d28-4208-4634-8923-cbca995e2c32","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":89,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"2c21b79f-3cd4-4f0b-bbb2-b9dd610806fa","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":89,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"2231e16c-c91b-4c9c-9ee4-6b125473d83d","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":89,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"e61edab5-7c84-435e-a597-da355e442aaa","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":89,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"afe8d7a2-abe2-48f3-bc69-3a28743d9a85","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":89,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"d2e0ce78-ee74-443d-8bed-b43dfb901b52","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":89,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"b547894b-ab13-4442-98e1-084d02c81d6a","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":89,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"19748d9b-a799-47a3-b0f0-5ff893dcd785","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":89,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"68d0e525-b7bd-4ce5-b91a-ef61e82cdf81","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":89,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"c5535c20-7820-4ef3-880e-8ab808e851b1","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":89,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"05e6632c-ffc4-4077-b827-ea3754c6e952","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":89,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"48687b45-f895-4f11-add1-c6d099484e3b","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":89,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"95a7fba1-7a56-41f8-99c3-4c6ef7dcc3e3","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":89,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"9ef0e732-9445-49bf-a54c-e79e030f3232","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":89,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"f4ceaf4a-8c16-4a72-ab11-49f3e66d37c9","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":89,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"01f27ad3-da7a-4385-88e7-e5b0713e731b","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":89,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"1041a4d8-f614-43ec-8a20-072376ee122b","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":89,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"a6cad5b7-e866-4648-9337-1823e2a89ae0","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":89,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"366d8e09-5845-471f-948a-ad729ed9cf44","block_type":"box","text":"market is not yet certain.","page_number":89,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"b25574f8-b53b-46e0-a038-7637b9f6e7bf","block_type":"box","text":"Yields.","page_number":89,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"ec306b2c-1a62-4ccb-80bf-e1bff53ab2ee","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":89,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"5d215c1c-c1ed-434d-be3e-1d10a623d638","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":89,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"1edb4f54-706c-4668-8ad6-0eceb03b827c","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":89,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"67d62ffb-103d-4821-bc3c-1cad6205838f","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":89,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"a79013a0-7371-485b-959b-ecda92860440","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":89,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"c30b2e14-19b6-41dc-9a0f-1003641510f3","block_type":"box","text":"II-60","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9e38a1a2-0002-436f-92be-b2ebd7384db4","block_type":"box","text":"NM0926U-5977658-89/228","page_number":89,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a4760397-995c-4e4a-8e2a-d18d60adea53","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":90,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"97881ced-e474-48dc-a626-3e646f40606e","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":90,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"36c080ed-dcdc-4087-a731-7fba1b4a5a67","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":90,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"18dfd93e-4669-4b37-8bdf-f74419d172e8","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":90,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"69c8abbf-8c09-4bae-b25e-caf6cd995709","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":90,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"e7d33ace-a3d6-4322-9a1c-eb54292a0b6e","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":90,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"408bd66a-1e00-4b8e-b601-66ae6e087f82","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":90,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"e271d8d7-f6a4-4ce7-9928-87f608a15e46","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":90,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"960ce808-fe7f-485a-8a70-cae390f77eca","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":90,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"83623e18-c539-4fda-bbc0-f86dc084c042","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":90,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"58066871-4617-45c3-b96b-7e1028c410e4","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":90,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"ce2df4c4-b347-4951-a392-f3aa3c6ee066","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":90,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"19a7e4cd-12d1-4e9c-b9ad-80267d6b4637","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":90,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"a9697047-9dae-4883-ad4a-6acb774d5243","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":90,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"18a1be65-d82a-4a6b-9413-013524f80961","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":90,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"161a898a-d6cb-436e-8cbc-0dc593c9cd16","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":90,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"e7b8135c-67fa-46cd-8b3a-c37c119c1c3d","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":90,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"c962c01c-d0ba-4815-9522-468d090a862a","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":90,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"915d9dd4-2899-452b-a494-c42a56430179","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":90,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"db2d3386-27cd-4098-b182-151f9885d1a7","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":90,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"bdfa88f9-cf72-4a5d-b3c3-f7188b73f7b8","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":90,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"46c96d9f-d290-4aad-9b0d-21ce1d0bdd71","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":90,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"370c2a4e-8659-4348-88c8-f4cbf3d31d5e","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":90,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"de03251e-267f-4c91-8f6e-caa7e4e9c0a8","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":90,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"e6152d6c-302a-43ce-b27d-ccc85892a133","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":90,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"bbc2101f-3c87-4ccd-bea8-1719042f3308","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":90,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"4e51a111-aeba-492b-a6e4-df5830e72478","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":90,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"8e17e737-bd3e-47a0-bb31-4e6b2dccc3cb","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":90,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"61f05dfe-07d5-4294-97a7-668d932d348d","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":90,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"79eae254-9291-4f38-9a09-988aeab514fa","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":90,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"d250570e-33f0-48e7-8207-b94d774f91ee","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":90,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"a38e2959-7f58-47a5-a570-b738928224db","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":90,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"6c81894b-5446-4cc3-a66a-1ff56305df0c","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":90,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"ad9e66be-4a6c-4156-a30c-cf5042e20af7","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":90,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"1066f989-265f-4e2c-a7dd-ff73beb7fda2","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":90,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"35b7e01b-5d30-49cb-9c0e-d43decd1f524","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":90,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"a1c6525e-3443-4d0d-b60d-57eafe7a81a1","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":90,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"e8a492b9-a04b-419d-a701-4930fe63c1de","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":90,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"8a55118b-a0ac-44f3-856f-dbaf409cbbb0","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":90,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"533bd4bf-544e-48d1-be42-17bc69da348a","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":90,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"4c2c1716-5f4b-4e69-a060-a17a34208270","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":90,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"a4cd7e41-ce55-4ae3-b397-4002adac9a4b","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":90,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"61e68cf7-2b45-45f2-8e3f-d7f7018a1605","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":90,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"6afdacec-b425-49b0-badc-1e59e176bb9d","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":90,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"5886dff9-1fba-47e8-bcda-3c54f808cf6c","block_type":"box","text":"Call Rights.","page_number":90,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"f9057d2c-9b05-42b5-b152-549591a9bf36","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":90,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"c78c275a-57e8-4ffd-b31f-60d392120d90","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":90,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"dd371da5-8b3d-40f3-b3b0-4c99de6c13b8","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":90,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"682f75ec-36d3-4305-b84c-ab2803eda480","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":90,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"61a72776-b256-422c-9212-98b52cc479a5","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":90,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"b2f40510-6d95-4b30-b060-e644ed453b83","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":90,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"1441db28-9306-4ba6-b02d-4b4944b901bb","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":90,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"e957338a-3c9e-4c59-a633-da91216400dc","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":90,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"71272aa3-cfea-4a56-b1aa-0f4612cd1c24","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":90,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"f0fc5b18-e846-4ae7-a7e8-d73061b50daf","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":90,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"2c0cbe9b-825b-4c09-9358-0d87e20ce195","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":90,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"145d9bc1-c749-4a83-a688-ff194cd440f5","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":90,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"041fc419-9901-4cc9-a6cb-f6940fd6c143","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":90,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"ecc51396-447a-4e8d-bc79-06bc5dbf383f","block_type":"box","text":"II-61","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"76dcf515-e91b-4ae5-a25f-1c6889b8e4e3","block_type":"box","text":"NM0926U-5977658-90/228","page_number":90,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"27321e8d-3164-4ef9-977c-aca087393798","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":91,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"8f959f4f-ce8a-4c3a-bc13-3f862648e282","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":91,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"a9ddc248-9d5c-4d9b-aec2-e7875f0e83ae","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":91,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"8f0c512b-71f0-479c-8f96-08f276a9167c","block_type":"box","text":"i.e.","page_number":91,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"7e2e1674-6593-43f9-8eb8-d09e43b9d52a","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":91,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"a88982ed-8dca-46dd-8830-643687673b28","block_type":"box","text":"rates).","page_number":91,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"6128552c-5567-4c96-b99e-a655c0b04710","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":91,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"8fd6c6bf-c435-4517-8d78-2bb232e26f62","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":91,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"70c38470-df0e-48b3-b02a-ce1ced5a23d3","block_type":"box","text":"e.g.","page_number":91,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"b90c494e-4fee-43b5-b43e-c3085fbb806e","block_type":"box","text":", an exchange of fixed rate payments for","page_number":91,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"f58fda17-8c73-4408-a2fc-a39420477e66","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":91,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"7fbe2236-93ad-43b2-bd8e-8468416fcb68","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":91,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"ef8e92ce-6ac2-4e6f-8484-573d9786bf02","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":91,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"f60fd2dc-8c94-43e0-8aae-26ea1079d7fb","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":91,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"2a1a58ed-d340-4204-aa9d-607111b5fe3c","block_type":"box","text":"with the same attributes as the swap (","page_number":91,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"a691cc28-2a1c-479e-b44e-c4e5ec7f76fc","block_type":"box","text":"e.g.","page_number":91,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"1fd044ca-c80b-4b6e-ae66-9792f44e8e4a","block_type":"box","text":", coupon, maturity, call feature).","page_number":91,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"919f7d26-92ff-4069-b310-31ed269fe1cc","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":91,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"f4fa314c-a72c-4d76-9b27-1a1df29b0de3","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":91,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"d4266048-7fbc-4d40-8667-6ace003bc374","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":91,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"496860b5-a078-4699-b9db-99423dedbc97","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":91,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"49c939ad-f25e-41f7-af10-da7acaeb5165","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":91,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"2f98bd89-8d6d-45e8-b91f-d7f8e64d3dda","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":91,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"23d7de9c-eedb-420f-94ac-2929961a633b","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":91,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"ea6b8a2d-e311-4673-8892-367563809df9","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":91,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"987e019e-0949-4544-b20c-44f9125d4114","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":91,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"e0f58b48-9f2a-406c-badd-4b2be11979f7","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":91,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"035e6eb2-1007-45bc-9f5e-b25a4624a607","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":91,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"56394128-a1e0-436f-962d-c5fe042c649b","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":91,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"b2873412-fb90-40f3-98ab-341df1629950","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":91,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"0fbce245-139c-48f5-8518-aa1d84dcea04","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":91,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"b1552f71-146e-412e-a05b-bbb1a05db98c","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":91,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"377762a5-d1e9-489a-b725-65e1b9b08b50","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":91,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"5838686c-dc3d-43f9-bbb4-37d3a04e7dac","block_type":"box","text":"Insured Municipal Bonds.","page_number":91,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"10010368-12d9-40d8-baa1-cb7e19130b6a","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":91,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"17fd31dd-c204-40e6-bb36-91eb46703434","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":91,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"b72b5bd9-7480-4a55-86e2-1ff8b5b34c7e","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":91,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"9362413d-7bb0-4e9d-8275-c2ca00b401e9","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":91,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"a4255401-d85c-4078-9473-fb4368af72ac","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":91,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"554ca785-a695-4402-8dce-7486aa1c670b","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":91,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"ad2427d4-cc6e-4cd7-883c-32e36952fd57","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":91,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"bdb3e76d-7213-4be8-868e-80c848515244","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":91,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"811d2e29-28e9-4ce1-b6b0-fbb69b554b71","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":91,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"7f2a9ff5-f224-4a04-812b-f24fcfbf422e","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":91,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"b39932e1-f980-4acc-b7cd-55e0ebfddc10","block_type":"box","text":"bond could drop.","page_number":91,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"5cb10467-3e51-4fa0-bfbd-8c6f52c83485","block_type":"box","text":"Build America Bonds.","page_number":91,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"1316ff46-3f8b-4cf3-b1f8-d4d6283d3b7d","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":91,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"47e48c85-ea1c-4f8d-b284-104102671c8e","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":91,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"d4a4ab88-5c8d-4fd0-a746-7870fa27f1d8","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":91,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"fadd7b55-7604-4ccb-810a-4e50fbe72b8b","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":91,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"ff43092b-1a6f-4699-b539-eeb1f9980d98","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":91,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"d628ba79-08de-44c3-9c84-259deab305cf","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":91,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"90e2abbc-07ad-4094-b3b7-717e83667fd2","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":91,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"f698a02b-9be8-4a4b-aa66-caea9d099447","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":91,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"e6764240-1d0d-4b3e-80db-f2c411d48a97","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":91,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"63672af3-ac4b-4513-b3d8-75f9a59513dc","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":91,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"4ba98790-9619-454b-a47d-4b27ad05a9b3","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":91,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"23631b10-c5a0-4ce6-bb85-cd42e8bb2fea","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":91,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"f4b0d5f9-4d4c-4646-8ddd-3e3bcc2ad641","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":91,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"c0c1583b-b719-41c1-b966-7595b6ab15ad","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":91,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"68e17839-c194-4b6b-b90c-39398a3e43a0","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":91,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"8eda8f80-ca73-4eb0-9401-3fdf3b913bcd","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":91,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"649f68ec-cd82-4bd9-ba01-fd2e4e03026b","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":91,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"0cdf9b6a-21d3-4c9e-974f-450472e3c7fe","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":91,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"fc807db0-23d8-4215-b2b6-ab99d587247e","block_type":"box","text":"II-62","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2b576788-dbaa-48ba-a906-2ce4121b486e","block_type":"box","text":"NM0926U-5977658-91/228","page_number":91,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a664f9a5-cc45-4077-a624-8c2b37d9b322","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":92,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"bc977aa3-b13b-4825-8a49-e4045bf49905","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":92,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"12887071-9064-450d-ac82-bbbf52f03a3d","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":92,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"f0c1c0d8-2997-46c2-9a20-22888be274a4","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":92,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"ccbd3fa9-fc60-4227-8de1-7926673ab5d4","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":92,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"2f214ac0-e3f9-42a2-924d-d3228e40e961","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":92,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"93d4a1d6-d2ef-4bb6-af9d-82d3b54c961e","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":92,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"9508987a-f792-4762-9019-6ea513dab4d3","block_type":"box","text":"their face value to the sponsor (","page_number":92,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"a1e81ed9-4943-49fd-8507-35006c9b3d62","block_type":"box","text":"e.g.","page_number":92,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"15e51acc-401f-41fd-901d-9c68a941a0b2","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":92,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"f7a05ae7-4ed0-47a7-8e85-7662711212bb","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":92,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"02894a11-1f78-4c35-83d2-df893faeacd2","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":92,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"861874b3-8a93-4b0c-a5b5-cfac2f27cd21","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":92,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"26467512-1ce5-4b51-a501-7a5be94ff1b9","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":92,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"6f924c9b-b9e3-49b2-86c7-5ed51b54e36a","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":92,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"46ec4d83-e838-43d6-882e-1f0716a566df","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":92,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"9bcc9568-c3b0-4cd9-9595-250c8132bc20","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":92,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"e9e5c557-da9f-465b-9642-74cd588abf80","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":92,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"296a34d3-58c0-4f59-be5c-ed37893bf1db","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":92,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"0a91b082-9db0-43f0-b4e9-2f9b4cf16daf","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":92,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"56f76e8d-625b-4694-9d5c-0e5226f3a627","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":92,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"3a1037fb-29e1-470e-b46a-4861e9e09faa","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":92,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"a34e7a90-a7f4-45bd-a483-fc5b8d09db05","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":92,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"64af156f-e031-4a04-9bff-e6b1ee769df1","block_type":"box","text":"such opinions.","page_number":92,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"206c3792-7382-4a23-8987-72c1a2d8a1ba","block_type":"box","text":"Operational and Technology Risks.","page_number":92,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"553e2b4d-53ed-4f80-832b-72eab3408326","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":92,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"a6dfae10-eb44-4608-99b0-717ebf46c976","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":92,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"4706adea-6b7d-4873-9b10-e83e3667cb2b","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":92,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"7c7dd9a9-c433-4833-b112-bab144aacfe7","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":92,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"de1784b2-b93d-46d9-af2b-d37235997e32","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":92,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"e74f7a09-86dd-4f12-818f-8a112bf0533b","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":92,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"90de4166-86a5-4cec-b8cc-0d25969c7781","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":92,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"79534a9a-9deb-41f0-a555-6cc0d37ee50a","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":92,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"91e46fd1-164d-4c5d-9e81-d6694a778568","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":92,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"1c914b08-d6fe-4747-a5cd-e532397e100c","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":92,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"98fab36e-404d-4464-87f0-9057f13c5bb1","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":92,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"182b3d81-46ee-44d9-9ba1-5876f821ac98","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":92,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"72dd3cc4-3911-400b-8307-97326c2a0f67","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":92,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"5cea469f-1943-422a-bd41-398fca6773b5","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":92,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"dfd6c8c1-09ce-452f-a82d-8de86ddc558d","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":92,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"81e99d2d-ef4a-4983-93b6-73ebc8840144","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":92,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"5bf5d8bc-022a-4a35-b91c-9cb1fb275d4f","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":92,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"015c118a-ceee-40bc-981c-9444532f0bf4","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":92,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"3d4cee2b-207f-4930-9d8f-e4e1e4a35926","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":92,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"a469ea31-25e2-4c01-b651-1e8bd6ad88e8","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":92,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"6a6fb9cf-0468-4687-a5eb-3e659784bd42","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":92,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"1ad84bac-ecee-4cd6-a967-8eb01df2e01b","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":92,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"0b3d4f17-0bad-4a40-b017-f781e3d2bf04","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":92,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"ff759f78-cb87-447f-8c60-91d1b100d052","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":92,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"0b57bae7-c688-4543-93d4-14af068235ab","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":92,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"dcd9857f-3781-43d1-a797-a31ec2a84687","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":92,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"48317d37-a5b6-487d-aa22-a15bc00dd156","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":92,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"8e3d7978-9c22-436f-ad07-64f8e9c0469d","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":92,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"8aedb8b9-c382-46fc-996c-a500ca555e5c","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":92,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"f8d84088-8bb0-4bbd-85ac-dabd98fb48bd","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":92,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"6ba0c514-af4f-4501-bc0f-119341759bbc","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":92,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"e4b16722-400e-4a8f-b97c-78c01c09b860","block_type":"box","text":"infrastructure assets.","page_number":92,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"c1d95795-8866-4295-baaf-e7b4712e90ef","block_type":"box","text":"II-63","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"42ebe67d-11ce-4c9e-bf27-e45cec365238","block_type":"box","text":"NM0926U-5977658-92/228","page_number":92,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a4657abc-57f6-4db4-9e24-8408ae321618","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":93,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"c2204c61-3bf4-4fc4-a83f-4fb885f94c76","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":93,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"4f8d6223-2a3f-4aa1-85f2-32008eab092b","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":93,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"eba8b08a-e3e1-4ec1-af40-e3a9beaf0849","block_type":"box","text":"or services.","page_number":93,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"77956e4c-7d7c-4cf5-bc96-ce889a8346a3","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":93,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"2afa5f74-c493-45eb-a7f8-d5c6faae7e66","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":93,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"2c2de44e-6596-4b6a-b8f5-66edad1f6178","block_type":"box","text":"other third-party AI technology applications and users.","page_number":93,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"065361e4-e22a-471a-85f4-db71c347faed","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":93,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"600ae7a6-718d-425e-9b5a-410e6cce4a11","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":93,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"ad3083c9-7b46-4115-8c4d-2875a22e937a","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":93,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"43a946da-1f1b-4db3-8665-410c683e3d21","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":93,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"87e0a738-480c-4225-8f2f-a8cb2f3a3053","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":93,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"b3bc7849-f139-4666-9cec-e0bd3661b5b3","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":93,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"f75fb4e6-e518-402b-8a34-d4b7a4f62b00","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":93,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"d54c084f-714b-4212-b035-67e5c23ecca0","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":93,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"e3e289c2-9339-4ea4-b204-44877916532c","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":93,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"f8df121c-0118-4936-93b0-5b87416e4910","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":93,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"ce20d1d1-a1c6-4c08-b792-f5221c5c663b","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":93,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"1a8d094b-ba6d-47fd-95f8-b6a2c4b12fa4","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":93,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"7e4f0023-d004-401d-97bc-43da9bfa7f2d","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":93,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"03eb21bc-f865-4fc6-a65d-60928ac81af0","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":93,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"73c5e5ca-312c-48f2-8f2a-1ef320237d43","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":93,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"7e93879e-4dd2-4fab-8d1f-939036997a91","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":93,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"23e453b4-6714-4f96-b28e-309a88ccd019","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":93,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"1120593a-1cc8-4efb-9353-633a63a357a9","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":93,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"6a406b14-a052-43ee-856b-e0165df67534","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":93,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"3a0b7838-0580-4b5c-9e48-70d655c4f0ec","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":93,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"745e5390-877d-45c7-af77-7e95d876e321","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":93,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"6cc39809-c575-46ba-bc57-c8308a1cff8b","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":93,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"e83acf89-3713-46a9-98e8-ed6537ec2306","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":93,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"555d899b-2a03-4197-82aa-17b1692ec773","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":93,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"a9863f0b-d5db-4819-baf6-beb9658fb20e","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":93,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"0d29fc28-fbdc-4484-b61f-aa91ff2741a6","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":93,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"69065457-fa8c-4921-baf0-9f12958cfd01","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":93,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"a3e934ef-d6c1-404a-be55-444b2ed67ea2","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":93,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"0f1b1bfc-37dd-4223-bd3e-375438579883","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":93,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"680ab864-d1fd-4551-81f1-e55201dfd687","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":93,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"0386b156-9ea8-49d3-9e02-73afdbc205f6","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":93,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"b4728f13-0d58-4b74-a3fa-193e1b18f2fe","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":93,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"a431a88f-67d0-4445-a90b-d28c0cd5b353","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":93,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"d25e9231-0a60-436a-b43b-1af4d90134ad","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":93,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"7fb6bd4f-28dc-4ae6-8b3b-5fde69c0ca76","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":93,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"074c0b3f-6c42-456c-a9cf-78b8029fa733","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":93,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"957cbcdb-a8ef-4c72-90c6-33a821a7ca03","block_type":"box","text":"resources to monitor and implement required changes.","page_number":93,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"6d19d483-d68e-496a-93c4-209b2993624d","block_type":"box","text":"Participation Notes.","page_number":93,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"e1c62977-4f73-486b-9da7-33d2bf805851","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":93,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"5094a508-b39f-4b9a-a89a-844c07e85c7c","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":93,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"fab8d356-94ec-477e-921a-45b662313f24","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":93,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"4339da9a-e4cd-44e8-91e5-dba42165aa9f","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":93,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"3f5f4ff8-535d-4e34-94bb-bb5ebf8a1515","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":93,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"624467ff-db2f-4ff5-9170-a78adc35dfa8","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":93,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"e82eb388-f09b-49ba-87aa-39072485ea4b","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":93,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"b02eefc2-b98c-4400-baa0-d818ff359da8","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":93,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"86c42781-137e-4fa3-9323-c7002a45f2ba","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However, each","page_number":93,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"0986035a-3ee6-45ad-892e-f4c8821b804d","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":93,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"ccd91862-cd30-4328-9249-7ad7208827ad","block_type":"box","text":"II-64","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"54ecdb62-be14-406b-82a6-327384f305f6","block_type":"box","text":"NM0926U-5977658-93/228","page_number":93,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"0e3c6cb3-9916-4a18-8147-1065c41c97a9","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":94,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"b87bb34a-0116-4ce1-ad98-290ec594475b","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":94,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"c2c06156-8324-473b-babb-86a758126656","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":94,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"2f10d3da-3fe9-4194-9660-11f804722e1d","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":94,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"00252887-3e53-4bc9-a1eb-2a0068185eca","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":94,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"7bab2163-70d9-4f9c-bb28-685900735e43","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":94,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"554c63ef-2023-4924-80da-0223399d1980","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":94,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"625ebbeb-9452-40fc-96eb-01e1ae7e736b","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":94,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"5bede9bc-39e6-4384-8cc9-e76a1a62d9f6","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":94,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"56afd2b3-d468-45ee-b140-1cb022ccf1bd","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":94,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"1ce00a9d-c7e3-405c-b7f5-4813e9496282","block_type":"box","text":"Portfolio Turnover Rates.","page_number":94,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"283391a3-c127-472f-b0cd-e4f7af9d9c2b","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":94,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"c00a22f5-608b-4c97-be1c-f3f65462a81e","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":94,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"4a78b4ad-93b6-4bb3-a3cd-79ed02d55d44","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":94,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"c9aa8add-f64d-4166-805a-702d944b8cf7","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":94,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"9bd007e3-bc0e-4991-8774-db9d979a7d67","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":94,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"f2261729-c198-4e04-a8fc-355fb3c510f0","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":94,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"48cbc491-aa78-4d05-9473-97e14542d733","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":94,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"cdb9bac7-4a54-4410-94ef-e6fcf6c92297","block_type":"box","text":"i.e.","page_number":94,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"e8a5286f-62c7-424c-a3c6-ab7b3c434201","block_type":"box","text":", 100% or more) may result in","page_number":94,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"04241263-1132-4d51-82ff-99db9ebd65a3","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":94,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"f96bfa54-6c49-4d8f-b0ef-2b151e8d3aae","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":94,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"df4f7ce5-b347-4c9b-a2bb-1397a2327bab","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":94,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"36bcffc1-da92-4eb7-aadd-ec3bc6f1b238","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":94,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"a7bbbe78-864e-4079-82d1-910716e95cf8","block_type":"box","text":"Preferred Stock.","page_number":94,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"9d193fd9-5dbe-41dd-bdbc-cb45a264e1f7","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":94,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"7cc065d1-74b4-4660-9651-1e71c2713e50","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":94,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"06f1e8c0-de82-4521-881b-fd980d351e23","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":94,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"0596070f-2d7f-4286-936d-7706df771697","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":94,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"8f2bf610-a745-42cb-87b8-f382c994fd51","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":94,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"660c6123-464e-4b1b-a91a-4e19ac9adf47","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":94,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"8b7a19b7-3db7-4f5e-8407-0a0930c0088c","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":94,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"82b06642-7f9f-4ffd-abbf-a7228ec7104e","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":94,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"d5a760dc-2537-465d-932e-f9df21d1dbac","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":94,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"6b2fbfd3-2280-4848-b106-48fbbfe273c2","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":94,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"53418da8-017d-44eb-8118-d0ecf2fdfedc","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":94,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"665a96e7-525e-48f1-9293-b12fafae72ec","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":94,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"e0ea067f-6022-4023-8a1e-a2081f07f6aa","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":94,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"1c92857b-e296-42d9-b4c3-c96a2fe3a5c8","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":94,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"5d7f6424-96f8-417f-8e4a-5a2707708fc1","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":94,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"0ad8e01a-4e73-40b7-b087-baa9f3f4d0a0","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":94,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"1531b2bd-42d1-47a3-99be-81e595e936d5","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":94,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"0b6126db-20e6-436a-a620-595000e07c38","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":94,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"48675f6f-1906-45b9-bf5e-a989aa0afcb4","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":94,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"a57c1c70-d8d1-416e-8d4d-c4df458b23cd","block_type":"box","text":"Trust Preferred Securities.","page_number":94,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"7a4b2c7b-aa3c-4f2e-a544-44be82e97f62","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":94,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"dd445e49-7a8b-4e0f-afe9-c54a0ef447ea","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":94,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"41b5bf81-afb0-4259-8d95-7cd53f167c82","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":94,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"2c4ac39a-c1ef-4221-9147-aa70ff42e2fd","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":94,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"3efc0c04-da2f-429d-867d-1a6070754ec6","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":94,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"8bf8061e-6ba1-4d00-9b80-19f7aa13f705","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":94,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"03b3624f-f222-42cf-a291-c6411639dbdc","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":94,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"257bbac7-c30f-48f9-80ea-f06b65668d44","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":94,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"0a1fef0f-16ee-4657-8cab-490a6a539ccf","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":94,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"02138bc7-26b4-440a-9d7b-737e18ac8b7d","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":94,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"aeede9e1-643b-4ce9-b78d-0c9932b5a386","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":94,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"ebc7a838-bcd8-49c2-84ef-45743b5ec52b","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":94,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"9fdbaf5b-4ef5-4bac-8da3-ed8fe6c7b750","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":94,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"c39002ba-bcb5-4a9e-8fe4-d72569036ce6","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":94,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"7ce337b5-a645-4dc4-8a42-4664963f4bc8","block_type":"box","text":"®","page_number":94,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"0dc6e8f0-523f-4d38-9d38-483d7c20751b","block_type":"box","text":"”); monthly","page_number":94,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"6bd6ac47-12fd-4e1b-87ea-e67823d77d8a","block_type":"box","text":"income preferred securities (“MIPS","page_number":94,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"6b53d4f2-f495-4acf-b6e3-944a17647626","block_type":"box","text":"®","page_number":94,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"8a2476c3-9e28-48c5-a11a-c301cbe8950f","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":94,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"75e8de9d-2a91-4b87-b6e0-07ed0a9e766b","block_type":"box","text":"®","page_number":94,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"fdac3b4e-ffd8-40f3-a3db-70304d564874","block_type":"box","text":"” ); quarterly income debt securities","page_number":94,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"9c2c849a-ee95-4742-8bd6-8a333c2a9b2a","block_type":"box","text":"II-65","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"024bce21-8e93-4183-880c-3a47d729b8b7","block_type":"box","text":"NM0926U-5977658-94/228","page_number":94,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"a3b8f95f-781d-4907-a7b9-dc18d0df78ff","block_type":"box","text":"(“QUIDS","page_number":95,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"d6a575f5-8477-4e93-938a-bef2d3385720","block_type":"box","text":"®","page_number":95,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"2033d5af-fe8c-4c23-9bac-46be17a8c0ce","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":95,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"2dad75cf-eda1-4610-b32e-ca3728f88260","block_type":"box","text":"SM","page_number":95,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"71f5a40f-3aee-44ab-a48b-b630f3c27993","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":95,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"99f5a506-459b-433b-906a-b4236bbbb07d","block_type":"box","text":"®","page_number":95,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"855fe8de-7b3d-4154-8d34-69b105d70f80","block_type":"box","text":"”); public income","page_number":95,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"9a8e5ea8-9286-4067-b037-3fa22ef01752","block_type":"box","text":"notes (“PINES","page_number":95,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"84adf9c3-cdca-4b39-93d9-eecddc1c68d9","block_type":"box","text":"®","page_number":95,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"b62a266a-32d7-4f99-93c4-b8c87e0a57ea","block_type":"box","text":"”); and other trust preferred securities.","page_number":95,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"186bed7a-1869-44aa-bd4a-97a0dd7fcc98","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":95,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"77d1b000-8c7f-4d32-b365-7decd80e4121","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":95,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"e11ab1ef-5541-4570-8602-15b35ceef565","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":95,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"160daf60-4afd-4cca-b84b-37db9e488dc8","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":95,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"4fbf75dc-1450-45d6-be37-5dd176c9c215","block_type":"box","text":"regard to whether all payments have been paid.","page_number":95,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"bf016d71-4bf0-4478-85bf-ceda4fcfc29f","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":95,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"9d90e5bd-e16c-4b80-a43c-855bb9d3695d","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":95,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"74f26d0b-2c6a-439f-8ba0-d64e59b02e21","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":95,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"a5f606d4-6fbc-4cd1-8781-b213bf381779","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":95,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"0f737a4d-5bec-417c-915d-895eaa4a109f","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":95,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"874064f2-7678-421d-be7b-cde44c63e30f","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":95,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"06a6f5b9-0ca9-4945-a392-e229ce686e29","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":95,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"463ea462-0f65-42d8-9b6f-b6791a71496e","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":95,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"de9d510a-f914-4c71-97ff-8377cc956da9","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":95,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"ee9e5f9e-4295-4dae-8104-ed838718040c","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":95,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"6fac8c4a-f076-4c86-8538-2cc771a212e1","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":95,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"13d826bf-681c-4013-bc9b-0633dce336dd","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":95,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"171f080f-0bac-4b00-a090-ebb0d212dd5b","block_type":"box","text":"debt securities.","page_number":95,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"567193af-6024-44c1-9407-aa023211ae3c","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":95,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"b761b2ca-8e87-45f3-b6ef-2ce8c0af168b","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":95,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"5b4688e2-29a6-4530-a370-c6ace81ce8aa","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":95,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"f6373854-c216-44cc-98e9-ebddb8443300","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":95,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"fda2f40d-a8d9-4f7e-81be-713b60704cb7","block_type":"box","text":"geographic areas or in specific property types,","page_number":95,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"b9af00b0-6773-4281-b828-8378eab62c1e","block_type":"box","text":"i.e.","page_number":95,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"58d9fc40-e6ef-4414-a5ab-17e1f120d496","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":95,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"86d451e5-2bb3-4efd-a7cd-3f77ed9b517e","block_type":"box","text":"buildings.","page_number":95,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"c56d3c87-37e0-4579-b376-d3da63820a2e","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":95,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"28d2a4b5-4188-47d8-aa95-e9817c88244a","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":95,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"4f7c8ebe-e7ac-4673-bc07-0ca932e5f359","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":95,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"819ea422-f49c-42a6-884a-51b0e355c495","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":95,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"316dbe53-a1fe-416e-89c3-a560a36e7437","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":95,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"37daefce-fd2d-498f-a6dc-c56885ed76df","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":95,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"90324c75-a09f-4d68-b55c-fe8ecbfc4fa3","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":95,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"681a5bdc-2d68-4ba2-ace7-253a5d8c1b5d","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":95,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"7ce3c143-24c6-4cc6-8701-e2c51900bbc6","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":95,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"252784f0-af7b-4fbb-80ec-2e5fd93591c0","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":95,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"1bcac75c-11f3-4fe9-969f-b656791831f6","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":95,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"2c0ba504-a01a-4df4-83d8-01a7bf8e55bd","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":95,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"693971b2-87a8-4fc4-8bf8-7d31661452ea","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":95,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"9a756e64-7662-400b-a33b-528f874c59a5","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":95,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"84825179-6917-4866-9282-0e84874f1736","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":95,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"cc81828f-bc54-43ed-9a12-22bca7582f52","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":95,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"d8308688-4fa3-4e52-ab70-53280ad72b3a","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":95,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"ccfc9c05-c241-49ef-9129-535d9d4c7e36","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":95,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"c031a65f-49cc-49bc-90bf-526a398b1852","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":95,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"e902e739-12fd-40ff-a3f7-300d60a5f991","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":95,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"97915003-d34b-4939-bf74-6ae6ee1fc675","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":95,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"24719104-680c-4f7a-89be-111a97479b59","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":95,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"c3b2674e-a106-4f0f-a14e-7c79f890ab84","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":95,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"4fe1cce6-d973-46fb-8a1f-d8baa835bb8a","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":95,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"7f73c1f3-185e-4a8a-89c4-68769763a64e","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":95,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"eb38cdee-2a6b-42ed-a0d8-ba5c6f952bb1","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":95,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"5c6ff28e-7343-43e8-898b-ef75ae2a3a07","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":95,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"31311052-214a-4d4d-9f92-76092c579d56","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":95,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"bb2c7984-6d26-4b0b-8d7e-29689e3ac630","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":95,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"003f01dd-af76-4d11-ab4f-b6eea221b423","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":95,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"766e7728-6799-423b-8bb8-3bb545d373cd","block_type":"box","text":"II-66","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7af4c0a4-a627-49f9-a425-0a9949ef5157","block_type":"box","text":"NM0926U-5977658-95/228","page_number":95,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"702c1eee-6b2e-4a1d-82cf-c7a716c22ce9","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":96,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"6952cf7b-c9bf-486c-9e3e-2f3d2df5a828","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":96,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"ed7ddc7f-2f93-49fd-b91c-7be1c1cf8c98","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":96,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"95a290d4-24d8-4321-8349-2a3d7b2880f2","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":96,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"ebb86338-30b8-4356-a10a-a4f0691764ff","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":96,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"5f3bbb38-80e7-4b6c-8f6b-c6aeabdee20a","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":96,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"8b10389f-de02-403e-a6c9-fcf17b9f14aa","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":96,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"7fbeac9c-0ac5-4cd6-8312-5fa978d1cee5","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":96,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"3179e408-7a47-4887-bcf9-bbef6dbc1353","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":96,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"1628fe9e-9cb0-4162-90b9-939bd3fd05b1","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":96,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"4cf3bed7-525c-4c97-aff1-bddeccebad64","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":96,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"128716a8-2217-43c8-8dbb-065f2e88f91f","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":96,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"5066f25a-d45c-4ec7-8444-160e90917dd8","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":96,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"7c426687-ab63-4523-b9f0-7acc20dfecac","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":96,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"2b8e7ff2-740a-44e5-9e17-16965d854757","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":96,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"55a18f40-3ff7-45e9-9e22-4d7396e48312","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":96,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"bc484413-b121-4185-b38a-876e98fcb7a2","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":96,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"01c27c76-2a76-422d-a081-2b22244851ff","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":96,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"8beddd9b-bfe7-4a07-8bae-e8829d294cf8","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":96,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"74e5653b-c2cb-44b8-bd72-85e72995c031","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":96,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"5179e3a4-ee18-4829-b1fa-ac770cfaad75","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":96,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"f7ebd5fd-5c13-4500-999b-11dbfdd1856b","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":96,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"a777667a-5230-48ca-9b24-3acd502bc596","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":96,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"81fab3b0-df9a-430f-b359-57df16b683b0","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":96,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"a2a99687-9a53-486b-840a-14199ef07025","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":96,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"e272e819-89ce-4c43-bcc4-302bed3d0e3a","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":96,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"4f8f10f6-fcef-4c4b-8e92-1c624d264158","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":96,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"bc3ea313-3e67-4e2d-a21a-2e83373f713d","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":96,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"4d77143c-e8ed-416f-a637-ef69a83e4525","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":96,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"6f9444b8-8b79-4e79-989c-44ff19106bd6","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":96,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"3ed01502-a27a-4d41-8764-aab51125e03d","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":96,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"ea98d40d-ee09-4111-9046-7996b615df4a","block_type":"box","text":"conditions.","page_number":96,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"829c94fb-ef4e-40a7-8056-a301383f44ec","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":96,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"b78eb0ba-8321-4369-9f65-0807c4d83d3d","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":96,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"90285974-3446-4844-b54c-0ed047f3b70a","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":96,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"915064bd-85b2-45d7-a94d-9f7e2e1bd4e1","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":96,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"9d284d16-04f3-4593-b605-0cdc94baad7c","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":96,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"5187fd7a-3f7a-4038-872f-37d6c39fed58","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":96,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"664fb650-7795-40c5-9be1-349434038c2b","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":96,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"235d7da4-c032-4ccc-80df-a63204d34f73","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":96,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"c765029f-05dc-4e53-93f2-b87c6dfc9d3e","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":96,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"5eb744d4-9c25-4b6b-a130-422338b864b3","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":96,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"99d9ca94-a4c3-4be6-8e0d-1b7fda04bf53","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":96,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"b5a40e3e-7cd3-4a0d-b0ee-13bd7b3f2592","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":96,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"f7a444be-52f3-4c7f-b3fe-8ebee48042bb","block_type":"box","text":"affected by such events.","page_number":96,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"e62b213d-d391-4d5d-8c8d-16c211bac4fe","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":96,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"b54addc5-7f6f-4e71-815f-665cefc5e28e","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":96,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"0bccf31d-4b67-46cc-84d7-73049e4a6fcd","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":96,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"892b8425-8eef-4727-8eab-201d5145cdbb","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":96,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"0951db3a-bf86-4d02-abf9-fa2fa9e6b7ad","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":96,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"be5db61a-67c0-42f8-be9b-f34a03a80325","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":96,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"16b00d4b-d75b-4a00-846d-cc56d5bb4bfb","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":96,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"ffde8b80-3841-4338-9aae-0db395fdfc99","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":96,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"e551b9fa-46d2-4cdd-b84c-423a7a5f352f","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":96,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"d1ff1f26-0d22-434a-b4c6-f17cb2c474fb","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":96,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"935bdc01-e194-4b81-9054-be5257d525ca","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":96,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"a8899c38-ef87-41fa-b233-ce39afb0261f","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":96,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"2b1ddb1d-7d48-4316-9dcc-e6aa05fbbe8c","block_type":"box","text":"II-67","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"85c0be9d-1a08-497a-adc3-c4bf04f18b5d","block_type":"box","text":"NM0926U-5977658-96/228","page_number":96,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"53f5ba16-30a9-4811-b5f2-bf49286220a9","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":97,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"302af3a0-527c-422d-9e6e-ce5ab1c98f5e","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":97,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"8429a6d9-54ae-42f8-8c8c-a7d1b2368ad1","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":97,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"31f8298e-49e3-47f8-b2f3-94751eca292f","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":97,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"86a67e2f-abb6-4fb5-9cba-428f6f0817b7","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":97,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"9ffe55ae-adf9-47fd-a5c7-676032b2482c","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":97,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"93e5bf34-cc45-46cb-900c-26d005b14215","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":97,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"a0b53dc0-6f66-4fb5-b9a6-a3dbd38297a7","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":97,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"32aa46d6-860d-40e8-a709-d9ac2a11bc99","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":97,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"476da454-af7e-4553-8b57-96a24ef34fd6","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":97,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"7c698619-d2c0-46a1-a20e-8987b64fcece","block_type":"box","text":"investments.","page_number":97,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"53f57387-abe5-400b-9e50-b0ac6a1ed501","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":97,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"352ce01d-e366-4d04-9b9e-1967f7ce8478","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":97,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"c54047fb-b6f3-4b79-b92f-8c64adef3e82","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":97,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"ba5a7f9d-8339-4ccd-a0b4-d884bae8e970","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":97,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"8eb3b32b-c4af-4b8b-9200-78b0b00bed22","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":97,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"0d12d712-963a-4912-9577-e3ef476d3e3d","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":97,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"41a16855-c0bb-45a5-81f5-bb63ab075682","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":97,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"2300c2a7-f1a2-49b2-b524-8b45f18f20a9","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":97,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"fd08f88e-6902-403f-b622-76e7021880da","block_type":"box","text":"Legal and Regulatory Risks.","page_number":97,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"1da7c753-924c-412d-a052-b2e765ea1a8f","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":97,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"6c432677-2cb3-4521-9e7d-55fb3e0de09f","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":97,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"99dc5130-19c4-45c4-a3fb-0544c8338584","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":97,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"c3dee065-db8e-4428-9691-732c0bab0edc","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":97,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"5c4999ad-9a31-4515-86bd-3db49d2d144b","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":97,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"4a2f5104-0b36-4b74-8c6d-5eabf3c14495","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":97,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"eb622085-078e-4a41-987e-947653bfe96b","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":97,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"abf3d31e-bcc5-4287-86ab-c92de00ef5b1","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":97,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"44dfde75-f6fb-4b89-832b-571df3b1fe3f","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":97,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"11ce9d30-fb29-4b0c-87e5-ee58bc64557e","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":97,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"ea192475-3b05-4576-9206-a935a30d6369","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":97,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"66dc4d3f-be88-443d-85a3-609ec79088b8","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":97,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"31c5291a-b981-4c9f-8f27-31103f3ccaa7","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":97,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"5465f3cd-df23-4da2-8e6e-62a9d384fea8","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":97,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"927165f8-c9a9-46c4-ab28-17988a5b1bc4","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":97,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"c7806a9a-7b35-4c42-9287-b5eb39b94e55","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":97,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"c300021c-a63a-4dc1-a463-e09c976c45cd","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":97,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"769c24d3-3a34-41e4-8034-5460c50b57a8","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":97,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"1ec5f848-3c02-47a7-8080-11a7ff267fe1","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":97,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"15485d23-0a00-4622-8de0-6a8b033e4e61","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":97,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"a27f85be-cf6e-44b8-859c-4f744c8bc16a","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":97,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"b8e1f4fa-5a21-4273-8865-fc2cbd62aeb0","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":97,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"89ec0f71-e399-498a-aaa3-6466bcc9be91","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":97,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"74d2f9e6-768c-4e12-9b46-b4a7e73ad466","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":97,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"91993535-9cb3-420a-b398-ab0f834405a9","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":97,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"35e963e5-e398-47e8-a219-d1be5e1c7ba7","block_type":"box","text":"Geographic Risks","page_number":97,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"7e0564a4-72be-4f35-8d8b-c6b009e7aa7e","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":97,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"0790d58a-6e32-42cd-9b7d-606d1f2ea14d","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":97,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"1d59772b-8233-4e0b-869f-29825f137a63","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":97,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"c2f670c5-9ae3-4c47-96e6-f4645b8e0cb1","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":97,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"53106163-163d-4b27-bfc8-cebbaad1fed9","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":97,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"29acd42e-8851-4ad3-b764-e47b9e10c9cd","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":97,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"daa9e10d-7915-43b1-b897-bdfbfb249ec0","block_type":"box","text":"Fund.","page_number":97,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"e0d84d13-f87a-4d03-b249-db24e7b44fc7","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":97,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"bb154d7e-65a5-4f57-b8f6-3cfe72d50c1d","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":97,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"569e2d67-d856-4d01-8382-f81fe64eaa0d","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":97,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"7181a9a2-64fa-4552-9f01-9c75b7c66eec","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":97,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"3abf78a8-2d73-4e60-ac5d-e8f19bb955f9","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":97,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"2c102f7f-c389-4932-abe1-151c79c24523","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":97,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"6ad0950a-0c98-4ec5-bfc8-e6010252644f","block_type":"box","text":"II-68","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f2ed6b8b-d0e4-48cf-9c0f-20c2a5996e84","block_type":"box","text":"NM0926U-5977658-97/228","page_number":97,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"b660a8c0-bac6-49ca-a061-99be10ae00ba","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":98,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"5e71d542-6592-4e58-bc17-0d977fa3e3f3","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":98,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"49dc1dfd-72a1-41ad-b38a-f3e8476fd0f1","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":98,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"109ae62b-dc66-40d8-852a-f09fb14e48dd","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":98,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"012872ed-692b-4b22-927a-9c22b4953e27","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":98,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"9d3382e6-c859-46dc-82f9-9b26a50a6c32","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":98,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"dd85e55b-a4ec-4fa8-b87a-5cb0b4767b34","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":98,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"d1b83ac4-db1b-40ff-acc4-900c5890f18d","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":98,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"a4b9ada4-f46e-437c-bb56-08ec73e10fc9","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":98,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"e3eea935-325e-4864-9a55-720ca65c4531","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":98,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"b3b48bba-7f03-4afa-afc7-6e1d52ec9604","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":98,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"c2420757-2e59-4234-b6b4-9f382b29440a","block_type":"box","text":"e.g.","page_number":98,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"662c781c-e6a8-4905-a810-230c7554e8e1","block_type":"box","text":", SOFR for","page_number":98,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"7c5f2ff9-76a2-4b43-ac8a-d52d217e6752","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":98,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"2c6791c0-cf62-40ee-9941-333abc10d543","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":98,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"a20dc51a-1f50-4dd6-87bc-b1cb8bbf4730","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":98,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"eecf9063-bf24-4b59-837a-73a6cd82a012","block_type":"box","text":"determined.","page_number":98,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"aa271fa7-fcab-439a-8efa-941c540d4ab5","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":98,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"a6d797c1-63fd-4b7d-bdcf-1f4bd2506584","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":98,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"78e1ce0a-d270-4252-a8d4-ff18f86b2384","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":98,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"f8de0a16-933f-4547-8092-60a1d2420205","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":98,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"90785923-38ba-4e1e-8531-4a2bffd6e1a5","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":98,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"24853b76-ade6-4910-a485-a9d6ac1c900d","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":98,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"ff53cc28-5a37-45cb-af9d-c80f2df1ab96","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":98,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"820e0472-55c8-4c96-97b4-8adfd0d9c992","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":98,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"3014373f-280a-48b7-b409-be48099bfa92","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":98,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"ce162f9c-83e7-4e4d-9ecd-00dcdffb3497","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":98,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"0b8db4b8-f764-4e6e-99fc-1cf234e56171","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":98,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"eb173b06-1f37-452e-a116-e7bf0b62fb2a","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":98,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"ac73370f-df59-4ae2-a3bd-adba4236fe1c","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":98,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"db69ff69-4d6c-4436-9e24-b429af533076","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":98,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"799bc4f0-fe39-47d9-9af6-b8cde4c90afe","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":98,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"a87b02d3-4745-4d25-8701-d5af8121e576","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":98,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"cf96433a-57b5-4874-82fb-4b69c3fa5bf1","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":98,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"40a9e7de-2632-4d2a-ba5a-7a8ffd3de9ed","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":98,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"e10e3d63-4a67-4826-b5d0-7aa0f54c72e1","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":98,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"8e0b550e-2aff-4324-ab7f-55c675c86b71","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":98,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"e4366da4-de41-4ee0-afcc-6ee054505c26","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":98,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"5e5bc37d-43b4-4531-bd8b-51c09181a4e0","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":98,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"62be5701-02c3-4d60-bfc1-dd71a49af60b","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":98,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"59c43285-0634-4db4-a3e7-79676d3ea454","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":98,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"a69443f9-7ae3-4d02-a8a8-6df1e913b0dd","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":98,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"668435e3-ce24-4055-8cb6-4016359c0338","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":98,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"032bc656-d345-4bcb-865a-5c959ba02fc7","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":98,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"97fb7428-2c3e-499d-9fa3-f508b63756bf","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":98,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"3f69e97e-738f-4d57-9114-866f2382cae0","block_type":"box","text":"consequences which cannot be predicted.","page_number":98,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"692cb0f9-b45e-4e9d-8013-ed09abb370a8","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":98,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"c1069ed8-3713-42a6-9457-279729bb07de","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":98,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"d142f3c5-d1cd-4a07-954c-26afef4e320e","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":98,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"3f0e40b2-1dcf-4121-a51d-e7d2012b92e9","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":98,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"622f0076-9b0f-4de7-b65e-e501daac72c2","block_type":"box","text":"term of the agreement.","page_number":98,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"55ada2f7-2d73-492b-914b-18ff0fdde9d3","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":98,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"fcf656c9-ff4b-49db-a204-dfaa52b544e7","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":98,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"715aea2f-df7f-495f-8efe-fcf74ace05c9","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":98,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"a875328d-ba12-4490-90a9-8436981162eb","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":98,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"8c440aeb-d82c-4490-a5dd-700c37b30762","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":98,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"2facd88f-8377-43d4-9f8d-e1ddb11be1a4","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":98,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"2c5e41a6-5fc8-4c67-903b-913d69c72a8c","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":98,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"343f42bd-2ffc-4712-9200-c85a726834ca","block_type":"box","text":"II-69","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"867bac5b-09eb-4736-8665-860e77ddeea5","block_type":"box","text":"NM0926U-5977658-98/228","page_number":98,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"209b3445-7658-4c96-b267-e29b68f58f19","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":99,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"91431d09-d0ac-4b40-a46d-d19a7cafad73","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":99,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"7f3b95f9-20e9-4079-a952-95857297fa38","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":99,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"5ef825a5-6a3f-42e8-9828-9b2f0409c8e5","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":99,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"8af67db8-195b-4a54-b699-b0cda94253cf","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":99,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"deae7dd5-8bf3-402d-b8cd-2b420bc0b682","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":99,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"d102fda7-28ca-4cc7-b656-d1c506e68ac5","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":99,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"16028b9e-bf02-4b42-a193-64cd955c959a","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":99,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"ad7254c8-396d-4a9a-8744-0ad2c12449da","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":99,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"3a1da313-30a8-4273-9b5b-684e6b56ce52","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":99,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"b7bdeb43-f8df-4b79-9158-bf2d4cdcb0cc","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":99,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"713e47e5-306b-403d-b2b6-21d0410728ff","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":99,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"0812178b-f756-4990-8074-c1f76b0f7b2a","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":99,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"8f3540cd-530d-4cad-9739-98098dbaf78f","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":99,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"81669c88-8452-4927-83fa-b79f2847517b","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":99,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"9d1189e7-b792-428a-87cf-a7b7117d07d2","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":99,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"ab95ae21-d5df-455c-b961-d5eb0a3823a1","block_type":"box","text":"or by another authorized securities depository.","page_number":99,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"950393dd-5f24-4aa7-8b0f-486dc00287d9","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":99,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"673da2f8-b2ec-4141-8378-effca8372671","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":99,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"032484a8-044c-4fe2-a244-e533031384ec","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":99,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"a74aac3b-57cb-4b51-9ef8-59f2ac4c5a45","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":99,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"ac2f2ce5-9c60-4f86-9ddb-c342628a835a","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":99,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"f3c9fbd6-1716-4726-b9af-393120e56cfb","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":99,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"2eabe2fb-6da1-4be5-9635-c030ddc15ee8","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":99,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"a310639b-6086-4bb6-b7df-4e89a9d18573","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":99,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"8d2d51a8-adb8-43bf-aead-0466f0a07691","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":99,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"cdf2951a-b109-400b-a0a5-c60bc8db550d","block_type":"box","text":"the repurchase price.","page_number":99,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"07e7f46c-352f-435c-90a5-d9179423cfda","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":99,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"8cf063c8-158a-4d63-92f6-0dd866badd3a","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":99,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"94a4ca75-8541-4adf-b90f-b3c6a055ffe6","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":99,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"e15235c8-267f-4e22-b7e6-421349d94989","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":99,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"c6d02412-6c79-4847-89b1-63cf9fd51b54","block_type":"box","text":"strategies without the repurchase obligation.","page_number":99,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"ab1f691b-bf35-4cc6-8197-9de2462a1c20","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":99,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"93255b40-cd6e-42e1-a5f4-4f23e5e8c0b4","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":99,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"8d5174b3-b9c6-4d00-bb31-646ba286d73f","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":99,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"c8132d1d-5a96-4799-934c-899b99fbc8d3","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":99,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"bcf5b01e-950f-4b26-9060-7b3e411e8e76","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":99,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"4f9fdba4-5f97-406b-a957-ac6fa6c704fb","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":99,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"1c6498f3-e4cc-465c-a89e-d0c542a9cdf1","block_type":"box","text":"i.e.","page_number":99,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"13cda5af-a23a-40f7-9ea9-7c3dac80d42f","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":99,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"40cc1b1c-ff1f-423b-80d1-502798f3428a","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":99,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"9cb9d025-b2e8-45c9-aa7c-b7d6c1ae4b09","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":99,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"b3c511df-506c-48f0-b875-b824d6e2dc45","block_type":"box","text":"and income involved in the transaction.","page_number":99,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"2dd4c53d-b9d1-4d2c-90b9-157a4ddcf550","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":99,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"6165f816-2300-4d49-adc8-8a6a71dca568","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":99,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"386ccdad-b1a8-432c-8109-aece9e24c955","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":99,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"7cdeef3b-34c8-4b7a-89d5-23432afcf120","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":99,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"d6c2d218-bf19-4ce4-839d-0d8e66cc72d5","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":99,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"e3ca871b-0464-4235-a7d2-89475e41ce89","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":99,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"3e8fc6f3-793d-48d6-aaa6-18f58a278ff5","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":99,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"125574ae-2b45-4b2d-9b3d-2c57978db68a","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":99,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"0b31506f-bbda-4a58-87ab-9d8433212bb6","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":99,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"7d3269cc-9abf-4305-a451-efbb15732837","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":99,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"da44c38b-d52d-45fa-bb45-fbe4dc039611","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":99,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"75f95c81-fb78-4e45-bbfe-f24fe6d8204a","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":99,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"b8bd6261-5614-430a-9fb3-1fbc8dd023d8","block_type":"box","text":"Restricted Securities.","page_number":99,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"bdaf2bd8-81d9-430d-997b-1468640976a6","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":99,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"e4e65fc9-a898-4323-a2a2-cda02daebc9f","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":99,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"772a505e-a2fe-42cb-b91d-95ea9c6c99f3","block_type":"box","text":"II-70","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4bfc734d-19e3-4be5-9b9a-32fb6958fe25","block_type":"box","text":"NM0926U-5977658-99/228","page_number":99,"box":{"x":764,"y":970,"width":147,"height":7}},{"id":"3ae85d0c-af6a-48b1-8ecf-b185a9e2f774","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":100,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"d634c592-4126-4ad8-af6d-e3d2334db010","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":100,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"4c20409e-17c2-4df0-a9e0-6b080886dcec","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":100,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"f31333c8-e176-4921-aa9c-94a2485b4050","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":100,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"01cde711-fce7-4aa0-895b-79540bf45568","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":100,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"97412b3f-ba3a-4f6d-8720-421a0516581b","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":100,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"da58b556-9302-4d36-8b3e-6060874289ec","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":100,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"9e942297-44a0-444f-951d-d520a612a238","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":100,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"a3da46d3-ceee-4b61-99ae-9a40a85649fa","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":100,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"0a61f9b5-152a-49fd-b76f-372671067606","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":100,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"54a0a350-d1e1-45ae-8b5b-59fd73fef14c","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":100,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"f59cf39e-9312-46d2-b418-9f1c80b4e471","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":100,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"ee58475b-8ead-40c9-b29c-d5fd2bc9ba40","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":100,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"905a9d5f-ce70-4c39-967f-2f486ef209e0","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":100,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"0edebf1d-ce47-4aed-80ca-66b6abdaecc1","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":100,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"d933320a-1814-4e8c-a64b-2105f837525e","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":100,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"396a58f5-e8d5-4757-aa93-24f5f4db4659","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":100,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"a31f884e-d9d4-42ff-a4f7-22e62cf1de80","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":100,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"8687dc2f-7dad-47e9-9b26-313668580395","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":100,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"db2439a2-8be4-4af8-b457-0b83115b8e90","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":100,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"fae2f675-4c0b-477a-944e-6494f6a8e3f0","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":100,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"804ac4db-6b37-4a64-8b4b-5def76db1034","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":100,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"9c97245f-d345-4b29-9c42-0cf7d2122d79","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":100,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"7d435715-884c-4176-acae-d7d433ab5ba1","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":100,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"00ca4e9e-3911-4828-9836-8257b32aedfc","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":100,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"8548b880-3832-4fb8-af74-915232ee16d4","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":100,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"8b486d31-d876-497e-878b-b251055331c1","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":100,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"ec9ad84f-ee5e-4b3c-9ca0-3eecc849e734","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":100,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"e22b5505-6229-45fd-840e-e0c4ffc70d33","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":100,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"1500ff8f-21b1-4123-bb9e-4b036a937901","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":100,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"f248ffab-ad24-468c-a936-4bb4b765821a","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":100,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"462c5517-9890-42a8-b24b-3e62e0a61e18","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":100,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"b42787ec-f0c3-44df-af22-c983e6012e4d","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":100,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"9182deec-6c6e-456c-aebd-a29b5e1d0664","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":100,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"a3b07de2-ca32-40da-96a8-06599e72232e","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":100,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"f0e69de1-e746-4667-9f38-ac632d60473b","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":100,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"32e617e0-8fea-4c42-a8f4-177db1e1edbf","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":100,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"1c5ffe58-0cda-48ef-89db-053b15977011","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":100,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"af322bd3-e844-4860-bcc3-1f5c2f3aa34f","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":100,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"50475b79-0f8f-44a1-8732-09114c2d1127","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":100,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"09cf012d-0476-4a7b-9cc6-6c2731277064","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":100,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"90995e17-77d9-4482-a373-d5b183a1ff8d","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":100,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"e63e3928-e43b-4a1b-ae3a-7fa52ef510b8","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":100,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"df420a1a-6d50-49e4-b343-921034aea346","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":100,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"d9283a3d-e056-4667-b303-cb55462c00d8","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":100,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"f5451fbb-1a63-4bcd-9fb6-62d5a577200f","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":100,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"d6a7a353-b25a-48a4-8736-dc807961556e","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":100,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"92f157e3-cdf4-404a-8a5e-490f2a5cf695","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":100,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"63184dd0-5c2b-4b92-9de5-7901f72362ff","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":100,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"d18ea66d-31e4-477b-9150-ad652cfdb98c","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":100,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"4e2411c4-78f5-411d-97b8-1c0d4a362df6","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":100,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"7a82cdf6-ae3e-4b1a-8ae6-3b889c228fcf","block_type":"box","text":"especially as that Fund grows in size.","page_number":100,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"0e300263-0553-4b4a-b0a6-f21bc29ee4ad","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":100,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"93486dc1-08c1-4309-8ec7-e314dad2b80a","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":100,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"3c7af5b5-436c-41d7-aed3-928f9cffbfa0","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":100,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"d586d7a1-86b2-459b-aa26-e3351ea70a84","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":100,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"92c0d892-1894-4362-b5cb-112113983c9c","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":100,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"8bda7e60-ac48-48ee-a6bd-47e5f366c61f","block_type":"box","text":"II-71","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"293d31eb-487b-4d46-aac7-88f1c63690f2","block_type":"box","text":"NM0926U-5977658-100/228","page_number":100,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d52cf055-f282-4fa8-a49c-15ebcfae788e","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":101,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"a43874b9-8b38-4909-9d55-8f6ce8d84e02","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":101,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"48ec3e5a-9ef7-47e0-9586-d570cf9e6df8","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":101,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"f458040a-197f-4185-8ae1-77ea9b27ef0b","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":101,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"23ec5dbe-dc6b-494d-a912-611f751ec499","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":101,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"d93af82d-bbbf-4ef5-83f9-a390719daa14","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":101,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"3a31cf91-2d3e-4fec-a5a4-5ee9df7e782e","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":101,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"85804393-cb0c-49e9-9439-7928e1c11de1","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":101,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"77854d83-b8b3-457f-bcfc-97f55e5e91b0","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":101,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"c1bd0882-0726-428b-a6cd-7a7a1b8c31ef","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":101,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"dd983fb8-91a4-466c-93f0-d68d863cb095","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":101,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"29e95e7a-45bf-4324-add5-1180d8093583","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":101,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"1507a8b8-679c-4b45-8eb6-373bc46c69e2","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":101,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"29c59443-8a03-431a-8f02-2d1832258c30","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":101,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"6aee6380-88d2-475b-900f-69571e456498","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":101,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"d51188fd-2f3c-4282-9f7f-7e32c771e529","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":101,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"82dd64cc-b36a-4dc5-b43e-9d91e81bb9ea","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":101,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"00c533b2-aef2-49f5-a25c-3d0bc32611cc","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":101,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"83663d4a-0d8f-4c83-9845-affb0f10e119","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":101,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"a940ba24-700a-446a-bdd6-66ebe6d12467","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":101,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"e7a0f228-fa87-4e7f-8e8c-6ef2b483ea26","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":101,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"52ca2645-4b11-4fc9-9988-a2af655609cc","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":101,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"6e9618fe-baa1-437a-abe7-e65ca21e974e","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":101,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"b268a100-6bc6-41dd-bbfa-91c04b8f36b6","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":101,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"bd3af1ee-d374-4dff-8b82-5007a8cb8b0e","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":101,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"d44c5b2a-e369-4996-9108-755ab1c4aa7d","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":101,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"de64e1b2-572e-4df8-af33-64ea81da969c","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":101,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"c26f647b-2eea-47d8-9733-4a5c019def5c","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":101,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"decf2748-1a86-4e22-bd3a-22636a05104b","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":101,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"0317e9c4-4c0b-4364-ba90-8fcdcc91eee1","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":101,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"122850a7-dfb2-441a-9a40-c89162c82eb3","block_type":"box","text":"similar financing transactions (","page_number":101,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"99378ecb-024f-4eed-97e2-c17e06815a0c","block_type":"box","text":"e.g.","page_number":101,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"80bb8f84-3949-42c4-8217-8f4c876a7ddc","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":101,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"d9dd74d8-1b07-405b-b860-0bb1a5fd7e4f","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":101,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"5649da02-c753-4812-8f0c-345f1092571e","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":101,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"c7b981f3-728c-442b-9bd5-b95a7ac261c2","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":101,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"6e7a9fe3-fc2f-47fe-b5d5-4f4d25c19c26","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":101,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"efcf2710-bcbd-4a02-823a-ca651516b74e","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":101,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"f85f1798-925a-4406-8bcc-009ae7b945ec","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":101,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"4819d019-2cfc-4429-bcff-69a09912a480","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":101,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"9fe29d25-e891-4761-92b9-79cfc47a7042","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":101,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"a07f4831-8ac2-475a-b4cd-e1f398830732","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":101,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"71e2d467-bf57-4f14-bee5-0d3a716e2784","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":101,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"b1952c2a-b442-4c7f-abfa-2a783caf449c","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":101,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"7b9009fb-6f0c-47cd-8f5f-68a2614d4a19","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":101,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"bc593a39-41b2-4325-aea9-1983e2415c62","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":101,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"c027ece8-6441-4d00-a952-ec827d579078","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":101,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"b7e15930-c85a-499a-b639-1e61cfc19b79","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":101,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"3bb3e475-97e6-497e-bdfa-e3d6738db384","block_type":"box","text":"amounts to be received under such agreements.","page_number":101,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"cbcd9a42-7e54-4d7a-9c09-09d2cf1e4834","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":101,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"03ab32cc-fccb-4193-a7b2-d23d77ddc80c","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":101,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"01f7c0ed-e113-423f-a335-99dd2763f64c","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":101,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"f2f0a567-26bf-4838-8c07-67c95634e452","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":101,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"e8b513c3-93ea-4559-97f0-111e213a38a5","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":101,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"3b078920-4ca8-4fc4-a2be-757747f3cfb6","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":101,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"43f24382-11e6-41b5-aff7-74128f3b8b91","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":101,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"2bd1a395-5b86-4764-8ea3-50d3bacf8645","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":101,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"7fc5056f-360c-4180-a729-e94eb87ec7a3","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":101,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"512e424b-cda5-46ab-8b7e-fbf6953b1960","block_type":"box","text":"II-72","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b890b281-1009-4259-a0c4-3bdbfd3485d2","block_type":"box","text":"NM0926U-5977658-101/228","page_number":101,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c9f3842c-69b9-45af-be64-383018bd3847","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":102,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"8899aed2-24ab-4f37-b659-b3967ebb08e0","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":102,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"2a21bb05-a482-43ec-826a-dca256cce788","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":102,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"f080c7e0-a206-4e77-8c36-51228b13f189","block_type":"box","text":"Rule 144A Securities.","page_number":102,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"c7e5c30c-e2c1-4d8a-ae29-39dcda4a58cb","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":102,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"0f0ced51-276c-4c99-a673-2024b3aa1622","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":102,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"4d02181d-2ce2-45f3-b568-5746bc75aa4d","block_type":"box","text":"Securities Lending.","page_number":102,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"e4d35912-5c35-4c1a-89af-79432eae6eb8","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":102,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"a88753f8-7bd5-459d-b457-99619cb23cb1","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":102,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"b583bf42-ee4a-4a8b-a1eb-0cd59d8712be","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":102,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"9aeb2691-4f6a-4aed-91e4-1ce5e040df24","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":102,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"04ccbdbe-7663-47b1-8e59-ddec0bbc8858","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":102,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"7cb92521-9abc-486b-89f8-4775689eea10","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":102,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"784632f0-567a-456f-8528-33ee8b2532b0","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":102,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"5148c3b5-8974-436a-9262-6143c68802aa","block_type":"box","text":"the securities were not on loan.","page_number":102,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"b1afc6ef-0f72-4675-8390-7e8ae0a4d512","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":102,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"1a7d61b4-e158-4c98-bbcd-1c9c06b9079d","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":102,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"92ffe67b-092e-442b-82b5-db7df71b65c1","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":102,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"87b9c51f-9bd4-446f-8ab9-4df6dc1d1c11","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":102,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"ff4e006d-c3f3-42f0-9ea8-60ea37cd2dd1","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":102,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"7de96392-e67d-47e2-bdd6-d4751b7c03fb","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":102,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"cdc2864e-7f0e-4066-8a3d-8e9ae2bf36b2","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":102,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"1e48d943-72bf-45ed-b590-02066355be73","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":102,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"cdbdfd2d-0e5c-48cc-8c49-a2bda5ef4672","block_type":"box","text":"i.e.","page_number":102,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"7f71238b-ff17-44d7-9913-0d73aa2b3bf3","block_type":"box","text":", the risk of losses resulting","page_number":102,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"85ffe8ae-ddb1-4e6c-9c9b-484afd545014","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":102,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"7f3692ef-317e-46ef-a666-37098cade411","block_type":"box","text":"i.e.","page_number":102,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"66f6c8dc-bbbc-469b-973f-f7fd89d62be7","block_type":"box","text":", the risk of a mismatch between the return","page_number":102,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"2c3815f9-b705-46f9-a5af-060f43d22f38","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":102,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"32221cf2-1c49-4d4a-a067-494d09d91a4b","block_type":"box","text":"i.e.","page_number":102,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"5535e163-76bb-41d2-92df-cb026c863756","block_type":"box","text":",","page_number":102,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"fe1e5813-c587-451d-8a0a-487ec1902794","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":102,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"f9702ce0-464b-419f-ab25-48f5a49b2af1","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":102,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"60b4e581-cee7-4093-9678-7878d31adea7","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":102,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"105ff86e-4e4d-4e31-beb8-afda4605aa03","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":102,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"f1e4f383-52f5-4f03-b85e-09b9f449041d","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":102,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"c9cbafd2-dd73-4d27-b2a4-b3ce18905797","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":102,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"d871c7cf-201d-400c-9cdc-d01304105bf1","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":102,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"81da9950-d63c-45ff-a061-895be27c7da9","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":102,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"0decb90c-5479-4448-8a62-404391fcb9d1","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":102,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"a56efcdc-ebf9-4f38-8585-627cd2411c64","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":102,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"a7db6919-2f9f-4679-9b3f-bf8fd561a2c8","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":102,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"5bba3667-9478-4ef3-8823-ebd8795b897e","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":102,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"1df33625-ac79-4b76-b3c4-75b5b0c2884b","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":102,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"ce61caaa-7e84-43c9-87b4-8433238c9567","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":102,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"b679d844-f5ad-45af-a492-b79c7acfeb36","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":102,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"71ecf9be-b033-4ea9-a62f-6dfc36e6c02c","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":102,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"1442bec7-84ef-4816-ac0a-e84da654769f","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":102,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"a92a2d91-141c-4706-84e2-5001e897e234","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":102,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"bbb96186-8361-4175-902e-910a1c1eef76","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":102,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"1ce57956-bf4a-4b21-b85c-1e9de11e5605","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":102,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"068e5e72-4401-403e-bdee-7bd5a0481647","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":102,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"b82bb187-6f45-4839-a8a3-d2a6589ed508","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":102,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"a4336493-9bb8-4dcc-80b7-6f8910504dd8","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":102,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"ecfb0194-7871-4bf1-8756-4a3046d0a1a7","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":102,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"c8e1ae4d-656f-46c0-8092-861c1ff62adc","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":102,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"2eeb6759-f4bc-4c33-a9a2-689fad33df26","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":102,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"9ee1dd1f-cfc2-433c-ae1f-ade999ddb375","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":102,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"a9d4fe13-d404-4bac-b10e-18e1e1852190","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":102,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"c827d695-6390-4c3f-b287-a1c7abbdcf57","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":102,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"a8516d23-af4d-4a2b-8189-68c91df87375","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":102,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"51105ea0-f4af-46c2-a3ad-c940ce072754","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":102,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"319bafc3-a6e5-44e8-b1a5-efc6c7e9736a","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":102,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"e3da695f-2229-4c25-b3fb-85ea67a2b0af","block_type":"box","text":"II-73","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9636a2b2-b2c2-454a-8adc-8f26f0999db1","block_type":"box","text":"NM0926U-5977658-102/228","page_number":102,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7a5617f2-c98c-4b21-80a9-ac797eedacec","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":103,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"37faad91-6c8f-4c96-b9a4-19e42a27cbed","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":103,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"f4f06558-d5e5-484f-8e56-040156e9cbfb","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":103,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"3b07eef1-341d-4a01-bd0c-4f105b94b89c","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":103,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"3a9e71de-bfb3-4ce6-8fa0-e86676508b11","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":103,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"54d89e0d-adcc-41cd-8875-ac9e29878aa9","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":103,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"135e6818-f2c5-4d09-8733-1b77f8b3d575","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":103,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"d39d074d-85e4-408b-bb29-0586e0293d7a","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":103,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"0f6f67e0-67ad-452f-b799-c6fdfc56907e","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":103,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"fd246c06-30b0-4b10-8960-1262df89d895","block_type":"box","text":"the current expected compliance date.","page_number":103,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"a9f0a41b-2abe-4e5c-ab14-a7d31cdd2faa","block_type":"box","text":"Short Sales.","page_number":103,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"88dab101-1a3e-4b79-8cee-fee01a9f3106","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":103,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"bd25e564-483f-4e9c-a254-132674ceca14","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":103,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"91fd6b27-e028-431a-ae25-fc709f2e8f6f","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":103,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"45f26799-2d2a-44f9-9fe9-eb8314557032","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":103,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"2e73b1b4-aa89-4821-89a5-294c19079bbe","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":103,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"c7d57d21-6039-4e55-929e-996cf7d2b72a","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":103,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"378772d9-cda6-4828-814b-489cf74e402e","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":103,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"db35157a-2bc4-417d-8a66-b8f9a569e3b0","block_type":"box","text":"securities to the lender of the securities.","page_number":103,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"54ae83a0-92a0-4338-aa54-d67f506ee4e0","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":103,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"bb4b1839-b072-41f4-8734-f639d93c29a4","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":103,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"c945ded5-3615-4d73-aba3-d4366ecfc85f","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":103,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"30a26d35-84d2-40be-9636-2354978ae0b3","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":103,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"30119ccb-57eb-4a59-8edd-075014913ceb","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":103,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"d9fd341d-8e35-4809-91d3-807478b6304b","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":103,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"9ec20d62-fcfe-48a5-b227-5f22afeb9987","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":103,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"be0b06ca-bee9-427b-ad02-d2ede0e34406","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":103,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"85c3492f-cc58-432e-ab73-483cab9b2f8a","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":103,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"a343ad84-24f9-4ee8-9926-375ca8e13621","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":103,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"ac1ab720-d520-445a-9798-dd050edd20bd","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":103,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"cdf9d224-3925-4dbb-ac1d-ff99e7ffb9eb","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":103,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"66a2432d-3928-47fe-9880-e2a4a20a51d6","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":103,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"b9f38fc6-947c-47b0-b556-270d0bc4ff6a","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":103,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"dee1b364-f87a-43ad-abdc-3bbdf781d764","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":103,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"9d3cfb7a-9173-4ded-b4b6-e1028749d6e9","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":103,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"ab8b04d4-8335-4ebf-b700-52760621df38","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":103,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"c81794f5-b1d2-499a-b8ad-1d258ffe85d0","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":103,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"3e94ef84-f7a7-4ef2-8b5a-fae1ffbdca87","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":103,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"ed0e2f75-8468-4882-915b-a38c1463ba59","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":103,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"0250f7bb-def7-4d3f-8030-bcc20f9e692d","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":103,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"6e8e1897-30f4-4ae5-8e62-da9dca64d6a1","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":103,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"6f008025-cac6-464e-8a4d-29170609532d","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":103,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"b246572d-8cbc-43f8-9413-d674d214b5e2","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":103,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"7b9df62e-2b85-4191-afb2-2d7dda55db3b","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":103,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"33819793-d4a7-4546-906c-b67ba1f95c63","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":103,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"d71f3bf9-6ac7-4b09-8816-19923c30e147","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":103,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"05c9469d-0db4-4d63-95fb-ddd4a5b47e7c","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":103,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"25e239cb-1b55-4e85-9d86-b835045f99b4","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":103,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"ff95b3eb-cbd3-4b66-8e42-7592ababe853","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":103,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"1b2b3237-6256-47b0-ab3c-fe8254af25e5","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":103,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"00f72a54-5776-4390-aa4f-e431abca9363","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":103,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"3cd78252-aadb-4d4d-a0f9-9ae48136185a","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":103,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"4468751c-64cf-4c2c-a653-96f5d855188b","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":103,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"2f0c8124-df90-42d7-b06e-71f905a20827","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":103,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"c4a8f95e-0776-4f2c-930d-74a6d4891573","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":103,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"d18ce447-0c3c-4144-9133-8edc943450b5","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":103,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"e2073e51-7b7e-4125-987e-8f37fa10a0d9","block_type":"box","text":"II-74","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb4f8d60-612e-4592-aac3-be878868f0f4","block_type":"box","text":"NM0926U-5977658-103/228","page_number":103,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bba7cc08-bea5-4010-902c-9f5091265b65","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":104,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"e3c87003-bf65-4c69-b349-824cd1f7752a","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":104,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"c100eb96-ac7a-4433-a6ab-34437d883092","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":104,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"09217684-cddd-4e39-8735-e38aa021296c","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":104,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"b4830526-0237-4523-ae38-a266ed7bf037","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":104,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"65f8516a-e88e-42f7-944f-65b258b5f369","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":104,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"c46eac16-d3a0-4167-b9a9-eb39b2c20322","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":104,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"9c503e27-da1d-40a8-a81d-ff67737d51cc","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":104,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"db52110d-76f0-495b-a091-d969f8735508","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":104,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"138a2c63-8011-4e72-87cc-3791348d03a2","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":104,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"97dc108d-b19a-4690-b4a5-0c40dec19b87","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":104,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"798ad739-e044-47a2-906f-de9d06a5803b","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":104,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"f4266e5c-b914-4ac5-b86a-b62fa870df8b","block_type":"box","text":"Standby Commitment Agreements.","page_number":104,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"b3497ee7-da47-4002-bcff-e8dc1b36431e","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":104,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"cf76a45b-1f6b-4226-b03e-e0c926cab539","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":104,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"58bd567d-5bad-4a09-b8ee-a7ad4bb892a3","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":104,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"30997b06-d189-41b9-b823-9dd53cf2c6e2","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":104,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"02489bc1-489c-4b89-8975-d3569f962ac1","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":104,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"8b1c2c75-eeda-4140-a8a2-129e2c8bb463","block_type":"box","text":"advantageous to the Fund.","page_number":104,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"d7d5cdc3-522b-42ba-934d-ef3df78279f5","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":104,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"0a0b57f1-757e-4a16-bf93-ccafcd76daff","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":104,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"9668052d-0219-4de0-b4ba-bb2f0d3a3d70","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":104,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"1719624d-8950-4d0a-90d5-aba198d032a4","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":104,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"7828626f-441a-49d8-9731-841d78654a57","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":104,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"2697fe74-2aeb-4c52-b7a0-a9729e3b931c","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":104,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"5a606be4-d240-46c9-9025-eb69013960c9","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":104,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"80fe13ec-878b-4aad-b2f8-18ef49891021","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":104,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"021c0c85-18d8-4d25-b7cf-a595c1a7af5e","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":104,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"8acb6872-292d-44f8-9994-c13748ff940d","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":104,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"455d1f32-595f-47aa-9e4b-ecde5a1cfdd1","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":104,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"06c445aa-690d-4686-864d-2175bca3f4fa","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":104,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"ec1a5b05-9202-468e-a986-d28d89053fe1","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":104,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"8daa12a4-8c75-457b-b65f-0eaef20bcff7","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":104,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"c7d7eda6-db1f-4264-87d6-03a533b1a643","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":104,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"0c771737-d099-4fa4-bf53-223d02534d6b","block_type":"box","text":"Stripped Securities.","page_number":104,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"9c122987-0d22-4eb8-9b0a-32ac64a8d562","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":104,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"18f0c53f-f720-4c13-b4c3-0487ce1be309","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":104,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"ce367a39-0931-4d1f-947f-8bc6f47c10fc","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":104,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"56dd8b53-49bd-4f97-b1cb-2d21459a06c3","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":104,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"90320593-48b9-453f-abdc-5ca144748575","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":104,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"cbea618b-03dd-47ca-83fa-1817573db009","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":104,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"e94f43f5-bd35-4af5-862e-d33a120cf00b","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":104,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"58718983-d8dd-4930-a8d7-5092f154d902","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":104,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"5dc8ad53-cddb-414b-9642-e87399bafbe8","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":104,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"0c1b85d3-79fe-45d9-9661-ebca29aeced3","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":104,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"bbed37e7-e82f-4cfa-9a96-d794f6af7384","block_type":"box","text":"Structured Notes.","page_number":104,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"540f6358-d362-4361-8aa1-d656c28f7b3f","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":104,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"636ee0f5-bb9a-4182-8a87-578975ba417c","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":104,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"0c3cd214-8023-40c2-8b70-1ac687097aff","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":104,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"1b44f7c2-5c8e-4ddd-81e3-14ad23042e3f","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":104,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"6035758b-56f4-4721-aea6-c87f83e7cf20","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":104,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"cba9fb92-c1e3-4e33-8de5-38fe84742c98","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":104,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"f2a586e2-bf03-450e-b54b-8d8846250ae7","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":104,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"b260292d-71f0-48b8-85dd-4dd86df662f4","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":104,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"3215d662-0a58-4aa9-8354-c17abcc9a98a","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":104,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"a2a14ffc-6ec9-4fd5-95e0-3302606bf015","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":104,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"30e3b342-a259-432f-9578-7a6d0ee7308e","block_type":"box","text":"II-75","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c0fb8f28-4db8-41e9-a9e5-47013551b927","block_type":"box","text":"NM0926U-5977658-104/228","page_number":104,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a8f5f0ec-e67c-4741-9fdd-2f26925e9c51","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":105,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"424305bc-b91b-4869-b1a9-10a798fe6732","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":105,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d63b0945-345c-4c71-81d7-6ff7e301d979","block_type":"box","text":"the risk of loss.","page_number":105,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"c5761203-f727-4e64-8b84-5fb9cfd10fbb","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":105,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"239a330b-a11b-4925-a832-907fd3e9de90","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":105,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"8e9fd4c9-27df-4804-a006-a0cbb15b0d5b","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":105,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"ca3dc747-d7cf-4e2d-b112-bc1c0b49de6f","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":105,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"d9f6384d-7b93-45da-b254-c1410e89dc00","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":105,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"283cc0b4-158f-402f-af8d-9c9060da9999","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":105,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"0906e10a-dda6-4980-83a9-3b7c6685ca58","block_type":"box","text":"Taxability Risk.","page_number":105,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"b16ce339-454e-4331-921a-0d0c2b946b6e","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":105,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"2ba8a350-2c57-46d3-905e-56fb7ce801be","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":105,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"77364ab3-57e8-4198-9d36-77aad88962d6","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":105,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"78fe894c-a2dc-4a3c-8aa5-4902ff8717a3","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":105,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"2acab994-9bee-40d3-b306-34cf66e0344f","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":105,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"95933d30-bee3-4a08-9008-9efdd1cc0aa1","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":105,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"945f9c34-63f8-4134-821b-c84a1df95a57","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":105,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"5a8ba7c7-fdce-465f-9e46-86cd8803baf4","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":105,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"a833e72e-792c-4c43-90aa-7f30b43e1f75","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":105,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"385dd2c2-0b9f-45fd-87af-cc0b0a2be951","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":105,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"268006e6-b829-462a-a7aa-bcffbd0344aa","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":105,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"d2c6b238-c1fc-41d5-989b-c38ad3908f3f","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":105,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"c2b6e75a-4d15-4ab9-be77-7aeff30ec510","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":105,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"99b71173-5900-44f0-aa3b-4f248db5a57e","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":105,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"34750b1f-e429-4ed3-a54b-6ad430a1f700","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":105,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"8139a138-28ff-49b3-a9bb-2678cfa725f7","block_type":"box","text":"the value of an investment in the Fund.","page_number":105,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"43ece10b-6b9a-4f31-90af-0228b88c469d","block_type":"box","text":"Temporary Defensive Measures.","page_number":105,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"277522c4-5bd9-481a-811e-31310385df1d","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":105,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"fc85d5f7-95a6-4141-ad09-d5666ee81dc8","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":105,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"17b8108a-e4d9-4894-834e-0e1003e83794","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":105,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"7983e31c-ea5d-42e7-91bc-8d97cea341a8","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":105,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"589ff0b6-c246-4a0f-b21f-a38414d81c4c","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":105,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"dff7946c-faed-4328-8651-f8c9a864d231","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":105,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"96417bb4-3de5-4393-b6b9-b871cf1419a3","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":105,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"6c4149d0-5773-486b-a3eb-649a24a3ed5a","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":105,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"b3c2aa83-7254-4de6-bf37-bf63df2ef706","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":105,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"4c49d326-1ec4-4af8-8585-8dedb9fb01c6","block_type":"box","text":"its investment objective.","page_number":105,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"9bd4fd5a-9502-4c2a-a84f-2219bc091c37","block_type":"box","text":"U.S. Government Obligations.","page_number":105,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"0de7b7b0-7985-4be3-ad4d-b3834bee01bf","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":105,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"19f84da2-5ccc-4e95-8e09-1475cb722bb3","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":105,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"7fa80557-9a82-442d-b212-d9e335235bc8","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":105,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"f20c9d69-2507-4da5-ab6f-43257601c358","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":105,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"9d2d5c92-ef32-4078-a926-785e6712b995","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":105,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"bdeff9bf-2a6f-4d1e-9d62-79959a90e7c5","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":105,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"94836fe1-971b-4d63-9219-859512e052d7","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":105,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"74dcc84c-5dc3-4a46-a1d4-c4befedb8439","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":105,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"560457f5-805a-4bdf-8d17-a03fb9f30fa4","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":105,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"8496eddb-67ae-4610-a254-fde22bb534c4","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":105,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"fd394677-4d3d-4e4b-baba-ec158a5ce331","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":105,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"cfaf8376-ec71-4f61-8d0b-f0c97108f33e","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":105,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"b2a885a4-779a-484c-a5c9-23e1a6d5aa8f","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":105,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"02dbe759-e344-47d5-ae5c-472024325399","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":105,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"a9baf387-31b9-46ca-93f6-b6a2c8414fd3","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":105,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"b0deb7f0-ed7c-4e9a-af1d-24b231bfa69f","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":105,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"74340c15-c53f-4f35-b351-81f8cd02d3fb","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":105,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"71c87a86-4d1f-424e-8ebc-4ea40e80d7cf","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":105,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"74d8ef08-aff2-4cc0-9b00-2ed82e821ee8","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":105,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"4977c4a6-015a-4f9a-ba97-06e6eb671179","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":105,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"498bbdd0-7519-4bc5-a6fa-3137a81d2b4b","block_type":"box","text":"II-76","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c22c4535-75d8-4022-acf1-d66e8f2651db","block_type":"box","text":"NM0926U-5977658-105/228","page_number":105,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"8e9a2d66-cfef-4c03-ba2a-986a5002c1b1","block_type":"box","text":"U.S. Treasury Obligations.","page_number":106,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"5f64eb70-bf23-4b52-a120-880af3460b49","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":106,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"53e748d4-0b64-48bd-aa32-f50f6e5b221f","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":106,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"ec33f04c-64c5-451b-a4c2-d64bba7c72a7","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":106,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"52d955ae-93c7-4926-a1af-48d908c784a0","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":106,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"a8a6ba20-ec39-4674-8ea9-1c0904db0c48","block_type":"box","text":"do so.","page_number":106,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"94d6910b-04b5-4a17-861f-717d8957dd9b","block_type":"box","text":"U.S. Treasury Rolls","page_number":106,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"fe6f9424-3783-4670-a968-db3e6fea0daa","block_type":"box","text":".","page_number":106,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"05be1572-08ba-4368-97dc-6d9a56ae0f29","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":106,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"8d071c6a-0e9f-49e3-a699-b23a9e0c088f","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":106,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"c13224d2-13fe-40ff-bfaf-2edeb5896706","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":106,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"fcee7028-2ace-4096-9dd1-8fd13add3558","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":106,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"4516f13a-158c-4d66-b57e-47552e299442","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":106,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"bcb023db-1d77-4026-811f-7662617235d6","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":106,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"35e29d7a-4bd4-49ec-8007-173eaa7b207f","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":106,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"ed702e69-c014-439e-8913-de0c37fcc74e","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":106,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"cff92c80-cc91-4382-a34d-bc30c9142e05","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":106,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"c7001620-b25e-4781-ba33-fbf01d6c5d1c","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":106,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"730f551f-af97-413f-b37b-8a6abdf3daa0","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":106,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"51c0d456-dd7d-423f-8f2d-b60c319d4c05","block_type":"box","text":"Utility Industries.","page_number":106,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"812aca0d-36b9-417c-9ed5-7d138d27ec8a","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":106,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"fe33feb6-4497-4a8e-9012-708b2561a915","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":106,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"2c0c0554-789f-43b0-a943-72087c49e9c0","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":106,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"3cee5450-6745-421f-89f8-e5d255b4f67a","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":106,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"8b5d83b8-7645-4180-b972-878df2a49eae","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":106,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"f68f71ab-0bff-4b00-8b6b-3539435d70f3","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":106,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"6bc8bb59-0c8d-4db3-b58d-f499c9334bbd","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":106,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"d7b9679c-935f-4971-b53c-697cdf3cd429","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":106,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"6ab0c9f2-347c-4268-8c59-366650d961d7","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":106,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"b00d2fe6-53d8-4c72-b517-a571d157c8aa","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":106,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"9fc07a52-f5fb-4000-ba23-35685e9740c8","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":106,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"feba8c06-20dc-4d1c-96a1-05cedea03d0c","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":106,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"b7e6b658-2e3d-462a-941c-69cab344f653","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":106,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"cb3a71a9-a90d-445e-9c12-aea3e438b5bc","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":106,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"a334d1d7-915c-4a2c-89f0-4f9de76f08e1","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":106,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"50182b72-2900-485e-a12e-2094500feaef","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":106,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"b07de069-f211-4046-bb20-3d3c0de5bb52","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":106,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"825943ce-52d0-4ec6-97bf-2217d22978b2","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":106,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"21089e65-2789-4a2c-a577-88dff34e1c22","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":106,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"b4c1ba5d-f645-410c-8974-e701990e43d8","block_type":"box","text":"utility.","page_number":106,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"1ef41026-825c-427c-9934-f968322043bd","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":106,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"3fa9031e-7651-4510-a03b-44d216cb7c42","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":106,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"e6aeea65-1c12-46ae-a554-4f301a733ce4","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":106,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"69f5db29-0523-4caa-9645-2976c3c4cd73","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":106,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"1b1c769f-a9b3-4341-8134-3ebbd343f281","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":106,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"b56a2ae4-6cda-4237-8971-e8bd67001a66","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":106,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"3cc025ef-14b5-40cd-a731-7e7ccc66e450","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":106,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"4d9a221e-64df-44bb-b7a6-d8e6723390e5","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":106,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"4d672a78-8abc-426d-b8cc-6d55106103a4","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":106,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"530310a5-aba0-4caf-92e2-ea0c75fcdf52","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":106,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"8ed64de3-d438-456f-a26d-fec1f940c12b","block_type":"box","text":"continue in the future.","page_number":106,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"182636d1-d0c4-44c0-8a06-582ee5784d50","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":106,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"6f2fadcb-a66b-4085-b0f0-79db8c69cf3d","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":106,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"2ef59f01-eae8-41df-b243-c14492e934b7","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":106,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"3e068b8d-9e1f-4d12-9940-547d2d7abe45","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":106,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"474484a2-ffc7-4d1f-98ec-aec102ff6109","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":106,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"6aa92a02-5cb1-48bd-a7fb-6863b43091c9","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":106,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"7573e199-9b76-4dc5-b677-b59aa1b734f1","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":106,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"680a70aa-6f9b-4ffc-b239-30e007bcd5c9","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":106,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"e20974bb-e40c-43eb-9482-1e5a9994bbc1","block_type":"box","text":"II-77","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fa0d6ba9-cf1c-4763-a6b3-4aca05788cca","block_type":"box","text":"NM0926U-5977658-106/228","page_number":106,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d35fa81c-b4c3-4e4a-a96a-eeff3626d131","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":107,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"0a219d28-9a3e-4817-93e0-fce57b11dfea","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":107,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"64739968-645d-4fec-9a70-62b555195696","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":107,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"ba656791-51a2-4900-80e7-10134ceea06f","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":107,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"6531eeac-99ac-4654-93de-0dc4ce0da4d9","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":107,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"e6f1f6ba-59d0-41af-a0a4-7e04069541f3","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":107,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"96dfca03-af51-44fd-90a8-3d23ed07b648","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":107,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"93d68242-848c-46fd-9a3c-55cf916054b9","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":107,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"414301f6-e42e-43e7-9b3a-179cbe129768","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":107,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"7717faee-b87d-4f87-8d76-0ec29eed291b","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":107,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"7e4d30e7-43e1-41ee-a509-7f601ce89cf4","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":107,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"b5e9d894-56e6-48ad-8a07-17f63e2d7624","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":107,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"cec577ee-3868-4f79-974c-1f801cadf56c","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":107,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"3d9fd349-ee71-4d7b-a3fd-48cb3a435ad7","block_type":"box","text":"ways different from regulation in the United States.","page_number":107,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"27a3250e-005b-45df-b733-14b18abffd22","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":107,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"23e1e522-49bd-4151-9a45-4e0dbfec74ec","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":107,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"8845aa24-3839-4e16-8e11-f38cfa5bcf8b","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":107,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"fd6a9685-cfb2-4538-841e-4dad9c16e9c4","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":107,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"4341ec22-ffe4-4c61-a365-0663b7d0da1b","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":107,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"26bd1cb6-fe81-4d6c-943f-56d61fad29af","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":107,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"fbdea1ae-1dc4-43a5-a07d-56948d98826f","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":107,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"7126e90e-955e-42dc-b0e2-b77dbac6d008","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":107,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"a184f7cc-061e-4a4b-b9b7-4b3c71bbf696","block_type":"box","text":"increase.","page_number":107,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"ff337972-c076-4817-ac05-f591caead9ca","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":107,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"103a71ad-d16a-4712-966c-8193be7eb770","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":107,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"17f4cc70-97f7-4a57-b822-0cadeae4d242","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":107,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"d88c3518-2785-4ae2-a773-4fd904415808","block_type":"box","text":"Electric.","page_number":107,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"a562bac0-62b1-4617-bd91-71f6c3aa589b","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":107,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"9408db5c-2844-4079-94d3-a726715c0371","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":107,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"ce71a280-3fd5-448b-b55e-28f52a7d8594","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":107,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"d72b0837-03f6-4b06-b9a9-80b6dc957a15","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":107,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"9e8016fa-05be-43b3-b8d3-c00b7f77958a","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":107,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"5fbd6a58-01de-47c5-b2c9-308a5081c650","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":107,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"24084dda-b0d0-4e1e-9eae-cd9cd3d96a9e","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":107,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"1e64d271-5119-4f07-8868-db5ecbb7239c","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":107,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"4ee5ef73-90f6-4001-9efd-3c88b7b7104d","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":107,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"250b1199-0e81-4dfb-872c-b2deb7083846","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":107,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"185a339e-4bf1-4b6c-9de1-fac66f671551","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":107,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"b72d1e4c-ff08-43fd-938e-c8b3644de9d7","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":107,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"0204bfbe-4c07-4c6b-bc50-9d64fbde5256","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":107,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"1c4eafe3-24df-46e7-817e-6ed781dd8d18","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":107,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"6740486c-f930-43da-b7c6-f13dee911ccd","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":107,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"7c0ac9a0-a359-464e-b0d0-286fc4248fd2","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":107,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"8ee0be38-6753-458f-b5c4-55ec35bcd9e0","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":107,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"d99b1072-844b-423f-ae36-4b9a057b5947","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":107,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"59486b81-f869-45ed-8706-a436b6a34b79","block_type":"box","text":"and for decommissioning such plants.","page_number":107,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"b2c49012-e58f-49df-946d-59399f325a69","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":107,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"49bbbf98-965c-4c29-9358-441ebe2e26dd","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":107,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"856716a8-2a7a-41d4-b998-79dea46c18f6","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":107,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"2a8c3eff-eb8d-4a4a-a3e8-442596873e1e","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":107,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"958d2c8e-2c98-49a9-a76b-4d91d3776a84","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":107,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"fda99b1a-68a3-4ad4-b1b7-5db1aef51548","block_type":"box","text":"greater predictability of cash flow.","page_number":107,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"65873fc5-db2f-44d6-9db0-6e21479cb146","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":107,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"48adf591-72b3-412f-b1c8-42ce338989e4","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":107,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"5ec19bbe-da2f-4186-a275-eaa98707a5b3","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":107,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"e8d370de-5733-44ec-9f1d-aac46e8a1223","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":107,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"4f68a6e0-2644-42c9-bee4-a27dab387b95","block_type":"box","text":"II-78","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"97b10a20-bc22-494b-9a94-e362a8795e74","block_type":"box","text":"NM0926U-5977658-107/228","page_number":107,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d85bb2c1-3075-40fa-8a7f-00c928e4a04a","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":108,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"adf4e17f-0fce-4cb1-a941-3895b4974b63","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":108,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"bb5e4cac-5e7f-4461-9ca9-5db0d5efdf6b","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":108,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"68d40f43-ebf5-4641-8e1d-d4c4f4f96f50","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":108,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"94a10435-cadb-4cd3-ac9b-845d724a6156","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":108,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"ed3c2626-d71a-49b6-bbb2-6f8958487481","block_type":"box","text":"Telecommunications.","page_number":108,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"889b80c3-06a4-40a1-804c-2e5320b080e0","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":108,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"becc62fb-3b97-4f31-954c-7aacfaa9a9de","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":108,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"13ae4e58-f981-40cc-bee5-afc1c40ff0b0","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":108,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"42ef5e80-da1c-4263-aceb-23e444f279e6","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":108,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"e135a1b0-a019-4353-b644-ce63fb881c1f","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":108,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"5e5d58c8-ab7b-4677-9a28-a6e3a0580b78","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":108,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"ba973435-947e-457f-a947-18b560f17b58","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":108,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"b65c23c0-4139-4d7c-ade6-58ea0f67d326","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":108,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"654992f6-8d30-423f-847f-a007d8e3a12f","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":108,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"95ef63d7-c606-4279-8a1d-b8da69ddb007","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":108,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"828632d1-e85d-4e77-bc59-1a832341dbfc","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":108,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"7bf2264d-8de4-472f-ae0f-2bbec6b1898c","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":108,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"546c1b8a-2149-4b9d-8b0d-87a12b0571d5","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":108,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"5a9ac02d-9002-467f-8872-014360f2e90e","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":108,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"c25a7b8e-5a4f-416b-8845-22a8f5ecd416","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":108,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"ef3c7b4a-10a7-492f-b51e-d3463f105125","block_type":"box","text":"residential, corporate and governmental customers.","page_number":108,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"cfabcb9e-508a-47b0-a8e7-8520b984994c","block_type":"box","text":"Gas.","page_number":108,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"12900e6b-422d-43a9-abb6-cd25b0ad68ec","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":108,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"7ad90529-4292-4b14-a36f-0ed5f1b7835f","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":108,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"c46df705-a016-4fcd-85f9-74692e5c54d4","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":108,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"aead0e1b-c6ac-4923-a420-2eb77313416a","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":108,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"8398c921-d479-4e06-8726-90f02f6a3e87","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":108,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"48b8c10d-c7c5-42b6-8c96-d09f009e685c","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":108,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"398147d0-ee5d-44af-9f88-8bbbcbc213ad","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":108,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"ffb2e57a-d2f0-462c-ba6e-f8c74f9aa431","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":108,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"fd142086-d77c-46fa-939f-cf940cc8c9ed","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":108,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"c5125112-44c5-4de7-849b-ba83731c80c1","block_type":"box","text":"Water.","page_number":108,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"3307cd7d-21c4-4c8c-877a-4d783c4d83cb","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":108,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"8f091d3e-f11d-4662-b35e-7c1bded40252","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":108,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"b3426481-58c4-4714-83f9-6fbd63b00d7e","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":108,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"63552bf7-2405-4405-a19f-df5584bbcddd","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":108,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"4a51562c-0851-43e3-b196-53cb38af0107","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":108,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"0db8599b-1cac-4eb5-a7d0-fd0d71b9931b","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":108,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"05aeb8a0-aed7-46aa-b1ef-a737f0d7c23c","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":108,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"75a38d3a-d978-47ff-99b6-900cfa501f74","block_type":"box","text":"Utility Industries Generally.","page_number":108,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"b6bb441d-cdc4-47dd-8c31-9866eb9a89f1","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":108,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"7f57d559-2e17-449e-8b78-9ff8af81066d","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":108,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"a6e34e05-e5c7-44ec-9289-8d4db5ea6b9d","block_type":"box","text":"not develop in the future.","page_number":108,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"02ae508c-633f-49f9-9238-4dd10d4a3caf","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":108,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"0750b459-08a5-4e6a-9bf7-306ee206a4ba","block_type":"box","text":"A Fund may purchase or sell","page_number":108,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"d51dcfdc-16da-4c2a-95b2-73c7944571b9","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":108,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"4733382e-d6e2-406a-8cc7-93225ae5441f","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":108,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"9adf23a2-93be-43d8-b344-889f271235a2","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":108,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"48d51fd1-42a5-4731-8ad3-bf33a3fc8df4","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":108,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"8cfb56d1-a220-4fab-8ac3-ba8dd1b89e00","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":108,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"3dadee18-fa53-4021-b312-37cf79bbc928","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":108,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"de1732c0-911e-4cc0-9e5e-3fcef89b641a","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":108,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"7429cc82-4742-4308-b8b3-cf03e42a0465","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":108,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"70f82ffc-0b70-4c72-aba7-2e41159ca697","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":108,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"e7dd7097-0853-42ad-aa5b-a84266d3fb37","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":108,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"bd3f8322-3e1f-472c-8c9c-7e508ec68641","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":108,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"f2475bde-29dd-445e-a16c-233178733c34","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":108,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"17b2a1f6-1ec7-4702-97c4-7753324308f9","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":108,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"461664ef-45f4-4fc9-82e3-d74b9ae0fc33","block_type":"box","text":"II-79","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8704d2f7-668b-447a-9070-3ba6a9ec4977","block_type":"box","text":"NM0926U-5977658-108/228","page_number":108,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d989ef96-65fd-43aa-8eb7-c8ee269814cf","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":109,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"10e4fb01-563b-4185-a61d-40328f460868","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":109,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"a131e17d-a22c-4c63-bd12-60173c442047","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":109,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"9036342d-d3ad-4020-92df-295f7206621b","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":109,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"26389904-4e2f-49ec-b6ed-b2c1fefa4ef0","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":109,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"86b7d3cb-5aac-4e82-8d39-d8171c8a6553","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":109,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"a0480d8e-f6f3-4a0e-a66f-a70d8b142f72","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":109,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"dc316abf-953c-4156-abdf-2b6faaf818a5","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":109,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"0c782391-3ee7-48cc-ba27-caee66bb63f0","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":109,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"ed0c2f0b-c866-4f6b-bf00-caf174389c4c","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":109,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"2ff252e4-b62b-4794-ab25-088f9ed518ce","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":109,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"173e7d3b-cc88-4208-95ad-8918e3917665","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":109,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"e87cf08e-60e4-4e86-a87d-507927917be2","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":109,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"d062f5d1-23f3-42b8-9670-8308599d229b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":109,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"3d859c0c-9556-4c1c-8bb2-630b745a02c7","block_type":"box","text":"securities (","page_number":109,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"8d2d4e9a-c777-4d79-9ee1-e6ddb6dfdd71","block_type":"box","text":"e.g.","page_number":109,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"42577007-583f-46a3-bc94-04f02de5085f","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":109,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"f9dee771-d1a2-4b04-b439-e51ef48288e4","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":109,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"5ff25347-50df-4f73-bd22-9d38beb3d3ad","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":109,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"dc81b93a-f565-44a0-b328-cc30e2c43b8c","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":109,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"3fad9cda-d030-42c7-910b-0f6fe754cbe6","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":109,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"46d71267-1576-459a-98c9-91c3a06b1350","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":109,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"bad0a4ac-c168-43f9-89cd-812f9007a1f8","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":109,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"3d406fc7-d04e-4cde-8dec-4495601a8aa1","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":109,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"51e98df4-7325-4865-ae36-cc1bab7adc26","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":109,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"fa31e472-f1c9-46d7-b0bf-973f232202ba","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":109,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"abbf5841-05c6-4d78-8b8f-175ce551e2a0","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":109,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"0d9a2650-c133-469f-b351-740e9d656a8f","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":109,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"b75cc15f-b114-429d-8355-16782eeaafa6","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":109,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"f7eb38da-834d-4e2a-aede-dd6ac9915efe","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":109,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"64e43376-48bc-4742-8e36-23e13ca544cf","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":109,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"1e2f8b69-81e3-4a43-ac73-8b8cdb1dbb32","block_type":"box","text":"Yields and Ratings.","page_number":109,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"c006baba-35ab-41f9-a46e-3796c0e88466","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":109,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"4b031645-6e85-4f59-8e9f-8f6ca6a2ee37","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":109,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"49ab8c56-34c7-46f1-9485-1b2ce98825e3","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":109,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"12f93f4b-08bd-45aa-93f7-c6aa1d0008c5","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":109,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"1912dc67-faf1-4769-b739-9ca6c38d3ef3","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":109,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"a2480114-fad0-4b59-b631-76f2f2759763","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":109,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"02bef564-d5fd-43f4-9875-327c3e9f7f2d","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":109,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"ae9b6fdd-54dd-439e-b3f3-470ef15e515f","block_type":"box","text":"continue to hold the security.","page_number":109,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"60b01726-c49c-4b53-a2e8-4cc61b1da72c","block_type":"box","text":"Zero Coupon Securities.","page_number":109,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"1a93ef1b-1634-4c04-8fea-0fbf663db50b","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":109,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"41159f39-1265-4f59-b1a0-2eec7948093f","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":109,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"01329d91-e724-4967-a917-30c428291a62","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":109,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"333eb16a-0aa0-4f34-85ae-4f43c7fb6575","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":109,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"4d68b0bb-ecd0-4599-a6c2-0d88583ab50b","block_type":"box","text":"security.","page_number":109,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"c60f7c95-3413-4064-8239-6c362c15327a","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":109,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"831b3ba0-7bb7-4d3d-9a9e-5a0e70082600","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":109,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"ebde763b-36fd-448e-b9b3-02dd55b3fd17","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":109,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"4f59d294-b31f-48ff-9f8a-c42f93393d35","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":109,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"60f9721e-0474-4b42-ae32-0939bf45401a","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":109,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"c704bbc9-93f7-4432-903b-2bf5142ddfb2","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":109,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"62897d25-0dd2-4547-becf-0a4e225db922","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":109,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"63d3d668-b912-4899-be13-9a2b7e60baf3","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":109,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"aed61e81-a921-41b3-8189-5c2194ff25de","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":109,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"4809eddc-db25-45d8-9938-48593a04a7d5","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":109,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"702b568f-a10a-45c9-aa64-71a2eefc80e6","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":109,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"ce53c886-7e67-46ae-b3bd-79ee273c3d12","block_type":"box","text":"II-80","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f98fb3f0-b76f-47e1-b370-a8b18a0db70d","block_type":"box","text":"NM0926U-5977658-109/228","page_number":109,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6195075f-ee9e-4df2-a0bf-526d83c4f977","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":110,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"f8a4be72-fedb-409c-917a-a63e25168da4","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":110,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"94057bb0-3091-40e1-910b-3b2d1c7a2edb","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":110,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"4ddd548f-2e6b-41a7-bee5-0fbf1a2b76d7","block_type":"box","text":"intervals.","page_number":110,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"ab16159f-3f89-4fc5-b8c7-1097893c5611","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":110,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"41ee3b9d-133c-4d26-b89c-f95412396a43","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":110,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"64281a0d-5cb4-4cb8-862f-9cdf9856b1d3","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":110,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"3c696920-4407-4112-abeb-283bac1f0cc2","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":110,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"3e8f4d4b-f34a-4a7f-abcd-d16be22078a1","block_type":"box","text":"exposure to zero coupon securities.","page_number":110,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"f4b26c5b-3809-442f-a909-13a885601961","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":110,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"5f79ee13-f2f5-47c0-8d59-81b2be0618bd","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":110,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"2a9e1936-d7ca-450d-9218-e7f99a798782","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":110,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"7480195d-7161-4eca-8290-f7cadabcea67","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":110,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"b2ed0682-342c-4d9b-a793-3597a440ab44","block_type":"box","text":"Suitability. (All Funds)","page_number":110,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"442810bc-f66d-4978-b7b1-0605304f4fd7","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":110,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"88850fbd-1d3b-4da5-ade4-846494cb0fa6","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":110,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"b50aa8e0-60b0-4aca-960a-79b94ca76fcc","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":110,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"d02c9ee5-f474-4e73-9bba-e5114fc0d622","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":110,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"b1ecd7b4-dc50-4db4-8b50-8d0155f7f273","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":110,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"eae3d97d-78c1-44c1-a003-d2a598562409","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":110,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"6f46bbb4-f9df-4f8b-930d-ecc70531b60c","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":110,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"e313f8f0-6dda-481e-8c9b-22b30998a2e1","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":110,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"efa78278-43e1-4969-8252-04aef71d1bc4","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":110,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"e56c51e3-444c-4c93-8e4b-e6ad370f7b1c","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":110,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"7902679e-32d9-4a3c-9378-9d300c56077f","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":110,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"c60f97ec-bb4a-4949-9744-ff2ff65783f2","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":110,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"4ff678a1-30bf-41ce-be9f-c45267ed8d78","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":110,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"15a150b6-89b1-4481-b31a-5bcce599e42f","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":110,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"9734426b-eb15-4fc7-b91e-b7dbcb674c44","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":110,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"6a68efcb-05ee-4bf1-969c-0eed4ff74598","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":110,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"76adc1e2-ffdf-473b-95aa-9d0add3d6a66","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":110,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"84cfaf4d-b357-4492-acad-67be8ad16e8b","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":110,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"2ffd9349-316c-4fe8-a7b8-e8264989dee3","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":110,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"a7bf4eb8-b1c3-4090-8628-9d872b6e967a","block_type":"box","text":"(","page_number":110,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"40db3074-7006-43d1-869e-12145f00b4e4","block_type":"box","text":"i.e.","page_number":110,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"3fb4f7ae-bc69-42e2-b834-1f236b3ec0c5","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":110,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"0f4174d4-1462-4b68-9804-1d6ce07074f1","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":110,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"b62879c9-cad5-45b8-948a-b065b942e95d","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":110,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"0919bfab-fd24-45b1-ba0a-f798168e26fb","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":110,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"eb7deedf-285c-4158-9a47-d9f07163b705","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":110,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"ad8bc626-2e44-4cb7-8fbe-8514efb004d5","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":110,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"73f77ef4-070e-40f5-950b-b8a3c509fbac","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":110,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"c84907ed-af12-4efb-b703-0073a6695f8c","block_type":"box","text":"regarded as the sole issuer.","page_number":110,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"462e6502-1621-4698-8729-be33ccbf22de","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":110,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"07e6af7f-36fe-4b1e-8762-216ff3fd6555","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":110,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"7885b6d3-b667-4cb6-b689-b94c05b0cfc1","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":110,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"2ad20c36-0582-450e-ad2e-f39a3e3008cc","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. 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Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":112,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"464e931c-1cfd-4181-8749-a6b3b8f1a77f","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":112,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"5c1001d1-96ca-4451-9c04-a47b3bfcfa68","block_type":"box","text":"Custodian Services.","page_number":112,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"9f1cf695-5f14-4eba-ac78-8e061f07acf0","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":112,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"fb94c874-b81e-4dc4-8a92-88fd28038750","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":112,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"2508cb5b-ca1d-4cd9-8058-0c1a98ece161","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":112,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"2b6e9b4e-1e56-459b-8b0c-d85306edf7ca","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":112,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"eb160d70-c53e-4332-b62f-898e29425958","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":112,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"a09d06b3-e706-402d-97a3-a00c941a6ea2","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":112,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"ceed2539-c0b8-4b6c-a9e4-192e3178f638","block_type":"box","text":"certain assets.","page_number":112,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"6d72b267-99b0-4666-b3fb-03112104c8bb","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":112,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"582f11ff-c9b2-4c70-8094-27bd2d256fda","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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With respect to such Funds, the custodian fees, including the amount","page_number":112,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"b7741f9a-0c1a-4852-99e8-231eba7bf51e","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":112,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"a4ec3fba-7520-4fb3-87be-9d89212313cf","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":112,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"5ca92c20-9e32-4bd0-aebb-60ea3e9ecad8","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":112,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"7286cf94-048b-47df-9162-4ddea749f3bf","block_type":"box","text":"Fund.","page_number":112,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"1e96ac0e-1908-4a94-8c9b-622e34de43dc","block_type":"box","text":"II-83","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eae13f8d-ae03-458b-8f65-bc423fcf6eb7","block_type":"box","text":"NM0926U-5977658-112/228","page_number":112,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"175778d0-16dc-4c64-8212-ef62b01a2bf3","block_type":"box","text":"Accounting Services.","page_number":113,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"8712042f-5579-4195-881a-3f1b2e6b8d9f","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":113,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"f4ece0c5-964d-453b-9d60-8f98cee1a63c","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. Each","page_number":113,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"d0bc8924-0b9d-4662-9c9e-0c9380dc39c6","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":113,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"c2eb6968-51b8-445b-be2e-246679db603c","block_type":"box","text":"Master LLCs.","page_number":113,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"b02ff03f-93da-4244-90b7-91e926d7da16","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":113,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"77cbdd61-094f-4737-b753-54cd0db2478b","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":113,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"3b2908fe-904e-4988-9004-2cf7cde0a915","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":113,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"28c32194-137c-4d36-a582-43c89a93a31c","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":113,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"000c0f47-393c-4f42-9cc8-f0397452a789","block_type":"box","text":"Distribution Expenses.","page_number":113,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"533e84c5-8a9c-4423-bfa8-7fff936d5ad1","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":113,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"346a342f-5566-44c1-bb32-e900bfe2e4ec","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":113,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"3db374b0-ace6-489b-9ef5-188f752a7623","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":113,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"cc75d93f-e5ff-4211-a404-ab8c70454f8d","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":113,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"356ef46d-1a97-46d7-85c0-2457eff0f527","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":113,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"9691dc88-c852-4229-9d94-bc4c00a953d1","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":113,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"ea58a427-0951-4e20-ae20-259d26e61001","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":113,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"0f3700f6-356a-4c6d-b5c9-7f4a0517540d","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":113,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"9796e542-ce66-46c5-af8f-3284e246bbc4","block_type":"box","text":"Code of Ethics","page_number":113,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"a844df09-9d15-4973-988e-4cbf2e3686c6","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":113,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"5eff85a0-1fbd-473c-8eb1-d2789a763551","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":113,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"744dc277-08a5-4711-8c76-face3f351096","block_type":"box","text":"restricts certain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":113,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"b18fbfe8-b2f9-4b22-b9b6-e626a0c6dc33","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":113,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"2009ea72-8a06-43d4-972e-85edfacf2bf8","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":113,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"2677ab90-6a68-4111-9280-6957d05f8042","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":113,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"a00f2c0a-88f2-47f1-aa66-3b2800c63953","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":113,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"aedf5975-f519-452b-b38b-5d37441b7ce0","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. 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BlackRock, its subsidiaries and their","page_number":118,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"837032af-03fc-4e15-8d50-20106c1f0cf8","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":118,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"48a95469-7bac-4f37-84f2-274fd7d948e6","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":118,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"477b4e33-524a-413d-be6e-33a02287a817","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":118,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"6a5b71b9-388b-4651-bba0-69189a2d6a83","block_type":"box","text":"and have interests other than that of managing the Funds. 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BlackRock may, in certain cases, elect to implement internal policies and","page_number":119,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"21acefff-286d-4870-9a43-b7dc6db95ea0","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in certain","page_number":119,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"d713a5d4-4955-4e9c-a0a6-15d258c37137","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":119,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"87c714ea-3d11-406d-847d-d4df8c77d024","block_type":"box","text":"Conflicts may also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":119,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"314c734e-7ffd-4831-966b-19a2d7556250","block_type":"box","text":"BlackRock. 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BlackRock may have a potentially conflicting division of","page_number":119,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"9989e513-2754-449d-8b75-a5ede1d94a8e","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":119,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"16d671c7-597c-4117-ae09-61da4d3be6e6","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":119,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"b44658e3-fd52-4bfd-87c2-8cd9f49517b3","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":119,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"43e709cf-3748-4c96-8e04-6b170cffda94","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":119,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"ec4aa082-b278-4695-a452-0aead3e85c3e","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":119,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"3f4a0166-8884-49a6-892b-ff24c1b78bc1","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":119,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"935c4dca-d4cb-4059-a6b9-3f549965a077","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":119,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"c5f83916-f1e8-4ff4-99a3-9a028f319c2c","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":119,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"e9d9e197-40e1-4219-848f-8957c03f7dec","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":119,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"60b1c3ec-aa96-4ffe-9238-4cfb8db310a4","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":119,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"95957894-72b5-413b-8647-e45fd7c704db","block_type":"box","text":"II-90","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5eab935f-418b-458b-a4db-8593dffc6a4b","block_type":"box","text":"NM0926U-5977658-119/228","page_number":119,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1d7a1ac1-bae3-4bb1-8c3b-be3cded73ab8","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":120,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"8b62e742-c01f-48b7-8af8-32138931ff49","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":120,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"ab882d5a-2356-4e0b-a290-9214d9204437","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":120,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"ceced0a0-c308-4a13-9262-b96b6ecff1e4","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":120,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"d356b69d-a77b-4fe1-b5a6-4e7e5eb608e8","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":120,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"05fb9911-d5fc-4633-918f-e5b61f3a4cfb","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":120,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"7a6870fc-faab-4b04-bc0c-dd4a96677346","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":120,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"46ba2608-7028-4eab-9d8c-a5423f4cc5d1","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":120,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"9365af6e-aeb2-4774-98a4-e1d9c4aa619b","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":120,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"1bfe9102-df27-4553-9b58-3df9056b3fb6","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":120,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"ed9e69fe-3dab-4a4d-aaeb-ad56f5b0b6dc","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":120,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"ee676d63-5f2a-45d6-a6a5-89cb10b7ac98","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":120,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"85665f63-c52f-462c-8414-e747018795fd","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":120,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"093cc063-4ebc-4140-a48e-d03abc9593de","block_type":"box","text":"managing a Fund.","page_number":120,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"892b20cc-97e4-4c21-b38b-78d2e96ab579","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":120,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"4b557ce4-0dbb-4f6a-aed5-4cf2ce179b52","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":120,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"ca14817f-e408-495f-bab0-6b1275f3f53e","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":120,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"bf5c26f0-ffdb-45a5-9878-8c124ba5c1d5","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":120,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"f7d11d5f-0d55-439e-aa89-c2d536c897ce","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":120,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"ffaea52e-03e4-45d3-8bef-7c41673200ba","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":120,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"273031da-3341-4817-a560-e1e0615b8bd5","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":120,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"a68bf7de-f9dd-4ac0-bda4-d7e26502e515","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":120,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"4e0f0abb-8322-43f0-9f64-c06c8e42d151","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":120,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"ab298ea1-01ce-41f1-b651-a76e8d63bd8b","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":120,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"b643c589-7fc2-4fd2-b499-ef61b0105826","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":120,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"245fad22-822a-42ac-a52e-e798b60bc0fe","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":120,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"85d51558-80eb-4a91-8857-cbb1c51cf7ea","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":120,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"4b82e96a-2ff8-4f7f-9f4b-d6198928cecd","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":120,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"3707d4bd-1a7e-4f1f-8e44-0d3a492fcd67","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":120,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"f2c9c811-097d-4729-b682-d32648242aa1","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":120,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"7ebfce51-2a28-4a04-9a81-90077689470f","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":120,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"59c618f6-1354-48d3-87f1-1b3aae7d7859","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":120,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"e96cbe2e-a8e9-4d8b-830f-72b50f7b7024","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":120,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"f31a34a5-06aa-47e0-99d7-318c204fa728","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":120,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"d00bb623-0f4e-48e7-b0ae-32739a2b1beb","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":120,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"dc7f4805-62b8-4845-9929-3c3986eeddd5","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":120,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"5c390abb-c633-4259-a579-4053d1ede7c4","block_type":"box","text":"under management for BlackRock.","page_number":120,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"22a3f355-744f-445f-b768-b149d3aec3fe","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":120,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"a8cb0a7b-5044-423e-be13-3f1d28c0e571","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":120,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"28aed62a-53cd-4c7a-aa6e-0736147f043a","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":120,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"edc8d69f-f63a-49e7-9de1-17caa97f82af","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":120,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"164374df-acaa-44f9-aca6-1fbb2a9ac439","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":120,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"6b0d2c34-149e-464a-a9b6-71392eb8e6c7","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":120,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"64a78771-81fd-4c9c-abf7-b21bbc2c21fa","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":120,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"9e336eb1-a919-4239-9fce-81c006cbf268","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":120,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"43c297b6-b881-4379-b95c-6d809e1382d2","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":120,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"cf52f3ca-0b7e-48aa-b970-400ffa61cdab","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":120,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"a2da7aec-5b93-4b97-8573-0f7f4506c8e1","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":120,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"1b2ab9f7-cde2-4528-bd95-b75144e44c95","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":120,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"28cdef27-d24e-4fd7-a338-8ae344499080","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":120,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"6f25d8a8-bcce-42f7-9761-7d0329453adf","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":120,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"851b2c1e-1428-45e7-9492-e5b8519429cf","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":120,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"388c7ddb-c623-4d74-82fb-1020616bea40","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":120,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"a29f48bc-ca35-49fe-9524-32c4f58162a6","block_type":"box","text":"II-91","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c26ec8a9-362b-4f55-9d10-f2079c055ff7","block_type":"box","text":"NM0926U-5977658-120/228","page_number":120,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5eedcc1e-2b8c-49c1-806e-1d64dcc5bc28","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":121,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"562a360c-b73d-4334-864e-1b54e390e369","block_type":"box","text":"any such fees or other amounts.","page_number":121,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"639780f8-1ef4-4e54-9e8c-7c4ee25ab596","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":121,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"cc08bd7b-5512-43cd-8e01-107bd6facc12","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":121,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"35476107-9749-46aa-adde-1bc506016b36","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":121,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"49028893-811f-4afc-a234-6e55eecec70c","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":121,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"84cc6d1f-229f-485d-8675-963fc61b11bb","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":121,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"93be9b43-548a-40f2-93b0-8db0c3809798","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":121,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"f8b5a646-151e-4a00-b8ea-985ed20cace4","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":121,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"ca9fa5b4-0202-4968-ad24-49f5356e3e1f","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":121,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"9adf4bc8-f239-459d-87d4-7c243c483498","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":121,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"43bb901c-dd52-4f46-8c4b-398d5cc4b7d1","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":121,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"8eec1090-b961-475d-a41c-44049d82064c","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":121,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"f4951f31-0a96-4515-bea2-640bcfce1eb8","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":121,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"e9125efd-753a-49e8-81fd-b149ab049f3e","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":121,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"0195130f-7ba1-410b-8816-c2c57fcb38e4","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":121,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"c00c7c9a-9bbe-44d2-aebe-d10e0796d41b","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":121,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"8065cabd-e510-449c-a046-4920283f795a","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":121,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"5d796788-a245-4108-a567-60189cc33261","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":121,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"a2b7c480-2410-4cd4-9875-9c484e1f2c7f","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":121,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"c4b4bbf5-8fbd-4de6-93fa-5ea568ac3ad8","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":121,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"e59ae8db-0f0f-4646-852b-56aa903b97f8","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":121,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"df7be2fb-adff-4065-995d-7e2e7e13d4de","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":121,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"5c3de485-4994-4c9e-bd4e-6e9fb2d0eedd","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":121,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"df8a941e-2783-448f-a17a-8500d9c85e75","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":121,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"9dc37c5c-bfe6-4c0f-bbb4-7986fa73fa53","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":121,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"6cb50d6c-1580-4d25-807a-d849070f6f22","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":121,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"e6b98d8e-5fcc-4abe-b87a-3db343238f10","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":121,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"63452499-c390-4c6b-8b6f-502f97bc7638","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":121,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"13142cf4-911d-4d69-8da6-d1c09d9100a0","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":121,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"6fb89926-4a27-467f-8784-ef5a3a48071b","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":121,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"6742292d-ed90-43cf-83f7-46d6de5d8191","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":121,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"90ca6cbd-e730-4c45-a4b4-9038b05dc634","block_type":"box","text":"regulation.","page_number":121,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"21d56d82-2e24-4a0e-87ea-98c9b76d1132","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":121,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"b82c896e-a4de-4b3b-b09c-ec031245b8df","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":121,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"72b1455e-b065-4c28-a84c-85c675ca8fa1","block_type":"box","text":"various program limits (","page_number":121,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"66d56461-537a-486b-9979-138a139740a9","block_type":"box","text":"i.e.","page_number":121,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"df30c450-bc20-47e5-a779-503a70c603c6","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":121,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"68ffbd0a-6aaf-41af-86b8-fc646095590c","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":121,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"0f421478-36c4-434b-a37d-6b8b8ae3ea89","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":121,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"dba1a382-fa27-4abb-b8a8-b16fa69bfc01","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":121,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"cd9dec13-e5a2-4dd2-a043-4523d3982b6d","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":121,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"0b8c2a6b-5650-405d-9ecd-749d6b81c023","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":121,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"284b6bf9-5df2-4196-9fba-40e54b0695b6","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":121,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"da2d1951-9245-4434-97fe-1bb01d1ad45c","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":121,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"67f25189-e1f1-4b2e-afa1-80a6cafeae30","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":121,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"5bd76ba0-0fba-4969-9418-a27b774791e0","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":121,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"0c3e57f7-5986-43f8-a658-ecb042ed58ab","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":121,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"36ed4e3b-693a-42e0-8aa4-582203b277b7","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":121,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"403db602-2a8b-41b1-a75a-a2b749adc8cd","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":121,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"48fb5893-e753-463e-8287-db4152cda0e1","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":121,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"403dee3f-f7a5-46d3-a818-226b31317715","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":121,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"284ef27c-5cda-4eaf-b8db-d49fd4cad3d6","block_type":"box","text":"II-92","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"58b42a13-2b5f-490d-97ab-c39ac02029b2","block_type":"box","text":"NM0926U-5977658-121/228","page_number":121,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"af3b539b-9766-4c81-856d-812d65481a45","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":122,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"bb50f0db-27e9-437b-ae3f-9810b3ea5b9b","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":122,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"9834e5ca-8802-4e05-a2a5-10a5887721fb","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":122,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"985c904c-2416-40cb-9f6b-5ae82f49b2ae","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":122,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"82730de6-e780-414c-872a-141c57208604","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":122,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"153e2218-3d20-4969-a18a-43d558198a0e","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":122,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"edd53b50-0131-494a-9edb-56474b22fc68","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":122,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"d08f3d49-e15b-49cd-88a8-e62acf3e9bed","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":122,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"cc345dd1-a145-4587-ae57-96816912ed5b","block_type":"box","text":"than through client commissions.","page_number":122,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"4ed3a506-ad04-4c27-94e1-1ccd3d18e1a4","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":122,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"ac280dc9-6c9b-4d47-a77a-742f6b2f856a","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":122,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"41345b17-b77d-4f63-a9e2-ad90d28b697c","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":122,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"c95d256f-d960-40ad-b126-3d489ba96599","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":122,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"8768f73d-c917-4df7-8897-7b14e2e7e713","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":122,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"6421cbbc-463c-4dba-8584-96983e5bd17c","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":122,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"7b0b42df-ddf4-4fef-9679-5eb523e323a0","block_type":"box","text":"research-oriented software and other services and products.","page_number":122,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"8260991b-9b54-4c0d-b7b3-aee5cbf0f5e1","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":122,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"5f40c1ba-5c3e-4368-92f1-f795dd97569e","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":122,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"ba61082b-6ff2-4383-9275-82a0fef90bca","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":122,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"2d276c55-1f88-403d-8369-77a314f6d402","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":122,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"d8e78c39-b86d-44c3-8d9e-96a3830a19c8","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":122,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"1ac2e48e-739e-4546-a4c4-2e2a339182fa","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":122,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"9a67aef1-9451-4793-b41a-4f5cef2c8d55","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":122,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"5760b2a0-81e0-4fce-b540-2a485cd04566","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":122,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"6169a0e8-ac9c-43c1-8b1f-79b2a3c24fe8","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":122,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"282b13f0-d9f8-47ba-b91e-ca677a674b26","block_type":"box","text":"and services itself.","page_number":122,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"513ddf82-59cf-4b10-b06b-f94af8fee14b","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":122,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"4318d833-3e75-449d-83bb-508340b8ff44","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":122,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"ca6c6d11-bf38-436c-ac36-aa890d65af13","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":122,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"84ac905e-aa69-4b54-996b-51837386501b","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":122,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"dc138182-d325-4fa6-b2c5-3766d90c1bd8","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":122,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"e720dc25-b246-4b8b-978d-880046d721a7","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":122,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"73a2e15c-a1e6-4bc3-a971-04ea9ab65591","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":122,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"7809b49b-44ae-441a-8a3e-a7f84c827041","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":122,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"6d56744f-9b19-4ce0-8ca3-6531bac8f6fa","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":122,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"e8d64a12-8e6f-4003-883e-b83f77300d40","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":122,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"d0a7f14c-09f7-44b2-8b34-66edf1295ba4","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":122,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"ca005bbf-5f75-4a22-b8f9-9c3f101d3e0c","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":122,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"cb18d62d-e2b2-45e8-a455-863e047a28f9","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":122,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"b56b3c23-ad20-4ee4-9911-a8390c4aad63","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":122,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"26dfce06-3924-4fc1-8928-ee69b2ddd043","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":122,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"646b4d50-a5da-4af6-80fd-375657138782","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":122,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"9bf3f3a8-059c-4c83-a85b-ff6c9f4964d7","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":122,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"d459b4b4-c0bc-4617-9ba8-655061ea2b3e","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":122,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"6eccfd91-4500-4e46-95f6-ab02db9b09ed","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":122,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"77a0677b-7322-4929-b6e0-7d44e6567dd2","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":122,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"1bcb1c4b-d893-432b-a2e9-55c52519601e","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":122,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"82813e8c-cc8f-4527-a052-b4bd0bb4917d","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":122,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"0d7afff1-55a3-434b-97e2-b7a26e414b6d","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":122,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"f921ad6e-3b8e-41e8-85fd-7fc88779762a","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":122,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"48617651-e4e5-4316-a14b-87b28e4901c7","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":122,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"ab283d1f-7e6f-4505-8b4e-e2e6665a5912","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":122,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"55de2c3a-0ae8-4389-9c58-94836c42ed08","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":122,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"a1d1cf34-e10c-491b-887a-446df01d6a56","block_type":"box","text":"II-93","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b42bc462-17a3-4cf7-85bf-2bd4807f3d59","block_type":"box","text":"NM0926U-5977658-122/228","page_number":122,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"999fda89-b97f-4155-8494-849764277bc4","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":123,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"3547efaf-bd6c-46eb-a4bc-76c65640347a","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":123,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"ab058ceb-7d2c-4aa8-aa02-9e4122ce8d1b","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":123,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"8b12a01b-2fa4-42bd-bb97-c783493388e0","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":123,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"11cc0a08-1a34-41fa-af57-0b96a920d3eb","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":123,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"00693167-23a0-43ed-8f1d-076e14215088","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":123,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"2cb79847-4df2-4b04-84ea-d5c972464d28","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. 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BlackRock and its sales personnel may","page_number":123,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"15cf6987-dd87-4afd-8924-7b2f032502a8","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":123,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"98c78ef2-575b-4f3a-a376-def976063ce6","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":123,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"8821d548-8e06-400e-9891-c9f855fc664c","block_type":"box","text":"management. 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BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":123,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"6bc953f6-b97b-483d-a72f-5b770b6fa642","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":123,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"22fd720b-89a6-4c52-a84a-92de63580ea4","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":123,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"1cba0723-359b-435e-b99b-e226e11bb7cf","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":123,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"eae88fdb-33d6-40b3-8dde-a3c5c2da616f","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":123,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"db1fc794-7da4-4fac-a8c1-c389e2499778","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":123,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"41568e83-27e2-4cb1-bcf2-dccfa8c6f9bd","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. 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The fair value of one or more assets or","page_number":123,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"fe57f523-63dc-443f-ae34-495673b89146","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":123,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"9522bc84-87e1-418b-865f-d1f02038cc25","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. 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In connection with any","page_number":123,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"3ea6f2ae-c056-4ca7-88ea-2a3088396a06","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":123,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"1f613a1c-87bb-4be7-8950-deaf83cdf4c8","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":123,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"2a7a5fb5-0ae8-4052-8d87-e861bdcb74c5","block_type":"box","text":"some additional expenses.","page_number":123,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"ada22997-ca80-4dd1-a774-01a72a1ad41e","block_type":"box","text":"II-94","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"da32a7ca-29ce-4c91-bd82-33a3890a1945","block_type":"box","text":"NM0926U-5977658-123/228","page_number":123,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"99838a08-5a2e-4a30-b9ab-a3d433c7ab2e","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":124,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"69a3ec67-1685-4fa3-a6a8-45e1576ae302","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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Each Code of Ethics is also available on the","page_number":124,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"92609b06-22a7-4afb-a620-99a7a37bcde7","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":124,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"71d4d42d-e532-488f-a6ff-1c64c4911e3b","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":124,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"3890e7e5-9f25-4938-a7fe-5725f6aa1573","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":124,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"75437453-d145-4d6a-9638-868de68e7a7c","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":124,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"2c00cba3-8359-489e-a053-342b8225c012","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":124,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"2b850dad-d3e9-43c0-a5c9-6067c4b580d0","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":124,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"7f9d74cb-4ddf-41df-86e7-f9a9a4036b85","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":124,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"281e2a2a-ccab-4caa-89a4-5521a6a9073a","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":124,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"0d4205d0-3ffa-423e-84b8-c9d613319ffd","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":124,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"789a1718-4004-41d4-84cf-5d132b956412","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":124,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"8fb05e7f-218f-4f52-8da1-dd28d2540402","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":124,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"43b4ef14-2bf1-4c78-8719-9c927d098831","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":124,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"b9b5fa19-9357-4082-a0b9-d3a7a81ba7bc","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":124,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"30eec6df-8b63-44de-afc4-a7a445061d14","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":124,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"31c7ab4d-5099-4c83-9f19-1c2a84f6ee59","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":124,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"b5ee481a-96a1-4dbc-868a-d5d9bc3108c3","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":124,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"6661da4b-fda6-40b6-9c5d-eec575ec5562","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":124,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"1a81402a-687a-4465-a760-82fc2ab7dae9","block_type":"box","text":"public information about the company (","page_number":124,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"e3e26b71-21c3-4de8-b89f-babe19da1c88","block_type":"box","text":"e.g.","page_number":124,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"10611ba6-7212-4a80-bcb2-9fc817512e18","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":124,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"ac7ab05b-9ccf-42bb-ad8b-9bb74a2cbf0a","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":124,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"67e65497-b520-4ebb-b8f8-d0363c895037","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":124,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"d7662672-3b56-44ef-8cb9-bcfc6b3f5ba2","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":124,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"056a0e05-5e3a-4f36-9222-f73dc4a6504e","block_type":"box","text":"the investment. 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The","page_number":124,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"9c59f26b-3706-417b-ad74-cc081a7ab7bc","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":124,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"4196d639-98fe-4411-82da-d8edc854e9ce","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":124,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"48df22cf-c927-458f-a2c0-a35a54d833bc","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":124,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"601898ec-1fec-44b9-b7b8-bbde483545dc","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":124,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"46efbdb4-1486-4bb9-839a-74d831396634","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":124,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"27889c9a-fc4f-4a75-a5d8-830ad6bb3c16","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. 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Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":124,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"33a324a9-33f7-457e-86ff-244ed2330297","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":124,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"1df1bcdf-ef10-4180-9318-038aa23ea5cc","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":124,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"39c3a2b6-3c1d-4f28-9d14-d1149579018b","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":124,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"17fc7eca-a9ee-4fa2-9dff-b16d26aed9a6","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":124,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"cbde5821-afee-4531-ac59-5ce76ddfd82b","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":124,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"b1f6b15f-26eb-4c09-9f0e-210f9d7c1c99","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":124,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"f5492347-2bd2-48c8-9e61-abc2fda16da2","block_type":"box","text":"II-95","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bd2238f9-b6b1-4f3f-81bf-453d0a135786","block_type":"box","text":"NM0926U-5977658-124/228","page_number":124,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e44d818c-af62-4198-b2f0-a5795695a357","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":125,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"69c542cb-d8bf-4bf0-a93c-dfa983ba571c","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":125,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"3b075b74-5895-4465-895f-9c65971fd372","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":125,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"bbfcb94c-b58c-4059-979d-d54ed0ad151a","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":125,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"ba48d57d-5aaa-43b4-b8fc-c002d8521a13","block_type":"box","text":"a barrier.","page_number":125,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"a34b43e4-5e82-4713-babd-8ddf88260efc","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":125,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"2695ae5f-464d-4401-9230-37103b976a74","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":125,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"8eb7d430-26e6-4419-99bd-8ccc5674673e","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":125,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"d81486b4-3764-43c5-bbc1-d88bad3e4d2d","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":125,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"11a3bb20-20d0-46f3-ad42-176889ee5205","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":125,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"55607ee9-bc01-45e2-bb08-8a0314836a16","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":125,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"8f87ccac-3361-4c2d-91ff-9a9fd48f0ee4","block_type":"box","text":"that operate in certain industries (","page_number":125,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"ee8fbfcb-be8f-4998-81a0-c5fc0fff99e6","block_type":"box","text":"e.g.","page_number":125,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"ab0cd315-731f-4c40-8302-d84867d790bf","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":125,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"8b837877-0e7d-402a-9090-af6dbba3b278","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":125,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"9b06703c-87c7-4c0f-9b38-946aed7ba506","block_type":"box","text":"e.g.","page_number":125,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"533067fa-7bb9-40e2-8cf8-8ec57fb25b3f","block_type":"box","text":", with mechanisms such as poison pills","page_number":125,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"c51888e8-302e-456e-ad28-8e4088ca47ae","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":125,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"af42b155-a4e9-4b10-92cf-252183f505b3","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":125,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"9a95099e-8b41-48e8-8e4a-e2babd3f54d0","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":125,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"202868ad-793d-4a52-a0e7-4b5390295e67","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":125,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"1c1c1ba4-f327-4689-96f0-ab6c181c9ba8","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":125,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"458ed885-bb69-4786-bf1c-76e512617dbd","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. 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BlackRock","page_number":125,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"bb9b88cf-31a6-4b18-bed7-59fcfcc78f41","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":125,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"4152cb59-ef9e-4348-ba9e-47fbcebcb812","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":125,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"84eed027-fcab-40ec-a04f-2e6e44d51ab2","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":125,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"da602cba-8ee2-44ac-953a-c4aeaeef47dc","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":125,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"57eeddff-6167-4784-8609-cb6db9c8f9ee","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":125,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"526525dc-68b7-4709-b0ad-327ef00c747a","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":125,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"42f628e5-9af1-4706-b40a-544ea7edd123","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":125,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"967a69d1-41d5-4267-8f69-beeb882a9da4","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":125,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"0e78ca52-31c8-4a22-ab80-7cc4a0bddc70","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":125,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"b19f7364-bf37-48ff-963b-f61b5794e25c","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":125,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"a1280513-bbd2-4edb-857b-89cc2368911f","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":125,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"aa26b2dd-c3aa-452c-94bf-dc53211b1d5d","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":125,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"e50c5848-32af-4249-bdeb-96c9b9d30eed","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":125,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"d0be027e-3398-4a52-ba6e-fb2d03112faa","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":125,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"0876b590-83f5-405e-ad88-b744dcba54c4","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":125,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"8f106cf9-3936-4462-92c7-0087db6ea29b","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":125,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"67cd713e-5c1a-47f9-8f06-74c4517f1bf6","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":125,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"3fad6a86-44c2-4a13-88a2-e92ce1932416","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":125,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"c8ba76bd-1a1c-442b-b73a-099cce4e586f","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":125,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"fe264a65-39ed-4d4f-b48a-315aa08bcd88","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":125,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"2c883df8-231c-4870-8845-af508b28d460","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":125,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"54ab7b81-1e75-4a1b-a2e6-ab11487b9bfb","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":125,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"cfeeb51c-c0b4-440f-b966-d5be7380d96a","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":125,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"4af1f5c8-caed-4799-a16b-1dcc26f7bc26","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":125,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"8911bb02-d046-4c01-a74c-cd64032981b6","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":125,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"94341002-ba5f-4ff5-9dc0-5c2d0dd38bca","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":125,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"decb92e7-1b04-4786-9d53-965bcbb4c5f0","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":125,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"2581dd4a-fe36-492d-bfa9-fe8a53fac0ae","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":125,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"33e3ce86-b03c-4496-8a72-04814254ce5b","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":125,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"96c42155-33e3-4c13-9268-f85ed3688c4b","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":125,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"d00b80a6-6fbb-46dc-9158-6611362e536b","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":125,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"0e07f355-2df2-43bc-bac9-708a415435ad","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":125,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"63260126-5473-4015-9698-d234b99fb091","block_type":"box","text":"actions. 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It is possible that, despite BlackRock’s intent to either comply with or","page_number":126,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"2f88ba34-86b2-4ed1-9cab-22f0904d8858","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":126,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"b1f7bd97-c5d8-4ad8-8b81-87443589c34f","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":126,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"fd4c0a53-d757-4e72-b98a-1a6f9043a0bc","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":126,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"3834016b-5d63-4eb8-a574-9af7fa6da319","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":126,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"b7f50b4c-6651-4de2-85e0-88a7a2aa2526","block_type":"box","text":"strategy with respect to such security or asset.","page_number":126,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"e5664528-16fc-43d3-b756-ec69b5b92434","block_type":"box","text":"BlackRock may maintain securities indices. 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In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":126,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"35e09e21-4c90-4de9-86a1-855c7ea2cba4","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":126,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"17c90e42-c633-4550-9b81-1be9b40923ff","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":126,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"10a237e9-6a05-4016-afeb-f5a519469ba2","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":126,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"da018d77-4efa-489e-b7ec-176341823e35","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":126,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"03201f51-0a6f-45f8-9804-c70c0eb616fe","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":126,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"b6dd9c76-5859-44a8-977c-6c65308e6f19","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":126,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"45e312d4-7a06-4e7c-85ac-0b65d18759ab","block_type":"box","text":"e.g.","page_number":126,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"f76236c8-369f-4265-902d-7c22b53d1f50","block_type":"box","text":", custodians,","page_number":126,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"f548074a-6869-458a-84dc-3327cbeb59e7","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":126,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"0bad67de-9782-4d9a-993b-e11271c73117","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":126,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"93578ea2-1969-4a82-89b2-954c1d7cf8d3","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":126,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"ad4f5391-e7e9-4e2b-ab4c-82afc9f6b93f","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":126,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"0a7e4380-6ebe-42ad-a18e-c9a015c2e7ec","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":126,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"ff60a97d-74ab-4876-9c8c-a763fe60a4cd","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":126,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"eeac0832-7f7b-4f5d-973f-3544083002b8","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":126,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"51df3919-3005-469f-8f31-231dfbe63c5a","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":126,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"96bb4d1c-7613-4e85-8fa4-b3b0fb1fbd06","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":126,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"d11ad83a-6f71-4d01-8c61-b2ff6c94654b","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":126,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"e7fabab1-caad-4df9-8cf5-11dfe490243b","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":126,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"64b371be-1ccc-4f86-badf-ba080a95f312","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":126,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"86f24ee1-7fa2-4bb3-9c7a-9167a16551f4","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":126,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"15e91cbc-ff27-41b1-bdd8-d970a4f3949e","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":126,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"cc9d0a52-a4c6-46bf-bc78-d57a01b97fb9","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":126,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"cd7a0ecf-4c35-4395-8d8c-57aa46dcc4b0","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":126,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"432e0a4b-37ab-45d2-87a8-dcd28cd31bc0","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":126,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"57dbbca6-c8f3-4196-a3b6-8c32733583bf","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":126,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"3b60cf30-a4e1-4cda-8039-eff01089dee3","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":126,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"83b6f10c-dfce-40ec-bc0e-415f598cb43b","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":126,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"a1fb629e-6830-465d-b383-98d749874855","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":126,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"d0d332fd-581f-401e-a099-9bed43e79039","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":126,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"c5a8f10f-97b1-4fb0-bc31-5195f56ad401","block_type":"box","text":"provider.","page_number":126,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"3bd33e79-4ca7-4a7f-b2c7-b0ed343d00e1","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":126,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"38d20bd8-74bb-445e-8d0c-7a0c6dfb965d","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":126,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"134368a4-58f6-4b44-b9a9-52a8c590881d","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":126,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"d2d01e6d-1bfb-49e1-9a32-982396619a22","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":126,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"0c13a9fc-05e6-4c63-8593-d6b2df91fcda","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":126,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"59ff713d-47ef-4c7e-aac9-759297572cda","block_type":"box","text":"PURCHASE OF SHARES","page_number":126,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"91ce6f8a-4e6b-4969-8211-2b9ef76976b8","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":126,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"1ced3e93-d3f1-432b-aac7-b00631e9893e","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":126,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"1e939061-9845-42c4-a977-9a67faa63796","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":126,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"2a2cdf79-badc-4fe2-81de-b04a29ac6971","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":126,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"1d3602a1-dca9-43f1-ad1a-bce05e6dcac5","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":126,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"1a4c98f4-4e1f-4704-90a6-86993a1a7592","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":126,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"952ae22f-f688-45fe-9c29-c1fbb85044cf","block_type":"box","text":"II-97","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1444bdcc-c028-4655-b9e0-a76b4fd22a8d","block_type":"box","text":"NM0926U-5977658-126/228","page_number":126,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"04929f07-d841-4dec-b230-13bbbb68ad90","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":127,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"9e7304b0-e860-4da6-9bea-d022ca5eda5a","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":127,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"e6c82c6b-3f44-4603-9377-5e118b74c05b","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":127,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"13e498cf-0c3c-4410-bbec-319c376c099c","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":127,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"d69a439b-5cb2-4ebf-a088-d110d7eaaa53","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":127,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"62abbe49-9cdb-4418-8224-4f842c2dce2c","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":127,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"92d6e208-51bf-4bd2-be3a-2f0bb988f327","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":127,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"5b5a4510-b43e-4ab3-b782-90d3fb2cfab9","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":127,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"16b28da1-dd5c-401f-abd3-f15388fdee35","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":127,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"3580dc1c-4337-4ff1-8088-7a75d8281461","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":127,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"341afcae-feeb-4ac0-a35b-795c42289e24","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":127,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"7ac844d4-8381-4d96-878b-ca03f369edb1","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":127,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"daf3231d-03c4-4adf-a9a0-a377901c5b70","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":127,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"70a1fc6f-68dd-41b0-87a7-f30a69da98f6","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":127,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"216362bd-5654-4e43-aa09-aa624fe8daba","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":127,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"e1b4ed3c-4bb2-4bc7-9095-5d25d31891c8","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":127,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"6f0560bf-8e42-4c0d-9207-4ab8d2141f42","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":127,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"730ad99c-6965-4df5-8f08-f6e66bd74a9b","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":127,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"28f1640d-bcd9-4a6c-a2bb-c0ed4a9859ce","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":127,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"82d4a86e-57d3-4d30-8ada-b1a5915646a4","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":127,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"7fc60623-e25f-46ab-bed5-44e060acaed9","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":127,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"a8bf30c7-dd95-45dc-8464-1ff3b8d87919","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":127,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"b66f3115-ff82-4c85-870e-65a6feb73b22","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":127,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"474c3ac1-eb32-4405-a3bc-75a2bf7af1f4","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":127,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"f56eddfb-4f27-4743-8cc2-74b83be7a318","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":127,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"dedea4bb-c743-4a4a-8ad1-ddbd3e22d01d","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":127,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"9ad6c6a9-f866-41ce-87a9-fce18eb54fb2","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":127,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"75e35882-5197-4277-9542-d3cf9572820c","block_type":"box","text":"investment is $25.","page_number":127,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"09ce56e4-e6e5-4b0a-b001-c6866bfe4def","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":127,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"02d8310d-fd6c-4f14-a8ae-66e3a54e99f0","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":127,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"febc4b43-e041-446e-a7ab-fa3a5f1a5ddf","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":127,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"5a4a3a5d-bd59-4e2a-bc97-e37f46eb0cfa","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":127,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"21c7765b-7e84-4f4c-89f1-07cb71561d1a","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":127,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"d6e9987c-27db-4408-8385-98c281d832ab","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":127,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"8fba3b74-6cec-4a88-84a3-644d855c2988","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":127,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"11f11731-d599-4eee-bfbc-31f5d6c13392","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":127,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"86cf1472-8709-483b-b9b6-21166484fd69","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":127,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"3fff0845-af3e-4e31-92ca-01c44592e5f4","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":127,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"9450ee40-8772-480c-944a-30ee1febc79e","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":127,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"ea7d65b3-2af0-40c7-ac8a-29d854e2032c","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":127,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"64a10198-aea5-4dc7-b6f1-71f1061567a4","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":127,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"225df655-e229-41ec-a9f9-5e22c656a4af","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":127,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"c27c00f2-260e-46e9-a216-c4de24c850a9","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":127,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"f4205390-cc37-44d0-991f-74f2a094c018","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":127,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"064e0b96-359b-4c8f-87e4-05f70f50dc1b","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":127,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"5936cd49-82e2-45de-9c9c-daf993eca82c","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":127,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"32675b78-b39d-4b47-870c-2326f68404e0","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":127,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"05d26c5b-fbb2-41a6-a520-66eab26971af","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":127,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"18bfb0a0-e0e7-4555-b14f-a10bbca627ab","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":127,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"cd553ac7-d296-4954-bb30-654987eb2af7","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":127,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"9a13d5cf-d253-4cd8-8033-4da533bcc6a5","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":127,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"7218fcad-35ee-4a27-b1c1-4e41686cf577","block_type":"box","text":"adviser.","page_number":127,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"3dc65753-af0d-4b02-ba8c-7b5917a2b32a","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":127,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"d4ca93e9-f66c-41e3-9c9c-3bed25f1d25f","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":127,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"38415656-0a9b-4fe9-8975-85f4f3946b9b","block_type":"box","text":"II-98","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ba49b2dd-aad5-4cce-a606-f664c0714d88","block_type":"box","text":"NM0926U-5977658-127/228","page_number":127,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1d977c23-6402-4a9f-af77-694b3060740f","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":128,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"24d87c39-21b5-4c49-87b4-e8d772ca96f7","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":128,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"1342e2de-4a4a-4cb0-b028-b59c0db61b0c","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":128,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"67b43c16-7cd7-42b1-9ed5-956d405668a4","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":128,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"d5376cff-6c40-487d-968b-13791542a691","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":128,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"1ecd093a-2380-4883-9eb8-2dcce051aff1","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":128,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"1b900866-1643-4e47-b6b0-1096241a7b9a","block_type":"box","text":"also be restricted from making additional investments.","page_number":128,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"e37945b0-66ee-4e33-b623-fb4e7831fe0f","block_type":"box","text":"In-Kind Purchases","page_number":128,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"049e020e-82e5-436f-8445-e6f86b95e646","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":128,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"66e3cb2a-5413-4c90-8b79-761c03b1fdff","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":128,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"a04a1b3e-338b-42ac-bdc6-9bbb466564bf","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":128,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"5656ef58-b55f-47d6-a4ae-ed909de7d946","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":128,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"4e087616-47d0-4267-adb7-a9107d6c6292","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":128,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"6e565a39-7ecf-4ac8-a82b-caddda64afcd","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":128,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"305096e7-7ec2-41ec-ae4c-3cc438d2b917","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":128,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"5735769b-a7a2-4a5f-aa89-e98c351dde77","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":128,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"785f0306-a3ca-43e9-ac66-d73e26e228a6","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":128,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"1af35d17-f196-4540-97ce-64822af662aa","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":128,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"e993039c-84b1-42c8-bbec-723ca1b38b1f","block_type":"box","text":"has settled.","page_number":128,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"8b797a27-aa4a-4fbe-af4d-e5661864065d","block_type":"box","text":"Institutional Shares","page_number":128,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"651877b3-7925-4408-8f46-c880d84a9ffa","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":128,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"fe4162cc-7229-451f-898d-07f759365136","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":128,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"d7d08447-591e-437f-aceb-30439c8455a1","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":128,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"2a1d938c-cb6d-4263-ad29-eaa0a17c3e8e","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":128,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"97832a5b-1f5d-4493-9b34-b3339489d019","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":128,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"cba25044-2d0f-4597-9b1e-b69b44fe1cd8","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":128,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"39f07766-3152-4ac8-98a6-3eaff6ca3546","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":128,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"52ddb05d-9bc4-4bbf-aac7-a65143d3d29e","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":128,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"83dec361-0e64-4bd2-a1a1-c51059c96e8f","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":128,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"2a718764-67ee-42d2-879f-6f1476822a2a","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":128,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"33e43181-120f-4022-a388-8a849adaa183","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":128,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"2305ddfe-ce9a-45c4-8f25-0997d7c1b859","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":128,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"dab9b591-5d68-47ee-b237-c58d2ceb622b","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":128,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"ade710a5-53cb-448b-a00f-bea59e9b13ca","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":128,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"21d116c8-fddc-4f28-99c1-6d3bdad2709d","block_type":"box","text":"these fees and conditions.","page_number":128,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"f8e9b54a-64d5-437a-b63b-afc73d7c5170","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":128,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"29ee182a-e86d-42ee-8998-d68f6af26065","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":128,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"cc5a0bd2-1ac1-4822-8064-d1d5279b08d7","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":128,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"8f5341ca-ca01-4414-a9ef-6b6f8a773918","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":128,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"5c62088c-1ae9-4b70-8a39-4ae8ba56b175","block_type":"box","text":"incurred by the Fund.","page_number":128,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"a20ac2f9-0a50-4233-8c98-4034b6807d7a","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":128,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"008b7a3d-5c99-458a-8a17-810fcb8041ce","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":128,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"709f4016-4514-4bee-9038-3ac54d6b4496","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":128,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"43306a4c-f03b-4375-812f-89075fd026cc","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":128,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"22cefdc1-7445-415b-b37e-b4e823c4c374","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":128,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"ee369129-5852-4b3e-8436-2070384ba2e8","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":128,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"a23a5b1a-a7cd-4c4d-8267-b30475929fce","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":128,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"7de81207-d3a6-4c11-a81e-d28329ff3a50","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":128,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"c6310764-bbca-4169-9ffc-1fbd9c6f9118","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":128,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"78578390-4bac-4faa-a70c-35ab18452e9e","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":128,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"acb3cbec-6752-4037-b056-342950810d21","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":128,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"99f203c4-7fc5-49a1-9d18-9bbd06b5e716","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":128,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"c66b91c8-b991-473e-b939-ad0dfd6c6ac7","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":128,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"b2faba2c-4481-476e-9deb-124d5e04f584","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":128,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"d328eea3-6199-4f69-8c1d-6c298a61ae71","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":128,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"baa5d4b6-32e6-4bb2-b434-ac6b48e70f6a","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":128,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"dd9860fe-2fe3-43be-8b04-a91c35a8fb06","block_type":"box","text":"II-99","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"90c099ee-b91d-4590-bdd1-9f4f861dae47","block_type":"box","text":"NM0926U-5977658-128/228","page_number":128,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"42cd5d51-d922-4c46-bba0-cd06c7895018","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":129,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"9dbc1932-a9e1-450b-9a21-a79064162aa8","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":129,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"d971abab-7c78-475c-8da5-7dc5ae9936a0","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":129,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"d01f2f27-26f3-499f-96e2-49c61188ee44","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":129,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"8d6ec174-ea66-4845-8a2b-1da25b78ce18","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":129,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"83dd57cf-1dce-4338-963f-6d8be7cb5dd0","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":129,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"9fc34216-f0d6-4ba6-8688-85f5d3d17fc0","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":129,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"87a23e2e-5479-4acc-a297-c48b830507ca","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":129,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"ec57c985-ffc2-4c27-9460-07f34466b13d","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":129,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"ed26b045-8ee6-4d4d-8b08-72dfd5bc0226","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":129,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"2b8be2dc-eba9-4264-8aa8-0716e0b80660","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":129,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"fe13e627-dbd3-4f23-9cdc-5eae752b4cef","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":129,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"938d796a-3154-4da8-9eec-7868e03e5f2b","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":129,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"0689ca6e-e497-4582-9bf4-e28e7755a28a","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":129,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"5f79cad7-de56-42fd-8412-55b4ae81bfb9","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":129,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"ae09e27e-4ffe-48d9-b43c-4ed41b7d8f41","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":129,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"71e73600-87c2-4224-ba8b-e9a414998bf2","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":129,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"ece3e945-d55e-45dd-921b-303e0d17427b","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":129,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"1150905f-f31f-45b8-9776-7ed4afbe921a","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":129,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"eed26a51-4c51-4d18-8c3e-9ff905171f5c","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":129,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"409e479b-ca18-4239-b9b1-ab8e7deef892","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":129,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"18474ea1-0c9a-4eae-974f-c5e8d0bb234a","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":129,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"98147369-ce20-47f4-854e-74537ef52cbc","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":129,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"f48abcbc-cbc7-4837-9c16-71a43f9688bb","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":129,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"dc1145a1-d297-448d-b35a-bc192faf1837","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":129,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"87a454df-0c67-4054-9818-7ec64f78f9c2","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":129,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"68beb628-d560-4422-94fa-65644c7f6908","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":129,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"2acc4917-904e-47c0-9b2c-47ac51e54003","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":129,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"ad91c642-e464-411d-b1c2-2f567c993d22","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":129,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"f37f0d62-24e5-4939-a05a-90ed213ca23d","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":129,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"cb246f30-1c0b-40e8-8930-0a630f7c2845","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":129,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"9fca54e5-08e9-413f-b771-201798ea5eea","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":129,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"114409b9-3100-4dde-b8d2-0497811314e8","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":129,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"b001f837-665a-4434-853e-138f55faa8e1","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":129,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"6acd0a39-28ee-4d32-8508-dd8268e44f9d","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":129,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"6222c347-2843-4465-974b-b5cc9988d25a","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":129,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"6e10814f-d729-49c5-978c-dfac1bd8e1d8","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":129,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"53218f66-1570-456c-9567-0381409e5744","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":129,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"47eb03cd-57ab-44a3-9d41-c44eced4c854","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":129,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"458abad8-9c3b-496a-b4bc-ca76cdf9cb93","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":129,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"4cfa72b8-5b0e-4f8e-9d7d-d18aa2d999dd","block_type":"box","text":"periods indicated.","page_number":129,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"c4a9de79-c7a2-488d-9b2c-8cfad38073c0","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":129,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"ee4bc0cc-f926-4a18-b350-ba082c4b0a8d","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":129,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"ee6b7b65-d893-4cf6-9bc0-d4ad0be51354","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":129,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"03048ed4-2470-4b27-b60f-77467b9e4b8f","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":129,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"7d6d63d0-6bf2-45c9-b9b0-2de3bff6739f","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":129,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"ab203df2-c5ec-4cd3-917e-f59382256cda","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":129,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"e546df88-4d12-43e1-953a-b742c4072ee8","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":129,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"cd2a3215-2ded-4928-a3df-5f4bdc148020","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":129,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"19e5af05-b5ff-4e20-a67e-3a05b2246060","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":129,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"8f416011-1401-42c5-a56b-48a6c22e5be8","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":129,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"dcac4d46-73b8-4799-92fa-a6733070daae","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":129,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"8f588c38-1372-46b8-849a-00e2e05029c6","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":129,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"5e60dfa1-b08e-419e-bdb8-47cba209fd3c","block_type":"box","text":"II-100","page_number":129,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bf8093fc-f9a0-457f-9058-5623e8f074e1","block_type":"box","text":"NM0926U-5977658-129/228","page_number":129,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f8659658-6ca2-41b6-88d0-ff12cf764e8a","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":130,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"4f2e8817-7668-4ef2-b63d-0798f014f52b","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":130,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"f49dd823-2f3b-4680-ace4-8e07f40edd29","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":130,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"5287ae8c-21b4-49bb-a789-693c9ddc3327","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":130,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"03af1286-ff8c-4b6e-9784-afd73b9eea88","block_type":"box","text":"Reduced Initial Sales Charges","page_number":130,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"961a5d66-c3d0-4c9b-898c-6d1ff78ac078","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":130,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"f0c2ac96-731a-4f9d-a6a9-037ea74c8b61","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":130,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"73e29a63-865b-428f-8ed5-9a2e39c7da28","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":130,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"0fac5539-745b-45b6-9b66-2f5217b23dc1","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":130,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"e32ea610-7ce4-470e-b4a6-670957839648","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":130,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"31a411bd-66c8-4c78-9a67-e61249f40f40","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":130,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"df998388-d237-4afc-8cd3-ac4ffe5d3f3a","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":130,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"e17ee19f-7b2c-4974-9694-bac7757205a4","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":130,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"7cc71d7c-a964-4194-b2e7-5eed0c2ae298","block_type":"box","text":"Reinvested Dividends.","page_number":130,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"ad44bc26-090a-43eb-a0a3-1a449fcd9dff","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":130,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"5699d5bd-0227-4edb-bc26-db97abdf4b0d","block_type":"box","text":"reinvestment of dividends.","page_number":130,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"3bb1f3c6-47c7-4efc-b979-4ae3ee8e02c2","block_type":"box","text":"Right of Accumulation.","page_number":130,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"ed52f93f-2008-4809-b59f-8123c3dd6c46","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":130,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"8c4d9eed-38e0-4f94-92fe-8d00d0f5ebf9","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":130,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"de4d61fa-c67d-43b1-a2c8-764a27713ec7","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":130,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"66028448-da25-4cc9-8786-9de5f3a89f36","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":130,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"883cecf6-1982-42cf-92f4-4893cc33bf31","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":130,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"f37286c0-c7ad-458f-85c3-10050283dd8c","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":130,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"2e114a38-aaed-4ddb-bf11-c9a1baecd777","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":130,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"0c20c694-348a-4cbf-b02e-c457ad015ec1","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":130,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"420e4d22-4eaa-4812-a141-64294f283f51","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":130,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"cec67edd-1c19-4f22-8ed7-238bcbc89a7a","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":130,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"8963fdaf-113e-4926-bd48-e53120451728","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":130,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"0d6a612e-d7fc-4f27-80a6-fa777f5af65e","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":130,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"bb905ced-40c2-4a25-97fe-eb32b0ef26f0","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":130,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"16aaa35b-9c75-4e98-adc0-bb0a85ee1328","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":130,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"71b7ed5d-3326-44cc-bbd0-baf6ffbaf372","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":130,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"9775458d-7a33-4ff5-9163-455b852a50cb","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":130,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"170f5007-4735-4230-8c0b-4e7230cd1b97","block_type":"box","text":"Letter of Intent.","page_number":130,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"4a64b559-6bea-41f2-a0c2-2fbe037286f0","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":130,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"a690164c-c333-4f5c-a2ed-4a6d8dd3b715","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":130,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"08fc9a47-e22d-4c7c-a228-8fbd1d07000a","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":130,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"1bc87e6d-6521-46e4-b213-5bd9854abaf5","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":130,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"223bed34-298a-4f64-9c95-6002ec3e6526","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":130,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"12ea944c-4b7a-41b4-83f8-e4b4d86cd00e","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":130,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"6373cfbc-ad77-467f-8085-1c67b0570384","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":130,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"64dff5e6-b011-4c57-a8a5-b9111f5c52e5","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":130,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"010da9d9-a5a6-4ca2-a953-fce784cc1043","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":130,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"1c9eb577-6c82-4117-9ccc-1e949291a40f","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":130,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"19ca54b4-455c-4927-8f10-a77955f9c80a","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":130,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"d01d6ee9-7812-4d80-a110-bfa26c8a919b","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":130,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"ef92373b-5771-4289-b4ba-e6dcd89477f8","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":130,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"3c31e9cc-3e14-44e3-885d-308b2a14e940","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":130,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"086f3b91-3f20-4c82-8ad3-09fae72d3f14","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":130,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"77aeadab-a9e0-4444-a92b-f5cd18b0e4bc","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":130,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"286b824e-e5f0-4236-8736-dc9a40170909","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":130,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"a7de436a-ed82-48e7-afbe-cf157ec90384","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":130,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"98aabdef-c2da-4dac-8ec9-6ec8b8861ab0","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":130,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"528c0854-1d02-4ab1-b4ee-1e2e958475dd","block_type":"box","text":"Placement Fees.","page_number":130,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"e9831899-2e05-48dc-8019-87dfdf5effcc","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":130,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"94e67807-3186-4a53-ad4b-dd19e4899d4f","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":130,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"1ee9a4fd-6f48-490f-9a71-08574521d195","block_type":"box","text":"II-101","page_number":130,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4e774948-6efa-4c52-9f3e-e35f719a7985","block_type":"box","text":"NM0926U-5977658-130/228","page_number":130,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"1e296213-bc1e-4f74-9bdf-c58c19be359b","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":131,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"f7c3e292-6fea-49e1-9edb-80ffdf80efd2","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"01d0a485-f6a3-4f80-8d5a-71380c5e18c0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":131,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"318a8337-26ee-41c0-80ee-b506ca496b04","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"ee1a0cb1-8310-4889-b89d-fd94037e0618","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"1cd94799-fdb7-4ada-a87b-c79634a4327c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"605e5f5a-6973-4c09-a3d9-dfe6312dfbda","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"e921bbf4-42b7-4f06-a2d3-c3ef4b493d0a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":131,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"8883804b-9996-4559-a251-921936139f1e","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":131,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"928ddd3c-e763-4630-b621-c173fd9b2756","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":131,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"9f092cca-05d6-4e1c-a797-36cb557a2645","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":131,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"44e9781e-b3cd-4f97-b059-c58ba51e019e","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"b709b217-81a3-4a82-87c5-c780f10cad54","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":131,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"4ae934f9-bb32-417f-a1e1-4fd619676f30","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"11f275c6-cddf-40c3-9341-284512b62e25","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"3f8570c4-3189-42a1-ad9e-8553397cb38f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"3938d48e-a62a-467a-ab86-8b2f774d12fc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"679e8bea-ceaa-49cb-bf05-d8d8cb0c1ed8","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":131,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"271f69c3-bb20-499d-ac24-56a1f5fe3c54","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":131,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"2eded405-a759-4f13-bbe3-f5ecde6c4676","block_type":"box","text":"SM","page_number":131,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"2d34290e-774e-4a9a-ade5-c99f22162d1d","block_type":"box","text":",","page_number":131,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"50deb814-33e3-470b-9ee0-82f9a7b7e3db","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":131,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"a97c0340-d90d-4b28-99be-e467441c6768","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":131,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"e517482a-1ead-4a9b-bcca-08de1d249fb9","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":131,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"67ba3c35-e399-4ca5-b50a-239006a8d315","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"26dc50d9-0759-4bc7-a3f3-03d0b17eb20e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":131,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"bc62f38f-93f3-4a8b-b7fd-75d8968c2031","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"b7650d7b-8b18-4376-91ce-42d7199c60a5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"590739cb-7b04-463e-8314-9487723a5fee","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"417a6c57-e578-47e8-bf86-494ebcf68885","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"c100ea4d-88a4-4b86-a4c3-9f2ff63570ef","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":131,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"17e49a11-4386-4ed7-b918-29991d822fa3","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":131,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"aeb2532c-fdb9-4930-8d62-0bffa237712f","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"660fcc0c-a51e-4e59-83af-20483738b045","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"70f0dbce-edbe-4b12-9c56-64f1c548482f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"070e11ce-59f4-4eac-980d-e42517b1be03","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"bfefb51d-c85a-42d7-80c8-f1ed9db5961f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"a9ca26d1-3e30-4100-ac5b-e6271d740fe6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":131,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"e1b94d14-aa01-4937-9417-f776f17c2b53","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":131,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"d5f4778a-8ec7-406a-bc77-a45619a556d5","block_type":"box","text":"may be up to the following amounts:","page_number":131,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"e9549b6d-9c1f-4e7a-a7c5-cb5b7fbf52e8","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"ac7f2f10-e19d-4106-86e4-d3aab934d56e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"662efa96-05f0-4079-8346-1ee7a1e18c2c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"6e7c7d37-16a5-4f14-8aee-c495ee1c18e5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"e5c965a4-a6f7-4a5f-9509-a3e6fe2e68a8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"37531a3d-16c7-41e6-a336-5032c136a177","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":131,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"79e015bd-8ef6-439a-8bf3-691cbf82ef0c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":131,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"6bc35925-1603-49ce-8835-332745117270","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":131,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"15cb792c-3b9d-4120-b7b0-b0d80942370d","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"6fc2d057-1b6f-4743-bd03-1048bfd8aad2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":131,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"e71efc77-894a-4589-8a9f-c1e5979cb187","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"cb908cf5-0ced-4e51-8cad-91611d601e84","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":131,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"84cb4064-6bea-4d82-9014-e97ef71a5db0","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"80bab842-c70b-46e4-9eab-a82903e05e5c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":131,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"dcb00363-2a81-4c37-82a5-1b6c203acfe3","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":131,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"4296397c-9aed-4816-b8f4-576f807dfaf3","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":131,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"207f41b3-4196-4161-bcf4-4f3f30d2c63d","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":131,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"61a4acfa-9042-45ef-969a-c9382879cb53","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"20578b61-5ce2-4f54-a845-48892e1bc22d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":131,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"df7b8329-a1de-4380-8f2c-655b1a202cfd","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"0ae9c100-001d-47d3-85b0-2ea10daeef33","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"54b74a77-ee6b-476b-bbb8-b769b6765ee2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":131,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"37faccd8-1ecc-4868-87cb-76e8497ecc43","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":131,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"8a40a101-46da-481a-b9f7-95d3f15292cc","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":131,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"cc46538a-ccd8-40b4-9b4a-2264046c41ce","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":131,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"363da60f-03bb-4a02-8522-6e8a21266a82","block_type":"box","text":"$250,000 and above . . . .","page_number":131,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"64e3f51a-3f85-493f-bada-00fca6a462b0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":131,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"84c70ec9-a501-4d4b-a548-269df9c1c6a0","block_type":"box","text":"II-102","page_number":131,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bbb8efd4-5852-44e8-9bc9-5f227c9aa17e","block_type":"box","text":"NM0926U-5977658-131/228","page_number":131,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c0d00c2b-eedf-4e5e-bad3-a285c7591cfb","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":132,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"0e30ae39-fb62-4aab-a372-95983c636540","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":132,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"fe92f44f-c326-4686-abb5-33c863fdf4bd","block_type":"box","text":"the following amounts:","page_number":132,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"ebf176f6-3818-4759-98f1-a2babb384b74","block_type":"box","text":"$100,000 and above . . . .","page_number":132,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"756a0726-6971-4f96-974e-48265a743299","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"5c6a6a99-5d0e-4e10-a43d-df39d92d270b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":132,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"0b224969-35fd-4dbf-9b94-c5397be6ca59","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"a470adb6-7547-4faf-92a7-010a03aea667","block_type":"box","text":"$250,000 and above . . . .","page_number":132,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"cfa71967-5a08-4dc0-8afa-bcb7c00e380d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"e507f138-f89a-471c-8cdd-358fda9e9e49","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":132,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"f4a3f096-0f89-485c-afae-1291f470965d","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":132,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"0399e27b-d0b2-45dc-a649-c4f1938d7789","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":132,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"152284aa-9afb-4556-acf6-3b6801c9e146","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":132,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"872af408-f47c-44b6-9acc-373735881d60","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":132,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"6963b58e-2eb6-486f-986d-0f2989207cc4","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"8a306360-9ea8-4ed2-9f3f-5b2247a4a920","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":132,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"2f76a082-c501-4b79-b16f-839cfef62696","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"d3c61dff-3573-4b87-9251-3acbf236d225","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"c29d22d4-c0b0-464d-8fd2-b35c20756e9f","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"027e283d-0c51-4b2e-9d3d-9be49881429c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"25ebb835-f36f-4308-9da1-d83755e881da","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":132,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"a51f8812-51f0-42bd-a2f2-16e0f962a538","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":132,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"fb9b5e49-dceb-4462-b30d-7be25418003b","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":132,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"5e47e99c-ef51-4a1a-bb51-7fc271741f26","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":132,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"e26e34e9-958a-402c-b0ee-01425b4b4563","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"dc4fb9c1-d90e-4251-903f-18b12083d6dc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":132,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"3b79806e-b0f8-40bf-98f4-6bd39bb7ede5","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"ea9d7e72-e3d7-49d2-9d59-0b38189e8a87","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":132,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"22bf7710-0f7b-457b-ad1e-adb0fc00982e","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":132,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"2a70b01f-14c0-4f5e-a380-36dba7a9b698","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":132,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"1b788338-a42a-431e-8865-0dde3cb566ad","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":132,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"60b9ee9c-e2ce-442a-948a-c11037da8c5c","block_type":"box","text":"®","page_number":132,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"d5f507f4-ed01-465e-b047-050afad659e0","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":132,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"441c5650-3914-4b7c-b99b-c4f4c4400904","block_type":"box","text":"®","page_number":132,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"1b31ada0-75e9-4cae-8296-c2563d36f0c0","block_type":"box","text":"Index 2035","page_number":132,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"a67dad16-550e-47d6-9136-f2fda4e8770e","block_type":"box","text":"Fund, BlackRock LifePath","page_number":132,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"be4c3673-d213-491c-86b3-8534447475f7","block_type":"box","text":"®","page_number":132,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"3d0cea47-0bdb-4c8b-8fb2-50d792d38bf0","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":132,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"b40eb022-09ac-4f84-a28c-b2406360859f","block_type":"box","text":"®","page_number":132,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"9aff08a7-e67b-4670-8bb3-85816d184934","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":132,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"7ebed57f-af77-4173-9d8e-9483e8b3c33f","block_type":"box","text":"®","page_number":132,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"f31cc527-7bae-442c-9f96-649f4fe2950c","block_type":"box","text":"Index 2050","page_number":132,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"ee9dd1cd-e20f-4bd1-aba3-3cd751738ed3","block_type":"box","text":"Fund, BlackRock LifePath","page_number":132,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"f46865bf-9649-49b7-a4f6-5667abe50557","block_type":"box","text":"®","page_number":132,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"d3ce971e-f1ac-49ac-9c34-2edb1d95c4a1","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":132,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"8693bc22-7f4d-4afa-8e83-8caad4e1dcd0","block_type":"box","text":"®","page_number":132,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"bbe7ca5a-fe3f-4c4b-aa70-8bf479e97c66","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":132,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"323602ea-44bb-4dbc-84fa-223ea028fecc","block_type":"box","text":"®","page_number":132,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"8b6414dd-f7bf-4db8-828f-8b2adbb9a00e","block_type":"box","text":"Index 2065","page_number":132,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"230e6985-38ce-48da-9776-786ede965af2","block_type":"box","text":"Fund, BlackRock LifePath","page_number":132,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"ded85a19-0043-4397-af86-a99775298d61","block_type":"box","text":"®","page_number":132,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"dbff5858-b829-473f-8cbf-701eab23e341","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":132,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"0705371a-85ac-4919-b146-f85d41b2846b","block_type":"box","text":"®","page_number":132,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"054e7df1-6f95-4de0-bb40-aca51632e899","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":132,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"d78429c8-966d-4857-af38-9c12f03bf324","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":132,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"42ba0a55-6a3d-4d2c-b013-50c019bddbfd","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":132,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"372bad62-2e63-4890-9b4d-f93212e6f084","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":132,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"a2713815-6551-4438-914c-30491d714e4b","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":132,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"35b199c0-f1b0-4c90-8ddd-88114fd31409","block_type":"box","text":"SM","page_number":132,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"f4ce3a02-9eb7-4502-b93d-54e33b83d3c1","block_type":"box","text":", the placement","page_number":132,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"a66b68ab-87d0-44d0-9f18-d2263cc8aa1c","block_type":"box","text":"fees may be up to the following amounts:","page_number":132,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"aea7f2ea-4e9b-4436-a326-90c4db340670","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":132,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"8ca32891-1869-45f1-92db-8f24c7868e62","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":132,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"b98e94c6-8b8d-4d28-895c-724dca40769c","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":132,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"fdf4b3b7-b81a-43d4-baf4-9e4be89a1ac4","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":132,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"0d49f278-5593-4290-a8db-f537544be2e7","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":132,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"0735cb5c-a43d-4804-9999-b0ad75040c3c","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":132,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"b5a45079-10cf-47f3-97b8-6238324e8444","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":132,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"c4aa89bb-f4e5-4649-8ca7-74f63f49da0b","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":132,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"366ae37f-7356-4cf2-93ac-3578efc05d5f","block_type":"box","text":"$1 million).","page_number":132,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"51d30d20-0bcf-4de1-a2de-a4ffcc3b8dc8","block_type":"box","text":"Other.","page_number":132,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"a70673dd-2775-4153-bdf5-c7a7ba7187db","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":132,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"0c0b426a-5eb5-4e45-9da3-56774fa488ba","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":132,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"fcb0c321-649d-469a-b2e0-fae08035d2dd","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":132,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"a2aea2bc-b2f1-40c2-9d8c-ce6a33a99c5d","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":132,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"bb5c8de2-96d3-41f5-a6d7-166fc88cb849","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":132,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"f0eb2435-d7ab-4e4d-8ea4-c2b0407ada88","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":132,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"4cfa2f32-43fc-4bf9-8f85-75ea9d18152b","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":132,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"1710ac29-956b-4b57-ba67-882d039a686c","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":132,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"7e2281cc-6fb1-4a3b-bea0-25c7ab5004e9","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":132,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"f0013cd4-754e-44d2-8bcd-318f8484ea86","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":132,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"63741cc0-ab6b-4911-a511-5d5d06b41bd7","block_type":"box","text":"II-103","page_number":132,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"88e5c9b9-378c-47fd-b466-0079c4293b76","block_type":"box","text":"NM0926U-5977658-132/228","page_number":132,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bc122000-4eac-4888-a564-2538925ee783","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":133,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"aea34c2c-2e87-404e-98b3-7ebff2396ce8","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":133,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"061c71ca-7cf5-4d09-b27f-7a57fdcdf26f","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":133,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"0b07c712-cbb2-434f-bfde-77f3293cc4ce","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":133,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"768806a7-6de7-4185-a798-b43d82fcf044","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":133,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"9f373508-38e5-4374-96bf-99eb9ae81b88","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":133,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"f190421f-cbf0-46f5-b102-c5d05ed56830","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":133,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"bdde5c80-b19f-4c1d-a9ac-a7165fb590d3","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":133,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"0e63acb0-30af-458e-aa92-1f89df321d70","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":133,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"8c6c0fe5-5c3f-49b0-aada-a6cb013b01a5","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":133,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"3139dfe8-aedc-4800-aeb4-436180b5ac55","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":133,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"30f396c5-edf5-488a-9e24-bc5b88045d01","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":133,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"827d3292-c1d7-41d9-9378-ac31d1d133c2","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":133,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"6158c11a-89d0-418e-8b17-c2625428b5f2","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":133,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"fb7ddb38-dbc4-4fea-9fdc-6aedd81cec1c","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":133,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"79533cc9-4e12-49bf-8f94-c92a2990cb28","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":133,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"492c03e5-ffba-4ebe-9da4-1953921daa56","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":133,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"9ec736d2-113f-4673-b150-8c10fc9a305b","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":133,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"35443eda-d0fa-4300-8155-044b21e75e11","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":133,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"e84624da-7288-41ca-a049-aa08f5715ef9","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":133,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"a7470544-bb56-4ee1-8d3d-9eb3e44ff7b1","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":133,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"7f5e642a-2663-47f3-9d64-53bd8bfb0a25","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":133,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"39ba96e5-8103-437d-b46f-2c0ab91afcae","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":133,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"8d2af9e4-ffff-43d3-8979-5eeaf451fb05","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":133,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"9c1ed944-a1da-47af-9bdd-f6cf19654b21","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":133,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"a90d1cfe-6a42-42db-8392-14e348f68a6a","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":133,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"230bd6e5-9b9f-4b6d-8a87-51a3114c541b","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":133,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"0143f139-b633-4fd8-bdc9-6055025abbac","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":133,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"3ab0b18f-8249-4459-935e-5f883bac5745","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":133,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"36d09982-d55c-4aa4-bda5-72690b364ec6","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":133,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"f5f539b9-8be5-4cf4-a9d6-872e0ec7881e","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":133,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"bf5a7b3d-dc24-492c-a6d7-b1a479485344","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":133,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"a425fdf2-e0d5-40cc-b55a-7f1cf5c2e92e","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":133,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"34ac8e68-d158-4129-ab2d-cbca7b85e44a","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":133,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"72785df3-2c12-4e24-a777-ca1637b0362b","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":133,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"8b5b4d6a-3519-4174-a02f-8992f8af44dd","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":133,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"3d9a29f7-c58f-4bb5-8311-7cd62c1404ea","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":133,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"4f73123f-bce7-47d2-99e7-9bb5256f8107","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":133,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"3d10cea6-0a17-4d81-8c4b-80816ef9f448","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":133,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"cab18907-006d-4552-8220-029e25f07f73","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":133,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"dfaa0ae5-7814-42ef-b9a7-ae4ab02a6b33","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":133,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"defa47e1-d904-4397-b74f-7e02ad4102f7","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":133,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"3feab228-c3ff-403f-91be-65699b37d391","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":133,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"56c8c881-f8a1-4c4a-aa28-2c0c2ab73662","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":133,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"557135bf-4d0e-4664-907c-50d1947d1e9b","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":133,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"f965a2ce-33ec-47ec-933b-afe2be7eb52a","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":133,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"c75b68e9-91c8-428a-9bf5-6ca2815b17ab","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":133,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"d5538afb-ed78-4c75-8b27-ca74ac7ad8b6","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":133,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"2d166c68-b7a3-48cf-acf0-6a005c1bb553","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":133,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"183daeaa-8593-41db-ab96-2134dedb65fa","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":133,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"63ec88c5-52b9-4483-bd0f-55a512b19ac4","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":133,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"6f77266c-26f7-4ec2-98da-b08274b2f552","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":133,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"7079e4d5-fec7-4702-b6eb-695b3840eac7","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":133,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"88be3478-2552-4915-8d59-4d9b0e30a3b0","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":133,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"f7c2c8a1-f04d-41b8-b9a4-6c6b0a77f905","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":133,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"725c6ecb-0ebc-4ea3-873e-7fac9603280c","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":133,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"77d42821-f78e-4c5b-af6b-0b488ecfcd67","block_type":"box","text":"II-104","page_number":133,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1f8f50c7-7737-4eec-8b6a-9590dc543b64","block_type":"box","text":"NM0926U-5977658-133/228","page_number":133,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d01247e5-f7d1-4ff0-acd3-1f5d01dd9124","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":134,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"85f38578-156d-49ca-9380-e6f7206ea6ab","block_type":"box","text":"the absolute discretion of a Fund.","page_number":134,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"aad035f5-c368-48b8-9b83-a383284c03e7","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":134,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"a5475efa-6fc8-48aa-8aa4-f40b6ceb226d","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":134,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"ee34145b-6cda-4c1b-8e8e-9c46d096f0bf","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":134,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"91d4a352-46c5-4d14-a662-cfcb8c1b6cfb","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":134,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"6ff6b062-eeaf-4520-847d-05ab89a88ec0","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":134,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"30bfc00e-0496-422a-814e-ce3d28d86585","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":134,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"98cdceea-18c5-4960-b2d7-6af98e619229","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":134,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"4b9ffec0-d911-4dbe-a9a3-d1c6b430ac2e","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":134,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"bc576b26-dc00-4bcb-aa91-2775a996cfd9","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":134,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"94372093-9afc-4120-a237-3bde036a1ce1","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":134,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"f5bdb477-e785-4e82-b3ab-f478fd611269","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":134,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"b7f0f8df-49ac-4a53-ab7c-f2293d9cbe56","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":134,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"205e38f9-364a-42b8-bf65-37a9be4ad41a","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":134,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"90336013-c89c-4571-8270-0e5e0077cbb8","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":134,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"06ed7bd5-d4e6-4aff-9bd8-9292539761f3","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":134,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"873ebc69-23fe-4d9c-b79c-582da78834b8","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":134,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"1e8a614a-363c-4374-a7d1-093f57c99cf9","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":134,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"7559ce43-ae39-48c9-a83e-263055277c9f","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":134,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"46e50f6e-0865-4306-991a-ea01bf55d8ee","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":134,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"7802809d-8d94-4b1a-b992-c8fa2be337dd","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":134,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"7172049b-3c97-4e49-937f-e518bd3dba95","block_type":"box","text":"public or private investment company.","page_number":134,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"8a9fff40-b154-4b79-bd87-ac9e01c4f42d","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":134,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"a72e1c77-8785-46a2-9b51-79cd6f0b8ab5","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":134,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"61620f19-1fc2-4703-bfd9-f1c2bd9073a5","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":134,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"f59f8c48-df01-4d25-b2a1-b528bde634ee","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":134,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"4c92fc15-6ee4-4800-a481-df1d5981a4d8","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":134,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"85c9bebc-7250-44e2-a540-67d01554ac34","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":134,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"bea013b0-923a-4aa9-9618-1e4cb4c71adc","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":134,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"4630b7cd-431e-4f69-bba4-fb42873162b2","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":134,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"f7d443c6-d548-4789-853f-5cadad1d9dd0","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":134,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"64bbe757-204f-4fa2-839e-f328e9364fea","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":134,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"14772ff4-b4f5-4239-b940-f1f223b07c58","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":134,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"0cf01bad-e0f4-4ad3-be0f-bc4987a6c58a","block_type":"box","text":"intermediary associated with the account.","page_number":134,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"545cf7b1-281f-4bea-a638-63ad36bc7179","block_type":"box","text":"If you select Investor C Shares, you do not pay an initial sales charge at the time of purchase.","page_number":134,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"311b7596-3884-480f-89ce-025ff8e12406","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":134,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"176c5354-6a44-4333-ab87-b31050827d14","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":134,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"954ec5b3-1d59-42b5-a316-66156456ecf8","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":134,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"1da6aeb4-ef42-46f2-8205-24f0e4af1ff7","block_type":"box","text":"CDSC shares.","page_number":134,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"0f7b0876-afa7-428d-9d2f-80ed398e8f94","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":134,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"21d415c9-266b-4cba-a339-5680f86c3e20","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":134,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"90161ded-bdd1-4fe1-bb4b-90374425e385","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":134,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"ea192002-c9d1-4b7d-92be-da551288d574","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":134,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"ea0cec4f-9d27-4c70-b31e-eecbdbb7b227","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":134,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"4df183c2-d3c2-49bf-85d1-22f85141f6b4","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":134,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"e30c1441-e8cb-4051-9493-10f06df1faac","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":134,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"34f3f9f9-732c-423c-bd1a-8c2c36a0f2fb","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":134,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"b6135304-f1b1-469b-8b73-324dfc96ffd4","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":134,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"cfa39082-293b-40f3-a9c9-40bf65d3b392","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":134,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"ce46e603-f3fd-4b4b-84e3-af7e76a5427d","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":134,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"939fbd3e-aa57-4b2a-83fb-dbf12f61f4ac","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":134,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"843242cf-a8b1-41a1-8ec1-a977c99e9af3","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":134,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"d632f0f6-5bf7-4158-9c7c-b8fcf5dff59e","block_type":"box","text":"II-105","page_number":134,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6c30be3c-c9f3-4a07-a346-5e9311bc8581","block_type":"box","text":"NM0926U-5977658-134/228","page_number":134,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"111c6db9-8fd2-4642-98b7-ea652a19f0cd","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":135,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"e2bd1492-d3d2-4efe-a61b-03b918cebf93","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":135,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"49a1e820-9351-4dad-9ded-984c53e1df17","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":135,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"0d4a2655-66f2-4c22-9b7d-581c03695572","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":135,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"8157ad06-6e4c-4f9c-89a6-5b419a352e2f","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":135,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"6e873f83-a1eb-4deb-8bc1-82ee0b9f8b9e","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":135,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"f7e3df3f-9af6-4481-916b-165bf5227d6d","block_type":"box","text":"Investor A Shares.","page_number":135,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"462bf42a-122c-4c1a-9b2f-5d553f2beba9","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":135,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"4752ce5e-4b27-453b-9ece-407ede260128","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":135,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"fc0968a5-2f32-47ef-932a-32f9cff47b68","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":135,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"dde82574-a120-41a6-a5b2-bc965ff1dca3","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":135,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"9ed7e471-6ae9-41b5-a49c-1f9ddab4be35","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":135,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"b989a70a-2746-4e0a-8f0a-cb8085e8b431","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":135,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"ddd9cee3-84db-451e-813d-2d4c358590ea","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":135,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"ee613d27-8dc9-4864-9b44-091e87866224","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":135,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"a4d084c7-7ebb-4cbb-a662-c61ac5cf3a79","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":135,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"cc1ead14-1ef3-4f8b-b421-1c4d2abc4d01","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":135,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"6b74ec0a-f2e0-4bab-8030-f74b57a9380b","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":135,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"17f4af44-c4b8-4da9-9b5e-64e526957acd","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":135,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"fca4a364-606f-4f8c-bf6f-1defb60c916a","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":135,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"e5c303d4-e1c7-4df6-a6f5-ad888da44e68","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":135,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"de326ed6-1e09-4976-ada8-4a6dc183ed85","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":135,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"3fa9c902-ca0e-4567-b7a4-ebb42f40c453","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":135,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"af6e1b5a-bb2f-4280-b1bb-c30454379227","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":135,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"4aef7f95-eee9-49a0-9741-7326fb40e914","block_type":"box","text":"“Investor C Conversions”).","page_number":135,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"1c79c10c-8404-45ff-9032-f6901513925f","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":135,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"a31b6ef7-6eb3-476f-8620-1b81231f0005","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":135,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"88133dea-63a3-41ef-8e31-5677f7189841","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":135,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"deb56ed4-38ae-4449-8078-fd9b7e413a11","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":135,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"8e3ac693-50a7-49e8-a347-e9206848cae6","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":135,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"30168970-1633-4c18-ae0a-5e48b6a591bf","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":135,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"653b252e-d800-44e7-962b-71669c8807dd","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":135,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"da7a9a6d-ea69-48ef-81c5-eb2dd820d8ee","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":135,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"9c4cdf07-3a65-4d47-a3db-e6f4e559e057","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":135,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"2f09753d-669b-4a51-9855-ec280eb9ac2c","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":135,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"2115cd12-fe08-4c83-bb5e-63ba86a79ff4","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":135,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"3c15e9c8-ee32-4817-a2d1-4bfc7ded6dbd","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":135,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"c02b7d69-2c20-47cc-a405-1967bf2d45a9","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":135,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"15d8ce8f-f1f7-42ec-bbf1-541e128b0d0e","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":135,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"181c3834-9215-42e9-8e5c-a75e5ea2cca6","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":135,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"25631b8b-0be5-47d0-b63d-89ef5744a8ce","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":135,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"42328529-501d-481b-835f-55abf71e1828","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":135,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"486f0170-87f4-4345-9885-0ae208517c70","block_type":"box","text":"redemption.","page_number":135,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"06c22499-29d1-416e-bb0a-2ff5e05d102e","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":135,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"f00c8dc5-e381-41d0-979f-8e7557150645","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":135,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"4b006c44-277c-4527-a9c6-bb22fb9737fe","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":135,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"4f42922f-285e-47c2-b7e5-4426d4dfdda4","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":135,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"d6d1a952-393c-4ffe-bf6a-9fd4822c73f5","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":135,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"e20eb9a0-9571-4e9d-89bc-db3d1edf7403","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":135,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"7d10898b-503f-4d23-a8e5-83c6d02a8d67","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":135,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"616b99c1-301a-4a1a-a196-accd5e3ff4b1","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":135,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"62e3a97f-d355-4de2-9a1e-2731ebc40913","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":135,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"a70e5154-9328-4ce5-bd17-87c6fedb4530","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":135,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"65906a2a-d31b-4870-8189-d7e9145386ba","block_type":"box","text":"II-106","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7c7d680e-0e2a-46db-9db8-bb28416a9ccb","block_type":"box","text":"NM0926U-5977658-135/228","page_number":135,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6ce63b3f-da7e-4417-a1c0-c836e679052e","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":136,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"0689e9db-93f4-4908-8c76-71eef8b3df91","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":136,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"b1a2793f-91ad-44f1-ac9f-adeb3f56f43c","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":136,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"01975b3e-73e5-4f1c-910e-874105ef46a8","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":136,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"d5bc9b12-d126-4fa4-823c-8009154de983","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":136,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"d336bce1-c0c5-48e6-bf2a-0fe457b587ea","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":136,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"baddab0b-46eb-4c27-a944-2b1728dcb92e","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":136,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"2fbb3d29-ba7b-4e69-a12f-349d34d47bdc","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":136,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"4aa82935-63ef-4cda-becb-c795619ebedd","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":136,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"46d392ea-fd82-4350-8e1d-c37218c0e7d8","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":136,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"1104849e-3ee0-4527-8e64-a05b40f9387d","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":136,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"3ab08a1e-5fc5-4747-8434-edb22f6a9612","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":136,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"49c8503b-b913-459e-862f-412829d6cac8","block_type":"box","text":"Class R Shares","page_number":136,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"c3f3fcc0-138c-4abf-921a-952a60675963","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":136,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"a24e1fe6-d6ae-4948-81dd-3e2745692efa","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":136,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"e761d115-935d-4725-83c3-c47651c786f3","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":136,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"931714f0-dbce-4c62-99fa-03674af6bfd1","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":136,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"a8de36ed-97c5-40e4-bc8f-5c9d8bd2300b","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":136,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"6a303244-364e-472d-ba2f-5e006c0a9caa","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":136,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"219b5b3d-34c1-4459-b66e-6b30802eaa9e","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":136,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"fa9b2f37-1d97-42ae-99ac-01edf531a92b","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":136,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"d3908a3c-4567-4096-9819-779bd68b7769","block_type":"box","text":"Class K Shares","page_number":136,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"feb9a716-b4c2-4252-be1d-638d01bdf9c4","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":136,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"7799ed23-e066-4fd7-a8f5-6e3d0b66cb56","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":136,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"b5ba1f51-f08e-46b8-925b-15d0c2f604ca","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":136,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"170b1360-5445-4208-9525-4165b1ccb8ab","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":136,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"65209b56-91cd-48c8-8bf7-3e77d5881362","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":136,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"d50dce93-f5ec-40f5-905e-23cff3433a41","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":136,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"68403f85-5265-435d-8242-ae38c1ab535e","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":136,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"8b8c9c8b-9911-4238-9bd1-f453fa298ebe","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":136,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"eecc81ad-a88b-49b0-83d8-5db8b36e4507","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":136,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"b41b770b-b472-4922-8db7-625d88ab2375","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":136,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"e48bae9d-5c8b-49e8-8c74-82022f00a237","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":136,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"6626428a-c58c-43a3-9629-0701610713cd","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":136,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"934bac17-f3ab-4bc1-a054-c3bd0f22cd8c","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":136,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"243cc4bb-0dea-4d99-a9d7-814dc3ddec39","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":136,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"3e1fdd7d-c34e-45a2-8f76-97be9e718236","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":136,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"76e2fe30-b03a-43b5-8658-16a1e3c68077","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":136,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"08e39da6-61a4-4355-909f-68b91fa9f176","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":136,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"6d081d17-96b5-41d2-a122-c02e1d6689c5","block_type":"box","text":"distribution and marketing agreement.","page_number":136,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"64b7e3f8-540c-42d1-8db3-36e6b7310055","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":136,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"8e43879c-829b-4d3f-9813-b8184df010cf","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":136,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"5d88f6cb-a1c4-46a4-8ad8-f7116c5108fd","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":136,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"d83db088-7998-480b-aa1e-e425cda8093e","block_type":"box","text":"Class G Shares","page_number":136,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"0d3ed03c-3915-46cc-82a8-972d03b1f702","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":136,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"6df63111-9b89-42ed-9974-69090ca0e574","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":136,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"71e30fae-f7c8-4a9b-af38-be2bbd8b4d68","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":136,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"d05384c8-a85c-4a1b-8ca1-a88afa459c35","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":136,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"82dca9b0-188c-4c0c-9144-7ea1de412773","block_type":"box","text":"eligibility requirements.","page_number":136,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"4513f8f2-e6d3-4e53-af79-b10d4a12e6fd","block_type":"box","text":"II-107","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"db49f7de-443b-442a-86e4-20c2aedece47","block_type":"box","text":"NM0926U-5977658-136/228","page_number":136,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f131b06d-7b11-4f03-9fd5-7b74ab3090f5","block_type":"box","text":"Service Shares","page_number":137,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"23630272-adf3-40bc-865a-8564eb5562bc","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":137,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"8a845a3e-9be5-499c-b681-3ee85b22b279","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":137,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"9dec8785-b759-45d8-94c0-56200474d270","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":137,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"eed3e9e4-ecfc-43f7-8d09-3b2e877f0b7d","block_type":"box","text":"®","page_number":137,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"489178ed-f913-492b-a798-125385106af5","block_type":"box","text":"Fund in 1996; and","page_number":137,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"450113c9-ca81-4f18-93b9-662c339faa1c","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":137,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"887e8b5b-c95a-4a30-9a7e-f6a37164f6e2","block_type":"box","text":"SM","page_number":137,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"104c6869-0c42-4039-9767-435e1886e1a5","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":137,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"4107d97a-8827-4307-9204-b4d025e00385","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":137,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"a3278dde-68f1-493f-b85e-c3eb364a7ae3","block_type":"box","text":"BlackRock Shares","page_number":137,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"09992b11-012e-47ea-a1b7-e6aef3c60722","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":137,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"fa4d6ac8-bdb5-45c9-9e62-23be4c4dad8b","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":137,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"2717c072-44f2-4152-875d-fef29b810560","block_type":"box","text":"fee-based programs.","page_number":137,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"80c6bb52-4565-41bc-aac6-b79e0e9590b3","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":137,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"601ad353-9a04-4d35-a87c-ffc6ba651f48","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":137,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"2609d9a8-91e2-4757-96ee-d8b43fa5ec39","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":137,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"5f99077e-c5eb-4fdd-afc7-6840f125eee7","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":137,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"3c122b73-e707-424b-b770-f2e0321d40a8","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":137,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"b1528767-349e-40e7-a336-aa3e952a9e33","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":137,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"002e0d95-9dac-4f95-91e2-db05e695d6ee","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":137,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"ad0d57ff-e7f9-4980-9c8e-8deee3eed603","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":137,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"51f10a51-d114-4ffc-8ba2-590a732259b4","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":137,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"46cc89ca-1cb5-46cd-a396-5b4e56fabb37","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":137,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"42e52d57-a1d6-4fd2-a283-778fa3f57f91","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":137,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"1e296411-128d-48cd-b44d-3cc8ac017a10","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":137,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"cb0e3cef-6b55-4572-ab10-7cff580e1f6d","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":137,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"ed9ec3cd-398f-4383-92d7-ce5998ffaeea","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":137,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"70ea8e17-7e1a-4f48-9798-60e841b336e4","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":137,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"4ac25f5d-8c7e-4971-a5a6-999790c84541","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":137,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"c104bbbb-d3db-4d5d-bcc1-3ecf17ffb753","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":137,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"a6f47ce3-9a89-4ce2-a15d-7b12018c914d","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":137,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"8522fa8d-d03e-4d91-b9ec-f3f97846a8f3","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":137,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"6c86415a-2a51-418d-af73-2417518fb2f6","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":137,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"829ee999-15cd-4517-aae5-d89d32866fca","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":137,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"91cd5552-ca50-4ef2-834c-d58fb6caaff6","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":137,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"dfd19761-5fed-4374-98f3-104a1f232f1b","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":137,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"3e45d2af-bca5-496c-93a9-758107a7ea4f","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":137,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"130b1547-3e19-4494-97f4-3c365ec4c950","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":137,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"50cecc5e-c4f7-4811-a80e-c657d56a7c51","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":137,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"3a2302c2-2f20-4acb-95e0-c16911b22c3e","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":137,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"1a3c2692-b9ff-45a7-92f0-59e68fef0b0c","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":137,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"7a91ce98-81c5-40ae-a9ae-72425b232ebe","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":137,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"75c2dd2d-728c-4129-8e5c-153723228a2c","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":137,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"f3e7aa48-af1d-4f58-84cd-6a3e408079a9","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":137,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"f0d28d9d-62c8-444f-a230-7712aff506a3","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":137,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"18b4853e-c575-4cb1-823c-2907043e8d4a","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":137,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"d31b5e96-7ea8-4945-b69a-67b553a5ee2c","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":137,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"2690ec93-7dbb-484b-9be0-d31723902200","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":137,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"791d7c77-fa97-46a9-bcdd-c298fbff66f9","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":137,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"546f384a-a103-4e8b-9851-3988cacfaefd","block_type":"box","text":"compensation for selling different classes of shares.","page_number":137,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"6ebb7075-d99a-4eed-9869-5a2a64ec8ed0","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":137,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"ce4964a7-6d87-4a7c-90b8-d92ef05951a4","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":137,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"e394a099-6b7e-476a-9b6d-6020e665289b","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":137,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"b0b663f9-7d2a-449c-8636-3cb599bc9d51","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":137,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"eabf137e-fa04-4663-a38d-b0f54ef17e38","block_type":"box","text":"II-108","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9f6620d0-4f4d-424d-8324-f2513f4b9f6c","block_type":"box","text":"NM0926U-5977658-137/228","page_number":137,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"90b914b0-56ec-441e-9e20-be55cc50e8dd","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":138,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"5468fdcd-f2f5-4f73-8002-79a2ed9527be","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":138,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"464517aa-17cf-4a24-9a09-eed4e8ccf1c5","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":138,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"0e0e610a-86fc-44d4-8378-de511e78825d","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":138,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"4b60703f-e9e1-4f2a-869e-e0cb33aed22a","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":138,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"0636ec27-1e36-43a6-aed3-df2ca07880f2","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":138,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"7df6ae69-aa8d-40c1-9671-9357815b7e2e","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":138,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"4909879e-6acf-449e-a36f-99dcd7c4601d","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":138,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"1658bf7e-ec2a-454b-99cd-a2f7b3eae984","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":138,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"2f5cae62-06cd-4f36-a54c-f09136cd870a","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":138,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"7ae44c11-cfa2-47ec-9caf-91dea70e78dd","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":138,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"377753ea-a198-40d5-9234-dde260deaf97","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":138,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"b53d49b1-b641-45d5-8151-39205c846b23","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":138,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"3ea6b3e2-1fe6-42b6-b7e0-d879e58d3f1a","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":138,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"4b67e727-0844-47b9-bd99-9f111885cd77","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":138,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"6a63af11-e7e1-48bc-88c8-cc69f63f106b","block_type":"box","text":"easily accessible place.","page_number":138,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"706ce070-1deb-401d-b181-2d9489b403b9","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":138,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"3066776a-ec2c-4f28-bd81-f48f79396518","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":138,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"c7150830-32db-4a50-be8b-6d390bca83c7","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"db8facb9-c140-45a3-9fba-f611628e8ce9","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":138,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"a7d851f8-b3e7-4a37-b80d-8ae07ae9689d","block_type":"box","text":"fiscal year.","page_number":138,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"8858884b-cd16-4cfa-8390-9b71bce03fee","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":138,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"9b534cfe-b4a4-4851-9004-101e002b0635","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":138,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"69585149-2bee-41a1-9d9b-f6a92d14d5cc","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":138,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"fc79a519-e997-4479-869d-fdc07def1d08","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":138,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"2d5e67af-e0ce-4bda-8088-327371b58363","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":138,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"9ac9f8e7-327b-4fb4-a176-92a482eea2c6","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":138,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"4cc8bcde-ef88-4939-bbee-7bfa6ad74550","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":138,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"022639f9-3265-4154-a297-754855b80cbb","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":138,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"ef50ffc1-7f0d-4a6a-906b-dc85de2eeb8d","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":138,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"61172141-793c-492b-9e4b-1940692b6b46","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":138,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"3ff50ac0-16d9-4e8a-a697-fffb09535a9f","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":138,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"1b2e3d4c-8177-4183-999e-e434f2d127ca","block_type":"box","text":"and Class R Shares of your Fund.","page_number":138,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"79f52d25-aa1b-464e-93a6-73ce5e20f474","block_type":"box","text":"Other Payments by the Fund","page_number":138,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"d2e94867-0d03-43e8-a6ae-0322a56ddd43","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":138,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"7aeba596-b2e3-460a-8c0c-01cd201d7b49","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":138,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"d084d9f5-dbf1-447c-82d1-a70820887473","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":138,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"ec4e7429-d4f5-4f12-86e6-811e52181b0e","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":138,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"49bd6038-3177-429f-a607-7901a212215f","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":138,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"bdb01cc8-7a47-40f3-a027-f12c0d0090a2","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":138,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"54f48f7d-c863-41e8-842d-0c01bdb62743","block_type":"box","text":"of these payments may be substantial.","page_number":138,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"c93da2d5-6190-440c-8374-339f8c67f6b4","block_type":"box","text":"Additional Payments by BlackRock","page_number":138,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"2ee7245a-4682-4edb-88e7-ac8e05189ba7","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":138,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"7b781286-c466-4e04-bda1-8cc4842f6d4a","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":138,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"f9ec8ad5-8054-4e44-8615-ce51d7549c8c","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":138,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"09ffebea-ecdf-4b73-9292-cd3ccd325be9","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":138,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"9a2edc45-6319-4708-a269-928ac0c4058f","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":138,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"06210ef4-3972-4570-a81c-72eb5baae35a","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":138,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"a656cd9d-ce90-4731-bd38-9253d6b0353b","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":138,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"b78da048-eec6-4d44-858f-a66dd3f8615d","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":138,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"19edf5d5-5aaa-4f71-9189-a58677b86b90","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":138,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"eb42e73e-ef81-43e9-9dd6-430ebed9bdf7","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":138,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"88337254-d67b-4b4e-97dd-6fa5929b6f46","block_type":"box","text":"II-109","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6b9314e3-8284-4d5c-ade2-4d8df211dbab","block_type":"box","text":"NM0926U-5977658-138/228","page_number":138,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"5e032c0f-4b52-4598-862a-9e3c95dd788c","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":139,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"c631e6a0-44b1-4d85-b4cd-7c69cac812e5","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":139,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"996b0f2e-13a7-48d5-b753-bd962fa3e99e","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":139,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"42f2979c-aea5-43be-b142-a2ec9347035b","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":139,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"06fad3ac-8217-4251-9107-3ae7555897e9","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":139,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"be4d2b38-b7f0-4773-810e-0536ab051d1b","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":139,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"8cfa4d78-7df4-4051-bd43-eaddc77aedff","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":139,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"59a2fa1e-365c-435b-ba6e-416a44db74e9","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":139,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"72dbd495-5f07-40ec-9ddc-6868ac9c5d44","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":139,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"ce111374-8267-4bef-b5c9-fdc84384d76b","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":139,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"043d3ac1-e9b6-486c-86ff-a76292919a82","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":139,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"58a0f700-bc8e-44f1-ba9e-040b889afb2e","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":139,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"0a782659-0c80-458d-a077-df0f0478f8f6","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":139,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"33b56d59-e8bc-4bfb-a01d-24ec9064d413","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":139,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"18002150-1cd7-46be-a528-a374a88bd7ff","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":139,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"603b9149-405c-43fc-9f15-7aa543c445de","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":139,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"a941ab42-6027-45d7-a620-deba7e2f1162","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":139,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"7ecb5470-eb8f-4071-9e48-adecbcf59dee","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":139,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"b9b51a98-9ec4-42a7-8805-292700d7ff95","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":139,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"6a9f194d-6d83-411b-aa13-105fad2d2bdd","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":139,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"5b80b5e2-1302-4b3b-b93f-4aeefeabd953","block_type":"box","text":"Funds.","page_number":139,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"a190e9c9-14e1-4262-becd-97bc388f38b1","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":139,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"d89eb8d5-0529-4729-8f92-48ee0ad39aa6","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. 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These payments","page_number":139,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"f194eb98-7721-4873-8359-c99358a49778","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":139,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"190b7607-0420-4275-a6e0-8a3473dff43c","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":139,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"60006a13-eaec-448d-a0b4-113dc8d65964","block_type":"box","text":"B. Shareholder Services","page_number":139,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"12f2ba14-8b6f-46b6-8726-d33065c7849a","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. 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Service Organizations Receiving Additional Payments","page_number":139,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"04b2fa31-302d-495a-a27a-f113da492b34","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":139,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"4ff6e0ee-9353-4646-853a-1a7b601d634c","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":139,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"c80a8479-1903-4b28-ba05-92aed06256bb","block_type":"box","text":"II-110","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4cbd43f7-af53-4640-9844-cccbb27c79af","block_type":"box","text":"NM0926U-5977658-139/228","page_number":139,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"84b6ab8e-dffd-4440-b969-9638a37e1ed1","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":140,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"5c41ec6f-e472-4f3c-a88b-0b6ad046e7cf","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":140,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"6773c86c-7181-4bfb-8c30-26f235d2f245","block_type":"box","text":"payments and 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BlackRock","page_number":143,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"822a9520-cbe6-49c5-a69b-b0c69b1dd695","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":143,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"757adeaf-6af9-4dad-8bea-ccc9c5607acd","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":143,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"d85ee4f1-fddc-4e70-8457-74dcda466ca4","block_type":"box","text":"traded products.","page_number":143,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"a0a752e1-e2c8-4e06-928b-e8da0555ef3f","block_type":"box","text":"F. Conflicts","page_number":143,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"cf567640-3f19-49f6-9a13-59ddf5369b76","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":143,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"ed661655-107d-46b4-872d-d0fd16103623","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":143,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"a44289b0-46ed-4cc6-b154-095839dceb96","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":143,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"6fcfcb8f-0e4d-4765-bb17-a171802cb0ef","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":143,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"4a43e87d-d162-488f-82d8-d3a76a708727","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":143,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"2840cbfd-cf34-4a4d-9123-7b5019955475","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":143,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"a495590e-2512-4f18-bce5-c3148a9fc782","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":143,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"73bcd13e-aa4d-495a-a460-c23fd40cbb88","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":143,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"750bcfad-9ab2-4306-ad1e-8c522f4fc4d6","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":143,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"52a409ce-9057-4fdd-8990-89bb62906c08","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":143,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"e80d7954-7dbb-4188-b7c1-c9c495a95686","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":143,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"16b041f3-41c5-461f-9f90-0e919448a54c","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":143,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"aa0f8576-7fe0-446f-b7d4-82ace3d35fe5","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":143,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"895a7908-bd71-4492-a1b6-2a4aac118633","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":143,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"682ad5c9-6d46-4e84-99ad-cf3eb5dfa997","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":143,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"da33f030-debb-4048-9aec-0999f6bf38a3","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":143,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"1c78bb59-5131-4605-ad8d-7a37deee6137","block_type":"box","text":"appropriate.","page_number":143,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"919e0c8c-e7dd-495b-a959-5a9821751911","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":143,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"e3ec7975-daa5-44bc-90a4-83cd2bb3a546","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":143,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"f9a85bb2-69c7-4fc6-ba74-11679b80efd5","block_type":"box","text":"described above.","page_number":143,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"dad4791f-eaf5-43ad-9b45-ca663895647d","block_type":"box","text":"REDEMPTION OF SHARES","page_number":143,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"6befc59e-dfad-4eb9-9622-610b2f3e3bb8","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":143,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"ff744c19-e996-4027-b876-fdec1d2ed11e","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":143,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"7a68138f-09ad-458f-ba2e-1f505cf6e57c","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":143,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"fd6fc3da-0260-4890-829a-245e9aa8cf54","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":143,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"48a51383-a95f-436c-b113-4268754f684f","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":143,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"10d4c852-1d37-4a3f-91d8-1e7d9aa8df7e","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":143,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"1c95c903-c434-4105-96bb-808977a6211f","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":143,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"3e24884d-34cb-462d-848d-7c4ade698b26","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":143,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"b656304c-6e50-4d22-b977-206e2dbc2b52","block_type":"box","text":"II-114","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b739b857-cb4d-4865-b710-ed3a565929fa","block_type":"box","text":"NM0926U-5977658-143/228","page_number":143,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cf03f418-d913-40b8-ae06-3982cebcb58e","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":144,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"d79a2bcd-f02d-40ac-9100-420beb942716","block_type":"box","text":"for any shareholder of the Fund.","page_number":144,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"21045a84-ccdb-45c0-ae41-17433671b137","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":144,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"06fff4f9-c5c1-4c05-ace2-a239930fc36e","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":144,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"0d75a998-85ad-4de3-8b64-fa5793c50cf1","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":144,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"d796d02f-026a-4eec-8d1d-aa7be6998dd0","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":144,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"610601f8-afaa-4fb5-846b-bf81a97027dd","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":144,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"6601c2fd-11da-489b-95ce-908b4453ee16","block_type":"box","text":"redemption.","page_number":144,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"ace776ac-cda2-4ed4-bb31-d599f956e4bc","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":144,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"cf054891-250f-48b8-a456-8edf9f8df7c0","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":144,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"f6ef3017-dac9-4b8e-85a3-311efae5fd61","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":144,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"1ee088e7-2585-4c45-95c4-83616c38892c","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":144,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"4a877885-a573-40b8-9e74-8785d1f9c0f7","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":144,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"ecc0b721-316b-4023-836c-25e31f7f50f4","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":144,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"337f5da4-2b51-4b5d-b75e-fe634c7d5d04","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":144,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"e0b17e16-d2bf-4c07-8482-4692c4f4b18a","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":144,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"4b9b67ad-2009-44b9-a628-f6735a9ab227","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":144,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"487bff1a-68de-456f-9828-7e26cbd17709","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":144,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"3cddb911-c1d5-41f7-82eb-670cf87b9c73","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":144,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"004de7f2-e10d-4ffa-82fb-192b86f67f1f","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":144,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"ec63b277-376e-4de0-a585-89df3aa58720","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":144,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"136232bb-b89c-45c1-aea0-5d813712ad18","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":144,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"c0b5e0f5-6e17-420f-a31f-1eb08a8a8ff9","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":144,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"5dabc9f0-51f5-4785-8e9a-e056c5506eac","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":144,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"63fda825-d81f-4dc9-ba44-24744d6b03bf","block_type":"box","text":"Redemption","page_number":144,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"f2ffe2c6-0111-4b21-8dc0-3150e7cb07a1","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":144,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"630ddd73-ad22-47c6-9648-a41a7f1dc9b1","block_type":"box","text":"Redeem by Telephone:","page_number":144,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"02e872ef-c47d-4b58-9ee9-ab58b41872a0","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":144,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"0076a8bf-6fe0-4212-9c1a-8605ae7de734","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":144,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"0ef82db1-3664-4dee-9593-0841136acf52","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":144,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"50dce166-4931-45ed-b851-f194da1c251d","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":144,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"b4a1c0b4-6899-4a3f-811a-ec4145dd2265","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":144,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"75e849a0-098c-4576-b8a1-8010d439156b","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":144,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"3f88ff74-8e4c-414c-ba1d-32b294ac0b6b","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":144,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"6c3e6c2d-49f8-47e9-8b72-139e40f432f0","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":144,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"322f414f-9a04-4f8a-bc3f-1a6f7fa7e01d","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":144,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"1c90e8ff-832f-448e-af30-aae1b6113978","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":144,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"9849b054-5d67-470a-843e-9e8edb7ad9ca","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":144,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"f35df027-e5a7-49f6-a6eb-33a703dfc4a0","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":144,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"eb10c060-6167-4a53-9aeb-d217b3341859","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":144,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"5ddc1cc6-d758-48f5-aa94-f2f9923bdc6f","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":144,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"b6d1f648-2d5f-46f9-813d-c66d4774cf22","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":144,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"331685cc-15a3-48d0-ba3c-a840877ad992","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":144,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"1db2aaef-c68b-46b0-bc6f-4683d9b26d8b","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":144,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"64e3e9fc-5683-464b-81f7-fb82a58d7400","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":144,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"ebf08a29-8fe5-43d3-95c3-87f6f63c44e0","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":144,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"2de910ae-6242-4d26-ada9-160b2f962202","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":144,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"cda0176f-0b39-497d-9caf-d09ae8d54607","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":144,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"4ddbd25a-6efa-4cef-abc1-6aa6fe421f7b","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":144,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"7fcbf533-433c-48f5-8548-86ea40fb4c00","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":144,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"1686a85f-ebe9-48d8-9ec4-276f92251c02","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":144,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"e2c5b54f-b53d-4d08-8dbd-f82257914acb","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":144,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"abda2c78-7d3d-4599-aa7b-5ddadf4de6cb","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":144,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"07958c2e-9d8a-4fc1-81b3-852ba2ee472d","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":144,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"66efb78a-3ee5-401b-a906-af2b0e768369","block_type":"box","text":"II-115","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"01b3d21b-6068-4416-ad33-cdb988c4e07a","block_type":"box","text":"NM0926U-5977658-144/228","page_number":144,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3476d714-36d4-4455-b6c7-7b606a43db92","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":145,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"c53ae2ee-71a5-422c-86e8-d27f460bf898","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":145,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"8dd2749c-116b-4fa4-ae9c-57e102e21ba9","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":145,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"64022dc2-a4a8-4853-a085-ee8a2be9b588","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":145,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"55917042-3b33-4d3d-aadf-893ca9509c19","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":145,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"82440dbf-d8b4-498d-b108-e9c1a6eb4f70","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":145,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"7033ebb4-f347-45a9-bdf0-3952e342223f","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":145,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"311d0ab2-3ad1-4265-ae77-962179f31da1","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":145,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"b5101e25-85ed-4f00-9581-11621766cbbb","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":145,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"4c52e6f4-8690-4658-ad66-bc001b6240ff","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":145,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"eb12db0b-c79a-4259-8e43-a4950b1a4eda","block_type":"box","text":"Redeem by VRU:","page_number":145,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"346dfc1a-b550-4372-9844-e4c514d59382","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":145,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"826d7339-e959-4087-9f11-143614e321c5","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":145,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"0da2ae38-79c9-4710-8b89-7cf20ea78d32","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":145,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"62666802-3991-47e3-82d1-7ad7b6370dcf","block_type":"box","text":"Redeem by Internet:","page_number":145,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"5b11177c-e62c-47e7-aa34-57f69fde472a","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":145,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"1212b432-d799-4190-bb00-b84c4b72c171","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":145,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"0c772e67-5b46-45ca-b460-6346579e8f71","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":145,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"0f85f3cf-82e0-4111-9f08-f457fcd7e134","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":145,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"f32b06b8-19f9-4b03-99df-d887e581cf18","block_type":"box","text":"institutional investors.","page_number":145,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"b333cc53-1746-4f1f-a4a7-36ea267f048c","block_type":"box","text":"Redeem in Writing:","page_number":145,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"fadfebb8-71ae-4692-bd28-94039ac5c398","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":145,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"5fb3afa7-d6e9-4c2f-a17d-93f624e2901e","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":145,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"d6160207-017f-4ce1-a511-37524477085b","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":145,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"36551616-7f05-4848-96b9-fc95f14ccffc","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":145,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"7c60dba9-3f32-4654-a5b6-4b37c66e922e","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":145,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"57db2cae-468b-4a08-89a3-f6a58cd6541f","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":145,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"9cc9325e-38ef-4c8d-bf40-288cb6e88500","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":145,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"512945a4-3128-46d3-91f9-717bb021eb8e","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":145,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"3911da91-d823-41f4-8573-5778762f2aff","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":145,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"60cbe931-9f60-4487-af64-69f928d192f2","block_type":"box","text":"or wire to the bank account of record.","page_number":145,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"0b9444e5-b578-4f78-9790-79674bc5e0f2","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":145,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"23b33f65-d689-460f-9842-8ee96c223a78","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":145,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"99ae6912-f774-4d47-b374-a0f14428aeeb","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":145,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"7f198900-0cbd-4f5f-8b3e-600acaad0814","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":145,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"c548943a-fcc3-4f20-9961-8c339f8f0dd9","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":145,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"8bb5f745-96d3-4ed8-9d9f-b18c63f457ce","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":145,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"132f46ef-a29a-45df-8a04-86fb4d26459e","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":145,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"c761f28c-15c7-49bf-894b-26c3722949f0","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":145,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"3358a845-5bc5-4215-a137-6fd8d56b94e6","block_type":"box","text":"redeemed by the Fund.","page_number":145,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"d3f03589-d1e4-41b0-af8c-efd0c9eefd80","block_type":"box","text":"Note on Low Balance Accounts.","page_number":145,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"96140dd3-e8fd-49ee-870e-c6748f6c1d65","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":145,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"0f2aa4b8-8aad-4959-814f-80619d26782b","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":145,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"8ff6b6e6-9f7d-4933-83a0-0a144acb5224","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":145,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"83509a97-30f2-47a4-a715-1e9edcc6529e","block_type":"box","text":"for any reason, including market fluctuation.","page_number":145,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"671c732c-cbf8-4440-b8c1-1840398b3dad","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":145,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"49c4de06-4fa1-4630-bd9a-ac10af5eed61","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":145,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"11795e7b-e005-43ae-ae4d-14cd379d6710","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":145,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"e6e0e83e-db94-4bb0-82ac-231c4ea1aed4","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":145,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"a3e84818-38a6-45a6-bd4d-ff1c587d57c0","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":145,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"17645859-29aa-436c-a061-bec438cc698f","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":145,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"35007147-645d-4403-aae3-961d824c44d4","block_type":"box","text":"Redemptions in Kind:","page_number":145,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"409f50e0-7a67-4037-9e1c-5b7e9ae62127","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":145,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"581d5fdc-af42-4e1a-88a5-3098c082b105","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":145,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"180297e9-692f-47ee-b68d-731953070c41","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":145,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"a96d6859-dfe1-47d2-92ff-c726e99215a7","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":145,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"185598c6-ae66-411f-b696-15ec43c8bb92","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":145,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"4ee05fb4-c084-4556-a2a9-d873c3dbb701","block_type":"box","text":"II-116","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0b9fe8e3-6b09-4e10-9eee-ffa2354f913e","block_type":"box","text":"NM0926U-5977658-145/228","page_number":145,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2ab58a83-de13-41b2-a7e0-ffd921e02f5a","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":146,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"e684de75-fee9-4b5a-a262-b9e24cb90d87","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":146,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"94cb27fb-ac3d-4af7-9719-4693c59c4301","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":146,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"a752b0fa-cb2f-47b1-a392-d6617af4fc1b","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":146,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"1264eeeb-4f3a-4290-ab7d-a1b49177c3fb","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":146,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"f1cdf0e8-9736-40e0-a216-f4f0e00c4eaa","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":146,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"b612079e-65f3-42a5-84d5-ee348a98e793","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":146,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"ae802ded-e5a9-4e79-83f6-1cf9bfcac169","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":146,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"ec9291ec-6eb6-4072-b86d-0d10ac241fd9","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":146,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"8e719834-9d35-441d-b9f4-0b240c92b5a7","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":146,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"cd6cf159-fb7a-485d-85c0-dbc7c724ff22","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":146,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"034a0d0d-75d1-400c-aa4a-a418c9b81a28","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":146,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"793f6e8a-3d72-4885-bd94-b734a697cce0","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":146,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"b3840a4f-7645-4556-b77f-c869691f7e98","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":146,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"4204d76a-d5f4-4fb3-a3ed-5532437762b7","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":146,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"880da64c-6528-4f8e-a70e-4177f2e298c3","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":146,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"f18f5829-b561-47ee-8bc3-cc8fd7f60476","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":146,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"c126c00a-ef06-4957-9de6-8aac0062f19b","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":146,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"123ea5eb-650c-41c8-b357-189012ada5f1","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":146,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"84d56007-be95-4081-b844-782881496c86","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":146,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"fdabb6cd-8d1a-4ee1-b792-e7e90bc65183","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":146,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"3f4cc5a5-601e-4e34-93d3-9461f5e5823d","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":146,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"783b708d-310d-481e-87d4-b9dac8b77ec4","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":146,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"7dbc618f-f374-4537-8f12-51adccfbb573","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":146,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"7419447f-40e5-4387-9f8b-2b829f75f289","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":146,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"e4630bdc-5bee-453c-b631-efe39b295cfd","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":146,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"ed794a2b-c1e3-43f3-ac77-f084e047741e","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":146,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"9ec5d617-6854-4c23-a4bf-0bda2a1af7e0","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":146,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"ac4c61ee-8076-4603-ab6f-65b120cb6bcc","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":146,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"726883cd-17e4-4ccd-a19d-1b371ce4e9f1","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":146,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"ecbe8a3c-e76f-49bb-87d0-8b27d98d8d2d","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":146,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"4ea9480d-c79f-478d-b4a7-e636f15b8225","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":146,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"c015031f-16cb-4cb0-bfa1-6bbfc9faa724","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":146,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"f6f6ae18-40fc-48ab-9817-c8d724449a3d","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":146,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"ca1cd1fb-3b3f-43d3-8be5-b9cc62ce289d","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":146,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"a44c2fc4-ee85-4be3-8f42-3acb87c96958","block_type":"box","text":"Repurchase","page_number":146,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"0e1feadb-5dd3-440b-a987-b11ad516c56b","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":146,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"ec6761ad-e0cb-4083-b1ea-9480bcf74b34","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":146,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"b10e8a84-0541-4fe3-b4af-0bb27f83ad41","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":146,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"e9b0204f-49dc-4c6e-8aaf-889273b88ac0","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":146,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"7bf7acdd-e1f8-4a18-8308-5da6ad7692b3","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":146,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"fd943506-00a5-4072-9aaa-b65722171745","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":146,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"f2bbeaa9-6e2a-4860-b54e-8db4b7d694c4","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":146,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"121deb64-46d5-4ea9-8426-342e7a1966d4","block_type":"box","text":"next business day.","page_number":146,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"174819fc-7118-4b03-af9f-7e86d6ef5a4b","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":146,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"6a517d90-2328-4d89-b73b-2cab881bb181","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":146,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"2381847e-53dc-4266-9d45-2e032575fdb8","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":146,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"6c12eee0-6546-4a12-9a26-a388b8e50bd1","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":146,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"cd205a6d-8b97-4a75-ab60-7ed624c057da","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":146,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"bcdbf1d4-0efc-4026-8d8b-f9598b9ee2c9","block_type":"box","text":"redeem shares as set out above.","page_number":146,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"266c600f-53da-4c86-a39d-95c3d5c9e464","block_type":"box","text":"II-117","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3a4217c3-5acf-47d8-b9f3-8ca503bf311f","block_type":"box","text":"NM0926U-5977658-146/228","page_number":146,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"06a8912d-faa2-43f8-b6cd-319fc8ad2e78","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":147,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"b2eacc5c-c229-4159-ba4d-115b45240e30","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":147,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"2b87f0ca-0091-4643-a06f-843321ff8b23","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":147,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"de573aa8-6f7b-4044-bb96-403a62e85187","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":147,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"767f0073-53a3-4856-850f-2238658cf6d7","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":147,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"3bd386cb-95ea-406b-920f-5dd795d2c161","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":147,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"8bd164e8-c208-41f6-a5c3-a9467a2c071f","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":147,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"a9c51997-cad9-47ce-832b-1d1b823aea6f","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":147,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"eb7fc478-8851-4e92-bdda-684b8cf48120","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":147,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"a282480b-bc41-4de8-9d82-731999173e13","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":147,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"216889de-ca07-49c6-aa28-38bf27522f35","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":147,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"e43e3389-5f5b-4a0f-9009-b6a8fba0f8c3","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":147,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"052e1e48-c49d-4744-ad6c-882d726f1445","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":147,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"8016d77e-ce9d-4c98-a24d-20e74cc015e5","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":147,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"5b88f7dd-2e2a-4f94-be32-c51344e1ba9b","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":147,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"4b11b3ce-bed0-474d-9452-6c8780fcad75","block_type":"box","text":"Investment Account","page_number":147,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"04b94a78-72ff-48cc-92db-ebfe8b1db4e8","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":147,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"871dd839-8077-477e-bfcb-48ae2a63650f","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":147,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"7f27d35b-55b3-4398-b2c3-04a4333b667f","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":147,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"09a73663-6924-44a0-8bcc-760954a4e265","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":147,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"7cd3be20-ae80-4d9b-b4b3-fb654bf16176","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":147,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"9308713f-3ef7-488e-aa30-647579309acf","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":147,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"632772a7-91e8-4189-b5f0-f05e8c0d61ea","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":147,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"a82e3480-513e-4098-8637-7b45e0725927","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":147,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"8cf93cb1-5ddc-4dde-8913-9b0d912f502e","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":147,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"961dbbb7-b308-4c30-ad31-8914b9801d3c","block_type":"box","text":"automatically at the Transfer Agent.","page_number":147,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"32ed7990-9cd6-4a4e-88ce-662924b8c8ba","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":147,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"99a939dc-b2f6-47b4-acb2-27d6d78ccd5b","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":147,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"01d0d785-da7b-4ef8-a4f0-55c018d8ae73","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":147,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"3266a78e-3292-4711-95b2-0e5d70976b63","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":147,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"32448413-10c5-4e0b-ba99-4169a6465b4b","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":147,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"f043a1b1-2385-44e8-8bd9-46c6a47ceaee","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":147,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"8125eb9d-0f16-4890-9334-b7fe1cbac83a","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":147,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"e1d1d477-2999-4cbd-ae83-6def2883a61f","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":147,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"23f52d21-4363-49e6-b7b4-d83b0f493c9b","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":147,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"7d64d615-f312-4f61-8b1e-408ebe80bbf0","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":147,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"7c82b0cd-e289-442b-be4f-ad98d844ba73","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":147,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"9e497310-e05b-4c83-a0d4-99e428ccc0bc","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":147,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"d04544c1-4513-408e-af3b-64e64ce7973b","block_type":"box","text":"issued.","page_number":147,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"7af39da1-e2f7-4bc6-8358-7d952dd559e9","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":147,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"6f8bfec5-bd1f-4f8a-8909-882b12ef8667","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":147,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"f75b07e3-9b96-4745-ae0c-b29389d83dbc","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":147,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"32796d17-3e5b-4a2e-becf-cbf01ae7b24e","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":147,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"d7b7568e-dc5f-4fb4-a50c-82c95803a29e","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":147,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"538f86a9-d6bf-4f88-808e-41ec5bfa6986","block_type":"box","text":"Exchange Privilege","page_number":147,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"a6db3ce3-799d-42a3-a56a-5b1276815598","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":147,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"ede7982a-f071-4cec-b344-a1e1979b0174","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":147,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"e79da754-3bcf-4f50-8b17-ec438dc68e9a","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":147,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"022a4aec-50c0-48ed-9d1b-c8a3b97a6e72","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":147,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"b73f9e70-57cf-4b25-a631-91e67fd9cb5f","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":147,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"bb355c31-0e20-43c6-adb0-e07fcd512fda","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":147,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"be8ee018-b7dd-48ff-8ba2-bea10bc3bc7c","block_type":"box","text":"II-118","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"71840598-1e65-4654-8dbd-edf88b66329c","block_type":"box","text":"NM0926U-5977658-147/228","page_number":147,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cb6c9ef1-c03c-4aa0-aa20-b8c185c8a390","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":148,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"e3127abd-f80a-4da0-89e8-87d93761fa6f","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":148,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"88b8a20a-4fb3-4248-861f-e684a46e0397","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":148,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"3ec04719-b084-4999-9eff-394398816ed6","block_type":"box","text":"Institutional Shares","page_number":148,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"630bb7d7-b10a-41a4-9ce0-56f8460bef03","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":148,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"c0f8a05a-2ba4-44e3-a8c0-6a114e449677","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":148,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"107294da-e9c5-4dc8-b5be-faa4358a5d32","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":148,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"f9bbe4d9-a0c6-41d2-8d52-a881c9c3497d","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":148,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"c04c89aa-ad0d-47db-9eed-08e6f11b9d64","block_type":"box","text":"for Class G Shares of other Funds.","page_number":148,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"37974d30-3d9c-4f0a-bff6-d3c42e539c15","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":148,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"812eb325-445a-4094-aa8a-e80154480e75","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":148,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"00ad296f-fd2e-4be3-a600-86f6acc88cef","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":148,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"1818c831-9694-4b72-9373-4eda2fda8a01","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":148,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"860d2c44-5f04-47d7-b95f-9b6d53e13810","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":148,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"0423b82b-b42d-4e49-816b-0919fd271442","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":148,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"38e6638e-1fe2-4e71-b27a-70beb1f5301d","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":148,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"3743b439-9962-4876-b06f-d764205a9b49","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":148,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"dbeacdcc-6fc6-4e74-9257-e96bb00536b6","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":148,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"edb64193-456c-4589-ba19-ac8cc0287617","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":148,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"65b2bf56-2fed-4ca4-9257-617b11c279f2","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":148,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"9c451e63-d0cd-4870-acc9-60d71fe42ad3","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":148,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"7354b11a-5705-4026-b844-3a1fedacac3a","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":148,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"20ed5db1-3461-4949-aa2c-ff63c8d6f382","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":148,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"6cf8ca76-f071-4a7c-8bfd-c7fdbff91836","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":148,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"3140cfe9-bb6c-4625-8645-3d4749fe4e2a","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":148,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"50e1ef64-1abc-47cc-93bf-17f1d6f531c6","block_type":"box","text":"Exchanges of Service Shares.","page_number":148,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"e09c090b-bb6b-477e-b3ae-39ef8ee37c0c","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":148,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"ed74080b-7416-4462-9baa-81846f42a268","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":148,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"e2c4acfc-516d-4c52-9985-8ff54e09958a","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":148,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"3a7628c2-b6b1-410e-bac4-27cc06eb56eb","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":148,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"b0398076-8fb7-47d5-abe5-1462b1595d63","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":148,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"8e5c7d82-0cce-49e5-8100-71d85c5fe3bd","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":148,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"cf9e7bb0-0611-4614-a037-778d01bd174f","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":148,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"0e5ca5c3-7450-44f0-afce-3af4d6b4cf5c","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":148,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"1b0cd537-1b27-4e3c-aeb9-9d5222b3e046","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":148,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"7e8e99d6-5c86-4ed0-982e-e890e3cb8c4a","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":148,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"44643449-94c6-4f06-9329-a93098e5eeba","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":148,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"75c4e796-cdca-45e5-9b40-30d0a1e12271","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":148,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"f93f671d-d4cd-4b5e-be8f-75eecdad7015","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":148,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"d44d29c7-2193-4a9e-9102-5ecdfe788219","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":148,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"85789346-c88c-4cbd-ae05-79fd8690b704","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":148,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"aca5a550-953e-4977-b5d5-71c00cd4d972","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":148,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"e810ea31-cbd0-42ef-a5e1-1679938d4bf3","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":148,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"b5708634-7142-4d1b-b670-1bb75ea259ad","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":148,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"a8b909fc-5ee5-403a-824c-ebc610beb0a1","block_type":"box","text":"exchange.","page_number":148,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"c0c1a825-60da-4919-aa81-e6c8d85e7475","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":148,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"302737b7-c7b0-4033-b096-3d5b1504da72","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":148,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"98cd3990-0874-4a98-a3b8-9f5d1647261d","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":148,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"04b2ee68-a2f3-4b4f-9037-93790a130133","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":148,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"09d9ca72-326f-4b8b-a3e5-e8a74eeab541","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":148,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"7f9f9cef-c8c5-4803-a23d-42464c7022dc","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":148,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"204e77ff-eba2-4ef7-a1cc-cf932e8a46c1","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":148,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"3dc038bf-3b82-4655-9979-b879ef2d8c94","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":148,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"632c8fc1-c57d-4d17-8ed1-e52cb34e2441","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":148,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"fc327877-65cf-492f-9346-f7de9774bdd0","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":148,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"ba449a48-8b45-44fb-84e4-029f3a5d3826","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":148,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"f5e73b8b-a5e3-4df6-9013-c2c4910df057","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":148,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"7af6499f-5ced-4791-ad8c-8356f067033f","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":148,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"01f321ab-8db8-4745-bbd4-d7376a6a838a","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":148,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"fa7251db-5165-4546-bd4e-b88d3bd3a74d","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":148,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"82b9163a-ef58-4ffc-bd49-a21645d3fdc9","block_type":"box","text":"II-119","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f4bea418-ce09-4421-8c7a-9f75572474d7","block_type":"box","text":"NM0926U-5977658-148/228","page_number":148,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"558629ee-e620-4ef1-babc-ac5aa5444cab","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":149,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"4625dd6f-8d48-4808-a0fc-89b360de5946","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":149,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"f0fa1040-aa18-4aab-baf4-448a981c9763","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":149,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"961e271a-30b7-4244-8448-70dd3300a3b0","block_type":"box","text":"Transfer Agent in writing.","page_number":149,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"6540a119-f8d7-43f2-aaef-7316c4d3e990","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":149,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"bbadec16-d261-422d-b3d4-def0f7360482","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":149,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"80544927-e498-467e-aa0e-416014372ea8","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":149,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"7cda408d-c8da-4b8d-990e-1a7a0b51b045","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":149,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"ec10fa4d-f93b-4688-863c-617f50b61bd6","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":149,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"9c36eb07-8ce1-4c38-be2d-33bed52aa753","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":149,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"04c5e1cb-a206-4895-bc7a-5bdc036871f7","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":149,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"df784684-199a-433e-a256-d0b6b41c52e1","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":149,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"c4d1f0f9-f546-4e2d-b83e-764630c3ab58","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":149,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"1f9dd762-53b0-4dc4-ba77-cf92251ba17f","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":149,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"94da582a-6e99-4c68-8302-04d33dc280b6","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":149,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"0053ccc3-30b5-42bf-b766-a7dfb64602f8","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":149,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"c9359ee1-f581-432b-a31e-e0734fcefca3","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":149,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"b8af1905-5882-4dbb-91e0-3bdad99541a2","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":149,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"a6eba9e7-e2fa-48c6-a061-600ec624236f","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":149,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"63952d22-135d-4151-ba39-78ef79e7e40a","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":149,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"f840e749-6fc8-4048-a48e-d3ad6f9a6ede","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":149,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"ff0c16e6-ea15-42d4-a761-f04f566e6801","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":149,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"81dcbeec-255d-45e5-b48a-b44c5bd5ea12","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":149,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"13b08696-78b3-4e72-acae-986bc080ba48","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":149,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"fe0e09c1-bbc4-4047-925a-133c1f9b3eb6","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":149,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"eee729fe-376d-4afa-b358-6b650eb3fbb0","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":149,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"0ddcfcff-999c-402f-8075-7723708c3e92","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":149,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"bc9dace6-7d47-4eff-9cfa-e4ee5f7a9a11","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":149,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"59c32d66-75c4-48df-b32d-a20c54e506ba","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":149,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"0156547d-d110-4686-9ec2-c0fc9586d024","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":149,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"6e9853bd-86ea-408d-b1dc-51b31da2ba35","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":149,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"78bae20e-db73-48da-9c54-f03421356175","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":149,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"4d57567d-ebbe-49a5-a08e-29a44780b354","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":149,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"f385d20f-67fe-430d-a1a5-a53e77e2e1cd","block_type":"box","text":"may be distributed by the Distributor.","page_number":149,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"bf01bf8f-23a5-4abc-9044-d511c90e2ac8","block_type":"box","text":"Participation in Fee-Based Programs","page_number":149,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"481aee2e-f856-433d-8956-d9dc51ddc675","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":149,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"cf00785b-c33a-4cf1-aa47-7ca8f3af925f","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":149,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"753791b1-0c0f-4ed7-bea2-b0d925100928","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":149,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"9a7a0f55-8af4-4f2f-8e2e-2ff2021c3e63","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":149,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"d5e1d325-a284-46e8-b93a-01903f2f6532","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":149,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"eba8fd2a-2467-495d-8853-805f9595d7f9","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":149,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"f3822cfd-3890-4953-97c7-4a128fa1a162","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":149,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"56521307-b641-454c-bb7c-72676811589a","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":149,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"dc071cff-3485-45e5-a528-de9300a73542","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":149,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"f874e421-b17f-4996-929d-3ffe7400c89b","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":149,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"57856da7-4f70-4521-b2ec-f2e04f50aff7","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":149,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"1d8c235b-f944-4a7b-933d-00c9c8652c3d","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":149,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"0a1bcd16-6f47-44d2-8b15-9029b3c4ccc9","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":149,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"94df3fbd-6300-418e-8990-f328f1dc39ab","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":149,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"1e6aaf1c-4f81-4799-af8b-61e83f56d25b","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":149,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"da6d0432-0509-44a8-af63-a92a5b66933f","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":149,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"0c0d7a26-485e-48ba-97af-945227b31469","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":149,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"9ffb5384-45bc-4edf-9d17-def480e038cc","block_type":"box","text":"II-120","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f6f53f04-1a45-4791-9eda-95613941b2bd","block_type":"box","text":"NM0926U-5977658-149/228","page_number":149,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f2fbec8b-cfc8-45ff-9a1c-4cfe184068c4","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":150,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"5791925e-08fb-43e9-b2e4-6d6d8c526be9","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":150,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"a6b37e62-2e6d-46ff-8a1c-5981908b31f3","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":150,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"e0d4ba1b-45a9-41a0-a7cd-9be9c8be142c","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":150,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"d5fc510a-93e3-4531-85d6-3654fe8d0834","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":150,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"9081af6c-6175-4df3-b064-6accc7ddd828","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":150,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"d1405722-515d-4263-9a41-198064abc97d","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":150,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"577ef2a5-8e09-47fe-9d88-e30a26d0faed","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":150,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"8c9ad159-d2e8-47d1-a314-d4c9ea8f75bd","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":150,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"f4d39b5c-e9ef-49cb-bda1-79236c906ca9","block_type":"box","text":"information.","page_number":150,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"5fe80196-0654-497a-9424-12248b4d9aa7","block_type":"box","text":"Retirement and Education Savings Plans","page_number":150,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"0a4a40ca-6fcb-425e-9a50-996aec96e262","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":150,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"c03f94f8-883e-4123-983d-21c82787df55","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":150,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"9e21df85-6478-4a0a-9b9e-6c256203497f","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":150,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"af552193-e37e-4f07-a4e8-7af0d0594644","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":150,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"86511c75-7240-430a-88ef-c9e354cc9abe","block_type":"box","text":"your financial intermediary.","page_number":150,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"7052b2ac-6bf2-47ab-a504-8f80305b0e31","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":150,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"7adadf33-a5e5-4f1b-ab91-639e53323970","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":150,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"1856304e-8b37-49d8-beea-91718c8fc8c1","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":150,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"46a28769-9e64-4437-bd99-fc5aa9cb4d13","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":150,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"e57936cc-faa9-4ed9-9b50-c1b08d03f36d","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":150,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"a14b2c5f-dbf6-462a-9873-3299de9ae24f","block_type":"box","text":"Automatic Investment Plans","page_number":150,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"58196d82-3307-4a22-bbfb-571bd1319f04","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":150,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"764c8f55-49c3-4a99-bf86-7c4b608d05d0","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":150,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"e3c2fcd3-2751-4ccd-8d38-5faad7a5be61","block_type":"box","text":"®","page_number":150,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"ca6b0ac7-26fa-46ca-9ad6-2ab6243093c4","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":150,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"899b032e-be2c-4298-99b1-b7808644d038","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":150,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"c8fabab8-f696-460a-9c0d-6901843ad428","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":150,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"d4ae1e2f-610f-4ecc-84df-9baf13b898af","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":150,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"007ef704-ce8d-4a11-ae47-0449814a6ad7","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":150,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"5253fee5-d155-48ae-af5c-8c5a7a2edd12","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":150,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"23d98384-862e-4a8d-88a9-01241e339b5e","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":150,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"29ea2cb4-e844-4ee7-8185-ceab54f6802c","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":150,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"b6764b9d-659a-45d5-bb54-d23cc53ec774","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":150,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"cb232b3c-750b-429c-9870-672b6f4f4d64","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":150,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"f66ad3b8-428a-445d-ad4b-de17f53cdf6a","block_type":"box","text":"Systematic Withdrawal Plans","page_number":150,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"94752c90-cbde-46f7-b210-c6c5478be298","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":150,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"05fa714e-a9cf-4c0b-a035-1e6fa87b7884","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":150,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"869e22a2-cc83-4f4d-a42b-b0fdd29bd7eb","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":150,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"dca5e2e9-c9cb-4379-8f91-81587ca5258a","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":150,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"462617ec-5c22-468a-9540-242219d193d8","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":150,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"13464279-5371-4606-85bb-068f1f4300bf","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":150,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"5d8428ca-3c86-41ff-9464-2a9566b8f94c","block_type":"box","text":"www.blackrock.com.","page_number":150,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"74773ea7-c5f1-4be1-b817-04c7979fe476","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":150,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"690baf4b-5777-4278-b2ec-f38fae32f488","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":150,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"7eeea348-b5a2-4fdf-b002-66a7979c4714","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":150,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"8bc377c3-06d3-4cbf-9be0-939627545cfd","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":150,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"d50dd2d9-7430-4e5e-8f0b-f9e616ff8ce8","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":150,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"b880c580-e2ed-48ad-90d8-2c6ced386391","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":150,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"ef7bc869-60ce-4079-ae9d-ca917a5b9cb3","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":150,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"ac231e9a-5194-453d-b87e-3264c7abd0fa","block_type":"box","text":"II-121","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6139cf25-7642-4fa7-b2ca-f74af737434c","block_type":"box","text":"NM0926U-5977658-150/228","page_number":150,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3696bc6d-3958-49e8-a776-7ab7894cff03","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":151,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"b85fe02c-18f5-42fb-97c9-337afe200b01","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":151,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"656f4ade-1578-4628-b9ea-17dfca5ec2e7","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":151,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"6e178b30-a2d4-483d-8a78-20719385911f","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":151,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"b13b7999-d29b-43f9-bceb-5232d297b80b","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":151,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"5af6f687-a53c-4ff6-9fe9-36a8cfae7777","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":151,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"b3551cbe-b4c4-4536-a2c3-45cb445f08fa","block_type":"box","text":"Dividend Allocation Plan","page_number":151,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"ea62a009-2066-45c8-9ac5-38d1e968081c","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":151,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"be35aae2-74d0-46cc-8885-5f10d4c8207d","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":151,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"d3f61e65-588b-4cc9-88be-b1b0279e5f2f","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":151,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"7e5e0222-2a37-4ed2-9c79-8502aaf3b294","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":151,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"36f3c30c-33ed-452a-b5d0-109e3b98edb4","block_type":"box","text":"PRICING OF SHARES","page_number":151,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"df48ac39-e7c8-4043-8225-b6981cceb604","block_type":"box","text":"Determination of Net Asset Value","page_number":151,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"8f39fb11-5b3e-4eba-bf04-489cd2f7a354","block_type":"box","text":"Valuation of Shares.","page_number":151,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"66bdb93e-3f2e-4d3d-b9b3-12552b5dcf78","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":151,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"f9eb2f25-374c-4feb-9cd5-b880e4f93193","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":151,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"bf565fa0-f5d7-44da-981a-e29080d4006b","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":151,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"a9406bb0-aa4b-464f-b8b0-9fc3a623a43a","block_type":"box","text":"Equity Investments.","page_number":151,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"6d8d2982-bcaa-4e06-abdf-4e8a28cea894","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":151,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"54e10a63-b5ed-4f96-a3af-a8d2081d72a0","block_type":"box","text":"e.g.","page_number":151,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"f39728f4-aca9-4d5c-a362-11acdaeb6e8f","block_type":"box","text":", NYSE), on separate","page_number":151,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"e7a13b10-b844-4502-b774-9975daf14401","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":151,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"074f95d0-723f-4c99-a54e-6f33c93145a6","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":151,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"f614965c-ea6b-4db3-a16e-630d19bc2847","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":151,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"ddb4b3e1-4c76-437b-844c-1635754b05d2","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":151,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"6ce7552e-1801-4bc2-96c5-e2850f57a721","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":151,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"2b0f8cce-9482-4a59-8bb1-c996778eb6d7","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":151,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"d4eda786-80b8-4ccd-9e70-7aadca8cc1bd","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":151,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"a5ad1ebb-28ad-4e94-beae-8f6ef8ef58c2","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":151,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"f13bf02e-9f7c-4511-ad1e-321701fb61a7","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":151,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"60022007-4c8b-470d-a115-5502b8043614","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":151,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"db34a79a-ca41-45e9-a69c-12b369a8ebef","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":151,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"5b8a778a-d6d3-4a91-9352-fba8524d6706","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":151,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"06bec8e4-96f2-4783-8834-24cc5eb68840","block_type":"box","text":"defined below).","page_number":151,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"a4e2bc73-dd96-449c-903b-ee2c1616bedd","block_type":"box","text":"Fixed-Income Investments.","page_number":151,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"5901b0dd-bb45-4e1b-896c-9e551fa2a08d","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":151,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"84064916-380a-4351-98d0-c06517190026","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":151,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"07ba27b1-cd8a-4420-b44a-3ba9d5ca6c2e","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":151,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"9a1a2648-ded9-4554-8bed-c87e37000f9b","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":151,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"446d9144-92a6-4afe-ad29-4a2e6173a90c","block_type":"box","text":"e.g.","page_number":151,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"0b0b9d96-2a94-460a-ae8c-3655d941e3be","block_type":"box","text":", recent representative bids and offers), credit","page_number":151,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"08a43d05-1d08-4ca8-a8f4-f1e251dba0af","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":151,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"978db3e3-88aa-4273-8a1a-228c74fcdea2","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":151,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"a648b9d1-e9f5-49f2-8dc6-e52e71ac8c8a","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":151,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"a9c989fc-5afe-44ce-a76e-31d99e094a9c","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":151,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"b75abf1c-9738-4d15-b1d3-96a781e8c131","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":151,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"ed07751f-c6ff-4f9b-b3ea-60a83b80e051","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":151,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"30da9f4b-3c6b-4804-a6ac-78449929f5ba","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":151,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"2011cfd6-0d7e-4e85-9b0b-a2f82c2b5a1c","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":151,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"d15543aa-e3a0-4726-994c-2b611b4f56cd","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":151,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"b6ed34a6-9c2c-49d6-833d-4a4ba9479105","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":151,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"c3c69674-d825-4670-b1aa-9f2308453865","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":151,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"ea87b4f5-0a40-4fa3-930e-5d7f0dbd5bde","block_type":"box","text":"attributes of the tranche.","page_number":151,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"027d6af0-b149-46c7-bb98-0ad831c17933","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":151,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"69bb249a-3d6e-40a8-ac37-d259d7bad5a1","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":151,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"e7212534-d67e-43f0-88a3-2bac980e9250","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":151,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"f2c583b2-b543-4c3c-98e8-ddf095c6b2ba","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":151,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"d0e7de90-0d2e-4659-b433-fccd44210318","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":151,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"4ca9178d-a843-41f7-97ea-fbceaed512d3","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":151,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"275ca878-5c31-429e-bc8a-2fb2339f115c","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":151,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"ee2cdbca-9ff5-4df1-8de8-b6e2829ccc99","block_type":"box","text":"II-122","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aee65686-4523-4d44-b6fe-5584ecc474f4","block_type":"box","text":"NM0926U-5977658-151/228","page_number":151,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b83e96c7-5a7f-4b8a-8602-de01977cfbc7","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":152,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"388d3a35-ba6f-4a1d-9ad2-f6e58ddf59db","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":152,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"6cb0a8aa-bcfe-46b0-8c6a-4258e776c040","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":152,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"dac5fb7c-76a4-4786-940c-b3dc93d63446","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":152,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"ab6720a0-3f86-4cc3-86d7-50d9525a15ae","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":152,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"0523dd85-85cf-4b21-98e0-15bc0d7a48ea","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":152,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"77c69685-bc1b-4822-9935-6b67d1747dc8","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":152,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"9ffbf9fa-977a-432e-90ae-4379848b3cbd","block_type":"box","text":"Underlying Funds.","page_number":152,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"579e9e3d-caa7-4036-b283-d0cedd39e43d","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":152,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"babc0824-ea68-457a-bf6f-798b2274d9f9","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":152,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"75784308-a226-4682-a37e-bd9aebe46a77","block_type":"box","text":"at their most recent closing price.","page_number":152,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"ae84c094-2367-43db-8bb9-79b35a1b317b","block_type":"box","text":"General Valuation Information.","page_number":152,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"94a94243-5cf6-479b-ba50-0de9aec4429d","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":152,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"f0750a6f-e08b-4fa7-96b1-877651319612","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":152,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"be9799da-580d-49ef-976c-e5c230673a9e","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":152,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"83b5aee8-e8fa-4203-8fcf-e16f3f27e2c2","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":152,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"44acd248-54d0-4a7c-9eb6-bca839e65635","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":152,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"c9212b61-0946-44c0-924c-a18d4044441f","block_type":"box","text":"the revision.","page_number":152,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"69f8874f-deae-4acf-a56a-069b8dbff5ee","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":152,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"0ef450d4-e28c-47b1-813c-30d2d762d2a8","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":152,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"44b3aca5-862c-43b3-a484-f09c37543d0b","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":152,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"0bcf9085-c753-4370-a2ce-1e8d42377921","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":152,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"66ce5f8e-5bbc-485f-9ec7-edaf2811e87e","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":152,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"297355e8-6996-4957-8115-89c97d4cb10b","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":152,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"a8e04a92-d16b-4c9d-b91c-9310c830f003","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":152,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"0afb9e5a-0b8a-4603-99c3-e8ce5969a865","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":152,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"8dadf15f-e85b-4da7-b8af-9c7bc1288a6e","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":152,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"520e5c6f-4097-4133-ba34-bdd6f26e70fa","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":152,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"145f1efa-82f8-498d-81fa-1bc845536f8b","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":152,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"4ed4cf69-e6a4-400a-aa14-68dc914243a7","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":152,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"9e524d92-01bc-44e7-8c54-59e92905b9e2","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":152,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"a9077749-c9ac-41c5-9057-607860d451a3","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":152,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"1f409966-2ca6-42fe-baf4-cceb597800b1","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":152,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"8cbb6487-927e-415e-a3c9-455073b8196f","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":152,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"d9c073cc-49eb-4770-9ec3-81db7d0359f0","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":152,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"be5c7eee-7e07-42f8-8b1d-49167cb2dde3","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":152,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"511adfc0-a5ff-45fe-8474-c83852ba9d08","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":152,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"cf4d074f-4888-4974-a547-0b301cb4e2ba","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":152,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"2e32564d-c7cb-4ba4-a44a-4823cb84ece0","block_type":"box","text":"Fair Value.","page_number":152,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"93582c21-f6ac-44dc-a695-6c70f7546e0d","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":152,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"c000cff9-dcc6-4ad9-8ac3-36108d8ddd6c","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":152,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"b9d3789b-2cd1-423f-9641-ba15789e4de5","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":152,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"82a75cd3-b696-45a4-9964-9bd8eedff3b5","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":152,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"cd20da81-10ca-4cbe-8eeb-97a51d80f2f5","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":152,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"552dfbcb-a169-4346-8690-156f7c62f521","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":152,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"08aca5f7-5059-4a3e-ae50-4f4bdc05f22b","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":152,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"f15c2bfa-ec76-42be-9e39-7fd4c6abafb7","block_type":"box","text":"(","page_number":152,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"b1987c6e-89f5-4f2c-bd5d-b72286a659be","block_type":"box","text":"e.g.","page_number":152,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"048d337d-c7ba-4fc5-982b-65b725641285","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":152,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"6dd8db9c-d382-4ed1-a632-c78f4313aeb9","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":152,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"47902a2c-41b1-4f7e-9c21-da5647db7f0c","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":152,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"10b7e484-624f-4241-89ac-ced8a2c8519f","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":152,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"abc3466a-51b5-4f26-981c-fa78df9c609d","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":152,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"576b5f50-6eca-4bd1-b2fe-8eb0a3f41777","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":152,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"d64fdf51-025f-4893-9760-bf38bc019d35","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":152,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"52efcd1d-9614-4256-9485-3e1670366c5f","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":152,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"cfb63504-8501-408e-80a6-45ae22998c54","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":152,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"b9e80f1c-d800-4f71-9e88-889eceebf106","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":152,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"8614bc3e-20fc-47f2-b059-611257d2f1f5","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":152,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"fd3b2342-3428-43d2-beb0-022310941e46","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":152,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"263381cd-f21b-403f-9a42-c44f47ee518d","block_type":"box","text":"II-123","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"acfe1ec4-b7bf-476b-8488-f0ae621558ff","block_type":"box","text":"NM0926U-5977658-152/228","page_number":152,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"183cff94-099e-4c52-9911-14c46585e997","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":153,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"da9874b2-0fdc-4e28-a508-1ca38969d8ed","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":153,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"82a69c45-80ac-49a7-bf1f-ee925647b330","block_type":"box","text":"pricing time.","page_number":153,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"20f2ebb8-aafa-482f-8335-9b51388cac92","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":153,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"d34875d4-f38c-4ca8-98d3-993a1135cd6c","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":153,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"0fb520a4-3c4a-4cb7-a4bf-fe53d941b73a","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":153,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"2f76fab9-a8d4-46d6-bbb8-29d3926e1e5f","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":153,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"06c97ad9-3647-4bce-a40b-0ba124895a27","block_type":"box","text":"assets and liabilities of the Funds.","page_number":153,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"0cf1b082-7137-4315-8952-584552e8c103","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":153,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"ca8cd60a-3cf4-479e-b7f4-9b2357eaf167","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":153,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"dbb7b081-c82b-4319-bf3b-bd961f5b126e","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":153,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"c5f3f8f3-b66c-4ecb-b692-eead39657c02","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":153,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"04f6972a-b9e5-40eb-93dc-57f21f404647","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":153,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"509263c5-3f95-435c-b6e4-7c8449c87d64","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":153,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"26ef129c-2e2e-49cb-9be7-c684cf32660e","block_type":"box","text":"valuation models.","page_number":153,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"d64bda9b-1fd6-4b33-be02-bf6e6adde9de","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":153,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"99634aa2-2fa5-4b57-af30-baa8d6e23f44","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":153,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"b69f76ba-7e9e-4663-8dba-973bfa66a0dc","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":153,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"16c5906e-d0b7-423a-b9a7-bb183453ae61","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":153,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"d98fe5c9-302d-429b-be97-861ff549a87f","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":153,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"611381a0-4ac1-4a99-9f58-9bede7d89c0e","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":153,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"343715a7-78eb-4b3a-a938-d32104eba6c8","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":153,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"ff368e83-0c81-4db1-9d27-5fc3eebadf98","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":153,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"11ebe824-2fba-4874-b4a9-03f0d6b94266","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":153,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"2671d26c-4a26-4c36-8959-b8df329df7b3","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":153,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"1d265625-1c89-4a41-99ae-1b86b96498d7","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":153,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"6dbeb4c0-98c1-49ed-985b-0b436651eabe","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":153,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"5fe76066-890d-40f1-afa4-236d57bdce65","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":153,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"f7b791d1-5d48-4dbe-be8a-287a08fa1da4","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":153,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"09fcf048-d4dd-4282-beef-be3b261e8914","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":153,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"c4e59bd8-0ffd-499d-b79d-0e6e2b7e28b1","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":153,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"15a1f029-2720-4f03-909b-2a4801e9c63a","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":153,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"ea51efd8-8feb-4ce1-8f6d-add74cdd164b","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":153,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"7696078f-50f2-4d99-b534-4bcba17b8615","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":153,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"883bb445-6827-4a25-82de-e5accd7f9335","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":153,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"f73b3db9-9c5a-4403-815e-dad1c51a2d23","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":153,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"26c1d935-71cf-48f7-8fbf-ff25c01ebcb7","block_type":"box","text":"party determination of fair market value.","page_number":153,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"09b05d78-7464-49fd-a56b-db162b639632","block_type":"box","text":"Computation of Offering Price Per Share","page_number":153,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"662397b5-e709-4e95-b210-a1587b5eed26","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":153,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"939acb7b-0039-4bc4-a544-8ac6d485c5d4","block_type":"box","text":"the offering price for shares of your Fund.","page_number":153,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"5eb40716-d50e-44da-968e-d5ce2f9af521","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":153,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"ff7836ea-0a1e-47a6-8e87-39959f587972","block_type":"box","text":"Transactions in Portfolio Securities","page_number":153,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"c582f4fe-5343-4ecf-a35b-b8532b8cc6bf","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":153,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"4032ab69-ec9e-49ed-87d8-67d46466192d","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":153,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"a0aa87cc-a21e-4590-ad7e-2482eba2d3b9","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":153,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"07cbd349-0cba-4942-8969-674adca0479c","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":153,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"3050d69b-b536-401e-928c-201fefb94f44","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":153,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"1130ec60-ace1-4537-9f0f-4c92de195be4","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":153,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"ccfd842f-018d-4162-948a-cfde9a94fd3c","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":153,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"187cba77-87cd-4a07-87c8-3e6d89647fa5","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":153,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"014485c8-a175-442d-b476-658e86b2909a","block_type":"box","text":"II-124","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"59668c4d-d035-440f-ab11-0b944ead9480","block_type":"box","text":"NM0926U-5977658-153/228","page_number":153,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7a83e4a5-fcec-4f1b-a21a-b23a80f28590","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":154,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"9b360413-1e65-47e4-8466-eb4c7dec9140","block_type":"box","text":"reasonable in relation to the services provided.","page_number":154,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"c3d4a1df-4d4e-4241-915a-81c53ee6b141","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":154,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"5ec5fdb7-807f-417a-a461-e883a241aa1a","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":154,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"be7cdf4a-220b-4f6d-bbb1-27e689ee4cb1","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":154,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"6c02a702-c4ed-43b0-a9a4-f1fdfb642719","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":154,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"623329f9-951b-4850-9996-ba065acb6aac","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":154,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"d46c3682-dbb5-4f92-a0df-688a87c4d7a7","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":154,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"3d8ef8d9-9dda-405e-88a2-401f37b9859c","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":154,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"ab10bb62-716b-48a3-9280-a760cfcb9f5d","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":154,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"8ee47764-c0b3-4157-a78f-b98b226695b9","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":154,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"57cf6ab9-a599-45eb-be7e-35f396a47b03","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":154,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"13d36754-12fa-4e88-a885-a4fcd812f2f6","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":154,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"1f514607-9d90-46e1-a342-e29a040cf3d2","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":154,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"c601c08f-0be3-43ff-93f3-d99aefe17396","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":154,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"d2593476-2363-4cbd-b699-72105ba5192e","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":154,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"9c77dd23-c2c5-43b2-ac1c-cf96aadfafa4","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":154,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"8dd14e13-bd85-499f-8fd3-f95fa7d5bf67","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":154,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"5e02cefd-9c2f-4a30-87b1-71eea189c6e0","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":154,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"a646d2b4-7cfb-4455-83b8-da05b47f0303","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":154,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"592da090-92d9-482d-a822-ea758d425744","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":154,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"76cc77b2-f3db-4bd5-90f4-51e6e2df7f16","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":154,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"b5992e09-5060-45a3-9b19-6a904cbed83d","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":154,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"e0a6c20d-17f8-428a-b721-94b2aeacd346","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":154,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"2b062be4-46e7-44d9-ab75-a07ad53bc61c","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":154,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"c372bd93-893f-4ab4-a08d-c8d254c3ce16","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":154,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"5ab8c5b7-67dc-4966-a379-a2d1a66d460b","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":154,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"5297a1e8-162d-4c53-8ed7-785427419fbb","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":154,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"ae8943b4-42ff-4b10-a726-59aae3cb2dd9","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":154,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"e9c285c2-de96-4ba6-b513-6d41687b4089","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":154,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"6e0cd7e7-c74c-4970-9f42-2708e16d243f","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":154,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"217b2246-3852-4b60-98c5-e93e4b501d3e","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":154,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"6510ba5e-b3a4-4533-9941-ad5605e84e89","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":154,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"bc211b40-901b-43f4-b6a3-8f4780c110d9","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":154,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"54d45218-31a1-4855-9375-4a79e8bf31ce","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":154,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"bae3af5f-a8af-4c54-8c68-90c18279cb79","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":154,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"5d495217-c3df-4951-812f-bfc8827c241e","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":154,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"92cf8582-887e-4ce8-8a1d-f3a4b64a5507","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":154,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"e8a6dc8f-cdc8-4276-9a06-ded7dab419c8","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":154,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"5ee75abc-2ce0-4b2d-aa0a-7a3c78625f01","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":154,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"bdca9399-afb4-4f85-bd36-1f8a3ee23922","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":154,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"93464197-a3ec-4347-bde0-4ddfccd4fcd9","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":154,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"2e6f8f0a-03e4-42b6-90b1-3a43db28ffeb","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":154,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"a9fe403f-7a8f-4795-94d7-357ebb84bb05","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":154,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"bce09875-d781-48e0-80c8-b48bbddf91bf","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":154,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"0af52665-16d4-468d-99ef-13ebff897e4a","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":154,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"ead10438-f1a6-49df-91d9-6e275c9ca83b","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":154,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"ce8a62fe-ecae-4849-bf9c-b94960983709","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":154,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"7fd8b0f6-f628-49f6-9191-0b1e9c9225cc","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":154,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"98239bf2-1c80-48db-a55c-789ac2459e4b","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":154,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"a6e63b40-5b18-4f89-8653-cced58e83074","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":154,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"2fc0297a-fa6f-40f1-9687-24cf194213a2","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":154,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"7c9946aa-7b51-4ac1-be8a-8fe61d1d2344","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":154,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"e29bf442-a778-441e-abd6-82965e7cfe2d","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":154,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"8c69e17d-c0b0-4c61-b0a9-a16481d6110b","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":154,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"e27340af-81bd-48db-aaa0-4fa362841240","block_type":"box","text":"II-125","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5882ad77-35b8-4b96-a2e9-61328d33cb99","block_type":"box","text":"NM0926U-5977658-154/228","page_number":154,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9dd91c1a-08a9-4387-a1bd-a68620c2da59","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":155,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"e11ede17-266a-4097-8d56-c04319d44178","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":155,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"97f54cbc-0968-4441-90fc-483753978eb7","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":155,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"14aac997-2f8c-432e-a4ea-d3826aae4e4f","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":155,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"33e425eb-27ed-43d4-acea-49202b23e0ac","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":155,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"a919c569-c85e-4c38-8793-05d9bd07cfa7","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":155,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"185af374-27fa-4086-a46c-a0cb840ba75d","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":155,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"47bdb8b7-c04a-44fc-ac2f-ec03b54fb48b","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":155,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"00097877-d733-409b-8eeb-434f428e225b","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":155,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"83d82b85-fd31-4e62-92a3-916b351eab31","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":155,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"ef848ec2-d6e2-422e-bd7d-66069091aa5b","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":155,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"fcbe410b-a5d7-4065-93ba-4b5b65d56c4a","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":155,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"9f77077d-52fb-4042-9759-839c17dbd5cf","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":155,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"2a9b2967-f285-49ec-8def-ae6f53a156a1","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":155,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"fba15247-8e80-4216-898e-b335af2ddb3d","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":155,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"a3abb15b-33d7-43a8-8d3f-87d7b1f345e5","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":155,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"3291927b-c964-4577-b359-493495c07fb8","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":155,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"a9cf447b-7052-4441-a5bd-3af8cf725e50","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":155,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"838f2c49-20a9-4a49-b570-87ebafc167b7","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":155,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"d9e7cafe-28f9-4ef4-9645-86ba7e8afc78","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":155,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"24db8d48-cef9-4e8e-b5be-53d6d5022579","block_type":"box","text":"brokerage.","page_number":155,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"a793492c-4586-4c22-ad0d-02c07f460468","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":155,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"d471dd11-a293-46e5-8a49-4f61b5299ed6","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":155,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"37cf0bad-24fe-4ec1-868b-4e3ae9331f89","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":155,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"8037eeab-f3e7-4ac6-b74b-2c9c40124d48","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":155,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"7f471e9e-e03f-429b-b907-2857092544b6","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":155,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"343b5377-9a9e-47a8-abca-3cf18cdf9e84","block_type":"box","text":"Section 28(e).","page_number":155,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"819dbade-a1e8-4bdb-b004-38fede2dca36","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":155,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"b7496a1a-39ed-4edb-9dc7-420a70874f81","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":155,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"f12b890f-2ad9-4656-a8f4-85b2ebd7c4f2","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":155,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"779aeec6-e353-4bd0-95ef-2642edce3df1","block_type":"box","text":"execute transactions for those mutual funds.","page_number":155,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"2d942fcc-702e-4432-a61c-105843ee003a","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":155,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"a2f25358-b16c-4d17-b5f9-19021568216e","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":155,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"94ce1006-9af4-4988-b17e-40289bc1120a","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":155,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"68f3ab97-40f7-4516-b131-6ffd0608b5ff","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":155,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"4e88aff3-1759-4691-8837-92628bf79a98","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":155,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"a0ca0b2f-948f-447e-a7dc-5536c319ac5d","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":155,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"5ab571b6-7bfa-497c-a304-04fbee187173","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":155,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"c1e6b37d-dbc4-4451-8c04-f6f409d6cfec","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":155,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"5f7fa5b3-336f-4016-ae70-02b85623a733","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":155,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"5bbaf464-2016-4ab8-9e2f-470626da03b9","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":155,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"8f6f29f4-bb7a-41c1-bb0f-18153f3f2ff8","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":155,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"4d77cdcd-8f9b-481b-aa71-6779ee3fec35","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":155,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"6fe0ec10-0659-4074-b935-4b1856e1d5d3","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":155,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"9bbeae01-b8c0-416f-ae09-36de49279f69","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":155,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"916a17cb-c7d7-4f9d-9d5d-0fdfbd819cd2","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":155,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"2e2571fb-5a2a-4f6a-9710-031530fa5b93","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":155,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"b14bb2b2-0c7f-41a3-8dfa-52283d1ef3ff","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":155,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"619be619-0112-4e5b-b6af-da48e092ad39","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":155,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"ed33dc6a-0221-46a6-802d-69383e92670e","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":155,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"79a752ac-70f8-4168-bf40-5dac838ff179","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":155,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"5833aa08-0538-4205-a0cc-8912363717e2","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":155,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"093821a1-f48f-427b-a2d4-73a05897ac72","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":155,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"13d787f9-0728-4913-a37a-84b2ee291189","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":155,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"fd965efb-5789-4bf2-85c7-f18adcfc9457","block_type":"box","text":"II-126","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"60d538ce-da72-4daf-8770-929e4a9d9099","block_type":"box","text":"NM0926U-5977658-155/228","page_number":155,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a2f0afad-b748-4d3b-b775-1fc74f1d8b08","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":156,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"0ac68ce3-e9d7-4e56-9104-7b3ca56baf98","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":156,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"9196015b-104f-436e-85e5-d3bb9f2d6ebc","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":156,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"fa696b24-ccaa-4f7e-9daf-2a236aca5165","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":156,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"b5bb4cb4-b94c-45a7-9302-5e5c8db70ea3","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":156,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"15dc635c-8b47-48b3-991f-09e3b1ebc83c","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":156,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"b4548a1c-4f79-4d9d-ba7a-9d8aa60ddbc2","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":156,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"4ab8f179-6b74-49d4-bbfc-183bb1baf929","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":156,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"83b81fbc-1163-4720-88a9-badbc897d31b","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":156,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"5fc1dd29-c3ef-4e9e-b2df-ad39faf4b197","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":156,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"ab017f27-898e-42bf-b362-965f4f34f33a","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":156,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"e3a31d16-f38b-48cb-ac6e-3743aef86f44","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":156,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"d489ccc0-7b8b-404e-bd79-6d32d658b176","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":156,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"9af928c3-acaf-4d9b-8a5e-5393978fad78","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":156,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"3ce8a990-5554-43ea-98c1-5353c856c694","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":156,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"83081367-7a65-4404-abc0-3559054174e3","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":156,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"fb5503ce-980f-4b4a-9ed4-7cd2c13fba19","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":156,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"1eada703-6e2c-4354-abdf-1570b2c6c524","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":156,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"a32391de-5f1a-4f47-9208-1c07ebb09b67","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":156,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"9b659dfb-c7b5-4227-83ed-68579e58c467","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":156,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"96dc51a5-42d2-4ace-9139-db049427d4e9","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":156,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"f7cdb19c-4de0-418a-9d37-f0e297350064","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":156,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"b9bcba41-a135-44cf-85f6-8a41b6d582d0","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":156,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"bdd1f19b-31ca-4639-9344-06129065ff1f","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":156,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"dfb363e1-360e-49ad-adaa-b80a7977cdef","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":156,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"ccd94868-bbfa-4132-bd1b-c9c7b30f1e7e","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":156,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"a7d1323c-2aac-49fb-ba6a-cfe7b7e73e08","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":156,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"48e52bee-e6a3-499a-a71e-20692af6d442","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":156,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"d691b553-0b52-4945-b7fb-cdcd3aa6a079","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":156,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"fca0a59a-a930-4512-ac59-e369b2009c55","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":156,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"f0c6d66d-9f39-41e7-bd60-4674f7e59741","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":156,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"954426dc-e0ac-4834-86fa-75d3345b90a8","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":156,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"72212556-d91d-42c3-a372-b0612a40a0bf","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":156,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"a0058fde-3380-4e73-b825-183d59bd4999","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":156,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"a891b501-e898-466e-95d8-c3e80a85fbf9","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":156,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"e1bc4b8a-4ebd-403e-b07c-728431504919","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":156,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"7323556f-d57d-461e-9e12-03cf96bebaaf","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":156,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"ee9aa901-4e5a-4bb9-bdd3-a657d0e8b53d","block_type":"box","text":"accounts and compliance constraints.","page_number":156,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"f9c96b22-f795-42a0-ac6f-f78c27e2b810","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":156,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"15abf4a1-5c83-4742-87c4-8d11639ec79c","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":156,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"18179a70-4913-48b1-bbee-e0741a270932","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":156,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"3f4f33bd-57d3-4c52-a54a-edac083e1488","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":156,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"9064c924-9327-4a8e-93ef-00e881ee3c3f","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":156,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"df8294a4-e172-4387-849d-bc4e6d065479","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":156,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"18b05d51-1296-4dc7-9cd2-c82ca33b15f8","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":156,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"099d1812-9a30-4b11-890b-9fb34176e08c","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":156,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"731d225a-5d34-4a4b-a6a2-f88f3fa7002f","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":156,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"9dd27525-1033-4bf2-b1d7-73893963a66b","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":156,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"112517fb-248e-4772-8857-bf38336a8824","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":156,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"a2378706-1627-490f-84a6-ca28061f6792","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":156,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"583727c9-7fdb-4f37-a0e7-89f7d752b3ed","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":156,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"9d7489c2-ff8c-48f3-b372-aaef8a6facea","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":156,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"7381b598-533a-4428-9b83-b81d2ca95cf9","block_type":"box","text":"clients may be used as well.","page_number":156,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"4545c862-2c2a-4b7a-864e-b54731767eba","block_type":"box","text":"II-127","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f0d5e58b-34b8-4f29-a51b-de08a5dd6d36","block_type":"box","text":"NM0926U-5977658-156/228","page_number":156,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"f5a760cc-c02d-47b8-8945-a1fc2e336ffb","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":157,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"867b6f95-3a33-4ace-9abc-b44b414c8db2","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":157,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"10e953b7-ce8b-4ef1-a17e-d671aa4f4d23","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":157,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"a1c7267d-f1e7-4185-bbf3-970fdb3f5e18","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":157,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"c23591ea-0cb1-4be6-8ef9-3abe6289960c","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":157,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"a6f794ab-5484-466d-8979-50c1548a9afb","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":157,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"18e15c77-9ef0-4cf6-bc94-3602b80c4777","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":157,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"957f8afe-7cba-4851-b964-f237624f3b5e","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":157,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"80b14f46-47d9-401c-aeaa-fbb2b5409a3f","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":157,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"c2642c0b-00a0-49f3-807e-1f0de98f04de","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":157,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"cdb27f9d-3248-4d58-a96e-c4d336a11256","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":157,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"ea7a3833-50f0-40ee-a978-3d662bbf9628","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":157,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"e6456269-264a-4f13-aa21-75dded569695","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":157,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"27f3e87b-64cf-481c-a87b-89be9297888d","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":157,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"21770468-0771-4078-9356-a1f7facbfaff","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":157,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"d07ed6a9-4de9-4da0-a05b-08dc006fd8eb","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":157,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"78a9255d-8e66-4de3-a57f-19dc29af0e50","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":157,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"eaea5d9c-83ff-4929-a44a-1e601e118295","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":157,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"607901ff-218d-4ab7-bbab-7b77fb679318","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":157,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"6ef4de15-bdbb-46ea-a11a-d91a013fd893","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":157,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"6bfbc25a-e1cf-495b-b503-e8e268b436e3","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":157,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"2a8b1a96-145c-473e-a866-73aa6ca7de09","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":157,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"887cac64-df9b-4fb7-973c-36ccbdc607dc","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":157,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"da988083-ce9e-45d1-988f-44a63ebb9dee","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":157,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"7f9320e3-1c76-4bbd-8cd1-064cca458dbf","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":157,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"3987ae30-e93b-4936-8b33-76a428980e07","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":157,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"9f553ccd-2c5a-41f6-a808-9192d86b1aa6","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":157,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"a99569c9-1839-49dd-9ef8-77b27f786bc3","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":157,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"90721ab3-df48-4811-bdec-6f40fa0338c8","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":157,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"3bef5e1c-354f-4c38-9dc1-3ccac7004bd9","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":157,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"87036d0a-5fad-452a-bb5e-41c403fe2870","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":157,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"72c3cde7-5f2c-4881-995b-77cc2f6aba4d","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":157,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"eda1c166-12b5-4a92-9c0f-d339860391ef","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":157,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"7d1edda9-561b-4349-a3f4-a4e396172f2a","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":157,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"3e1cae20-ed4b-4265-9684-8c3886c4a3b1","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":157,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"167df86a-6138-4e8d-832b-f287db76d838","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":157,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"6ad2f54f-b589-411a-a885-38b00433b3f2","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":157,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"9b2f8966-d2f0-4a7d-b6a9-b0db9cb62def","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":157,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"3d78d9e4-8e66-4745-9a35-3f2e852ac87a","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":157,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"f633af6a-c7a6-4ad0-9e24-8b759f88697d","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":157,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"18f1bb27-ba07-4847-a4dd-6855c246da45","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":157,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"84a91c1a-cfba-4f46-bd27-994cdf0ca9f9","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":157,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"b90e23af-1065-499f-975b-4672fdea135f","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":157,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"3c08a40d-382d-428b-86f8-3bd0b404f45e","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":157,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"155fc833-1be9-4a4e-9f94-ab4410124dc3","block_type":"box","text":"Portfolio Turnover","page_number":157,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"81b81e9d-8f61-4f00-bacd-225500ead3e3","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":157,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"f7bae53d-a6ae-436a-ba65-7e95e70addb8","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":157,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"08fb932c-3e25-427d-a88f-658fe0b64f68","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":157,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"343e2cb9-0a64-4382-8e08-99367fcdf7be","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":157,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"7ddc7a16-58cb-4571-97a5-b29b6372d5a3","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":157,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"b660182b-05ee-4e9e-acbe-0d1bdf2a67fc","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":157,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"0a2ea799-4dfc-474c-9349-132e8586fe5a","block_type":"box","text":"II-128","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ffc8c667-1fca-4f49-ae83-2cc2fc6aa596","block_type":"box","text":"NM0926U-5977658-157/228","page_number":157,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bb4ab2ea-a7a8-420f-b603-9131297d22ee","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":158,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"7669c52b-5630-4b4e-866e-0143cba02d20","block_type":"box","text":"Dividends","page_number":158,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"93996b6c-1660-4837-9b1b-e3b34acd9cc8","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":158,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"f92a6da7-5773-4619-9a79-4d7727072171","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":158,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"77627759-6ac4-4fec-8665-d7d22a408a41","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":158,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"2b0dc551-8d59-4c3b-86ba-a22943cd6d5b","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":158,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"c9e31467-f29d-4b30-9f84-648445953b33","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":158,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"ca39a5a5-d7c8-4feb-b124-dbd242439916","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":158,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"248014fe-5599-44bb-b68d-6a5ee033a70a","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":158,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"21d0d3e7-bf70-49be-8943-cf37a0dce1a5","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":158,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"c340e301-6156-479c-b94d-e51f87fad503","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":158,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"ca5b4983-8e55-432d-9432-6e0cfbf9247e","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":158,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"443e1267-c8e4-421b-a022-649743c168fe","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":158,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"29eb1e62-2f62-4c09-b6fe-e6501f0503d6","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":158,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"4a0b4709-eae1-45a6-85f0-527de3bc2eb3","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":158,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"5ef6db4a-43d5-4a60-94bf-98fddffcdafe","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":158,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"83714bd9-d94a-4064-bd5c-5d9dcd21fa76","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":158,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"272e9b73-bac6-49d2-90e1-c7409b737a43","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":158,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"2dd1b39f-d1c9-44fd-b350-1b13417a58f2","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":158,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"96d710f0-1771-447b-8ab4-bebd022af249","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":158,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"204c9a65-6bc6-4967-8bd6-f8fdcbc1a6c9","block_type":"box","text":"Taxes","page_number":158,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"cdc924eb-0f46-4294-b584-6c0f9310d45f","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":158,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"4a59af49-8b95-4fa0-b362-b2ceb58d1f2c","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":158,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"87c4c8f1-ca24-457f-a292-efa7b7a219cf","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":158,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"ed224465-71a2-4737-bf16-37103485bcd8","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":158,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"da0f6d36-5fa5-4835-a7cc-215d4f2978cc","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":158,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"c874577f-751a-421e-af96-783be867621c","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":158,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"78e43351-aa34-4bcd-93ed-e8620475eb45","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":158,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"6e5b2d60-6aba-45cc-9c5a-07801de56f4d","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":158,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"dd0443b3-906e-47f3-a239-d16b52c2c724","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":158,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"b213eaa5-6d02-4275-953d-82b119e33d15","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":158,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"666c2ddc-3fc2-4b73-b0c0-410c6841eaf5","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":158,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"a43c2421-4e5c-4421-abb8-ad878958ced5","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":158,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"aeb55f7e-faff-413f-bc08-c1120d3b44a0","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":158,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"f31cf40a-08aa-41a2-af08-7ae46602b982","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":158,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"ee41ab1f-d218-4d15-a4cd-5b6ca4450591","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":158,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"0b29b692-e4d9-4c7f-b815-b4a2a09bda0e","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":158,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"ab43f69c-e2a2-444e-b551-4215ab695e0a","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":158,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"c84de211-9cf6-4b9b-be61-57976f2105ea","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":158,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"ab245c70-01a5-49ef-aa86-bcfe6970199a","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":158,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"34720239-ed1b-4011-b5e9-0bb24842786b","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":158,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"d4be74a4-120c-4a9c-bb3b-d39eb9fc5ec1","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":158,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"113672a4-2971-4c62-af55-375805f2eb2f","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":158,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"5f9ea07f-dda2-4576-9147-a8304db595a9","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":158,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"cb409cd8-c13e-4b49-9280-d4e3142d9e7b","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":158,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"be3772c2-94b2-4d58-888a-daa4ee8984d9","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":158,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"4ef556ff-e448-46b0-9475-50245d9be7b9","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":158,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"fa7da013-c76a-4bcc-b2ee-ff0da59fb478","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":158,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"7d06a6e5-8c94-44b1-95fa-012f9e47be2f","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":158,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"6c318d51-22cd-486d-b41a-e3a640190c76","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":158,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"7e7b4052-c743-47df-81d5-93c56700a469","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":158,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"dcc1cd22-f0cd-4cbb-b5ce-cc0080343866","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":158,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"e13297bc-e88f-440c-935f-1870ae9e5694","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":158,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"c98b6bd8-33d1-4fe7-a07e-ffb5ac837c03","block_type":"box","text":"II-129","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8ce9f213-ec87-4c8c-a1b2-622ec33e14ee","block_type":"box","text":"NM0926U-5977658-158/228","page_number":158,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bad2c9ec-d28f-4361-b851-28ff238d0e4a","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":159,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"44f8d235-e186-469f-894e-64444e1e358b","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":159,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"fdf8ed52-cf30-4109-b2b1-4533491e0ed5","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":159,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"ad60cea5-a7f0-4b7c-9531-3f941091a04b","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":159,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"3cf10690-22a8-4dc1-ae81-c0095090d782","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":159,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"3c57a38f-c687-4c01-8c8b-f301812ac342","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":159,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"519016d3-3318-43cc-bdc7-bf4fa2cdcc66","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":159,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"e1a23220-705f-49b7-be1c-101ef0c6506d","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":159,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"13ee2c59-5e76-4875-997e-4a7db8e64d49","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":159,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"9c5447d1-bcfe-4a3f-a516-c783a9701416","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":159,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"26759efd-caf4-4e0f-9e19-331269aa162d","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":159,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"9471a75f-5058-47c3-a844-e568f1bf1ff4","block_type":"box","text":"limitation.","page_number":159,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"72349ff9-80c3-4c6b-9c86-5aefb79c9efc","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":159,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"8500b13d-d0cf-4cb6-a1c3-801a95775c53","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":159,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"6a2ed669-51b9-40e5-9ce2-a5c83a9d77f8","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":159,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"2b6e59fb-2a09-48b7-aa59-0a07162a6d48","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":159,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"d047db9e-473b-409a-a4d4-26578b5c46cb","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":159,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"6e9ba660-f38b-4508-a59c-6e4e4e6f885d","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":159,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"94aee1b0-2da4-4f24-b4b5-09a0f28cadb1","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":159,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"fc1cc5a3-b05d-4ca2-aec6-d2806f9068f7","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":159,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"a80a3471-1320-4ff6-b51c-a097af50a0cb","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":159,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"7823d812-4dff-4e57-b2b0-cb50c31f3fb8","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":159,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"901e4d71-3fdb-40a3-9f76-68872cd0dd19","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":159,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"8daff047-ece0-4e68-bb1f-5146ef158ac7","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":159,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"30eb14b6-668b-434f-bf24-e8bd7a87c169","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":159,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"00f25190-017c-4770-89f3-02aef4e06a5c","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":159,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"f923f71a-49cd-4941-a78d-77c9464f278f","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":159,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"eccf4402-4bee-4d36-8ac0-6e383399295a","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":159,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"319a0280-457d-4166-9593-f01a48ffb3b2","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":159,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"8c9029c6-eee6-491a-b09d-85d93d3d35a4","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":159,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"eaed012a-0ca5-4079-bae5-9143dc5ab2a4","block_type":"box","text":"constitute “qualified dividend income.”","page_number":159,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"ae63a0cb-292e-495c-b0af-dca313946e85","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":159,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"449213ac-d0ad-4fe5-aca5-a979d1b449ec","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":159,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"78795dad-9e34-469b-b8f3-aad14105db94","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":159,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"b8cb60cc-ddc4-4265-97af-9b93679ddf44","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":159,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"b0278115-9087-44eb-8879-b714525f574e","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":159,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"87129a77-4a8b-4189-b02e-2bbf97ba30b4","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":159,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"4cd856a5-842f-4e6d-b8f1-64832b902645","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":159,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"c3252022-30ff-493e-8a22-7461b0b23777","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":159,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"1302f882-4dce-4145-9f58-dd3283de5528","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":159,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"15eaa187-2c11-478d-beb1-9bf96ff6fdf8","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":159,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"f3146aeb-e4e6-43a0-b1be-84b8f4818dff","block_type":"box","text":"against their taxes.","page_number":159,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"4a72e61e-8ccb-4b04-bb71-380b26700d8d","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":159,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"754b767f-32e7-43db-9702-3016dd8ddf9a","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":159,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"5f83af49-891c-4ff7-9cfc-73b253558c71","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":159,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"17bed625-067e-4fcb-bdb1-eab9f5b84b20","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":159,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"b567a4e3-fe85-48ba-bd15-7f9493e60094","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":159,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"a9816d8b-39d7-4140-ae5d-94293f28447a","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":159,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"f3f21b06-1a58-4150-85bb-5bfb8d9bb918","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":159,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"6f1e3dcf-9359-4276-bb0f-5e662017b2ce","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":159,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"576b9284-37a4-4eba-9e63-85d9c596fad4","block_type":"box","text":"dividends received by the shareholder.","page_number":159,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"e2b5166d-a0d3-4c75-b1c8-c41f57abcde5","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":159,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"000c2189-1b57-476e-8732-5cd21ddd549f","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":159,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"487e7b4e-dfc5-40b9-8d2c-9e972a1bc6ee","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":159,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"cb27f714-7772-4d51-ad56-53f04cb3ee41","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":159,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"d32ea730-15da-4088-b1a7-b2dbb5fa6627","block_type":"box","text":"II-130","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0839c881-68ed-44cf-a96f-e6cfe488cf44","block_type":"box","text":"NM0926U-5977658-159/228","page_number":159,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fc3c600c-135a-4513-98bc-1307c466545b","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":160,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"96419f6a-9903-47ce-868c-7b2a3196b301","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":160,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"dd652b12-726e-416f-affd-3a25dc359196","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":160,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"305c56dd-03ad-4cf5-9ff5-98ec640806e1","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":160,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"3e71b394-6863-44ec-bc15-70d3e141f822","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":160,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"7c7d645b-d83e-4a84-8a65-c4a9f6e0a5f7","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":160,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"f73b024b-e6de-450e-8acf-bf5f5edc5f29","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":160,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"ba4ff266-b4c9-4e96-a31a-888cd73e53b9","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":160,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"77dd653c-3e3b-48da-88f8-4ff020ff1dc5","block_type":"box","text":"taxable year.","page_number":160,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"afa79893-1528-4b0f-9c42-bccf176f7780","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":160,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"9ff9bf7e-912f-467e-8bef-bc31eed6bd41","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":160,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"8ade2ffb-f5e4-4160-9259-58860ee8aaf6","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":160,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"d7b67b5c-1716-4906-a187-52f0fa384f34","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":160,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"deb956c1-a0a4-4cec-87cb-1d33768ed094","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":160,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"96da1f0e-1e71-4b2a-88a1-2225752ccab5","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":160,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"3c0073a8-4aa1-48f8-956d-78e9974aacb8","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":160,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"c569d0e2-86b0-411d-b20b-eafc3cdeb3d1","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":160,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"d1b6b87a-5689-40d8-9879-530f4c1f5746","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":160,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"a60f083d-1928-4012-acf6-12b3ada6791f","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":160,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"c9a3e3ea-0ed1-4413-a13c-4dcf260fb54b","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":160,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"d8451484-2328-478c-90a7-e9e148c026cb","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":160,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"231c2eaa-fb3e-4cb1-b4fa-eda2d7a66625","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":160,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"03206c29-d894-4523-85c9-5d97e5f081fa","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":160,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"d69423f0-9d5a-4255-bd64-f606507453b6","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":160,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"8ca5c483-1d24-4f92-b828-c889baba5d0f","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":160,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"05474c68-4b1e-4a74-ae6d-095c5dfcd45e","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":160,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"e977c80c-e7a8-4cd4-b6e3-3bf2edde312d","block_type":"box","text":"special tax rules that apply to their investments.","page_number":160,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"77f235d3-23f1-41f8-bdb5-12fdff987b46","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":160,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"384d2762-8f88-4d24-ae0d-d9607136bc26","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":160,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"e5f3cf73-ee14-434c-8c7e-61004d159c56","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":160,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"654bbc3b-37ba-4470-b469-b7ee82d73f23","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":160,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"e32536f6-627f-40c4-a58a-13cec3f0acb4","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":160,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"592a49e8-ab42-4f29-9272-535f031d841c","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":160,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"912b1eec-dc3a-4026-aa50-6ddc2f228fdc","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":160,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"7bfcb67e-e745-4cb4-ae69-cb37c248ee6b","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":160,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"5f0b0c69-78df-4206-b4fc-c2b7c5831a9d","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":160,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"f5710183-e817-4f07-967b-91d8a961a08a","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":160,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"98c5c56b-b0d5-4b8b-a971-632c5db1e50e","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":160,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"5203d939-b712-471c-8e19-b180982d188d","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":160,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"62be4825-6c41-4a36-af71-020daa0efe6d","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":160,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"ef38737d-58ec-43aa-bc83-7a9ca4188a8d","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":160,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"aaf9c292-d01d-40d9-b870-98628ccc8a0c","block_type":"box","text":"redemption of such shares.","page_number":160,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"177f7822-a17e-481a-8d5d-f60a05dc39dc","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":160,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"e2175cfc-7b57-432c-8d3e-18f2194f3d7a","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":160,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"61cb5f51-3809-4854-bd05-b59320517897","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":160,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"1f4f551d-1f00-45b3-82c7-54ad68af4dd0","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":160,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"1f925cf9-e564-49b3-8e6f-ecd312ce075f","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":160,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"81f515c0-d467-4efa-a22e-31aad68ef5af","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":160,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"27d585b6-355e-4d09-998b-b48d998925bb","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":160,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"0d47ccc7-af81-4a2b-afac-32b61848da9f","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":160,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"46bb465c-c80d-4fb2-96c5-f7e5f0f9a8c8","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":160,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"2b81f6a6-d174-49f4-b057-8ab6b4ec6977","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":160,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"8babd9f3-5c5a-4e1f-9888-c57e2f0662df","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":160,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"58801183-b01d-4690-8b2f-c69c20e9e666","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":160,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"752cc2d3-cae5-4a68-bca7-b42df478e1d4","block_type":"box","text":"II-131","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3212b1f5-3b64-4b16-947e-79c2257710fa","block_type":"box","text":"NM0926U-5977658-160/228","page_number":160,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"68beed1c-5f5b-455c-b5d4-515ec0298ecc","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":161,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"5293884a-ae16-43a1-ae70-b4316727f2ad","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":161,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"e4ec5f43-acbe-41b1-933f-0bcca34fb9bc","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":161,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"c33f0cb1-71bb-4d25-88c6-0e67d3db8dff","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":161,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"94133fff-4d1c-4448-bbdf-712c1d198372","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":161,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"635a846d-81d5-4a9b-ab7d-25fe4e3a7b50","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":161,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"88f792b9-4576-427c-82d6-bb4759db126d","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":161,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"9c53c4a1-db7a-43eb-a020-7700c63929f5","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":161,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"3bbec1ee-6c4c-40ab-afbd-aa076e63ee94","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":161,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"8a234a2b-1775-47e9-8ed3-cb243a59f06b","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":161,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"0b325830-7e58-4ce3-a890-35a81ee38951","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":161,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"8668ea06-4204-4d8c-af5b-37331a076c52","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":161,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"d545240e-af5c-4a35-97f6-6053a5051bdd","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":161,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"573bef57-73a9-4fb8-9963-26dba925bf29","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":161,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"9f05866c-fd51-4443-bf75-7ff32fbce795","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":161,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"e0aec8e6-09ae-4da4-870d-42a43f877211","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":161,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"2866b669-94ba-45f5-b45e-622dd926f49b","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":161,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"3ac07dec-a0e5-4957-9fdf-0239372c957b","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":161,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"73477e43-607b-42e4-9d5f-99abb5918875","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":161,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"434e37a7-162f-4b4e-8ec0-3f968789429d","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":161,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"ef4c8d7c-5204-4b5a-b9fe-378425f1bfcd","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":161,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"5a8d544f-b69a-4b0d-b12b-4629f67f0e8b","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":161,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"7b037aaf-5654-4bd4-bcca-57c880542a05","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":161,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"75490098-edcb-49e0-9ec2-57e8f9285146","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":161,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"faa6702d-b5bc-4d32-8ff2-d3088c21afeb","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":161,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"69518e2c-e24e-44bc-93bf-dc507a54bc1d","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":161,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"d90c60a9-b470-466d-8454-13bb9422858b","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":161,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"c3f46a5d-c4a0-4daf-b6b5-3b1dcda154b9","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":161,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"f90c3bbc-214c-4656-957a-ebf054a09130","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":161,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"22056400-6a94-473f-98f4-cf85a67cfb30","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":161,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"6f8e2fcd-67bf-42ec-8032-55de0e479b5f","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":161,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"6be46fde-07c4-407e-a534-6f0c5453bf05","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":161,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"146157fe-452e-4ae7-a300-bdf918d2a5fe","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":161,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"396ffefe-baf3-44a9-b291-97e09983aff4","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":161,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"8c2ad504-5a12-4220-a372-0003b16f259b","block_type":"box","text":"in subsequent taxable years.","page_number":161,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"ca7c838c-d93e-405a-aa41-3df667755c44","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":161,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"de648bb6-7af9-42e2-aedc-5804b460196b","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":161,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"fa56170c-1b53-4f9d-8665-548128b32f9c","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":161,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"281b9c9a-1b8c-4dae-b7ba-bf4404c89348","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":161,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"6d6fe30a-bc7e-4ad5-a92b-f8d5a8550fb3","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":161,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"34db7e62-42d8-4fec-a3b2-1c10948185fc","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":161,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"d69e2798-6411-4e5b-93e6-0562fc0b0348","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":161,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"fc05319d-228e-42f1-82a7-9c54c27eb69d","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":161,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"1d1ff463-8d5e-4be0-a4f2-64b145378bbc","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":161,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"af1a29a3-989c-4c13-8d49-a83d51072d8d","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":161,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"908ca1ae-edb4-4020-b88e-d1406486aca1","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":161,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"442ec248-0bff-4e06-9aed-63ce56695877","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":161,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"5b8c28ae-7f5a-4f91-b13b-238ceb6bcdd7","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":161,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"1bc7fc80-f14c-4663-b31c-c946bf3ac126","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":161,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"bd58db4e-2024-4edc-97b8-58365008dd1a","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":161,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"a47f1edb-4951-4421-a36a-024b9a6ab766","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":161,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"adeedfec-fc8b-4087-9f1e-dae5184fb791","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":161,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"e357383d-9018-4db3-ad16-ea4788685fb5","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":161,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"11a23bad-3499-469b-913e-0e1b0a47d643","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":161,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"81bb1a8c-2171-4e83-8cae-271c79182df2","block_type":"box","text":"dividends under these rules.","page_number":161,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"891ee223-b686-44bf-93ee-514894992e4e","block_type":"box","text":"II-132","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d8f1d9a3-d980-4792-8f01-57bba1110688","block_type":"box","text":"NM0926U-5977658-161/228","page_number":161,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"48007041-3530-4e07-b701-f6340d798a0d","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":162,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"30506fcd-dc4d-44eb-adba-53a7e54d43e6","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":162,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"51f62397-ce66-4002-96eb-3acc64ef070a","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":162,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"64f839a7-c03b-4528-a850-a3693abfdd38","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":162,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"1c1bd798-4f14-4b2e-a60a-eee7e9392530","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":162,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"ea17376d-5ce5-49ca-8653-e7f4c38cb707","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":162,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"0a1d4b83-d843-4605-a104-748d9bb6d864","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":162,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"4a0fec04-c887-48d9-b1ef-cb20912507ce","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":162,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"4400b5e4-f2be-448f-9e9b-3ae9e422092b","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":162,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"edd51635-d4b4-4eee-85f5-359d46b2fb72","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":162,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"ee7032b0-6128-4b56-9798-3b745b815ff3","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":162,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"0cb7cc8d-21b9-4913-89b5-607a4b8f63b3","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":162,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"2f3c0bdf-b9c2-4987-869a-a8b5c3113d8e","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":162,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"c6781ad5-f241-4b71-b497-531b95ac191a","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":162,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"3a01a479-0431-4125-9b75-861f1938dfd8","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":162,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"495b4db8-d4f2-4f6d-84bc-42c843561321","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":162,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"34d12779-af6b-462b-98c9-a8a357e17616","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":162,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"813a0dcb-a48f-4983-b603-443ffe6e610e","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":162,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"43015b13-ffe6-4df4-b92d-735ba5968de9","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":162,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"06072096-eb10-4f2e-9fe4-00802252bdc5","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":162,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"44945bbf-a697-46db-8e53-aaf878fd9626","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":162,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"2f264653-38e1-41da-9a03-7ddbb80f6bc4","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":162,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"2f251725-343f-46bd-9a66-46b5ccf7d67b","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":162,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"5d674e90-5491-4305-a239-6b9bd06185b9","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":162,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"b7d416ec-3663-4936-a642-12ac7e2ece50","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":162,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"c2e43c9c-094e-42db-b8b4-c51bd6a6bdba","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":162,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"35a9de45-aebf-4ac5-a677-e2952d8db19b","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":162,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"46d23858-aaea-40a9-a0aa-33bec9a44b8e","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":162,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"4956a1dc-64dc-4b0e-89e9-b52f3e893083","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":162,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"7d1ce44c-c318-463c-b538-468ee952a35a","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":162,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"f109957b-df34-460d-ab8b-a7447959ccf1","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":162,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"15acc9a1-4b70-4560-a737-4263b1a8d3d4","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":162,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"4d2a48ad-3634-4c48-b6de-1af99b652594","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":162,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"50fa032b-702f-42dd-82b3-94b52271442f","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":162,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"e6a5db7f-77ac-4d1c-b48b-ae0f33cb09a5","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":162,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"4c53ab28-5112-45db-8347-b51c92906ac4","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":162,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"575a3362-4cb3-4aae-817c-2f107e90210f","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":162,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"2f223b0d-a816-40f3-b1df-d5418a69fc22","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":162,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"6aed324f-e3ba-4038-ba46-c89bf8067c30","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":162,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"551e9166-4490-4fd4-9729-a9a3c45cb9f6","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":162,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"f4e2cfd7-17b2-4ba9-90ff-78f6304a8a1c","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":162,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"b9e6ca3f-dd98-40f2-9f7c-954b29bee109","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":162,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"8203ef83-bada-472d-93d2-c55a377621d4","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":162,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"86e3857a-2b63-4aba-9fdd-c6bab75f52c8","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":162,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"ab87b925-25a9-4045-ab2c-fd4af0022051","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":162,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"8445ab15-f309-408d-b855-65f9a02be661","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":162,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"e44b6519-2ec9-4a0f-854e-fc816e1ca379","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":162,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"9c3b7c50-2e2d-4710-91b5-acdc9c144275","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":162,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"6af748b9-86d4-4b4d-9f30-abc6673168cb","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":162,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"f709d371-a949-40dc-a961-a4e09e0641b5","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":162,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"987bfb58-e6fe-47be-a14d-b1cf565cb19d","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":162,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"6eada6c2-e0c5-4724-9fb1-8672bb660f75","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":162,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"8429f9dd-7c04-4a9b-ac72-f132711b02eb","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":162,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"a6870c88-fcdb-4141-8eb0-2d10d19a2b99","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":162,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"5a19d17d-c2c4-4d6c-b59f-f9dccd243a14","block_type":"box","text":"II-133","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8dd803a6-74ca-468a-af66-3b3fbbfb76d5","block_type":"box","text":"NM0926U-5977658-162/228","page_number":162,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"034f5928-afd7-4c66-ae43-986d50883672","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":163,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"0bf43823-756e-4063-bc95-672030242b2a","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":163,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"785c71c3-f4f7-4bed-a79d-bd5ef42ff645","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":163,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"465f6a53-0032-4203-a964-70a4f2918844","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":163,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"0aec43ff-874a-4766-b0e3-7eaff2b0b947","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":163,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"8051aaeb-fe79-421c-87bf-0534dc95d8f8","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":163,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"50a956ed-337e-4ec4-abd5-bfeee1d8ce56","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":163,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"9989d6ce-9985-4d4c-bc9a-209257623722","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":163,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"33daa3d9-ea56-4e6d-87b0-cc309b777d7c","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":163,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"75eb13a5-aefb-4661-ae8a-2ecb3a6abe35","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":163,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"007621a1-f3d1-4a10-be15-aec508e1bf92","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":163,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"257cc3e5-34f8-4a64-95d8-82bf635842d0","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":163,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"7f51a5a3-3a5f-4619-950a-7d0bd6eedcf8","block_type":"box","text":"investment opportunities.","page_number":163,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"f77fce74-2ea0-42c2-910a-2b227ef6c555","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":163,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"91fc90ed-ff2d-45b6-b0cb-b745d2f777f4","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":163,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"8bbbf933-c8e9-48fe-8564-60d695b77f8c","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":163,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"c2b92b54-3f53-4875-ab13-de6ad728275c","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":163,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"3d1c1402-dfb4-49cb-9723-5fe45936e300","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":163,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"47762991-8d3a-4a79-b075-1b27a9cb80bc","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":163,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"d6c2e6f0-5d05-46f7-9ad0-bd6e7030739a","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":163,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"a13f26d3-7564-4dbc-95bc-8d048174e9a5","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":163,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"2bd06878-cab4-4d31-ad1d-2d6f3e6c6230","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":163,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"a40a9874-caae-4361-a340-6fdb723240dc","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":163,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"100620b7-9c25-4475-886f-04cb5289becc","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":163,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"b9917997-ec22-482a-9a5e-7db22ab2321f","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":163,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"7678470d-512f-4f52-a93d-310810e822aa","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":163,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"69b6d75e-670f-45f8-89d1-3bb981362a7c","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":163,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"2ee1961a-1e5d-4011-92bb-3ec843d41f80","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":163,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"4d6f92a2-17b6-4b9a-99a6-4d56056ebc5b","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":163,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"ff0f4db7-d246-481a-8d5d-37e517d27f70","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":163,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"9c89d060-36c8-41f9-b5a1-2b6e0129d39c","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":163,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"2fd93769-1add-4c80-892e-dbc6e96a1d6b","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":163,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"8520bf39-0a01-4fa3-854d-bad8488f88b2","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":163,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"a3f4dace-6b46-45e0-b300-0744ef56e980","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":163,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"803bc99c-039e-4d92-ba58-7b47eae62f9e","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":163,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"748982ae-85d2-4312-8fdd-f26d4982b501","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":163,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"c09684ae-93ea-44b9-b347-be58c975334c","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":163,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"50e0c7be-f562-4b36-abda-691dd0a436df","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":163,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"3eb87ff6-f8dc-4965-8bbc-a4b6d93686c7","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":163,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"86bbddc5-07c1-4b6c-9f13-dc866844d1fb","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":163,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"2ac33c22-5104-41b6-99a9-eaadc7481ace","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":163,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"9232a736-0ca7-4056-840b-2545e9373d2f","block_type":"box","text":"positions in its portfolio (","page_number":163,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"81e24e0f-0f32-4184-97b3-a44a7deba94c","block_type":"box","text":"i.e.","page_number":163,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"73d0192c-d814-4b4a-b28a-07557214c52e","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":163,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"69f008a8-694c-4b81-bb8b-47c4c9d8ba53","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":163,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"9617b572-733e-4d16-bf15-28af5490ab4e","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":163,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"c699eff6-ffbc-402c-9e11-4ac382ef48de","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":163,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"33e77c11-e3c1-4048-8660-0f97cbc67d55","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":163,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"5fda966b-e86a-4028-a32b-37dd9dd44265","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":163,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"9fbbe9b2-ec9f-4efe-a87d-3a1cde6e6053","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":163,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"d978cdaa-e4c0-4fd9-890c-ce1badaf6945","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":163,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"5c2c834d-c2a8-451c-b655-fa82027c1f43","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":163,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"1196e7c6-b7ad-41e8-bb04-f9cc66364614","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":163,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"f5bdc8d6-c7c9-4a33-9398-2c5cd29a6ae0","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":163,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"247dbb5c-9260-42c3-8385-c7fd96ee194d","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":163,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"101b697e-6466-4270-a948-a2fdca6c9caa","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":163,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"27af765c-d22e-4fc8-9290-4cdfeb1ed36e","block_type":"box","text":"II-134","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9d8106da-a96b-49ba-80cd-14c25b225389","block_type":"box","text":"NM0926U-5977658-163/228","page_number":163,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a50c33b8-12f5-4037-9cc5-ee147de85b28","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":164,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"b6b67935-bc3f-48d1-b854-19bcdea2495f","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":164,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"f083ef56-94e8-42a9-84e9-45edebdb5d62","block_type":"box","text":"capital asset.","page_number":164,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"4e8faad4-859e-4b5c-898b-0ca7adff892d","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":164,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"ac1d6ae2-9932-41f6-8622-767c6a175c3b","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":164,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"755340fe-df88-4d35-a936-6cd3e8e76dc6","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":164,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"d02c9a15-2dc9-4797-af19-dca01a45fcd8","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":164,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"47c49819-3ac2-4bfe-ab15-c5fdf780716b","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":164,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"f107b274-eb60-4a8d-8a8e-48666e1a49e6","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":164,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"e3cfc51c-5402-45da-b084-cd804524ea69","block_type":"box","text":"Fund were to invest otherwise.","page_number":164,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"e81ae688-b0a6-4118-99f2-070bbaee3262","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":164,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"cb438634-245b-46df-8287-8cc09ce784ea","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":164,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"25a1db0f-bbb8-4467-8793-c58ab65ae4b6","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":164,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"2d304bba-36f8-4b7e-b2e6-8b0ab9421832","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":164,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"f044d19b-72a8-4f3a-8e6b-32a310f0cc37","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":164,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"94e2c655-3e49-4153-b1c7-604cd9954c0c","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":164,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"be1fae62-1ac8-4939-ad73-0d13044ff78d","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":164,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"d88416fd-1a6e-4f7d-a504-de7a98f5c5f5","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":164,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"32fd3ae1-b00c-41ed-a60a-58dfeb5d64f0","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":164,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"e101b3ed-123f-4646-b5a5-41bd2eb91db0","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":164,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"07551cf4-4b8b-429b-91e4-faacce10e0c0","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":164,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"dcb08ea0-2cd0-404d-82c4-ee1ffbd7f44a","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":164,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"1caef52f-691c-4eeb-a23b-eb1c6bd4a826","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":164,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"d7584a04-7d81-4296-91e7-06ee52d28e0a","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":164,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"e6c46e6e-6738-4e2b-87dc-b3d26b2d3545","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":164,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"021525c7-626d-476c-81b6-19a26bef917f","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":164,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"03d3087e-455d-4c5c-8031-e532e6d556ee","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":164,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"26f8cd05-5af2-4086-a2e4-3a5183296d68","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":164,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"ba23909c-c7cc-4db4-9c28-ceb0c52bbfa2","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":164,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"d30abec7-0e7d-426d-aca1-17b7fc87b6f8","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":164,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"864df685-1653-4579-9e5c-b0f08ffda176","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":164,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"1181cdd6-b80e-4d5b-84ca-7c7453d0586d","block_type":"box","text":"PFICs.","page_number":164,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"700f2017-ed5a-40e1-973e-80ebba502023","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":164,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"269a3c07-c494-4754-a08d-a00a52e43b1a","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":164,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"64940a91-7bed-4831-82b1-9e740ef1740a","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":164,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"e6f0f65e-7f51-46f5-adbf-2cd6d13b6c48","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":164,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"89cfa089-f798-4da7-95fa-19e7aefc021d","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":164,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"6aba3555-fb4b-4e63-9e24-06f3bd0866e4","block_type":"box","text":"difficult or impossible to obtain.","page_number":164,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"7fa813bf-a69b-4609-b809-22dfec80a440","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":164,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"ef33668f-9f55-4aea-9ee2-16be6654b5c8","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":164,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"df72b5c3-d279-4591-8612-2d24bd29dd07","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":164,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"ec05ce19-dada-422d-b4aa-2e74515b7e46","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":164,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"49b1f3c3-af9c-4685-9f40-ccbe756c67dd","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":164,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"f0bf5b4c-311b-4e98-b775-f4df83027183","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":164,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"2e3e96b5-07b9-46fd-acad-c19db02a7100","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":164,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"7397d5b3-39ec-4741-9deb-d5c311db5bc1","block_type":"box","text":"Municipal Funds","page_number":164,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"4f8c3e5d-2abd-4e49-af9f-9fa8ca28f823","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":164,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"2d2c948e-f787-4237-9f18-8b284852dba4","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":164,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"e2d6efd6-016d-4b2a-b4f7-b0d664dca3ec","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":164,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"30190bb9-33bc-492e-b003-6cd5a674cb2d","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":164,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"411eae3c-ee79-4fff-a0c3-ea2f08ce2052","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":164,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"75aff66d-7bfe-409e-bd7d-12c5b5ff6f75","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":164,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"8e9c3ceb-3a8f-483f-96c5-9adce8936f74","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":164,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"75e57fa1-0d9d-4833-a634-4be2e452067b","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":164,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"e23d36f9-0748-495f-a530-298d1e20069d","block_type":"box","text":"II-135","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c40c5d33-8317-4085-9d78-46c7eb16c6e6","block_type":"box","text":"NM0926U-5977658-164/228","page_number":164,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"3423add2-8d58-4207-bf71-3457d7e46d61","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":165,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"348abba0-fd85-410c-b2ad-15c62db52d7e","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":165,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"92bec4de-405e-4a67-b0f7-61e64dbfbb92","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":165,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"2116891c-242f-4998-92b4-361d1181352e","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":165,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"d289c3a7-1c6d-4bb0-8b02-751ba07a87eb","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":165,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"84d49a78-b8d5-4221-b418-5d80b9e1f407","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":165,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"12e87984-ae8e-481b-98b4-adc7f1bcb246","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":165,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"976b9595-9d6e-4f46-b3d4-788f9cb0b956","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":165,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"ff7e8483-044e-423f-9fca-7168c3c262c8","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":165,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"ba8743a9-06c1-4d15-a79e-05fb7eade892","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":165,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"ec9ab11b-b3c1-46bf-8509-22a653679552","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":165,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"6e134b88-fe5d-41c6-bbc9-f3cc8ffa840c","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":165,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"938a86da-4751-453c-9b7e-ee9b3c2053a4","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":165,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"c7b5f946-338e-4c8a-a1ec-a1e77e4459e3","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":165,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"133ffcc5-901a-41c1-bb04-500acbca644d","block_type":"box","text":"constitute exempt-interest dividends.","page_number":165,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"54ac97b2-c5a3-431c-a971-3e72b23fc18b","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":165,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"4e0471a4-4c87-446b-870a-7591502cf3dd","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":165,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"53ca852b-e555-466c-afb1-d89bca90437b","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":165,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"95d57698-6714-426a-b563-eaf691934bb8","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":165,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"f0d4dc50-7ae0-4b8c-a397-3048023ff19d","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":165,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"7b33827c-00f7-46ab-b3e2-7a7033ea9a29","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":165,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"ebf3f1fe-4be9-4739-87ac-d0868dadc252","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":165,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"aff65063-8948-4ec6-8c25-9e2acf5c6b64","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":165,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"10f8e099-a0fb-4056-bb95-6c7e5c34d4a3","block_type":"box","text":"income dividends received by shareholders.","page_number":165,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"b428ae75-00db-4e01-b2ae-a8bb392ce33d","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":165,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"cdcf48f7-cc26-4916-a388-d62c47e555e8","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":165,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"98257344-1108-4fc4-a4fd-18eb998155f0","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":165,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"b0477948-0d3d-4c47-a430-7a55914487ac","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":165,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"0c4ac924-bb80-4e23-964a-d59ec8091d98","block_type":"box","text":"the accrued market discount.","page_number":165,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"01ac7c5a-62cd-4abf-8aaa-eec077359bfe","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":165,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"558a061f-0d08-48c4-bd51-a5f955e56c72","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":165,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"d5c8dfe7-8421-44a3-9e10-1e0f76424877","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":165,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"81cdbff4-e0db-4b02-b10a-f780bc7e5bd5","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":165,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"58f20733-37f4-49e9-84de-8fd59839d5d3","block_type":"box","text":"e.g.","page_number":165,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"3ccac241-38e9-4157-9370-75867beb2f70","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":165,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"17429c5d-856a-4d18-a48e-cb49d1c5185d","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":165,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"e6b72331-5f07-4721-a648-33c696b5485c","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":165,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"e570bd60-c6d4-4e16-a34b-bd4cbebe09c8","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":165,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"e7e22ce8-f9bc-4bf8-950a-bc6e9ef5d81c","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":165,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"5b3a2913-a589-499d-9df5-fdd1e9fc6a2e","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":165,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"765cbbff-c573-4b31-a7eb-a940138612fd","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":165,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"b773c983-b61a-402f-9346-26197aa361d2","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":165,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"d378019b-deca-4f8f-9e57-c10e55f826dc","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":165,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"27779e20-6270-4a3f-9281-a60bd6e83a68","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":165,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"bc5bf999-c450-4eff-a28d-64f27561590c","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":165,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"d593f2c7-e583-4d0b-8cb4-e2fadf793040","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":165,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"746d3922-aeeb-4bad-8de8-53b279843fec","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":165,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"e6542ab1-1a5c-4735-a05b-1bb63f3f7efa","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":165,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"e864afda-3eaf-44a9-97ac-0717111e63f4","block_type":"box","text":"within each applicable state.","page_number":165,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"2240b609-3493-479d-8e86-385e443e8547","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":165,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"ca435a31-d718-4687-9215-dfbc686aa2fc","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":165,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"84b0c643-aada-48c4-be97-781534090496","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":165,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"2d4269ae-d765-445f-b7ae-3bf974946c93","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":165,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"d88942b2-396e-4b02-a383-22021d6e2fab","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":165,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"6e510bc3-2124-42ff-bc06-e77a8168163e","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":165,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"848b15ac-9180-46ff-a4c9-fed27c91c677","block_type":"box","text":"II-136","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"43d9893a-1151-4ed7-892b-805e08483d53","block_type":"box","text":"NM0926U-5977658-165/228","page_number":165,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c15bfd47-dbf9-42df-9430-d966bfc73cc7","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":166,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"7e83c8b5-f29a-467c-ba53-912ed0529525","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":166,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"348515bf-4a7c-48a3-9d81-d3f28b2e27dd","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":166,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"82302020-3c63-4687-97fb-68a5a40474d1","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":166,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"47250e4d-00a7-4ffe-9b10-e33ef510578b","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":166,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"3f916d87-984e-4bf2-8256-0995ea953f1c","block_type":"box","text":"exempt from state income tax.","page_number":166,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"044122df-8978-4e00-924d-a0e714b5c3b2","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":166,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"7816ca8b-95d5-4b57-be95-0bf9801b7564","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":166,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"f9452369-5447-4c33-aea2-14895859fcb7","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":166,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"d399b584-9cf7-455e-811d-506aa7a453aa","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":166,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"cb33dacd-cd99-4bf6-98bd-b6fcc3e38b53","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":166,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"360592f5-ea43-4c04-b7fd-955edadf169e","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":166,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"8252a1dd-bf53-427c-9685-a8d1357bea35","block_type":"box","text":"decisions may have a retroactive effect.","page_number":166,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"2ac7af31-cd81-43f3-bcae-d33712a38d2b","block_type":"box","text":"PERFORMANCE DATA","page_number":166,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"84ee4c61-fc61-4ba9-a507-c8c0e30b9b42","block_type":"box","text":"From time to time a Fund may include its average annual total return and other total return data, and, if","page_number":166,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"9604e9fa-6d36-4abc-b2af-cf09314b3d2d","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":166,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"126fe59d-57a6-4ec9-a2d2-8ac34bf143a3","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":166,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"56aca530-dd47-4d83-abc1-528aa5bc389c","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":166,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"a3bdd922-f9c1-4f49-a12f-4676a1256826","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":166,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"e0bee8d0-9a46-4a94-8968-ea0e268057ed","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":166,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"9895b832-b94c-43d5-9236-2f8df053a9e3","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":166,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"1be374e1-2798-4acf-94ab-0965759fb515","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":166,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"f047d0e7-81c4-4ee9-91dd-d113a0082861","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":166,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"72885058-f056-47c9-8ed1-c504b8da475d","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":166,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"e983e811-7a4b-4823-8c77-da70070f15c8","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":166,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"cd382db0-cd25-42fd-8a7f-9c6008cbd396","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":166,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"62af0113-e676-45b8-bfeb-3db6f8b0f81c","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":166,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"296b0f79-a849-4e52-81d4-755be225d979","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":166,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"3f693792-46b0-4c82-aeaf-9b0022106989","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":166,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"5faadc25-e1da-426f-9874-9b79a8eefac3","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":166,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"65dbc48a-b328-4b0e-85f4-5c0a3bb565dd","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":166,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"81be834e-c34d-4709-9a4b-25f9764be9a8","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":166,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"d230b10f-c6a7-4a90-ac45-454a69795958","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":166,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"1b37ddd2-84c8-4cd5-84ce-ff8236f831f7","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":166,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"448b0b27-ae2e-4fe1-a0a6-eaef76b69385","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":166,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"b6e65efe-e3f4-4500-868a-c680c0d41deb","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":166,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"f0d36245-8f9d-4c0b-9b2c-7abb9af82b9c","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":166,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"599ec6f6-81da-4374-ac93-50ba99ce762a","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":166,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"be610908-b9a8-4ea5-a4cd-65f8a0385d4d","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":166,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"9d27f78b-5c85-499a-b1f4-df68681a6a8b","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":166,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"4ae2ce85-0ad6-41b7-a66e-c02e02c31433","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":166,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"a79376b8-e07b-4451-a331-537daab003f1","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":166,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"690b6558-db45-43d2-bdcd-67e294771d5c","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":166,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"eb204a18-49ab-4af2-ad3a-04b800c6fc7d","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":166,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"9388c66a-4ee0-4a53-9e64-fb5cc97f9202","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":166,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"4870a336-3f99-4a77-9ba2-7cad7c842f18","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":166,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"d830a820-2e4c-4569-af19-2a9882d87d46","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":166,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"36240687-a4c1-4451-93ef-b208bb967e38","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":166,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"99b2b0e0-fc71-4067-899d-39bc057da528","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":166,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"cafca3b0-cab1-4ae4-8e30-738812be5cd4","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":166,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"8fa2870e-308c-462b-bc73-efe412b9714f","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":166,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"338ad45c-01f0-4756-8c28-f7cef5aef35b","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":166,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"607236f9-ecd3-4d59-a05e-5bc4a27214cb","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":166,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"dba9556a-5af6-46fe-993d-a94b364ed2fa","block_type":"box","text":"II-137","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5d58225b-997e-41cf-8461-dcf52ac75c24","block_type":"box","text":"NM0926U-5977658-166/228","page_number":166,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7adae5b0-792b-4e88-b522-10eacd0667bf","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":167,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"7abede4e-ac54-4690-aec7-030eb7e52e2f","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":167,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"96a1be66-6063-48b7-8b22-43f14d0b40ff","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":167,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"1bd715d0-8883-4aba-b3c4-b521e7e1cbf5","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":167,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"5221fdbd-3624-41b3-acc9-72dc24a178d9","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":167,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"05676ed8-993f-4c2d-b7dc-1314b2f5543e","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":167,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"d74f3e20-8304-4755-b166-17e7d09a158f","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":167,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"209b5c57-1aec-48f8-b123-953d5e830cd5","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":167,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"dbcf5792-7dad-4013-974b-ca1256a4715a","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":167,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"b486b001-e17f-45fb-90bb-827ef1ad53dc","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":167,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"0b88451b-75e6-4842-80a8-129258f2bb1b","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":167,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"c222f529-1b1b-45e9-9c56-04aaf7182df3","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":167,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"92dd71f6-6260-4a0d-b4ad-3f47b6a93513","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":167,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"53dc27bc-1850-4b25-9827-06e0312ec81d","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":167,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"77185288-b01a-4d29-8ea9-0fc3d0e34779","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":167,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"7e8c9942-bf14-46c6-8cc0-429c48f24a2e","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":167,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"c77d4513-10b0-435c-8ae9-5d00c08ef07f","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":167,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"703993f2-ed82-48d9-a33f-bbc07f76539c","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":167,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"afe8eda1-f14d-432c-9a60-3c404fa1b13f","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":167,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"7ae2b34d-2bb0-4d4a-906d-6b1e2f0f103c","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":167,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"43fd82d8-e955-4764-9123-e1cbe7cdff74","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":167,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"424d0efa-21d3-4764-9281-1a7cd8b4419b","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":167,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"0a56f7ed-8356-4fae-b065-12a4d7aa3344","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":167,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"06e0e74b-3270-44cc-a309-5f3db9c615d6","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":167,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"f9bc5e40-b9a8-4c5c-a162-cee1ca29a94d","block_type":"box","text":"less than their original cost.","page_number":167,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"363ddca7-5711-434e-bf69-5177014f8ca7","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":167,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"4ff530d0-c760-4ddb-b994-825c11b49e54","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":167,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"2d965d33-92ef-47e5-896a-62f3e156b6de","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":167,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"e63974a3-4c48-4b22-9eaf-76d09c1996da","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":167,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"e45d6274-506e-4025-8ff1-4990a3a7a262","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":167,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"27bd4efc-5a34-4b95-8b87-ae6e99d51b66","block_type":"box","text":"lower amount of expenses is deducted.","page_number":167,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"e62bf757-6516-43ca-bd0d-c6274b586ff2","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":167,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"6762beed-0cc1-401e-9e1a-a3fa2a4ef9ca","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":167,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"7d73e73a-be6c-4bd1-88b6-fc0b1e8fffd6","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":167,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"ee88a93f-d06d-4ddd-8abf-b0bf7ab0158b","block_type":"box","text":"Money Magazine, U.S.","page_number":167,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"4c15a736-f7bb-44ee-a3a3-f2989850ca91","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":167,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"7eb4e831-180c-41bd-b6be-f98f66034bea","block_type":"box","text":"or other industry publications. When","page_number":167,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"8649fdf3-97ca-4b6b-9686-c1a8301c8b58","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":167,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"9f7c576b-cacd-45a9-b656-285bd9ca30ed","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":167,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"4aa7360c-11f8-4729-9375-dd043b6f8074","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":167,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"8bce3006-ec58-4d52-bf2c-bdbec74d76b4","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":167,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"308bee43-9a02-4348-91b5-b70197bc0513","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":167,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"a1bbb329-ca5a-404a-a4c9-928ced087b46","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":167,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"c2161611-6e74-4b2a-b3f9-c9a6f26e7b81","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":167,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"e58b25e9-f57d-42f3-b0ee-a124a72fe984","block_type":"box","text":"developed by Fund management.","page_number":167,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"c6a6fa51-72ca-492b-8b98-a6fc369f6149","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":167,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"c0f53a7d-bbf5-4a1c-949c-577137f862fd","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":167,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"4d0d8725-8e28-4cdd-8409-417c358293a9","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":167,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"1ae92478-d881-4f54-95f5-c6a6052fc037","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":167,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"bd164886-8ba5-4d35-a3f3-3d9908cccbc3","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":167,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"25622657-f9ea-4e43-a8d9-1a0747f4d4b5","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":167,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"0bd8f716-ba22-442b-b9e1-2d5ac20001f5","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":167,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"5e1b07cc-cae6-4308-b488-e19e1df49383","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":167,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"9758504f-a7e5-413c-b214-d1a33f3906c9","block_type":"box","text":"II-138","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1df28d72-2c1a-4464-843a-96eaa18ddab8","block_type":"box","text":"NM0926U-5977658-167/228","page_number":167,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"b7852f49-8ad8-4b3e-ba2e-0afef70b08fd","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":168,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"fe5dd896-5830-47ae-8735-7eab6adcb858","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":168,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"a3f26716-2d7f-4c88-a2f1-3833f1788f85","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":168,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"de87eb20-9477-4c5e-98bd-3b2b359d1438","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":168,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"46a7bb28-b88c-400b-bfb5-d702ee214a3d","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":168,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"084e76ad-f4c9-4058-ab74-238b89e7fe87","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":168,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"e27cd365-1763-4a75-b9fc-8afd8daff97c","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":168,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"a6dca007-b420-4e97-bcf7-7d477fb87b40","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":168,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"fa9b244d-3af2-4c50-a9e4-820dd34c9351","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":168,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"11b57deb-0b5d-4b65-bdc9-63703ae5619e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":168,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"03f15110-f2ab-40a7-b2c7-df577f65ffba","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":168,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"f96757ce-a0aa-4a02-a43e-4c28f92dd600","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":168,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"3af2f418-9203-44ef-8e35-e2c62989e219","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":168,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"9f2a0500-694d-461b-82c6-135dacacb72e","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":168,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"1797140e-591a-4b53-ad3f-9603839317b8","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":168,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"32dd4306-fe4a-4e6c-b897-6c59671ca4a2","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":168,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"49982cdf-6762-4e3a-9179-d4036bdcc9e5","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":168,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"e3b7892d-a4b7-4310-9028-733fddf86363","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":168,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"31921f00-925e-462d-886e-de0f5829ab62","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":168,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"88a6530c-d8b8-4445-b642-8ca1c252ef9c","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":168,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"de05df4b-c112-4c1e-a942-61a145709a45","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":168,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"01397b23-9c47-48e7-86a4-84759090cb0b","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":168,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"7284f55c-e7e8-4513-844c-baec09e9821f","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":168,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"efe2facd-277a-4b41-af09-2cf2280a8772","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":168,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"b1b931ec-48b7-4c57-8999-f0ee5f6675ac","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":168,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"cc9d8676-9377-4f16-a13b-826d0da3b680","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":168,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"750ea0d5-8658-4f79-b278-93a3605eb244","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":168,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"ccd1097b-d90f-4563-8f07-a615639f1c64","block_type":"box","text":"GENERAL INFORMATION","page_number":168,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"cdc8c92f-33f2-448a-a31b-b7be2d26e6f3","block_type":"box","text":"Description of Shares","page_number":168,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"4f40b422-51d3-4060-8ede-f463e9172828","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":168,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"a4c60922-86e9-423d-a290-66a4b032e3a6","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":168,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"9a102f71-0657-4c89-9457-a3352e4e61f4","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":168,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"910a41bd-77fa-4d08-a108-6896627ec6ba","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":168,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"abda4384-7cf2-4b84-8c0f-a55d6deaf94b","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":168,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"294fd3c3-2a1e-4423-8240-60b364b58303","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":168,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"54d65316-a49c-45a9-882b-281b7e819c8f","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":168,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"ab7e0694-67e7-47fa-848e-cd5023a9e2d7","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":168,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"3962ab0e-5a76-43e3-9b99-6dd19d774dd3","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":168,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"aeaf6e48-fcf1-4462-b7e2-c178a9b40519","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":168,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"b2db87f6-37f0-4e6d-b047-49abd6b4a75d","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":168,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"444be450-a6f2-4233-bbf8-928a87c6ec87","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":168,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"3e80ca50-8597-4323-a676-f23c1bd67efc","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":168,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"57921938-3d60-46b0-9ead-5af95917e3ac","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":168,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"e3f42527-5d90-4aef-a824-4b998a53fac0","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":168,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"e322a425-dd2f-43f9-bbd5-e557feacae37","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":168,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"a5af7316-4674-4f93-82fa-302159e68bd5","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":168,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"9734c748-6600-4214-9c6c-717596c08aa2","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":168,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"3052d0d3-818d-464f-ae9f-5ded3ad7c501","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":168,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"3a8c7add-5f84-48c9-a092-0f6c534dd7bf","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":168,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"33d0ed68-9c4e-4b72-9d08-283c3959129e","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":168,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"2a0b3cb3-1926-4078-a550-77cb76edfcd9","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":168,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"e46b54b4-c5dd-421d-bec1-dafdd83a6a09","block_type":"box","text":"II-139","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"32d89138-71d5-4de1-bcd6-baa05edf6dc0","block_type":"box","text":"NM0926U-5977658-168/228","page_number":168,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7f55c4e5-37d6-47d0-9ee0-1a4675e29633","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":169,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"a6f4cfa5-a0de-403b-b7f1-5a9ff68e4d21","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":169,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"a630b3a0-74a9-44aa-b4b5-2b9349b37d11","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":169,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"3a48bcee-0b44-4921-bb26-d9cc461da462","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":169,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"e01c1e0b-1cd4-4ae7-bed3-597175a31988","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":169,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"2b758965-85e4-4e95-a20d-e687f8c9f1fb","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":169,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"6c5998e8-82bc-4389-8d75-875825c96926","block_type":"box","text":"Additional Information","page_number":169,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"82d60765-b11f-458a-a667-8f0e3bab75c6","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":169,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"0cf24394-7b92-400c-9bb5-df66166d10d2","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":169,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"14636d6b-7fe8-4dae-b429-bce6bb2266c4","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":169,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"723f10a2-5890-4817-bd92-a6d16cb16bd2","block_type":"box","text":"such name to any other company.","page_number":169,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"99c07cc0-0af1-42ba-afb1-f3a59ac0eb77","block_type":"box","text":"II-140","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c826b84a-a2f0-428a-b663-b546b7fcf1f3","block_type":"box","text":"NM0926U-5977658-169/228","page_number":169,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"35396675-68ac-4cf6-a6cd-8cd09cff311a","block_type":"box","text":"APPENDIX A","page_number":170,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"bd98f380-9c47-46c9-8453-5276302cd7c2","block_type":"box","text":"Description of Bond Ratings","page_number":170,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"aa6ee44b-28c7-4545-952c-031af7138361","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":170,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"46b58766-c0d7-479b-8447-fe2edf67d2ce","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":170,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"95ea7da9-dc5c-4ed6-9c4a-bf27b85fe44b","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":170,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"234ac4d5-575c-4902-822d-cf5b6297a887","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":170,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"88e88f95-02ac-4228-8d25-991ce7be9c64","block_type":"box","text":"securities on a particular subsequent date.","page_number":170,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"981242a9-6084-4e32-b659-4107f317e99a","block_type":"box","text":"NRSROs may rate specific investments (","page_number":170,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"b23bde0a-35c7-4425-bd06-a04f2287c4e6","block_type":"box","text":"e.g.","page_number":170,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"08f11b52-fd36-4864-85d9-28dec95998fe","block_type":"box","text":", bonds), issuers (","page_number":170,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"cc0edccd-2ad0-4bff-b160-a62e25ef257e","block_type":"box","text":"e.g.","page_number":170,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"52d29876-87f8-45e5-9ecc-917351cf5627","block_type":"box","text":", corporations, governments and financial","page_number":170,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"0a49e0c6-0145-4cc8-aa07-a10d363cae3f","block_type":"box","text":"institutions) and/or programs (","page_number":170,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"dded15ec-0bba-43a2-88cd-680b078b441e","block_type":"box","text":"e.g.","page_number":170,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"0209e192-d299-4881-be63-176531b9e644","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":170,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"dc718eef-731b-4e89-8194-3f89fa407cb3","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":170,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"10a188cb-ce7d-4799-a315-2d7ca43fafd0","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":170,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"4eb1111a-f80d-43ad-a299-d0f8e8abd4a0","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":170,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"273f607d-4cb4-4a1b-959e-e901c33c4364","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":170,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"ffd60c79-9564-42a7-b483-ef14f1106b7d","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":170,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"c9b3a7ac-7cd8-43d1-9585-0c4b733fdbaf","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":170,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"3c03f159-b112-4696-9992-033b99cd7399","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":170,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"71bcf85d-26b3-49e8-b4ff-fe85aa2f093a","block_type":"box","text":"security (","page_number":170,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"b718d293-928f-45f5-8567-d8cad5ec6a90","block_type":"box","text":"e.g.","page_number":170,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"22e185eb-dc39-4cef-b52c-a3cfdc60cc95","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":170,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"8b7fcfd1-6b2e-4977-8af8-db1acc87eb51","block_type":"box","text":"highest of the multiple ratings.","page_number":170,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"5819f1aa-7cdd-4d04-837d-ce0d86c2d94f","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":170,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"2a041350-a0ad-452f-9bb5-e5414f074fd2","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":170,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"91341472-d5ac-4288-b09e-9bc8a174c551","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":170,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"19b19832-adef-49a2-89bc-2c9678341857","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":170,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"11aa126d-ab9e-45e1-97cd-f70013ea2200","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":170,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"6dcf4bf9-adf4-4701-934a-7aee03fde573","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":170,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"d4037ef6-d5f5-40f0-bf61-ea7df44bedb3","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":170,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"69aca113-ff6c-4661-bf5c-9c881ed306b2","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":170,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"12b661dc-badf-4d0f-913a-55874bca92d1","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":170,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"fbc66f1a-c72a-4494-93eb-4974a2b8169b","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":170,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"565a0a9a-3c52-489f-8e55-60d7cfbde348","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":170,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"d6ffb6a5-3bdd-4107-b1c8-de2ca41c79ed","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":170,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"448c498f-f0c4-4cb0-905f-975ed872d5c6","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":170,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"a888d1b4-36d9-422b-9753-8e862de642ee","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":170,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"0eec4dce-8240-4356-bf1f-42ce4c5de525","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":170,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"5318b74c-cf75-4ad0-8cb4-74dbd0170ae8","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":170,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"51bb0772-0a9b-4f5f-9eb7-13faa24db01b","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":170,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"f6dd13cd-6b01-4e48-9c8e-2d36912af8fb","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":170,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"7f551522-0389-48f9-8e68-d831c84c311e","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":170,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"ea379da7-5166-48be-98af-aa6d9b2c8e19","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":170,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"c84a13be-ae7e-42b1-9bc4-ea3ba219983d","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":170,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"060bbeb2-b577-427e-8276-f336c14e348d","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":170,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"6dc7cf51-f069-44a6-92e5-0de35523d81c","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":170,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"85abbc4e-43b6-4095-a3b6-7a8ccb459a57","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":170,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"1bacf1e5-055b-4a77-8fbe-df4b5d60c404","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":170,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"5e1c7a8e-1ec8-4238-a555-e5ddddb957d6","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":170,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"62e12f13-c537-4677-a396-c380496a05bb","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":170,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"dbd2927f-f419-4eb6-b31d-9b1eafd8b644","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":170,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"5418e686-3a3e-4356-b03a-bce068fe552e","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":170,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"f7921938-e026-40ff-8eff-0b00fd716d20","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":170,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"621583bc-e8bd-4938-b874-22149d3d0c4d","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":170,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"f65b1c68-23c9-45f7-9b3f-4c08efa930df","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":170,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"471fdeeb-3923-4646-966e-f3fcf6de24f5","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":170,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"408dec85-7854-4157-9d37-bf88598e1aca","block_type":"box","text":"upon standard sources of variation (","page_number":170,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"d3f602f3-cde6-4e2f-a34e-fc5d9cb1b3f3","block_type":"box","text":"e.g.","page_number":170,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"9094d483-64a2-4e1f-b88b-3006922b9574","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":170,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"bd46a413-e3e4-4a6b-8828-9d8d5c2f67f3","block_type":"box","text":"A-1","page_number":170,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"648aa7de-4cb6-4a33-849b-14fd6df89de6","block_type":"box","text":"NM0926U-5977658-170/228","page_number":170,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"27c80302-2081-4ebd-bf84-f22c28701424","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":171,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"1f36ef2b-a5ca-4c86-a0cc-6057327dc005","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":171,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"172b173f-f2e0-44c3-aea7-c2e9e4ec0349","block_type":"box","text":"e.g.","page_number":171,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"1461fad2-21ea-4e53-822d-05dc30b8862c","block_type":"box","text":", equity indexed), absent","page_number":171,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"627eebae-cb2a-45d3-820c-71b2c1b4e420","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":171,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"892085e8-7a6b-4311-92f6-3ca8bfc5ceb1","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":171,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"5b0435b8-4c71-4aea-8d6c-c99629c4dbfd","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":171,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"e38a1c2c-d624-4655-bba2-a677e286ff0f","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":171,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"9102af6d-eb4c-4be4-989f-94c8a72d7e86","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":171,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"7aa286c7-0808-427a-a26a-18db6ac9cd74","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":171,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"f32acc38-dd0e-4bdd-a6a9-befff2179abc","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":171,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"e89df488-b37a-45e1-86b2-2d9b5b47918c","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":171,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"019ce309-0dd9-4d80-803f-c1ea8164f0c1","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":171,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"db3f06c2-2aef-46e6-8ca7-7d1cae8d2ff8","block_type":"box","text":"i.e.","page_number":171,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"33b21a2d-f6fe-4488-81cf-e5e4a044b48d","block_type":"box","text":", ratings on nonfinancial","page_number":171,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"2519c31e-a474-4a04-8a77-cd65a80d9daa","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":171,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"3c740824-9232-4604-9b17-6aa3d70d82b7","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":171,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"999eff72-e529-4e35-bcb7-a37d1f3fcf67","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":171,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"6bf70981-89d6-423e-94dd-2ef62bc6af2f","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":171,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"21eae95c-27a1-42ce-b49c-0e8a9e108e2a","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":171,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"1b60df78-a15c-4e8e-87a3-da96076d999d","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":171,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"b1fb6174-28a0-4c26-b7e1-3900648bcf82","block_type":"box","text":"of time.","page_number":171,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"cdbfc8f9-3342-413f-b1fa-a3bd8e816a62","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":171,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"dacd82c3-2633-4092-8069-2997aeeca81e","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":171,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"53ed0de9-185d-4596-9391-80d53c8b5d06","block_type":"box","text":"risk.","page_number":171,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"d73fbf3d-5997-4f5e-91a4-9af67b7d25d5","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.","page_number":171,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"960e9bc4-08a9-499e-8313-8bf33df5af01","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":171,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"adeec0d1-7c0d-4ac0-ae3a-a12123535dc3","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":171,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"1d5f55a0-01e7-448a-8bbb-2070840192be","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":171,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"166548de-fbb8-48c5-be3e-8fbaabcb255d","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":171,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"9c834dac-e543-4376-bec2-8c4050d7f423","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":171,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"a7aa8954-1357-4964-959c-1ca83d6a853b","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":171,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"ce0aa4f5-2b30-4624-9163-f01d1efec91c","block_type":"box","text":"credit risk.","page_number":171,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"4d3d6beb-3b73-4ca3-b71f-7daee831c787","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":171,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"8e08ad2e-8e7f-4e97-acc6-9444a0169d0e","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":171,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"10c227d6-7b53-4586-b901-14d68d30631c","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":171,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"ae0d8df6-1de3-4466-90fa-d70962c685e1","block_type":"box","text":"of principal or interest.","page_number":171,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"29654a8b-e1b8-4856-80d0-cd562bb530aa","block_type":"box","text":"Note:","page_number":171,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"2895aedd-1787-4f24-8285-229262ac34f7","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":171,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"9ecc93de-a243-440e-a2e7-19d75e3205ca","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":171,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"63b78a50-c754-4c20-b411-61d8cedbb017","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":171,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"27ac6ed9-e806-4637-9806-0a75d1e92a5f","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":171,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"25058a1c-2634-4111-915c-2d1a8d479966","block_type":"box","text":"companies, and securities firms.","page_number":171,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"513a296d-e5b6-4e68-bfd7-98eef98f32ba","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":171,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"22b15613-7e40-42ff-beef-bf303a97fde7","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":171,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"ba00b5b2-d344-4dec-b857-d6ffe8e043d3","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":171,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"654b0df6-b81d-4c9e-8bc8-c38a561af930","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":171,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"7a093013-d712-4c32-b121-c1d89415ac6e","block_type":"box","text":"that security.","page_number":171,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"0f047f15-3a89-438e-97e4-f65c109a074b","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":171,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"8035d2ab-d0e7-490a-8201-4337acac5f0f","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":171,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"59971446-e963-41cb-b86d-4fbd97dd7762","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":171,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"6b66aad6-5d5c-45fd-95e8-06f92554c92e","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":171,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"599932d9-dd61-4957-a124-57eabe5f849d","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":171,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"271d824d-36c4-4d04-a089-9db2e271ff4d","block_type":"box","text":"categories.","page_number":171,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"bb063b1a-3132-4c4d-baba-3081249a506d","block_type":"box","text":"A-2","page_number":171,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"e3983743-738d-436d-b58b-22c30d5ef0c6","block_type":"box","text":"NM0926U-5977658-171/228","page_number":171,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0c35375d-3cf2-41ff-966b-a3563a1a0656","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":172,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"b6606b98-3a05-47df-9bba-48d8a19600c1","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":172,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"cfb53342-0596-4d53-82aa-b004aa97752e","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":172,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"5c63553b-4911-45dd-b0b3-65298467fa0f","block_type":"box","text":"an issuer’s self-liquidity.","page_number":172,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"30f753ec-9b60-4841-b198-c5018960d83f","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":172,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"1080ab39-8b52-4660-ad45-8b3f333e71b4","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":172,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"23ef18be-938e-494d-bf1e-e58847f5f1aa","block_type":"box","text":"MIG Ratings","page_number":172,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"e0296d8d-61a9-433e-8811-1eb00b25fdfa","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":172,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"fb654e2b-3430-4990-aeaf-c5c7b5790c87","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":172,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"efe5d73e-2571-409a-adc0-960b0424dc52","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":172,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"894a45b6-2fa2-47cd-95d9-f37bc6f51e22","block_type":"box","text":"MIG Scale","page_number":172,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"976d66e9-beba-4c61-a783-1961830c0f88","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":172,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"00d2c007-7a20-4c31-a416-077c6281563e","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":172,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"f59c93d5-70dd-4870-a0a3-194845e9328f","block_type":"box","text":"refinancing.","page_number":172,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"bf712aaf-580a-41da-afd5-ad2c4e32e235","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":172,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"3a49f6f8-5df4-4dc4-80df-380ca8e024b8","block_type":"box","text":"large as in the preceding group.","page_number":172,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"b92877f1-b4b7-40c4-be93-1a88211773d6","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":172,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"6929b99d-f920-45b5-9d05-07ca940756b5","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":172,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"7a67ba1d-2221-43c1-ad92-64a0ab9bd204","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":172,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"0efe2d6d-e7c4-4ffd-ab60-b5d9eaccc23f","block_type":"box","text":"lack sufficient margins of protection.","page_number":172,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"0a3d384f-d10f-4a83-b3f8-d2dfeea59704","block_type":"box","text":"VMIG Ratings","page_number":172,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"74eb037a-e0cf-42e3-8859-c3fccaea2da7","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":172,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"25d5b899-a774-4972-b7e2-1023b2115a06","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":172,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"d663b9d9-f3d7-45a7-83ef-b7e2bc02ae28","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":172,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"4405c961-2d8f-4ce6-b742-7889e9311038","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":172,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"24626b57-3a2e-4537-9d8c-df81e2306d22","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":172,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"556c6f66-925f-4447-9cfd-6a3712023422","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":172,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"9dfca50c-323b-47cb-b7d2-9ab751767392","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":172,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"90c87779-8703-4192-8991-75ff06885440","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":172,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"9e56e9b1-2518-4e2d-b4dc-22c07cd2e66c","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":172,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"b916b537-8dc0-4e88-9c73-7dc91441e9d5","block_type":"box","text":"grade.","page_number":172,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"09f46948-6cbb-429f-a939-874b8c66cb0c","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":172,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"421ede1a-2dd8-4f0f-8703-d1495f2a7f09","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":172,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"e345bbea-c724-4d4d-91c9-a535ccd8f7a0","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":172,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"7e17bfcb-0421-4862-8bc4-d37c98ef1df6","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":172,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"d646811e-bdb9-471d-8da5-0993cd954391","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":172,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"bd701d74-4ff4-4923-a109-c82a84207f87","block_type":"box","text":"liquidity of the corporate obligor.","page_number":172,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"9baa38f8-98de-4313-bad6-2fdae336497d","block_type":"box","text":"VMIG Scale","page_number":172,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"7420c041-80af-4dc3-b545-4ead991e343a","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":172,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"522de5ef-d571-4f5e-8099-5f358ecf375c","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":172,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"0eff2f4c-0a17-4c97-a1f9-2b97bd2dc5f4","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":172,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"b788409f-f919-4a9f-9306-6b8c5610c165","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":172,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"154c88ee-4215-4696-b024-c93371bffc5f","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":172,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"554a2d95-7370-46af-b6cc-e5a7f92a7190","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":172,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"edd403a8-cb3b-4b25-b63e-6cec2a8ab713","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":172,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"a5334c59-d0af-4810-b4bf-3b15e72de96b","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":172,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"96d1fc36-4a20-4861-a684-c08fef707df4","block_type":"box","text":"may lack the structural or legal protections.","page_number":172,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"d4ae5099-36af-495b-af8f-0fd20a3decdf","block_type":"box","text":"A-3","page_number":172,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"a3d20e26-b4ad-45ea-b803-a3b9442668b3","block_type":"box","text":"NM0926U-5977658-172/228","page_number":172,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4ff5123a-b530-46b5-94fc-2f819bc28a28","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":173,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"8b34de8b-a437-4783-b38a-b60021c01612","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":173,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"27977a11-50ec-48a6-9e3a-948b43c40e3e","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":173,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"7649b165-f92a-4117-a668-065a146b370c","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":173,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"d971f932-8a52-44b0-a359-361192794d39","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":173,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"54e8acad-0fa6-4a6e-8627-9325518a49f0","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":173,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"eb859a7f-7234-4d46-995b-4cc65be1c8b3","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":173,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"5e1c7d0e-7f8d-4cf7-984b-9d9e832891a5","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":173,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"bc72fe6b-7867-46e1-a37c-37de3c4852f5","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":173,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"6a61abf2-4b5d-4cd3-ac94-37d832fd1db4","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":173,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"3dc0238e-71c5-4660-b175-884480078e95","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":173,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"4296e4f4-7b27-4924-b01c-9548af1a8fc5","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":173,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"d38a606c-7cb9-42f2-bddd-3e9a38350bf3","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":173,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"16b505b7-b51b-4e1f-8133-cbe656ac930b","block_type":"box","text":"from these guidelines based on market practices.","page_number":173,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"0ca55078-80aa-46b9-ba3c-d9086aa78428","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":173,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"4cc6617e-babd-491c-b11a-2f2e1801396c","block_type":"box","text":"•","page_number":173,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"55b5fc86-de8a-43de-83a5-d4f779a6268a","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":173,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"a25b94a8-d7d5-4c0b-9a62-674c8a5ecac0","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":173,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"a72b9f22-6240-4d8d-b691-7f75fd5de78c","block_type":"box","text":"•","page_number":173,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"905633c5-3656-42e2-8acd-8d864d7b22cc","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":173,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"09e7d170-7ed3-45e0-a65d-b1aae394f702","block_type":"box","text":"•","page_number":173,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"77873371-04b5-4627-b89f-e03aa119cd46","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":173,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"08324521-b70b-4586-b214-a6f83214ca40","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":173,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"effb19ae-9eb7-4ef2-a008-df4a969dc1b6","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":173,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"21748f29-a538-4f14-b4b5-3cc1df2d828b","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":173,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"1203dd9f-5262-40bc-b455-0deaf6e2cf77","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":173,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"4065341a-a982-48df-9199-e5c61fa62360","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":173,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"1611356f-7276-46b2-9e39-f90695f1a2cd","block_type":"box","text":"obligations.)","page_number":173,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"b564d6fc-ea02-4bdd-b355-fff4e3323907","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":173,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"aef6d0b5-d53c-40e2-ab1c-81a60164a56e","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":173,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"03c62f54-51aa-473f-a076-3bcb4b72a3b5","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":173,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"00012b56-eb17-4678-8cd4-9569beedc024","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":173,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"533e5ff8-0bf1-4d62-9398-84befbe4bcf3","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":173,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"f4e457e2-0c75-4c42-9260-f3493191c1c8","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":173,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"60db3149-3f46-43b0-a88f-1b43b632263b","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":173,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"b8aa506c-c5da-4ebb-ae3d-5fd2785ee445","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":173,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"66f3213d-73a9-4ebb-8172-915302c4108f","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":173,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"5f971f28-4156-4a72-b190-30706eef4537","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":173,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"6dca6093-55d3-43da-a0d8-41c651d36300","block_type":"box","text":"financial commitments on the obligation.","page_number":173,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"30cc3b15-0878-4b85-96f5-645b06aa0bb3","block_type":"box","text":"BB,","page_number":173,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"33b3bf0a-19fc-43db-af6a-1cdf1ec813bd","block_type":"box","text":"B,","page_number":173,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"e5d2e5bd-562d-4447-a105-2e2c128f87a3","block_type":"box","text":"CCC,","page_number":173,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"b4c14ced-04f8-4412-8445-013e643dd250","block_type":"box","text":"CC,","page_number":173,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"dcbad271-cebf-458b-b7f2-d4c65b1584da","block_type":"box","text":"and C","page_number":173,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"431cb061-204f-464a-99ce-212968b78d65","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":173,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"4f4b84aa-cead-4230-bcae-4f69eca41b2f","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":173,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"0338843a-0d4a-4ff4-a60d-55fc3f4cd25f","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":173,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"1fff1459-9608-4578-a871-485ed163e52f","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":173,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"f95f3614-8132-4293-8b47-d3ad8c7f4b39","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":173,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"c87f5da6-9f62-4bba-9126-ac5fae7a30fb","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":173,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"62ec9500-5d59-4493-bf89-7ff759689922","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":173,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"0464ed14-1da8-43b5-8abf-8b84b9ca2ae4","block_type":"box","text":"on the obligation.","page_number":173,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"7af5705e-8b09-4e1c-983e-86f3c105ae41","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":173,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"774ebc2b-c48a-493e-b71d-5298770f0d18","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":173,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"29e4cc71-28c7-43ff-b593-29d9159f2eef","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":173,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"21a4bc0e-d9ac-4ad8-9fda-5b5d3ca98f2d","block_type":"box","text":"financial commitments on the obligation.","page_number":173,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"dd298c0a-b34c-4268-a8f1-9a122ad8c78d","block_type":"box","text":"A-4","page_number":173,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"d7e77c95-2595-4ae6-b231-7655f6e84805","block_type":"box","text":"NM0926U-5977658-173/228","page_number":173,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"77b8d613-729f-455c-ac95-dd9ff2423b3b","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":174,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"69b8937a-b2eb-4d22-8a59-c40842cd9ab2","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":174,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"5b86b638-7cb2-4566-b85e-240d0905508d","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":174,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"1814aece-f453-4e8a-b3e4-ef022bb7a18c","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":174,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"d9558ee9-12d6-4360-a0b0-02b1ba57fed2","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":174,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"516ca88e-6d85-48e5-b272-60d677224d05","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":174,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"509c17a6-c1c5-4e3b-a148-227f124c094c","block_type":"box","text":"anticipated time to default.","page_number":174,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"1e3dd961-8bb9-4253-a85c-fbf0e83f01df","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":174,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"dcda2b06-6c22-4345-a1aa-86f959b22978","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":174,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"a451cdf0-fe41-46d4-bc5a-342d313bc869","block_type":"box","text":"higher.","page_number":174,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"f33c6886-e235-4e37-a3ae-6158e038c43a","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":174,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"a7cfe8bf-0fd4-42e8-b8cb-a1a79aa43ae2","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":174,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"a5f35350-1433-4353-af39-28fad2169c77","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":174,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"dfa6d05f-9683-417c-94bc-1818f7cb8886","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":174,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"eb4a0d7e-c508-44b1-a1eb-09f09bc89db6","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":174,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"e4d670b0-4dee-412b-ab18-4292c845b7de","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":174,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"e509bcad-97c8-43fd-b3d5-73a222508ddb","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":174,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"a8e4817a-2528-4245-a671-ac91256553e5","block_type":"box","text":"restructuring.","page_number":174,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"285c3f7e-7227-4e33-abab-86badf4b7201","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":174,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"9e2b1ec8-a24e-4b5d-9c0e-74c9d4a55d5c","block_type":"box","text":"standing within the rating categories.","page_number":174,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"e729a764-2638-47b1-9eac-2106ca12dee5","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":174,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"5f01f5ef-b88e-4c37-a557-8ecd3f582a2e","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":174,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"024302fc-d2c8-4e4f-a20a-0093ae7c1704","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":174,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"865bda91-61dd-4a6d-a7ca-3fb806007406","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":174,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"78fb2039-a6ec-4437-a166-16e37c35c395","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":174,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"30ea94cd-4c33-403b-a262-b8438f92b466","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":174,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"0f5d8ba7-f5c3-4bac-a29d-7e91a4408c6a","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":174,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"b1aa1033-fd8a-46ee-b628-0e08fe7ffe49","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":174,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"e1e2d296-1584-4ec4-a97c-d479fe0d49d6","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":174,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"e5b434a7-29b2-46a9-8225-66607028d9f8","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":174,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"cd53c140-f3ca-41ae-953a-274defe9a728","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":174,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"76fbbee6-e804-4f8f-ac76-28f47cbf05cc","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":174,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"cd06656b-0144-4ce6-bee6-0bf975f07360","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":174,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"68eb11e7-cf4f-4f01-922e-2503fb2ac048","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":174,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"4679611f-61c1-4966-b018-a1b2bb87a1e2","block_type":"box","text":"financial commitments.","page_number":174,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"5fe83052-94c3-423c-8dd2-c90141df477d","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":174,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"002ab400-ee61-4d33-abf4-9e539cedc4fd","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":174,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"9a067b86-f640-4b49-9967-63a808e6b26d","block_type":"box","text":"commitments on the obligation.","page_number":174,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"0650ab48-5d05-452e-b2d6-4987859d91d1","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":174,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"ffa8c1be-ea6b-46ae-98c7-969ac64fa352","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":174,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"6a0c9b20-87b8-4060-acbd-3aa133105e86","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":174,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"aeaf667c-9603-4898-aca0-282f7db3f29f","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":174,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"c02a9e6d-c0f9-4ee4-9ea7-b6dddf000dfc","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":174,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"955f7977-0bbd-4337-8511-193a0105df96","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":174,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"b1db5a9b-63de-495a-b626-bc8f7b026fbd","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":174,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"36f3cd98-efc4-4cdd-a6c1-ecaf1d342c2c","block_type":"box","text":"debt restructuring.","page_number":174,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"bf100cdb-0e45-4b4b-97a1-8ec81c6c388b","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":174,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"2661a865-e148-45c2-87b5-602030a87292","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":174,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"36de4b59-3bdc-43b5-ba70-3a8abe08ad72","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":174,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"e53d50dc-7ec6-49a8-8c51-8c43ba22d819","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":174,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"79d0ea76-bd89-4896-9e26-48e5162133b5","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":174,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"357c8229-7130-4d9f-adad-40f7cf830a6e","block_type":"box","text":"A-5","page_number":174,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"5580fa72-f523-4888-acb7-f97ae3ef74e4","block_type":"box","text":"NM0926U-5977658-174/228","page_number":174,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"058fb6e6-da3f-4fc7-8b4a-fb6a8809d77f","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"49f35b64-c668-452d-83c5-c8c5f842df20","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":175,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"cdc295d6-7968-4797-9837-a5cdcdf435ff","block_type":"box","text":"as a note; and","page_number":175,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"50c4a5f9-e4dd-4c00-9e7e-bcb6355c85a0","block_type":"box","text":"•","page_number":175,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"aed9df15-1bc4-43cb-a1de-307664285564","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":175,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"0c28d6c6-72a7-4029-ba1a-5e8af2f7b992","block_type":"box","text":"treated as a note.","page_number":175,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"ffef1cde-75d1-4dfb-b836-1b3960b04ae6","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":175,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"0c50c589-a8a1-4c4d-84e8-89bf9cfc90b1","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":175,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"42f22d49-6f15-4e68-9a9f-9b129f69fa59","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":175,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"762d91a6-ac67-498b-9b48-7fea09274aac","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":175,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"519d4a86-370c-40b2-ad13-359d2467a913","block_type":"box","text":"economic changes over the term of the notes.","page_number":175,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"73b1a156-65f5-47f7-a486-0d1d914a3b5f","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":175,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"c780949a-92b2-4c1d-824e-9e7c0985e8b4","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":175,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"b8aa3110-19e1-4bc0-ad3f-affea8fd515c","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":175,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"7a16b1ae-bd30-42b8-a34e-58fa7e32afcb","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":175,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"84a6b63a-7922-4e98-9288-05a3b0cd2690","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":175,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"201e316b-b7dc-4652-8465-2eb1de9cb63b","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":175,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"51d70928-110d-4b03-8c99-758e93e82f41","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":175,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"a1a28286-741c-47f4-a927-b90f436c7e00","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":175,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"eed214a8-b0bb-44d0-93d4-75ece4bfcf7a","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":175,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"5fd0a01f-7a32-4425-bdf7-35a117d7d70c","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":175,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"32f74508-ab5c-4faf-bc82-c588484eb754","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":175,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"97ed0dc6-b68a-4c3f-b73d-43a8111dbbfd","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":175,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"8a3a2e1f-faf4-44fd-b7a9-1485a50e29d0","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":175,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"0a011707-baeb-4c75-8e78-0cf78d7c26ab","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":175,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"3ad8b847-d774-4c76-aadc-abc49d0cefc0","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":175,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"f5faf96b-a194-4aae-9711-5d22905895d6","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":175,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"08241d45-fcfe-49ed-905d-a18f4cdb1e7f","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":175,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"b522d87f-f2f1-4a85-a618-3e6429945bc6","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":175,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"28805a4b-465a-4007-956f-3f1d33c406e4","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":175,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"b69886b2-720d-4008-b9a1-86017f3f30e4","block_type":"box","text":"receivables or other financial assets.","page_number":175,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"7ac5cb1a-1adf-4144-8e44-a6debd65dabc","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":175,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"82489c06-0826-4289-9c77-acc7d908ddbc","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":175,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"b516f609-1189-4cbe-ac00-33e52309dfeb","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":175,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"c45ddb8d-31ec-4fb5-ad2f-225ff545d0a4","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":175,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"60ebf800-339d-4fb1-b692-a9d00f647c13","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":175,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"1d4b2b8b-0edd-418d-a29a-450c7496f548","block_type":"box","text":"occurred.","page_number":175,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"59645f95-7f46-44d9-bbbc-7fe2b025ca45","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":175,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"b612ecc5-dd2e-4cbd-a0e5-e20f8a46986b","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":175,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"56b18259-05c1-4cec-974d-738b1589fd26","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":175,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"8aea6a0e-6552-47c7-953f-7e79964affce","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":175,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"139dde93-d893-44aa-9eda-e88086ad0d48","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":175,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"2fa80f3e-6841-4b2f-800c-8b2dd18852f0","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":175,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"78dd60ae-766b-4056-98cd-4ca44d4e0ab4","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":175,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"eb13bb9f-cb17-4a4b-8a3a-8d8406fe2be4","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":175,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"9fdf018a-ef2a-48bf-8419-a165d5171f05","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":175,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"f5936e79-67a6-4b55-a963-e179067dbb72","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":175,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"879b5c1a-d0cb-4d18-a985-5d02b7ecd69a","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":175,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"7674133d-4696-4c36-92ac-df6de6895a70","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":175,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"61114026-c111-4ee7-a335-46f5626a6e42","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":175,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"784bd0f7-ee98-4b40-8566-c1dd0ca2e0c1","block_type":"box","text":"i.e.","page_number":175,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"dc4615e9-cea7-4ef0-ba51-f25bb112754d","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":175,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"756d7e37-b03d-45a0-abc4-53a3b7e572ea","block_type":"box","text":"the obligation’s documentation).","page_number":175,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"35ce918c-43db-443f-b09b-0f3cfbd06647","block_type":"box","text":"A-6","page_number":175,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"02b3427d-76bc-47d6-87d1-d6c0a306d22b","block_type":"box","text":"NM0926U-5977658-175/228","page_number":175,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"797ed6c8-8934-4880-9514-79765adfe114","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":176,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"db064150-97d3-412f-8ebf-ed090233eeeb","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":176,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"32c5a1e7-e2be-45c7-b814-d273dca0671f","block_type":"box","text":"agents in the form of a rating letter.","page_number":176,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"5550619b-e260-447d-84be-8f81c6ab1c9d","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":176,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"7c7dc514-77a5-4a68-b02c-9b327d477441","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":176,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"024742fc-0e24-4fd8-ab17-3c2a524f901a","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":176,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"20451ec3-6ed1-4309-b0c6-f4ac10a9e9be","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":176,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"ca004d85-a402-47ba-97b2-92acd7f3697b","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":176,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"ce6dd966-10f6-4027-80ee-182a5ef0e8fa","block_type":"box","text":"e.g.","page_number":176,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"d28849e6-db9b-4142-b1bf-a932bef6cbaf","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":176,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"a8ae66d2-4853-4538-9cd6-0cae70fb69f5","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":176,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"4485739e-8711-4ff8-9f9b-1b1ad2b1014d","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":176,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"282499bb-9ebf-4012-86be-58856c4f2bbe","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":176,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"2de6c318-2ff8-4626-8f8f-32c3ce9ebb99","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":176,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"c4d98015-cd3c-44fa-906a-2e4b9ce1d2ad","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":176,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"2f5cb1b6-11f3-4e66-b8ea-e9bffdd8a64e","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":176,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"c7baa9d3-e0f9-4a53-8b4e-c79f864a3e09","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":176,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"5fa21a3a-c89e-4306-a13a-6c6273977232","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":176,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"75f883fa-b4ce-4bfb-bfae-7cca50900ff4","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":176,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"7b221ebe-31cf-4c28-8fcd-02633e18c034","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":176,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"6c8546e2-f81e-4759-94cb-c432b72355b7","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":176,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"bb9ff0c0-f5d3-4950-a95d-95f0918b01b2","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":176,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"d43fc72a-2032-4825-ae71-7ead6fd0b5dd","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":176,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"1e8ab9e2-8045-4fc0-87d2-6945c12b021b","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":176,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"d53f772d-81da-4775-92a2-b9b33037c8c4","block_type":"box","text":"Ratings.","page_number":176,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"083a0c4a-b17a-435f-9716-c45e8bf006cc","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":176,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"c8a60579-1e5b-4d89-ae81-3406f12f3a3a","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":176,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"f6202417-085f-422e-9d58-92969a6d4e78","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":176,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"54cb1a34-0f13-4b27-8af6-540d837b637f","block_type":"box","text":"obligation ratings.","page_number":176,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"418f764c-0b70-4899-80dc-cee80671f7d0","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":176,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"38c39519-0349-435f-a3a9-4867a76d663b","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":176,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"278634f6-9922-46a1-93c4-fb4075055262","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":176,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"1f081a33-f0a0-48dc-aacb-f6204083cb29","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":176,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"f6c78fab-e7d5-4640-8cc0-9b9c336997ec","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":176,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"a6c5d525-267a-4f22-893d-2113c91bc1a2","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":176,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"7b936a00-cdbd-443a-9a4b-bdfa2a78596f","block_type":"box","text":"to foreseeable events.","page_number":176,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"03f4d952-5733-4f97-9934-011f8ad88b9b","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":176,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"1b72a677-bd68-4ddb-8f80-7a641013a957","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":176,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"c2b24831-b2b1-4037-8816-499fe889df73","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":176,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"3a711338-467e-448c-a066-45e3c01bbe13","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":176,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"fe0df354-c213-4aa3-ac19-1e59a3cf400c","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":176,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"f50fb991-28af-434b-828b-9153e511d25f","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":176,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"c541de40-6128-4938-9964-df2d11009366","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":176,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"e5275e0a-1170-4d8a-a4f9-51ad728e5a09","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":176,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"eae51618-301e-4e08-a9a8-a3b4c60dddd9","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":176,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"cd40b1f6-d2e5-4fb3-af1a-f5f2fa070679","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":176,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"a8fa2659-e6da-4276-92ff-c065bf852d40","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":176,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"56b316fd-2ba8-4de1-9141-96867b548842","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":176,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"ef9974e9-8b0a-4656-a288-049776a6ced5","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":176,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"f062a484-9686-4e8e-9464-704dfa79335b","block_type":"box","text":"possibility.","page_number":176,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"6dfe69d5-2e6f-488a-9c9a-e2d4d3000c4d","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":176,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"1e3138bf-834d-4742-9203-e48987dcd046","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":176,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"655cd80a-121f-4cac-bf47-80c4b9532a5e","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":176,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"c8295ff9-4669-4d95-ac44-e5771b551a41","block_type":"box","text":"A-7","page_number":176,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"702cc84b-aae9-4427-b954-09bf9160fc85","block_type":"box","text":"NM0926U-5977658-176/228","page_number":176,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bb63c344-b728-4ebe-8f20-b18e074ff2b1","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":177,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"34e865ad-19b5-4002-ad8b-2b9720e02c20","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":177,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"7cb0467a-df82-480e-913a-1397eeb1195f","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":177,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"faa7739f-374f-448e-ac7a-257c9ce63214","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":177,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"48f96498-2b76-4357-b784-98af3c5d927b","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":177,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"a3442872-718b-42e3-ad08-8bc21d40e60a","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":177,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"485c8593-7097-43fe-a6f3-c989179d6e45","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":177,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"f50699fc-46bb-48da-b18f-9249c39a38f4","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":177,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"006eaf7b-8ff5-4f98-bda2-64991cee85c5","block_type":"box","text":"relative status within major rating categories.","page_number":177,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"43d79771-c87e-43c8-ab14-65845a3535e1","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":177,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"00fc4988-a623-42bf-bc5a-0605f961aa99","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":177,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"4bf44d7b-a8c2-4fef-82a4-295d8a3bce9c","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":177,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"fce9879d-c398-44eb-8e7c-0f4b9611c790","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":177,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"e4c0f402-adac-4af4-a86e-29d8df54e083","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":177,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"ee585fe5-5700-4cb9-97ec-479b41849c3c","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":177,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"0f44f04b-09e4-4d9a-9c17-8158544f4d88","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":177,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"fd89ad54-5445-4931-9d90-67daeb334fac","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":177,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"6059572f-7bf3-42a1-8624-345174d2d126","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":177,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"9cc902a5-127a-42bd-b5b8-b0ae60f43228","block_type":"box","text":"finance markets.","page_number":177,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"e3629165-0cd1-4ef9-b72e-e5749665e6d2","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":177,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"63956940-f183-4305-baa7-e17fa37beaab","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":177,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"75055376-341e-4ed8-a5f5-f0c2bb707bf1","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":177,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"455781f4-4f4f-4ec0-9474-6d6eb1d0ea4c","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":177,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"f45375e1-c5d3-42f2-b1d1-fd3e21718fbf","block_type":"box","text":"commitments.","page_number":177,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"d957deec-3194-47c7-b64e-fe4f7e297fa7","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":177,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"8f511785-4402-4fa7-bc31-d7b1c3e32c4b","block_type":"box","text":"adequate.","page_number":177,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"cc19ea00-2dec-4bed-8d3a-64e62c14ed7f","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":177,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"5850e1cb-3475-48d9-8063-ea3ffa8a0cf6","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":177,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"f34c0ca5-c5b3-4582-ba40-d61b469bfa28","block_type":"box","text":"economic conditions.","page_number":177,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"8b41f3c2-2596-4ee7-994b-de4a28872550","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":177,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"ff5a2c97-b0b5-439f-b450-5ed15426a7b2","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":177,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"1e94a389-16ac-4822-a9f2-bdbe48bd15b3","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":177,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"11de4ebe-d073-4e1b-a236-42a59b48ec36","block_type":"box","text":"ratings only.","page_number":177,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"c1a32a8a-0a63-4a45-9ebf-1326f3dfaa54","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":177,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"93ad82f8-cde1-4b2b-9159-f4be6b64971b","block_type":"box","text":"obligation.","page_number":177,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"14b00134-c9b4-404a-91ff-0b348d5dfe36","block_type":"box","text":"A-8","page_number":177,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"98866dd8-ac2a-4605-bfa9-2842fb0b07f4","block_type":"box","text":"NM0926U-5977658-177/228","page_number":177,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e77d0f88-dbb2-4904-aab7-d76edd2ce953","block_type":"box","text":"APPENDIX B","page_number":178,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"c4d52a80-3173-4244-b8d0-15a18d325ddc","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting 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The guidance informs the voting recommendations BAIS","page_number":182,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"e8c9ac35-0fa6-4573-ba8b-3d066b00fc9f","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":182,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"bd9f93e0-465a-4a9f-ab7a-0e25af7726e7","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. 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There are","page_number":182,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"f55be51d-3946-42df-bdfb-cb00ec7a444a","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":182,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"24ccdbd9-6927-401b-b98b-fe030dc69544","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":182,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"96f08bea-c4ca-4508-8fbd-ba640a3de1c1","block_type":"box","text":"1","page_number":182,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"ba3265b0-175c-442d-a7c2-709dd66860a9","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":182,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"daf2073c-5741-4dce-b8ed-60531db29c3b","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":182,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"e8fa4edd-f78f-476a-b8c8-acc01122adaa","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":182,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"6e159ee4-c544-4304-9295-1e8f3cd5bc09","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":182,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"08a429cf-504d-4e74-ac35-e09b35cff6be","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":182,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"62060175-79f8-4cd8-9791-c9d862187472","block_type":"box","text":"2","page_number":182,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"cf4713db-db2c-42e8-91e0-dd24e015056d","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":182,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"9e379348-e2d7-4f9d-965a-4a57c237ab79","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":182,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"767a4de0-20bb-40f7-b418-7c54bedd106f","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":182,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"eea154a5-62c9-455e-bf09-7a23f43eb1b9","block_type":"box","text":"policies.","page_number":182,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"a229a9e9-728d-4b18-a277-cac7f275e01d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":182,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4ee91a3d-be8f-49c1-929a-4eb35996d7bb","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":182,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"01f03d4b-0851-49e4-b53e-0120adc16ef7","block_type":"box","text":"NM0926U-5977658-182/228","page_number":182,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4e5905e0-16e1-4a26-ab22-edc3295fdbc2","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":183,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"5219aa95-a051-4ecd-b7a7-1983c7ba5d69","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":183,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"ceb2f72d-73ed-4895-8347-7a7729fab415","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":183,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"9944643e-e117-48e0-a09c-562f2996b230","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":183,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"39f834b5-d6db-4fa1-bc0d-7a9369770b3a","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":183,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"0f365312-5b5d-4a4e-86fe-56f3106078c7","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":183,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"197d8606-60d6-42a5-b72e-8488eb7d4955","block_type":"box","text":"this work with research, data and analytics.","page_number":183,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"b8dc23e5-4737-4774-b6b7-4f5bd4bbff8f","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":183,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"8012a1d2-7ea6-4882-8d81-ea73729707d7","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":183,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"a2136944-c3fd-40ee-ba7c-0db7a2e7fe4c","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":183,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"5b27b18c-60aa-42b7-bdc1-09cd4c5dbe8b","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":183,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"d4b54a14-fe67-4b0a-a722-b2427de6c5c4","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":183,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"8251bcdd-2a47-41c5-826e-706c2b72ccd3","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":183,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"80aa5291-68b9-456f-a24b-9b5e1df8153a","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":183,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"df9c218c-6cfd-42fa-92c6-5ba683f6bbeb","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":183,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"4149c159-201d-48d1-a752-a9ed98162592","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":183,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"85062ea5-97b8-4c16-8095-44be850e7456","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":183,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"c0719d34-fe99-40df-9564-b6e64acd9d82","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":183,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"e0f05afb-cb13-4b47-9452-f8a54c82a4a1","block_type":"box","text":"shareholder meetings.","page_number":183,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"61c69d27-eb83-4c3f-923f-9b1949a713fb","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":183,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"f9e5b0f7-b137-4ebe-8e7c-230788c58184","block_type":"box","text":"investing.","page_number":183,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"8836991d-ae08-4e9a-bf5a-7754cb77be11","block_type":"box","text":"3","page_number":183,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"131ff34a-b2d4-4da9-a906-8f10456a86eb","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":183,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"d783e99b-4d3c-4532-8b82-af02ebcb512a","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":183,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"255154b0-40f9-46e0-a50e-bef0ba7d3664","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":183,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"7c0003f5-0e86-4126-9d6f-94d9101b8bb7","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":183,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"4c8aa6e2-4398-40ad-b454-b4f9c81b4959","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":183,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"09d4275a-457f-4b5f-982c-446460f94c63","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":183,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"bad52e9e-b245-48b1-95ca-bf9e40b25cb7","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":183,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"c9a17f67-6a4b-490c-9207-68f4d91d92b2","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":183,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"0dd105f2-c9ee-4a2f-ab27-60528f4a275e","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":183,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"bb84fa51-42b7-455f-8c51-989713766706","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":183,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"21f245ff-055f-474f-b03f-2556aa10f212","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":183,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"7f130489-2dd8-4e8f-8ce9-855c8076309b","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":183,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"9c7389ce-4811-4b6f-aa41-cd98b1cc9116","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":183,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"cc3cf611-2c13-4462-9268-48a44c7f0dfc","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":183,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"953265bc-cde3-4f1b-b3c2-7a21ca7dbb50","block_type":"box","text":"management teams and board directors","page_number":183,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"80071827-a50f-4312-9a39-75d914dd3a1e","block_type":"box","text":"4","page_number":183,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"b80e1caf-5743-46f3-a92f-21c8f02e310e","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":183,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"883ade86-fd04-4ef8-a6f2-50362ec0b5c6","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":183,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"00d7e8c1-9a1f-4699-bee9-22f44133222e","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":183,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"5d5aea68-6a11-4ac7-b5a1-bd339fef1ca6","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":183,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"2a13c992-e063-4b33-8bb8-f7c04fc492f7","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":183,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"a845aa48-46d8-4a91-b225-2e918f3dc2e2","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":183,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"13b077a1-5b49-40ef-a5d5-f3d4c906ffef","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":183,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"456d76f4-9e77-477a-bb35-94292202bc12","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":183,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"1d8f4d0a-bbb4-4e5f-9d37-6eadde9a452e","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":183,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"241dc3b6-44dd-4890-8bb7-92275ddda34d","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":183,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"8db631d8-c449-4fe2-9c7e-222e655c8d8d","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":183,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"9c989d7c-ef9b-4da2-bc8e-dcf506e48d33","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":183,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"dc6c2c26-99cb-471e-a7a3-538654241408","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":183,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"897a2419-6049-45e4-a9c2-660297ac7ac3","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":183,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"f286ea74-fc4c-4311-abca-9b8fb5111c34","block_type":"box","text":"3","page_number":183,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"d01123b6-512b-4ded-8386-29caaffdd774","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":183,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"7d8d07a7-c1e7-46ee-b710-b25342412de5","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":183,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"2b29f21c-18fd-4561-a597-1962116d9bf8","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":183,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"a590f653-4cea-4af7-952b-e5a07c47ec06","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":183,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"b2ef502c-c6ef-4ca5-976d-9c1902cea48b","block_type":"box","text":"4","page_number":183,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"1e9fb9b4-3964-4242-baa2-beadf97cb7d8","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":183,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"5ad16e6f-f48d-4c60-aeb3-c90857714c88","block_type":"box","text":"boards and their members, where relevant.","page_number":183,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"a30cbe3c-c020-430d-942e-62b64a9b65e1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":183,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"06bcc2a9-1464-4b09-91ac-f14cad94f229","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":183,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"81e0241c-36d1-473e-b3da-0dcdca181b2c","block_type":"box","text":"NM0926U-5977658-183/228","page_number":183,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7244db02-b485-406d-83c8-97ca4ffae606","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":184,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"17cc5e95-f2d5-4249-a1cd-0839e07110e4","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":184,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"010a7d33-8de2-4e35-a4b8-6ab0001ff378","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":184,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"5d004226-90bf-43c8-9b06-be1944d3d8e5","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":184,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"f9aa0c8c-387f-44ff-aca6-6f6f32cf42a7","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":184,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"99c5a239-bd06-4e87-a16f-7f3c37614653","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":184,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"9f40b77d-89a3-4523-b0a2-39bd9ab07bf8","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":184,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"277ba9c6-8db6-42e6-9c99-a22e71c46e45","block_type":"box","text":"5","page_number":184,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"4561b649-e71c-4bd1-83a4-1336f711cba2","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":184,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"a1c404fd-907d-40bf-bda2-e5ad0adc06bc","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":184,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"6cda877a-2120-4362-93fa-79d3efe6a0f4","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":184,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"6a9cc3f2-02fe-41e4-9860-0f8a1e6c2130","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":184,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"f21c03e0-3fde-4730-bfda-0d1764fd3342","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":184,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"3c15b3f0-93ed-4c2b-9e17-56692b1b174e","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":184,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"5cc42254-9a8d-44dc-8260-264139d8e73c","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":184,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"cebde3c2-d2b7-42f5-a989-422d67543535","block_type":"box","text":"5","page_number":184,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"9f89a48f-5136-4c76-83f9-6c8f45b588e6","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":184,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"65e127e6-e4a8-43cf-9092-fdcd48ff1c1b","block_type":"box","text":"multi-asset solutions strategies, as well as holdings in BlackRock’s index and active fixed income strategies, to the","page_number":184,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"afe208ec-6fe2-42fb-a11f-64f68cc5bed2","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":184,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"b1c62087-1be0-4553-a78e-f78525381a6d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":184,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5f23edf3-a9eb-4780-986d-6d17a2848c31","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":184,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"933e6da4-ea8b-4bbd-9798-a366ca9235c4","block_type":"box","text":"NM0926U-5977658-184/228","page_number":184,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"bb997d63-3d83-4a3d-b295-62c61e03eb44","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":185,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"00186e64-9295-4199-bd0a-913922fd5fe0","block_type":"box","text":"Roles and responsibilities","page_number":185,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"1ee3725c-63c0-431a-b8f1-a4f508e22338","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":185,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"f429ab92-d0c8-4016-9e81-f48edd056546","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":185,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"021151f0-c5e8-41cf-9c3a-371c71a6056a","block_type":"box","text":"6","page_number":185,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"d4d6a27e-0f0f-4440-85c9-4f62abe93276","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":185,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"a24826c0-199e-49a1-9964-99a37d802d50","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":185,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"d04a3335-e4cc-4d09-8183-5fa03db8ed01","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":185,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"257a6f6d-543c-4a38-9bcd-e519d6d26dcf","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":185,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"b108d3db-c3ef-4812-84d5-fef827ae4cd7","block_type":"box","text":"performance over time.","page_number":185,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"97f34e6e-a1a3-43ef-b34d-cf65ca522582","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":185,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"6b6ed968-1ad3-4600-a669-3bbf0597dcca","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":185,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"64639c60-a23b-4299-8812-f0c1c3e7aa22","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":185,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"f9fb35b8-db3d-48d5-ac45-3db888e2b82e","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":185,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"9d86390a-c6f1-42a2-b6d2-02a445bbb1fa","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":185,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"ea9ac04e-bf56-4855-ac23-37551798fd0e","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":185,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"50ccb3cb-917d-436c-be60-ec10e1754941","block_type":"box","text":"Composition and effectiveness","page_number":185,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"3a19c2ae-000b-4978-aa38-3601ac85963c","block_type":"box","text":"Appointment process","page_number":185,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"74dbee4b-fd1e-4004-a60a-ce379f647322","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":185,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"ade98727-1a47-41b3-b98d-75dcb16e42bd","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":185,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"fe4d6ae2-e457-4dff-a1e2-77c03ac3a070","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":185,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"0dd0102f-fabc-4fa0-87b1-becf28178394","block_type":"box","text":"e.g.","page_number":185,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"7ec3d8e4-f7c4-4db0-aeb7-be0736dfa84f","block_type":"box","text":", sector, maturity, geographic","page_number":185,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"5d7a6de3-5704-43bb-8395-a032eaddc551","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":185,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"4e27dc17-fe56-4891-a20e-70bafd2a086f","block_type":"box","text":"e.g.","page_number":185,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"65193e9a-abfe-4546-9a33-99d092870840","block_type":"box","text":", financial expertise, industry track record). To","page_number":185,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"87f17e63-5d94-4ea5-9fb5-5565b84539e4","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":185,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"a6538e6b-2880-42f4-bcf9-30f59d9c245e","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":185,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"5c7fbc2d-9d4c-4647-abaa-bf4b5c040655","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":185,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"23c2a647-e6c4-419f-8e66-c539556c1fac","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":185,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"2d6c89fa-ee25-4a2b-964b-463757ce7a25","block_type":"box","text":"and local market requirements.","page_number":185,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"6c4db4c2-6f56-4aff-ac21-a766680aef93","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":185,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"dd2f5e01-8686-48ef-99b1-4fbbeb5de3ba","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":185,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"bc0a55ae-6562-41ee-9c86-28dcf3b5ad28","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":185,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"05badc5e-4bc8-44fb-aede-574340d294f0","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":185,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"ba546b46-114e-4e92-a7a7-369826076934","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":185,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"edef4ae3-d08d-4174-8e33-a23b77a76fb6","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":185,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"a77cd305-f1c5-4e40-b3a5-8ebd436ea304","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":185,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"8361ac85-7e09-428a-b917-aef4e1727de3","block_type":"box","text":"Independence","page_number":185,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"4444dbed-73e4-4d91-9688-eb7ba4f064f9","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":185,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"bbf74024-2410-44a3-ac95-1d179da48e4f","block_type":"box","text":"e.g.","page_number":185,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"577b9ed7-403e-4a55-913f-5f493dbf7220","block_type":"box","text":", government or","page_number":185,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"91d939a3-0167-4be2-879e-bf0ea13e8083","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":185,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"8d67cd24-b07a-4641-b328-b09653e8f7de","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":185,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"9f559c61-e4cc-4ba8-87f0-6e08f3df1238","block_type":"box","text":"conflicts of interest or undue influence.","page_number":185,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"470f42f3-dfb1-4534-b812-4c5b1c19ad17","block_type":"box","text":"7","page_number":185,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"a9969cc2-fb8f-450e-a58c-cb4768188598","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":185,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"0ff80ce2-930f-408c-bd59-6d7f9d4bbba9","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":185,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"2f6aa949-f26d-4789-bdd0-999db4ad45dd","block_type":"box","text":"independence should meet those local requirements.","page_number":185,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"5d62e016-334f-4359-8e93-3afb3cba2eef","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":185,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"3f26492e-692b-4223-bfda-b0f4d7819439","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":185,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"b37a822c-39ba-468f-bcd9-84873278b091","block_type":"box","text":"composition if this is a perennial issue.","page_number":185,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"1d007509-081e-47dc-873c-d07d5752210a","block_type":"box","text":"6","page_number":185,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"36829409-85aa-4a58-8bd1-44ae50f1ed3d","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":185,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"8726521e-5efb-47d7-80ae-9f305893caed","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":185,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"d51072c6-5664-4df3-be31-acfd9fe2bae7","block_type":"box","text":"7","page_number":185,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"511be4b2-e49f-4ffd-905f-51d1c0ccc663","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":185,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"e36c1414-3872-4dd5-8e64-cd5905c17497","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":185,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"c1a74d80-2fcc-4b55-9914-7e9d62751856","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":185,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"9c032479-7b99-4b36-8d2e-5fc141c60746","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":185,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"864f3cb8-7b6c-4e15-bdde-156c6d9a0777","block_type":"box","text":"of the company and shareholders.","page_number":185,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"6e7af9eb-d77d-4444-942c-d08b62363cb0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":185,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"dd32b4e3-a5ac-4834-8317-2ba9f11528ee","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":185,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ed1d6408-4def-46f4-999f-258e06ee38b8","block_type":"box","text":"NM0926U-5977658-185/228","page_number":185,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"09aee560-c21e-468a-beda-142e1820a8a4","block_type":"box","text":"Independent board leadership","page_number":186,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"3f78fa8e-0178-4e6c-a5c2-fdce562e0f29","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":186,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"75a6cf3d-2eb8-4a7e-a537-93edcec8f3ac","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":186,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"14f2e9cc-5995-45d1-8f6c-d349f8279ae4","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":186,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"ec7f9896-59f4-4c79-b9a1-61fafa2ca867","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":186,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"a9160eca-a4d6-4377-982c-4244e554599f","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":186,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"27271d9b-f7fb-4949-a387-7814d21778c4","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":186,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"dcf8101a-d259-4dda-9aad-fc37a4f4e03f","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":186,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"2392b120-9c5f-4678-a046-152c6a4714f2","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":186,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"098a9d9c-f254-4b64-b75d-39cfdaf00a83","block_type":"box","text":"how it serves the interests of shareholders.","page_number":186,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"b0a725f4-ef06-4850-ad0d-ea46fc87adb5","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":186,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"0b38c86f-3893-4f41-8fb7-d8a4300bfbd0","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":186,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"cdad296c-b2db-46af-9e97-1a20224eb7a6","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":186,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"9b5ee83d-29b9-4290-8f62-e733998dc1b9","block_type":"box","text":"Tenure and succession","page_number":186,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"ea49007a-847c-4cf3-b221-e7d6fccba3f1","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":186,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"4ea692aa-50e7-477a-a788-f8ec0c003df2","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":186,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"ccc09b53-bf00-4cdd-81e7-e2a81bb06b82","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":186,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"4b75de6c-d16d-4712-8997-d4358bb3d189","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":186,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"e2dbeb93-b056-48c5-937e-f00d7d2bf5a7","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":186,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"e38a8e39-8e39-4f48-9342-050759edfe7b","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":186,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"9bb079ce-7997-474e-bc76-ba93207c777a","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":186,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"dfbf3281-1bb7-4c90-a487-0a502da8a2d4","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":186,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"df2a462c-da12-4d94-ae37-d50fd8c1ff4a","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":186,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"715d8a15-b68f-4bb8-a392-f7990e2be7d4","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":186,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"c3bfbae5-73e6-42a3-9d3f-eed86f48cc50","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":186,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"90cbdab6-f13f-413e-b9d1-aaa01e480ac9","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":186,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"4b1bc23e-26f9-45f5-b75c-26c662d9c944","block_type":"box","text":"for their continued service is not evident.","page_number":186,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"abc9c2fe-7f97-47a2-ba86-2db8f1e28a95","block_type":"box","text":"Capacity","page_number":186,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"45cfea34-dff8-41ce-b746-ae2cb3376b76","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":186,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"d8d2d187-ae82-4f7f-87ac-63daedf04aa7","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":186,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"05171c27-c104-4c75-9fe7-d54ac3a959f4","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":186,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"aadbcc83-ae6c-44ff-92b9-44844453b1aa","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":186,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"91462d05-d270-4b47-a925-f4f1429cf7b6","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":186,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"232cd038-1c5e-4426-bc2a-e86bde3dfb26","block_type":"box","text":"determinations across markets.","page_number":186,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"28504a7c-5102-45a3-b3f0-6311916a93d3","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":186,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"3d30a807-c07e-4f08-9416-748411f09b5e","block_type":"box","text":"their duties to the board and company.","page_number":186,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"daf9280b-004e-41e7-a03e-ddae1ea916a1","block_type":"box","text":"Director elections","page_number":186,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"b23ab11f-ae7e-418d-888a-06c691029474","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":186,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"76b908e7-ee3e-4a0d-bb69-68fad0a0ffd7","block_type":"box","text":"structure","page_number":186,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"3d8dc087-c570-470a-8977-c06e5257b5af","block_type":"box","text":"8","page_number":186,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"614c12cd-ea70-40e3-822c-b3f023bc7508","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":186,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"f274736d-e1f1-45c1-9b3b-b180f009170e","block_type":"box","text":"basis of its business model (","page_number":186,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"c62a109b-154f-4d02-ab44-927ff9bc7294","block_type":"box","text":"e.g.","page_number":186,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"c30fdbce-e310-4616-aff9-3db84702e6ee","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":186,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"cd53385f-abba-4ed5-9320-2651b42210cc","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":186,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"a5f91259-ddf6-45d9-a0cb-9d7cdda0a77f","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":186,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"68a0a2b6-1335-4e5e-9a9d-934a070595be","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":186,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"4f77814a-b3aa-4679-a89a-de37d0b14bd9","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":186,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"ec518d49-e95a-434e-9315-98f754f4ee04","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":186,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"a7d2a40e-18bc-4f94-9c46-84b47a360b89","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":186,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"41aea939-3205-4b2c-8315-32dc4c93be4e","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":186,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"f73e6834-b065-4574-a9fb-2ed98b2f74de","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":186,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"a36abfe8-dec2-4009-927b-2c99cc17b8ec","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":186,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"0f48af2e-a981-4c55-8beb-3c10bd8c24f7","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":186,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"63c974e4-41c7-49dc-883c-133863509bfd","block_type":"box","text":"8","page_number":186,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"c2e15444-d02c-47a1-b7a6-a683220631ae","block_type":"box","text":"A classified board divides the directors into classes with different overlapping terms. As a result, only one class of","page_number":186,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"dff75c81-0a4e-40ac-b943-e8b48f08dc90","block_type":"box","text":"directors stands for election in any one year.","page_number":186,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"207916f0-22af-49ce-b83a-5aabef4ffe3d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":186,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d1070ec9-8b29-4a36-aee5-bff8ac2bb88a","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":186,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"6f1a821d-bfad-4d9d-ba84-e584ba5104ca","block_type":"box","text":"NM0926U-5977658-186/228","page_number":186,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"0c619701-32db-4c4c-86f2-f7b97802ebab","block_type":"box","text":"Committees","page_number":187,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"8f0db728-de29-4daf-a3f3-17cc35b30944","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":187,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"257116e6-b980-491c-95d1-d57aa5d8f8a5","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":187,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"f58f8437-8e0a-4754-a333-5e5617630781","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":187,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"90446efc-56a3-42f9-88e7-fed778c9bce6","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":187,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"f1201024-7b54-447a-8f25-2ccd44b84582","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":187,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"97377ea3-d9ca-4742-9c1d-df884a1a311a","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":187,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"ecf21acf-6202-4229-8788-4e35520454cb","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":187,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"40f2f848-86ca-4393-aef3-38305292ca29","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":187,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"19253f22-d906-4d8d-a956-1f131d2f1ad4","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"fbe3974a-d212-46f9-a460-b29b13122c5b","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":187,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"b1eb6cf4-2b85-4d9d-aeac-cef6d664b3b9","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":187,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"87ec196b-7f5b-4a47-9c8a-68a0d78da2fc","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":187,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"f8029f3c-245a-47ce-87eb-ad164563ffd1","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"f7ca315e-24e1-488b-8d8f-f722dce42a74","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":187,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"2d0c34aa-927d-4d64-aa50-9e87535c82a7","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":187,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"63280a46-b832-4a3e-b32c-d73d33b63ff7","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":187,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"fe44cf6d-e92e-4d70-935e-dc689bbb96f0","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":187,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"2d3c2d4d-863d-4b7b-9e87-3d60cfc67007","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"ee0d1477-60fa-4aa1-87af-3acea69227c3","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":187,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"a3141535-60c9-4162-96f2-a7e206b011d4","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":187,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"7b991437-ee0f-458d-8b63-e26bcbbe8c36","block_type":"box","text":"firm-wide compensation policies.","page_number":187,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"fceb2cdf-432f-4956-b839-10a32fa9e079","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":187,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"220dfc69-1356-45bf-b446-018535bdc24a","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":187,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"bc407185-9b19-48c6-b237-cfaad5019536","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":187,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"7248b4d9-6d48-4898-8ef1-3117a81abd80","block_type":"box","text":"Board and director evaluation","page_number":187,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"ff8da2c1-1f74-4527-b5d0-ae10ab1e9886","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":187,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"6d5abf0f-07c1-4c16-9c3c-c1a0058383bc","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":187,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"13a4414e-77a2-438d-99a8-3f93f2656a61","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":187,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"90ba8d16-38b6-4a6c-a8c7-71396c6576d6","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":187,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"9889bb1d-4bd5-41a1-926e-336ad6f77500","block_type":"box","text":"a result.","page_number":187,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"fd024b1e-9b8d-4751-a990-c2fa50d0a354","block_type":"box","text":"Access to independent advice","page_number":187,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"d891361b-11b5-497f-b2eb-c5a621f34757","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":187,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"cc3a089c-a9e9-4562-b4c7-4f43b713f3ab","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":187,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"98f39a23-17ba-472e-a89c-4d2c13a3d572","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":187,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"de256973-f53d-4ca4-8bac-1d186e8fa809","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":187,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"c473f8e1-6f32-4da8-bbc6-25d97c437c73","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":187,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"684eafa3-b9d8-429d-9217-23bb91b7b7c7","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":187,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"3fdab87f-b003-4b5f-8a2b-529c325dc7a3","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":187,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"94408ea7-9f1a-4ccf-9b2d-2c4239b6fd05","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":187,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"52439f80-5465-4e5c-9b71-de76422b719b","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":187,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"70f83626-1bea-4df5-9fa1-7ed529a8004b","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":187,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"0881bb59-8342-499a-997a-855e8815ee3f","block_type":"box","text":"performance.","page_number":187,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"347a2534-5ee7-43ae-aa99-5d1db38af49a","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":187,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"134fe4e3-78ce-4d0f-82c2-0f0808baea27","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":187,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"89930d2a-db47-45ce-9fde-cdc5a6350800","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":187,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"2351211f-06ec-4376-adf6-d5416e02a3b5","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":187,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"5bc7e7a3-f16d-461d-96b7-958d2025acf5","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":187,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"2a4e3452-5320-4618-8762-b0b72885e105","block_type":"box","text":"recruit and motivate.","page_number":187,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"c7a0f54c-6d1f-4c20-8559-d0b14e6bb838","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":187,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"17f1287e-a6b4-4553-b3c8-86a46bafffca","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":187,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"1bc8a430-c712-4fb4-97eb-12db1ae59ab8","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":187,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"462415ed-e3ce-4877-afc0-ee71b81da7db","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":187,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"dc585656-8130-49c5-a5a7-48f5049b305f","block_type":"box","text":"arrangements include:","page_number":187,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"017e2407-4f13-4557-8098-96f3712cb4f6","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"fe7094b3-edc1-4c69-ac29-af02d8c0857d","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":187,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"ffb60481-364c-42e1-9a73-9fae5d7a4eb3","block_type":"box","text":"the company’s size, sector and market.","page_number":187,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"4cc23fc4-4e1f-433b-a920-fbda96887e7d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":187,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"49fa6246-20ee-44ac-bbe8-d7239587e819","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":187,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"c4ae6a5e-f98b-4a0a-a0b7-b9eb7f2d8a4b","block_type":"box","text":"NM0926U-5977658-187/228","page_number":187,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4e2fd47f-689c-409f-bd8f-304280ebdcd1","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"b2d8c320-6104-4fa3-86e0-248d82fcbaee","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":188,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"14d71734-95f3-4017-a33b-0e2531e78f37","block_type":"box","text":"strategic objectives.","page_number":188,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"9d010bd8-aaa2-44ce-889d-46c9b0ac117c","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"84963792-10bc-4d0f-8efe-d01541602ace","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":188,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"8e784faa-998e-4ef7-b922-2a4f7f8616cc","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"f135a79d-6188-402c-ab42-b6368883aa70","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":188,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"446ae591-0e88-42d3-a8ef-bff2797da838","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":188,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"cafc833d-0b18-4232-9409-b7cc1fcb9b07","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"7a954b08-97ff-42e2-98f1-015291458c73","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":188,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"744489d0-d71f-4794-b199-ac8d076293d4","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"f50833bf-f3f5-495b-9bef-241f1cc83a8c","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":188,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"8a513f32-1000-4380-aa4e-798d64256bdb","block_type":"box","text":"transparently.","page_number":188,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"110ac8a0-b69d-4e56-a7bc-3def0e09f918","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"4dcdf33b-f17e-48ec-8edf-4e3d740ecb02","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":188,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"f65acfd8-c0bc-49dd-86c9-b9c5a7897b4c","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":188,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"e39c4fee-4315-4430-be74-a4af6b7b287e","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"9151ef68-08cd-4a0a-b2e5-018f0b2c78f3","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":188,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"6ab1339a-e8c1-4be8-8321-9b17535fd52b","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"737735e4-4a31-4f78-8b7c-fc0d3fb32928","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":188,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"2be2edf7-f42e-4b5e-9721-9661d32a2524","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":188,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"5c549bed-e8e9-4c79-9a42-277abb6d9bbe","block_type":"box","text":"misconduct.","page_number":188,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"d4a3537b-ffc0-4340-b492-0407f187a5df","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"8ae85928-f25f-4734-b2fd-d8d0342e2110","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":188,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"469f3367-bf2e-426d-bf23-ea30a6f54f8f","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":188,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"fad607fb-d0ac-4ea9-90c3-927d7ecd9198","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":188,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"6f7e36fa-6cbb-4c35-9010-9f31bec19aaa","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":188,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"a3484e80-770b-4617-b1e5-3eccaf4cec72","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":188,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"dc777753-c857-4470-8620-7883626cd5fe","block_type":"box","text":"committee, or the most senior independent director.","page_number":188,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"c5daad3e-fe33-4a70-87e9-83c2199c60b2","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":188,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"f222e8cc-3d03-40b2-bfc9-34d9d3a8704a","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":188,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"2f05d065-795d-4e84-bc29-323236575581","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":188,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"c1b1d57e-2fa9-4b1f-93ce-2be6fbc6c1f7","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":188,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"7d675166-755b-4924-acc2-7280afd3aef1","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":188,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"2f9c4907-88e7-4a7d-b6a9-f10b14ca49ab","block_type":"box","text":"CAPITAL STRUCTURE","page_number":188,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"258da798-3e4d-4029-b3ca-9f033d92d3cf","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":188,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"c8754d0c-e004-45ab-8f1a-0459f59df89d","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":188,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"4f5cb228-f0e3-4163-b3df-8186adb4e586","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":188,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"2103f187-ea82-4fdc-bfd0-3e3a72c3b0d8","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":188,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"e32b389d-d991-4fe4-ba11-635ee857eb8e","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":188,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"400d9de4-89b3-4c71-81d1-c9c64be6c3d8","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":188,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"324076df-b216-4f23-b72c-df3cc395ebe2","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":188,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"d41aa2d0-e4b3-40ef-923a-979a53475ac6","block_type":"box","text":"Share issuance","page_number":188,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"53b83a5f-055d-4234-bc82-5f14395537b0","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":188,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"149a53b8-d4df-48b9-8dd1-27410632100a","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":188,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"a017e42e-9941-4348-860f-fcbd64c1b1c2","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":188,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"395cae48-2859-4b21-9849-78d7c54f8593","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":188,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"2372f906-9735-443e-a12c-87429e1d93a4","block_type":"box","text":"market environment.","page_number":188,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"e22f2bb7-3601-4566-b39b-c34d28f2b15e","block_type":"box","text":"Share buybacks","page_number":188,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"3be566aa-4e13-4eba-9ada-52bd16ff12fb","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":188,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"9ccdef26-a7db-42b8-98f8-76a85fe82f51","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":188,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"f441e72e-7c94-453b-9b1a-e9f660cb6484","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":188,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"bf7f72bd-ad35-4e66-b1b3-0f886b94e44e","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":188,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"ff181e8f-5579-4295-a32d-17e6ee82c17d","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":188,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"f94c0456-9e43-469b-b460-c46b70671579","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":188,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"42285dcc-734c-48e1-813e-cb6ddeeb819c","block_type":"box","text":"of the company and the market environment.","page_number":188,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"4cfe4bcf-1a52-42cf-883e-5624fc80b450","block_type":"box","text":"Dividends","page_number":188,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"81525f3d-1e71-4887-8bbb-6541e79c8e75","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":188,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"ac983df9-84ac-4cee-b5b7-12ed2a3882d8","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":188,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"7c6b3582-f8e9-4550-b0d2-7fcf9964c2f9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"60dd81a6-e721-4456-9065-cc4df3c55b7e","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"22f96e84-5d04-4427-b869-e15744e63366","block_type":"box","text":"NM0926U-5977658-188/228","page_number":188,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"9126762b-3c0a-4995-a7fe-8379ddaeb646","block_type":"box","text":"Differentiated voting rights","page_number":189,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"d753102a-2429-4e14-beef-b0b3a5dbb18c","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":189,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"41af3ebe-2d8e-4321-8712-afcc64657643","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":189,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"83e97b37-e527-49b4-b3f5-d74721cfe64f","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":189,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"c6fe6490-b1a7-4177-9034-9d5adaaa860a","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":189,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"233ad70b-eadd-4c31-be7e-acefe794e3b8","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":189,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"fe04f28c-8cb2-4af7-ba0c-6ec5da921c8f","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":189,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"39ac8ae5-1d59-4d78-82e7-790e2b9b2b0a","block_type":"box","text":"analyses of proposals.","page_number":189,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"ebbe511f-d4a3-42de-93c1-eb04631c3427","block_type":"box","text":"Mergers and acquisitions","page_number":189,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"babe57dd-8360-4fc6-9d1e-baa70ded3773","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":189,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"bc625a7d-6c15-47fc-9843-cc4cb35e6be8","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":189,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"cf2e11f2-4370-4c9b-b479-40d89e855446","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":189,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"9c4cc508-6cd6-4dc6-ba82-adc864959df9","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":189,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"32880058-6319-453f-96ce-81af8cd397f2","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":189,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"98935192-961a-44e8-abd7-2da7e4d0e58d","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":189,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"f5d21617-c142-4222-aae4-71e158548023","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":189,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"22d234c2-9022-4345-8367-dd2f9f0cd050","block_type":"box","text":"Anti-takeover defenses","page_number":189,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"bb71e883-99c6-41d3-88d9-4621398a2a06","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":189,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"c6b0af72-2e3a-431c-bf23-7b04e97230ed","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":189,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"10c1972a-80bb-4421-9bd5-0f08b15fdf4c","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":189,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"7e3b21a2-1ea4-46d5-a396-8240a652361b","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":189,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"061162a1-7121-449e-af4c-b9879e146970","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":189,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"6f4b2d4a-b515-4644-8eef-c7cc418bef59","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":189,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"00ba51ea-1462-4373-903a-41d4573018b1","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":189,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"ca2e28ca-e154-45f1-89a3-77d771eca870","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":189,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"0a336a30-f82c-4a52-917b-7d47b1d489d0","block_type":"box","text":"Shareholder activism","page_number":189,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"0a92c351-a716-4a03-910b-a25d589cb574","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":189,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"7bfab26a-03d2-4605-b498-be2cf297aeae","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":189,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"243f0a5f-a426-4454-8ad5-1c333b09a838","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":189,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"f330e361-578b-4f7c-bb3e-2cfeea6b5c47","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":189,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"404a813b-05a4-4356-ae50-48c62440b898","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":189,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"fbe804f0-b430-4276-ae85-b910d928f7d2","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":189,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"814c67d6-0160-4674-8613-7e5b360e27fd","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":189,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"11439127-eaa2-4ca5-9690-63c0f4d8c2f4","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":189,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"144018d3-4ddb-41c7-87a3-8b70b6e2f502","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":189,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"db601899-dbb6-467a-9c3a-65e129edd45c","block_type":"box","text":"protecting shareholders’ interests.","page_number":189,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"5dd936e8-7dd5-4821-9a58-9358ce9e8e32","block_type":"box","text":"Significant shareholders and related party transactions","page_number":189,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"419794c7-a391-462f-ac91-59676720ccb9","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":189,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"79a017c6-c007-4364-9e49-5bf601aa0962","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":189,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"f91a782e-e068-4c7c-a3bd-487efba138b4","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":189,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"abd3ed50-60d6-4252-9831-4126ec39391e","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":189,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"48b0d82b-8541-43c4-91f8-c127abb5cf27","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":189,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"40be107c-b1e1-45ee-8d7c-c528ec5dd330","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":189,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"e6ecb3f0-ed64-49aa-a226-63d6027dd40c","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":189,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"2c419981-0bae-42ab-bf8f-422ce2c70247","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":189,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"2c032897-5615-484d-b635-475606f14f41","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":189,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"c9302260-3da4-4b35-a0b6-3343081cad73","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":189,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"1b576724-d136-45bf-ac54-e8692854be4b","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":189,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"e8c5ac08-f4aa-43f9-92de-ea551b888221","block_type":"box","text":"audit.","page_number":189,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"0bd7fa10-63ad-41d9-b086-672f38a6efc1","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":189,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"87fe4b29-1d78-4606-817b-1bd85361f6a5","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":189,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"6eb591ce-1375-477c-b1e6-eac418f3416f","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":189,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"9264c0e7-ef1b-4712-b04b-f76b5f36c005","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a7b0ef21-91fd-4bd0-9ae1-0f1fed314274","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":189,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"18451640-cf2b-4703-bf2c-2806d0bc9ed6","block_type":"box","text":"NM0926U-5977658-189/228","page_number":189,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"cfbeb4e5-1bfd-4b81-b43b-c2bbdcf226f3","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":190,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"839085e2-d768-4c27-b294-d9637e906254","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":190,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"90685552-55bb-4df6-9462-1ed15f80af0d","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":190,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"9b6f77f9-8f65-4312-925a-2681257d7161","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":190,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"19f5e8d9-8053-4666-9b0e-4693bd2f3125","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":190,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"3be6fec3-23e4-409d-b0af-5d3d2f828106","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":190,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"32a8630c-3564-4519-b8c5-b193a0920da6","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":190,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"27cd6e84-c36d-4bf6-9b3d-f408c773c5be","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":190,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"8992f3f3-2040-4ae4-a2b4-fcf410421a87","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":190,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"0b4bcdd9-6f25-4dd3-84dc-1344b3415dea","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":190,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"f4dcd34f-3bab-4f72-bf81-41817894b870","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":190,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"a951fde0-c5d4-4233-aa5c-5000627a8310","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":190,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"49446153-d4c2-4bab-b4f7-28cb74ae3d25","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":190,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"1acb2901-5912-4f66-bf8d-35bddc921b8b","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":190,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"f6e6813d-bb6d-472e-87cc-6d6733d14fa3","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":190,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"d83f494c-21f6-4c39-a669-2df7e926635d","block_type":"box","text":"9","page_number":190,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"eaa503d4-7e12-4475-aa13-d6e1bdcd785f","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":190,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"60ac1ef2-3f9f-452f-addb-be90c3cc4805","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":190,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"cb6f4064-c9f1-419b-b9ba-b821b1ddce9f","block_type":"box","text":"standards specified by policy makers.","page_number":190,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"4518765c-cf4c-4b3f-99f9-dcb2f8d7ed5c","block_type":"box","text":"10","page_number":190,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"cfd32a8e-3323-46b5-a4c6-3e3e63c56088","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":190,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"c31f1300-1ee1-4152-becb-0ab687e6ebae","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":190,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"f5ce3aa8-5459-442a-94ef-ade9f2eb1a13","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":190,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"6e4bb707-f7db-418f-939e-a8152c3d4112","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":190,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"83a97640-9d10-4efb-b598-c21c06d2ff84","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":190,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"e9959d5e-5619-4cbe-a7ef-5d85b0541838","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":190,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"58cad37d-ea2e-4492-a74c-f6203bf64348","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":190,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"99e6b16c-2786-4c0b-99dc-7af6ce5fb531","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":190,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"1f8910f8-aabd-495c-abd5-d90fe4497209","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":190,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"4b9ab1c1-fbfa-4851-a3e9-0c67c5fb166f","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":190,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"9d25de5c-c485-4160-a486-9ebbe38e5b9f","block_type":"box","text":"remained independent.","page_number":190,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"1d6b2fbb-a554-4162-9883-fc424977b532","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":190,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"9fcdaa6f-7799-42ac-a6b2-412979219b30","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":190,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"382b57b1-03c6-4559-a1a6-5931d7669cf3","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":190,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"db5f72d9-281a-45b8-8786-b4047fa7ded8","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":190,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"5f1c684d-0ff4-4a9a-8231-bcc108bfe158","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":190,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"58340a6a-f3eb-47b9-b4e0-830b62a802e5","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":190,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"f24a4cc7-b9ba-4441-a03b-3ca77f3833b3","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":190,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"4da4d5c5-d7e5-4b1e-b2e0-ad7da2309ee3","block_type":"box","text":"General shareholder meetings","page_number":190,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"df4de3eb-f7ad-4377-add0-7d37a9e537db","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":190,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"3e9f871e-d23a-4a4a-a33d-b29615760ad9","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":190,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"eccb7e3a-c6cb-48de-bf01-c25c219d8e6b","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":190,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"0c00ced5-bee4-466c-8335-17ac95d7863a","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":190,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"6a98ebac-5e97-4dcb-bcb6-014221346879","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":190,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"1778036f-f383-4eac-80de-fb6989318bbb","block_type":"box","text":"an in-person meeting.","page_number":190,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"d6e871e3-eaa6-4d79-bbe8-c9dc0055e368","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":190,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"36164521-f9e3-4a41-81ad-b8a300a58f31","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":190,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"717e2f96-4053-4cdc-a04c-6cac0a40c445","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":190,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"0623ac37-e3d3-43bc-8fd9-b6e400472fb3","block_type":"box","text":"participation.","page_number":190,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"fd72df06-8bc0-4f37-aade-865f7757762d","block_type":"box","text":"9","page_number":190,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"008514e6-05d6-4f95-977c-f43c7b44fb47","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":190,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"bbedba3e-72c6-4d45-930b-bfc015fd699e","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":190,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"ac2504b1-2f91-4a2e-b09d-bdce50de9bbf","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":190,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"27c4b63e-6a3d-485f-a016-342fe2005ae1","block_type":"box","text":"Disclosures.”","page_number":190,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"a0ea1650-fc51-4832-9194-456ce00ed8d6","block_type":"box","text":"10","page_number":190,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"8125a34a-d7bc-4cbb-8de1-956e38fb2143","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":190,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"e831b839-3721-4353-8bf4-59a6f0000747","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":190,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"ed13031b-f591-4ec0-b374-6c834103a98b","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":190,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"9b0a0796-0b3d-4380-bda2-4f3bfbdc31ca","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"bedc6b36-d083-4ffc-889f-17a4814c4b1f","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":190,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"11c82889-f3b2-4fe6-8046-13d695d1caf9","block_type":"box","text":"NM0926U-5977658-190/228","page_number":190,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"4a2f1be8-3702-47a8-b519-99451f2d739f","block_type":"box","text":"Bylaw amendments","page_number":191,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"b8aaad1b-b93f-4d46-8e5c-e366d886a16a","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":191,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"52570627-2c5b-4da9-9c25-bff210843d3f","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":191,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"661a854c-1d42-47c3-a844-77e734dbf256","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":191,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"5d372844-c92f-4b33-aa00-8fcbb5fcbcbf","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":191,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"e254e6f0-92f1-4470-9b6c-40656d25cdcd","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":191,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"6a2ee3eb-aa82-4e92-aa6a-0e1abb313247","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":191,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"14c580a7-bee0-4a8e-8a04-0c555f6c3b6e","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":191,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"dd640b1d-f6bd-4f40-a013-9ad853a9a251","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":191,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"b0b0aba0-51f1-4cff-9f48-2f6c2c653bea","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":191,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"cbbdb38c-a45d-4be7-ba2a-0ed8d909fa5f","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":191,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"be5bf0ab-fb04-4f19-882a-36609426d1a4","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":191,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"59d17019-3c13-4b70-9b18-86a44e578cf1","block_type":"box","text":"nomination process.","page_number":191,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"5bfba48a-6088-4243-9b7d-bde8c67a17f9","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":191,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"9df0feb2-440a-4b53-80ae-ea9915c280b0","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":191,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"976c298c-e3f3-41bb-b86b-c1144ff7743e","block_type":"box","text":"Change of domicile","page_number":191,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"9f9571f8-8b5f-4392-8678-f67ac7b49c8f","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":191,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"fde1a037-fb88-4243-a97e-4a8867c05d9d","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":191,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"747b9c37-fc01-48fc-b03f-3324a0335486","block_type":"box","text":"immaterial.","page_number":191,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"aeab6524-1a73-4257-97b9-09087d71aa11","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":191,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"664d5311-2c9c-4bb5-8978-d5243d5911c6","block_type":"box","text":"with our clients’ financial interests.","page_number":191,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"81d92ab1-6af3-4017-b9f6-a3e086786d86","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":191,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"bf1f290a-315c-4d67-8a88-8950a351594f","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":191,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"63e89848-3ffd-4ca3-92f6-e8dcaff4c699","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":191,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"01229dee-da7b-4a71-a88e-6633dc71ba2e","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":191,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"385d1e0b-9150-4944-9f8c-3107672214e6","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":191,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"73d3c6a5-6c74-48c1-a1a4-679fa60e1c00","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":191,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"3cac59c0-82ff-4a48-a40b-0b779bf6f81d","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":191,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"51182277-0ea2-4493-9572-772ecaa501ac","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":191,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"7e79ac14-c870-493a-b03c-ba91a7bafa90","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":191,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"c4d1a6e5-2629-4d5a-b6a0-7660ac24343c","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":191,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"a13995b7-b31a-4d1c-a20b-9f4da17b2b4d","block_type":"box","text":"relevant to a company’s business.","page_number":191,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"e5a9f6b2-9cf1-40f7-a665-a0e08acad07f","block_type":"box","text":"We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a","page_number":191,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"70ca2e92-274b-4c37-b5b4-88e43410fc49","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":191,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"2dcddb3c-0617-4ea2-bd2e-608a2f2aab49","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":191,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"168f4a0c-8fa8-4b5e-86b1-215dd756b5ef","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":191,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"fff27b0a-5e79-44e4-a4f3-7c7b8721e554","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":191,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"1e046eaa-3883-40d9-af51-e7781bb3e582","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":191,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"a80a2494-e549-4b8f-a7b7-490f97a69635","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":191,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"0bfd1968-bbe1-497b-b274-c7fcc539c4be","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":191,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"7507b2c8-e5ae-4d1b-890d-0e9829b83c07","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":191,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"8c418354-dd17-4995-ab7f-c0b19b948e87","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":191,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"a235ef87-2d46-4aa8-90ae-172e786cc060","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":191,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"0e735c88-6da5-4e42-a3db-3bbdf4455a58","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":191,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"51272a68-b67e-4772-af66-3be70d2af6b4","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":191,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"46a9cb56-af91-44ca-ab84-2a4d867ab811","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":191,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"603424e1-1c3a-485b-ac45-f6e8501ec8cd","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":191,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"c53b4592-52a2-4fd7-b046-4d48082b28bc","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":191,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"95bbcae3-35a4-4c5c-aee6-1ed67faf399c","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":191,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"586ac004-e6d9-4b95-ad2d-21f82541515a","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":191,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"75ea8e4a-0135-4d4f-a2d6-d7a48c25c583","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":191,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"e7678e20-6178-44d6-ab2b-7b49297214ae","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":191,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"31f7adf2-3b2b-4cf1-b63f-f6ae7aead4b9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"396ea38f-4fab-4fab-a895-a405faf8784b","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":191,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"43233d9f-d924-419a-973b-a59a57795594","block_type":"box","text":"NM0926U-5977658-191/228","page_number":191,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fbf9c15e-bcd9-4d45-97c1-e674666868a7","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":192,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"71959f04-e3ef-4329-9c66-5d5330cff2fa","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":192,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"876e70a4-d140-4297-95fe-0db768325d94","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":192,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"243c31b8-7ee6-4579-adf5-7fe458d94141","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":192,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"25abb573-6e3c-4ab3-a253-1734c762b2d1","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":192,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"983fc493-3504-4d9c-8a7f-6d1a009ae502","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":192,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"31f698db-3bec-4bd3-849b-4d97bdcc92a7","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":192,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"a0dc493c-757b-4ef2-b03b-5accb828e898","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":192,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"9c9df6f3-ee9b-44ef-8b6b-2996372a0601","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"da411aff-1ea4-4fed-98cb-525ff2b310b8","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":192,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"ffc8601c-0334-4fd2-a7c4-90318c5818d4","block_type":"box","text":"NM0926U-5977658-192/228","page_number":192,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a8d059dc-0b72-43ee-b25f-aa955ca80a79","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":193,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"f2feeb1b-3363-4f78-b56e-7ca54406bc9e","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":193,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"3e8634b0-eaa1-419c-bf73-f5d0ab1213eb","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":193,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"cb40a018-8e5d-4874-8898-3ead23f5c99c","block_type":"box","text":"11","page_number":193,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"5341a0e2-256e-426a-b678-6481ba94a36f","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":193,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"f7649d79-583e-461d-9f87-42cde26a8477","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":193,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"cae84c5b-1da7-4410-b342-884e17cee3d3","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":193,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"1c578eea-3059-440a-98ef-8d7fdf0dccec","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":193,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"008d9957-aba5-45b5-be34-069d80f90242","block_type":"box","text":"regulatory requirements.","page_number":193,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"7984412e-e4f4-4d58-84f7-26aa2abf8f87","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":193,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"fd2371ef-9387-4f3e-8f89-9060fd52c867","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":193,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"bb1a5f73-8afa-4a88-bb68-6774d59eef87","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":193,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"b9ffa42f-e43e-4738-952e-4ccf0cdbe00c","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":193,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"d030596b-75c8-4ce7-9ee6-ee29a204d696","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":193,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"4211109b-aefa-4b4d-9129-a1f560c739e2","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":193,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"605ca52c-f32a-4147-bc5a-ded943bbf1f9","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":193,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"b9be9b4f-7636-4b06-a25e-51eeed40a133","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":193,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"5344e650-118f-4092-aabb-6433f89e97f0","block_type":"box","text":"returns.","page_number":193,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"b882b998-5666-49d9-9b42-ed0dd97d1cab","block_type":"box","text":"KEY STAKEHOLDERS","page_number":193,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"8f5d8218-523f-4db3-962e-3aaf685bbd0d","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":193,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"30999252-1d1a-4737-8380-e81b1b586f4f","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":193,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"7a5ecaa7-d344-483d-8203-687ad0b85597","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":193,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"3e77f4a4-bfa8-4d34-b270-7d3f4396e64f","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":193,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"16d49312-a450-4753-860f-11f742c1267f","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":193,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"571b1589-b577-4afa-8a1f-248f4d859d10","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":193,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"c9600601-a957-4d60-838f-9ab492192e80","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":193,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"be7d64aa-d671-440d-a5ff-e9e2222404ca","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":193,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"aac6d92b-49fe-4920-a540-9cb884193b06","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":193,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"ee38b0a6-90e3-40dd-846d-e7f78050b8b6","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":193,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"19346d63-6604-4a25-a757-5a251dbe6bc8","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":193,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"630a6d00-f8c5-4d28-b2bc-436d10efee01","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":193,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"05db46d1-0af1-45c7-b397-8f3d06689188","block_type":"box","text":"i.e.","page_number":193,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"602761fc-86d2-4e9e-ab88-188a7e31c97d","block_type":"box","text":", one in which global","page_number":193,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"39c4dddf-4b3a-4972-89a1-062b5c2d1be8","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":193,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"dab1da9c-0a7b-4056-89a8-45da96a9fec5","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":193,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"89384bd2-10f5-4374-8712-3029dbe5145d","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":193,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"b4b17dc2-26bf-4c97-91e1-d957b221ae65","block_type":"box","text":"client.","page_number":193,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"a610fbc3-ad1f-4543-afe4-88f73517cad6","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":193,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"605f3687-4fde-4c26-90e0-bd9c34c609dd","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":193,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"ad532c78-f541-48b1-a16f-1cb17356b5c3","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":193,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"b6b54a19-528b-4146-972b-f6edb2aca9fa","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":193,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"93e6b9bc-3757-4ca1-aba9-6312f8066285","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":193,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"c32ae038-26d0-4940-aec7-b2dc10f15991","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":193,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"55aa629c-a0af-44ae-85f4-b9b882a7f863","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":193,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"a6277bcf-64f8-4eac-94f5-339431ef4b2b","block_type":"box","text":"1 and 2 emissions.","page_number":193,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"e0c5ead8-fa17-49c0-b381-5d74892e303b","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":193,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"96c9e094-c5cd-4f1e-ae2f-70911790d0ae","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":193,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"957a7069-2573-4081-860b-099fcb3cbd06","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":193,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"4df9a1e7-da47-4490-8355-d07ef20118fb","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":193,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"6ec5e51e-101e-4f0c-a489-fb84108aa479","block_type":"box","text":"11","page_number":193,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"742a2e7b-b305-4bfa-81ec-ab0dec0fa719","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":193,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"dc4a9261-96c1-4257-b52c-80a2ebb16bf9","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":193,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"2a4bdd40-099c-4e41-b7b4-358d5496b298","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":193,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"affcf6a9-d659-4105-9d2e-6f9defcf8d68","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":193,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"908d49d3-f48f-4098-9036-b79f38e768d0","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":193,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"77ce410b-d3bd-48e2-bb49-dd7487f7ec04","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":193,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"14f5f525-d97a-40ff-9204-0feb569179c2","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":193,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"e5785178-669f-405b-bd3c-a4e61ef8fdbc","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":193,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"d6e69fc2-ec5f-48c9-9cd1-2f2c5d41b33b","block_type":"box","text":"sound governance framework.","page_number":193,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"66dcdc03-1514-4144-ac86-a71b9fc5178e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ed223ba8-d487-461c-8b3f-e871e932ba5b","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":193,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4cec67f4-1cfd-4cb5-9d90-2927311182e9","block_type":"box","text":"NM0926U-5977658-193/228","page_number":193,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7f36b9d8-ce3f-4fef-a2ee-62450d641c96","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":194,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"3db18686-9e34-47ff-bb11-abe0328e0de1","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":194,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"862869a1-e007-4dac-80dc-7c75393d5ed0","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":194,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"965c9ca0-eb7a-4c41-abbf-d013f8f2b399","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":194,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"6c69d6e8-2cb1-46b8-b999-39905174b08c","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":194,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"87e4de44-b5ee-4401-8285-7414c263688a","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":194,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"856c1d8f-720c-47e1-9b57-9c4fc1eb3d74","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cf605e07-a7f5-41f1-a5ce-cba39ce80336","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":194,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"baf2831e-59ba-4c29-aa37-ca7acfb961da","block_type":"box","text":"NM0926U-5977658-194/228","page_number":194,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"03ca6ba0-0436-45d9-9986-79a8ceec0532","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":195,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"6289e952-e748-4d7c-ad23-ee7be82ed39f","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":195,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"76d93588-2788-4dd1-a5ab-1b18a40e9eee","block_type":"box","text":"Oversight","page_number":195,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"bba29b60-153d-44f8-9596-0f57e7a188d5","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":195,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"0bb94340-b8cf-4e67-bd58-d62f31db3866","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":195,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"9582e7ad-7e6b-48c2-8bef-7e8e80a14845","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":195,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"eb86b35f-38a8-4a68-ad35-ae7e51795d08","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":195,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"8d3a395e-a518-4e0c-8007-646711a5cb94","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":195,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"77938699-9b6f-4157-a4ec-01fa638dd262","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":195,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"64679cf1-916d-4cb3-862a-63928b5b1391","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":195,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"fb36146e-0417-4a73-93d0-acaed727f058","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":195,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"92770644-2e2e-47b8-80fb-b045827bb3a5","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":195,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"d4901e8c-48ee-48ee-baaa-6503ea465b97","block_type":"box","text":"relevant active equity investors.","page_number":195,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"8d9e94d5-e0c1-4608-b466-31a1aced21a3","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":195,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"e1cf82aa-3852-44f3-9a62-7fc427223184","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":195,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"16b9eb23-a3e6-4ae8-a96a-523f08c3dde6","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":195,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"0492d0a2-9306-45d5-934c-818456c96086","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":195,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"b901ce1f-9df4-49c3-aac7-d8398f3cbeff","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":195,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"6a4b88a5-e209-407d-9e0f-c308fd565bce","block_type":"box","text":"third-party vote services providers” below).","page_number":195,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"d8378ad6-54e9-49e1-bb61-8c6f50672c10","block_type":"box","text":"Voting guidelines and vote execution","page_number":195,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"10cfa08c-7c08-4961-a1e7-f10fe1119091","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":195,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"d8fc02df-0135-42c8-8a07-c9983d34dafd","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":195,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"3706ee8b-1a8a-40e1-abfb-72235d434ccf","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":195,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"4ab6935b-70cc-49ac-b679-f4cf6de7acf2","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":195,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"64cb1ac6-a33d-4226-b476-542d33485250","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":195,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"c31f4941-15e9-4737-a365-4c8551226a80","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":195,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"e6ae7fc6-d307-4959-9611-0f752f9649e9","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":195,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"8953c6c0-4555-42a5-a374-ed3c5f9370cc","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":195,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"1483c3f2-edce-40e1-bfce-45c3a472f9c6","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":195,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"e906f279-5973-467a-96d4-a24f1510ddc1","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":195,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"2e454f0a-2f0c-4bfb-8e12-ea9d3279314b","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":195,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"e7dd8c0e-229b-4882-8b03-360ea242541d","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":195,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"6aee74fc-8a5d-41e5-9b82-b59defbf9652","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":195,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"87779122-b277-452f-91cb-1491013fc3cb","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":195,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"ff8845f5-7a09-4f19-a6e9-27066b70f8ff","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":195,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"c7472ccc-de54-409c-b089-ea3bb9aa3a44","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":195,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"dc515ca2-4591-430a-a79f-cf480077b08c","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":195,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"e543ca19-520a-48ea-b51b-0e96a40addec","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":195,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"d85eb2b4-5ad8-4cd5-b71d-0837fb655827","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":195,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"c46368ac-fde2-4526-bf12-1e782e6184aa","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":195,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"79164365-a0f5-4dea-bcac-0043242b779d","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":195,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"900851ed-ffc5-4846-b3d5-cbb0a2a2fdb5","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":195,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"0d597522-f45e-4067-9237-d038464b867e","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":195,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"16da3b0f-eeae-4e62-bda8-dca6eb8bef71","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":195,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"a94ef034-d8d8-4bf1-9e0f-fd44f8f1f2dc","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":195,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"01b6eec0-d6ab-4914-ac14-afb0a86ece7e","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":195,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"43d8aff0-adc1-4b5e-81b8-a4a2a5a82c95","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":195,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"660cba89-61cc-4780-8fd3-979c7bcc120e","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":195,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"9f293a1c-c8ae-49ee-ae69-f3d5b859ce77","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":195,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"2b5bcd75-bab6-4224-98d0-204acfabe26e","block_type":"box","text":"Voting Choice","page_number":195,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"de16a4d2-4063-424a-9bf9-627775de593a","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":195,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"ce6ef1f9-707e-4daa-b727-b0b0f1476bfe","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":195,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"860acc69-12e2-4b7d-8dcb-f2bc5c344ec6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"be43ba14-e48c-4ead-9201-0f5c5172fd34","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"239586c1-33b9-42c4-911f-3399b12b862d","block_type":"box","text":"NM0926U-5977658-195/228","page_number":195,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"2d293c65-2fde-4d17-bffc-c6f490d7975f","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":196,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"c5eb2f3d-b4a5-40a6-a75c-13b2c54a9c5d","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":196,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"06300882-9eca-4ae7-a3e2-ba3e7748c0e4","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":196,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"def35df3-d63d-426d-a0f3-3dcbd6cdb6ac","block_type":"box","text":"strategies.","page_number":196,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"214d06f1-3238-49c8-a634-37bb6cf1e5ce","block_type":"box","text":"12","page_number":196,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"a66c960b-13bb-458a-ba05-8b2a76516d75","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":196,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"75472ba9-d224-4eea-b8d6-bc63a5e1e143","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":196,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"f7299024-0aab-4c33-97a8-9c9f2becd7ab","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":198,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"3ce84ee1-4528-47eb-a933-e0ab8b180800","block_type":"box","text":"at the sole discretion of the reader.","page_number":198,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"3884d110-187b-4814-a481-1d52b4a55d42","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":198,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"0ef6e63d-b60b-4b83-9fd4-83796078a0db","block_type":"box","text":"©","page_number":198,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"dc6b6105-56da-4e37-b16e-f5ceecd8ca94","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":198,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"4aed6a27-9f46-475b-86a4-2527dcbcf556","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":198,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"42b79082-9d4d-4217-a768-accb3f0992c2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8f079a48-72fc-4987-88f1-09722ed0ef0a","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a191ef3e-41f7-4858-9b1e-6e87184eb80f","block_type":"box","text":"NM0926U-5977658-198/228","page_number":198,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"51bf6b28-684a-47cd-a1e7-c46a5c1f26f1","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":199,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"156c3652-6581-4b02-866d-dbec45d6ddac","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":199,"box":{"x":247,"y":90,"width":486,"height":11}},{"id":"0a3c39e6-6e5a-4ffc-940f-be24b49d6eb1","block_type":"box","text":"Effective Date: January 1, 2025","page_number":199,"box":{"x":376,"y":105,"width":227,"height":11}},{"id":"33e0340f-e17c-43bd-b61b-d0f98a56a461","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":199,"box":{"x":231,"y":128,"width":515,"height":11}},{"id":"609209b2-7afa-47bd-a132-470073a7b313","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":199,"box":{"x":306,"y":151,"width":388,"height":11}},{"id":"4cfbf5de-3bc9-490e-b4d4-228d97cb4b86","block_type":"box","text":"□","page_number":199,"box":{"x":184,"y":173,"width":14,"height":11}},{"id":"759ee05a-6a56-4b33-86bb-e9e33e471e33","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":199,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"bfe32a79-5d3d-404e-9e9c-a54e658d4b48","block_type":"box","text":"□","page_number":199,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"277eb6ad-934f-4855-b65c-3b8ad3e538a4","block_type":"box","text":"Money Market Funds","page_number":199,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"83a6b91c-694d-462b-a618-e849f9f4aa76","block_type":"box","text":"□","page_number":199,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"bdf91e14-a7df-44e7-97bb-9f16e72eeaf4","block_type":"box","text":"Closed-End Funds","page_number":199,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"214ff142-c12a-4a5d-90ed-7a1ec7ddd10c","block_type":"box","text":"□","page_number":199,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"fcb1f802-479a-414d-bf1f-6fd425f3a219","block_type":"box","text":"Other","page_number":199,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"d17a548b-ab3d-4f98-a181-33d899f01643","block_type":"box","text":"Objective and Scope","page_number":199,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"b4e490bb-c470-4fd4-b35c-e0adeacf0d0a","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":199,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"e9c2f410-8eb6-4af1-9c16-27a90ac6c52c","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":199,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"dd99ed12-dab5-4ee2-9e34-2f4a0436f182","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":199,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"379e2fd3-2aac-4a3a-92e7-efeceb38e42b","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":199,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"9a4a6f9c-c85a-4a59-83d9-8cd28b5e9e82","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":199,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"4159bd4a-055e-435c-894d-6970b7201e39","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":199,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"881bccd3-138e-493d-9488-e20a5cdcda64","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":199,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"5806309f-330c-471f-a4eb-8fbe915309d7","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":199,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"c3fe8e0c-22d9-4463-accd-11b7db891063","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":199,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"cbe4314a-c3ae-43e7-a233-8efb81916201","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":199,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"9414ba44-66f1-4d6d-b12e-9bb229f36133","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":199,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"0e615285-9314-4057-bef0-9d7e333a032d","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":199,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"d9b8fa05-2a2b-41df-843a-e000078c07c6","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":199,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"8fbaef1c-8476-41d5-a4b2-3c5f08b98f50","block_type":"box","text":"Appendix A.","page_number":199,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"ef3f395b-62c4-4268-8e35-515cae6582ab","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":199,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"082d8ef7-86dc-402c-8a41-7afa97d6e756","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":199,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"e9eceda1-7fd9-40d9-9c44-0be4d541ebe5","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":199,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"0cad5618-e4a3-489e-9eda-c4c9c6375b43","block_type":"box","text":"Conflicts Management","page_number":199,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"9be8aef0-a235-429f-8072-b85e7bea8626","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":199,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"0ab7da8b-d14e-4b3f-98a0-19322c1aaa8b","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":199,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"a208ce6d-dd83-4d9b-bba7-d03b01352228","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":199,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"98551c82-6621-4abc-9dd6-9bf8a814a820","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":199,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"7e4530f4-498c-48d3-8424-8ecdc1b06237","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":199,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"ec01b511-6561-4df3-aef5-1d03c77acb90","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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These are topics that shareholders may have","page_number":204,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"8e062620-1ed6-413e-97b6-9178f2f56549","block_type":"box","text":"the ability to vote on at shareholder meetings. 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Our regional voting guidelines explain how the BIS Global","page_number":204,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"bbb54686-cbb6-4401-9b0e-3a34a517bf85","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":204,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"c3ac711e-b0f7-4ca8-b975-5e329f60487c","block_type":"box","text":"4","page_number":204,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"e4953b4f-b692-483b-9056-c0a480b301ec","block_type":"box","text":"3","page_number":204,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"b4e955cd-0fbf-400f-a595-6ae2ffec2d56","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":204,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"b005589d-096c-4e73-a7fc-650ce046da61","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":204,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"1bc49162-64c5-48ff-8d17-eb6f7fb68fc5","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":204,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"63a3b4fc-f5e7-41a4-9da9-1f22217676d8","block_type":"box","text":"4","page_number":204,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"e8d95889-7b03-4b3e-b3ea-481ecf45edbc","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":204,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"9d0f6bac-b866-4f79-9d50-1fd3854a0589","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":204,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"87534f8c-d135-4d47-92d8-4df480738fb1","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":204,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"77ba246d-c6f7-460e-9c12-67e709a9b4a5","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":204,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"d305eb11-cfee-4e3b-92bd-41ec80f9ec6d","block_type":"box","text":"guidelines.","page_number":204,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"b2656484-5216-4a69-a81d-cf309ffacfb1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"843da9f5-adea-4b1c-81c7-9bb0498fffe9","block_type":"box","text":"Global Principles | 4","page_number":204,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"e02fca02-d572-43fe-a9d6-2800c2380df4","block_type":"box","text":"NM0926U-5977658-204/228","page_number":204,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"73f38b40-e0e8-4156-80a3-2b1d44bfe15b","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":205,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"fb943a80-027d-4baf-a4e3-da56e7ea578a","block_type":"box","text":"Oversight role of the board","page_number":205,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"703d5a9b-5fac-4bcf-abbb-8d3d54250829","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":205,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"f5ad1e12-ef73-46e6-967b-813603686497","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":205,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"a472af61-f18e-4330-9c0b-1559fe9dcd18","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":205,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"70d02727-4d7e-4f98-b826-69521cdc0ecd","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":205,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"2af90024-bd6a-4eb4-97fc-d2ebb68140de","block_type":"box","text":"long-term financial performance.","page_number":205,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"b9d6d902-5f90-4147-bbbf-fe7c87bf74e5","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":205,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"4b46cdbd-2817-407f-af59-581a0b5333ce","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":205,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"a46b1f6d-46c9-4012-b16b-6b12f48748a0","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":205,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"d54b3068-8ccd-4b2e-b34a-dbcf20bfdf25","block_type":"box","text":"the business environment in which a company is operating.","page_number":205,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"ebde92fa-493a-410f-b485-a1a65de1d06a","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":205,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"6a22868f-e1dc-4758-b8e0-f19d9296f265","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":205,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"f1bcd77e-7eba-4a73-82fa-9e6a5b2378f7","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":205,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"17fa18ca-a470-4344-ac59-ac9f8f4b5624","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":205,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"ec77954f-e044-4e1a-ac4c-cce3990173c3","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":205,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"a5e86d3c-23bd-484d-bc1a-2adc03d94cb8","block_type":"box","text":"mitigating such risks.","page_number":205,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"31a78ddc-f1d2-4c9e-b55e-db1e07bc9920","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":205,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"737c2634-d50f-493d-a6d3-c86a05a7a8c3","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":205,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"b0981d0a-ddd1-46d4-840b-81ad74697f83","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":205,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"4d36bdaa-e030-4d04-abbb-f1ea57eaf2e2","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":205,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"5853aa00-be63-4fbc-9e19-03af221bb579","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":205,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"69cf6ac9-a3fd-4849-879e-b8c4e2c89d47","block_type":"box","text":"strategy.","page_number":205,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"65b4f06f-77d8-428e-990a-32e2fd172ab6","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":205,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"b8fdd11f-b0b5-4b5d-9095-4e4e5357dd50","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":205,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"4986a86b-7b7a-4e25-8882-0195c82b7993","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":205,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"b0faf5a6-f419-4b91-bd31-c25f1f407971","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":205,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"1a19b3de-5510-4ed4-af82-d91868ad8b9b","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":205,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"63fc7004-7286-4bdb-85b1-06bab67f0340","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":205,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"3602879c-da38-4555-9704-7396af8348f1","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":205,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"01f417cd-7211-4d2c-99fb-103ae3706bcc","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":205,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"fd2aba14-1ee6-4719-b24b-ad7b261c5e08","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":205,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"3d74d54f-8fcb-413c-8e6e-5e1c91101293","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":205,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"527bbbf6-f685-4434-a2ae-f9cd86062eb3","block_type":"box","text":"Regular accountability through director elections","page_number":205,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"ff4b9cb7-b4ab-492f-a9f1-65ae8ae2b9c5","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":205,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"0475d2aa-cd96-42ac-ab17-320d4fd5ac0f","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":205,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"d1b353ac-7720-4d35-ae58-e2eb3b1b582b","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":205,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"31d8908f-2b8b-460b-b4b4-a3c556e6e07f","block_type":"box","text":"5","page_number":205,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"e1ca058e-1d17-4cef-a13b-bfaf23a60c39","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":205,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"617b86cd-f9a6-4f8e-bd5d-0ebe4dfe8fc1","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":205,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"f304b3dd-6fa5-4782-91ff-8284f32d3f43","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":205,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"db6e54d7-db32-4102-a405-349be1d0f99c","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":205,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"30aa9641-9f4d-43ae-9ae5-54caaba9b4fb","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":205,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"abe08440-59d4-43db-9cb8-5d2547049830","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":205,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"7bd00c9f-ac93-4d67-8fcb-cf72dd6ed0a7","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":205,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"12cf652f-d9d2-4d36-a9b3-ea11493398d1","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":205,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"e54a70af-595a-4d9f-99a9-06b597b575cd","block_type":"box","text":"5","page_number":205,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"009b0d40-5ec2-4c55-8939-30eeed78b4d5","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":205,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"6120bb53-3205-4878-9c8d-bb51822dc43e","block_type":"box","text":"market regulation or voluntary best practice.","page_number":205,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"68742210-5e65-430b-96cb-0cef7331e9fc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"dcef9901-69f7-4f3c-a266-c9b507761c24","block_type":"box","text":"Global Principles | 5","page_number":205,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"7faf12e3-ff9f-4f20-ae56-9459406ee78d","block_type":"box","text":"NM0926U-5977658-205/228","page_number":205,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"ad1a60c8-413a-4b6d-9ee2-b3131b1bf50f","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":206,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"150780f7-8f90-4fe3-82b9-2a17d777b842","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":206,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"f0a63f79-5c01-4a95-80f5-8010740bfb91","block_type":"box","text":"recently.","page_number":206,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"4fcd99a9-d96f-42dd-80f9-893823d0b806","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":206,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"2f9461e0-e793-4dc9-b1ae-8ac82426c292","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":206,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"0880d2ed-a431-4ff3-bbbc-877fb5363a82","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":206,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"c01552c1-1724-4162-866c-6223526a455c","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":206,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"3726ca90-c5b0-4bca-aa00-0a5d2437f6a8","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":206,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"45dabe99-bad0-4d1d-afb9-e9eccc8c8ac6","block_type":"box","text":"Director independence","page_number":206,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"8ce4cd5c-9499-4a1b-91b6-febc89b62efb","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":206,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"1b5c4e6a-b273-4e3f-ba6a-e098ed44d884","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":206,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"9308e15f-1607-4f35-9224-da2d63ca3019","block_type":"box","text":"6","page_number":206,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"31f9e4f1-0cff-4380-ad1a-028602613d9b","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":206,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"814c3c4b-92ce-49e2-aaae-eebede4ec8ad","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":206,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"f61fe7f0-e44f-4dbc-bf1a-01efcb8f73d3","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":206,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"f6265210-4dcb-4b4f-a188-0df246f36c8d","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":206,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"46b599be-bcf1-4a46-8148-5564caa81a5f","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":206,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"068adb6f-8752-475a-b365-4b47ea4eb3b1","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"29260d7f-d114-46a7-b94b-cadf9cbfb017","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":206,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"4b3504f1-815e-432b-82ce-579194d2a255","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"a3f19f1f-f298-4d96-ae6f-97176bd6261b","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":206,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"a36a82dc-911c-4380-a691-1565578e490a","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"3d7d8019-2edc-4713-9def-1555bd16ba35","block_type":"box","text":"Interlocking directorates","page_number":206,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"6d066a12-4920-4762-970f-6420b0257168","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"5fcf90b3-320e-45e9-af8b-76738c55fcbf","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":206,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"b9803ce2-b792-4287-b901-cb217d5c9b22","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":206,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"0fcb30ce-a45e-4cda-b466-702534ae473c","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":206,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"358c9a32-9727-4c90-a670-c2a331687b81","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":206,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"e8284526-fd49-4331-b43c-bda02a0d260b","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":206,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"626ebf9d-495c-4bd9-91de-1cc99a07cbf5","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":206,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"69cb3c0a-5377-46d9-9229-0b8605bded9f","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":206,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"23e9b4ef-ae4f-4d2b-988b-47b5ff6d0267","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":206,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"29d290e6-45f8-4415-8ec4-351af63583b3","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":206,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"7e3e3c65-6eed-4924-9051-ed4d54df7604","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":206,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"372477e6-7c56-4aa1-aeea-80c302a25141","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":206,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"aab02e92-2897-48f9-8e6e-ebe85798ba30","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":206,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"789cac38-e091-461d-8c51-3d995460d323","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":206,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"cd50738f-0644-4836-a0a1-795d8d8cea53","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":206,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"ddd086a8-2a15-4a4b-bc96-433f763fdbcf","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":206,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"6535bd63-3ad1-484f-b041-bf7f06eabc67","block_type":"box","text":"Sufficient capacity","page_number":206,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"c4a83d1c-a482-4480-99d0-4137a49fb305","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":206,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"acb0d6e4-bbe1-49fa-9734-11c5774d88ab","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":206,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"24f3a536-7f1c-4e03-a369-2d7c71fc81cc","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":206,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"554cdc74-d8eb-4614-a144-4a24a93a1d05","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":206,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"449a7fe3-bee0-4752-8eb5-9c0fc3b2bc19","block_type":"box","text":"Board composition","page_number":206,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"2eedc983-beea-4bcc-89bd-23da921efe3e","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":206,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"50829f1e-9d25-4a75-935a-03d534b15dc0","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":206,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"c8306f17-2348-4040-be5a-1af968bea8d0","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":206,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"e7f36e41-e281-4810-b9a3-c674194cc018","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":206,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"e7675f3c-4d19-43a5-8f21-2ba7a78f3e6c","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":206,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"4cf956ef-fcb6-4116-82be-edbcecab51c1","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":206,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"e526a808-1c4e-4e15-a66b-408e333956e9","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":206,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"7425cd1b-6d02-430e-8ed4-f9fc1b937cc2","block_type":"box","text":"6","page_number":206,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"47b964d9-885e-4717-9d83-dc7aec83de0b","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":206,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"341c3bde-d95a-400c-a63f-bbab1f06e5c0","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":206,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"44136cf1-ea72-44b1-be3e-0d2fc9d02943","block_type":"box","text":"BlackRock Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3387f711-e351-4c48-983e-01bbb3d10117","block_type":"box","text":"Global Principles | 6","page_number":206,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"87e3817a-dbd7-46b2-a831-51fb04a9ca79","block_type":"box","text":"NM0926U-5977658-206/228","page_number":206,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"fb0dbb3d-3996-4b9c-8e12-8db19dce0653","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":207,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"5bca45ae-3659-4552-9edf-c0e4a47770a7","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":207,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"ccac72e8-ec96-464c-bc39-7b2ac3d7dd7d","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":207,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"1d4692c1-ca83-49e6-a371-fc7932c72085","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":207,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"18fcfa7a-29c1-47b6-a0a1-30f9f5b94839","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":207,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"7d35af0e-c734-47e0-b79b-10589cfff908","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":207,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"4d320a5c-d9b3-45e8-af29-54c87091acda","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":207,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"be16c487-fbd6-46a2-900f-59d24de27cd3","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":207,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"d603ad8d-93ce-4de4-a38e-af04fba7990d","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":207,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"42557bdd-8cf1-4518-8992-23d4a778c7e1","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":207,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"f3a40879-383b-4bbd-9269-227c99cba029","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":207,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"53d65fd8-6a6e-47f7-ad8d-0e22a4dd1b91","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":207,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"59d94299-51f4-4caf-81ac-d0a94e0d090c","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":207,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"3ec17197-0230-4226-9e3a-7abd44161071","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":207,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"ec788492-d7c9-42a1-b034-63ef32570b6d","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":207,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"3c2848cd-3830-424c-93bd-3f92220ba50e","block_type":"box","text":"systems.","page_number":207,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"27be8081-c49f-4046-b06d-5d37a197f88f","block_type":"box","text":"7","page_number":207,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"2e60ae46-d940-4b8b-9cad-2fe2baf98c05","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":207,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"3f0d83d6-f0b5-4bc5-868d-f5b750f7399f","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":207,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"a299f97c-7bed-4eba-8eed-0a2821dd620c","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":207,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"402b65bc-b084-47b4-acb7-e490d73130ba","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":207,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"329ff6d1-64dc-4522-9046-770f14a148f4","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":207,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"42d35054-978d-422c-9dd5-8c3d0887015c","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":207,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"e1ba9cd7-7258-44f7-b4ca-eea474cdd01c","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":207,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"bb3b2490-07cb-482c-9e7d-84920d0e2a83","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":207,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"fd7cc705-41b5-4284-a36c-21b2c04f567c","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":207,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"e0177add-61f9-4b83-b54e-52f7e8e8443f","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":207,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"67311474-bd80-490e-95a8-8aaeed516ccf","block_type":"box","text":"or internal audit function.","page_number":207,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"3177eca0-90e3-4e8d-addb-2c4cf98d4b2d","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":207,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"14908964-9ff0-47ac-b787-4ba77109ef48","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":207,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"499e490b-59b1-4b6a-9ca7-acd0ce241e63","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":207,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"f6ef482f-f827-4da6-8498-d0a401971ea3","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":207,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"39b47ba7-c5d6-429a-aa17-aad410037195","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":207,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"21ad73f6-af09-4df1-b45a-1e9ec9f12bcb","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":207,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"966b9d9e-86b8-4df4-87fd-1f2160a2e9d1","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":207,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"ff671422-bca4-4315-88ed-6626337d5304","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":207,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"d3bb240f-eab6-4e6f-9e93-5c01f6a64dac","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":207,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"6cc407df-8509-45ab-b31e-af1c32b3a225","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":207,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"60f6f7a2-e844-4e55-8d26-255e2060d7ed","block_type":"box","text":"risk.","page_number":207,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"6e7183e8-010f-4047-9cf4-9a3a013f8ef9","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":207,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"43fd234b-c66d-4bf2-9854-c62002c86dec","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":207,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"1e57161e-d301-456f-af04-6725ba316609","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":207,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"96eef36c-7d5c-440e-abc0-99b3046b11ee","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":207,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"2a9783da-8ac2-482f-908b-d750e066ef1f","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":207,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"234166a5-9ea9-423c-855d-4460477a9a04","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":207,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"f81addbc-2bc9-4608-91f6-7468bb3f45f7","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":207,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"6e8eb2bf-cae6-4f08-9926-ab9854f9b811","block_type":"box","text":"7","page_number":207,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"b9ad0074-c44b-4af5-bbfd-4222867a7226","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":207,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"03c35768-8450-400a-bcb2-4fa8e6ece232","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":207,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"9e53a8bd-0ce2-4cdb-94ee-ef3545626905","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":207,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"3fa4b427-7f37-4283-8955-45c27f81e17b","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":207,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"5cce73db-e421-4336-85e4-23660b16273d","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":207,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"dbb78ad8-e89d-4a69-836e-530f1da5f0dc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"da747417-8ca5-4818-a826-970f4ed1d8d7","block_type":"box","text":"Global Principles | 7","page_number":207,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"c94d78b9-e653-42f8-b8aa-63368abbfd11","block_type":"box","text":"NM0926U-5977658-207/228","page_number":207,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"a545f496-786c-414e-b9eb-f907e2260f64","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":208,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"e5014ade-bd5a-4ac3-9b82-1a5bacc93801","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":208,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"1294c32c-14ae-4da6-8030-99aa7d80ed4b","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":208,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"033975b9-9aaa-43a8-9445-e47643222a54","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":208,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"70e36e2b-dd4d-44e4-a2cc-eeebd3abe06b","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":208,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"d1137573-3818-46c5-bee9-46f2002241bc","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":208,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"6bf23620-6b82-423b-bd00-0d1957c44e14","block_type":"box","text":"minimizing costs to shareholders.","page_number":208,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"77d87f9e-427d-4522-95b4-da9a766af5d4","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":208,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"3e97f77e-807f-4b0b-b55a-1896261e8ceb","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":208,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"b7ea1102-d8c8-4212-b5a0-ec035fada886","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":208,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"73222879-8007-4f9e-a95c-80a08d4701a3","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":208,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"83d2a32c-7c9a-4eee-ac7d-738a9185c6a4","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":208,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"75f4e755-321c-4858-9fcc-39d0165f1848","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":208,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"abef552a-59ce-4dfe-8ad0-49b5426280f5","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":208,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"990e0a80-ea9a-4678-9e36-904b5ee2e5ab","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":208,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"fabdb671-ab23-480e-9770-893f3b83b01b","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":208,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"0693252b-4066-49c3-baa6-ac79cb35feb7","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":208,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"25037105-7000-458b-9af7-e3eec5278243","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":208,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"e0cb00a9-6bd2-47bf-9ee4-00c7a2f7cb42","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":208,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"98c95f3a-3590-4111-bff7-712f0c02d787","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":208,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"de0a0da9-f54e-408f-a764-0229e57300af","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":208,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"497fe628-75af-4bfd-9fe5-b0cabfc102d1","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":208,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"f7744d2a-eab6-4b71-ba1b-7bc26bb523fc","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":208,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"2fba2a04-d4cb-4d69-afd4-45a4e302ae33","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":208,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"09c93d54-ff5a-4fb5-8c3d-7fd30d6fb00b","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":208,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"ae19101f-8fa2-4097-9ee5-740a1b35d04a","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":208,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"7872ee5e-2ae4-4057-8aec-95d3f54e91dc","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":208,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"70cfc586-9c1c-4839-9703-859341b01d48","block_type":"box","text":"ownership.","page_number":208,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"c5655cd4-243c-426b-8270-60b00e849da9","block_type":"box","text":"8","page_number":208,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"c8a68461-ea05-4501-a85f-25393cf7c864","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":208,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"ee6a71df-675c-46b4-8f14-abab757c3bae","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":208,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"3c41a036-edfb-414b-9bf3-6c42b6be6834","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":208,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"488953ae-5301-400f-b1d3-28d266ebaf2e","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":208,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"2d6040eb-7cf0-40f0-9f32-20ad9533b2b0","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":208,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"eb40ca6f-0ed6-461c-874b-85377a789fdf","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":208,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"6f1467d7-ccd8-495e-8835-b045a5d873b9","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":208,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"ad33dcaf-3692-442c-b433-3b763ed017ca","block_type":"box","text":"results over a period of years.","page_number":208,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"db3c35ef-1149-4ce9-808b-2c19f683f0cb","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":208,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"8ab290c9-b51d-40c1-a0f0-5b21b8c8cc96","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":208,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"294b9930-176b-41e0-8897-a8285fea66fc","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":208,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"b3b69cd7-d311-4bb3-b92a-0ae2344b3863","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":208,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"7250e05f-4116-410b-8b3b-b90a351b06a3","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":208,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"555bb97c-cdf8-4ef1-91d4-6cc9121f42e5","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":208,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"f94c65e8-7be4-4fae-8978-54301820d9df","block_type":"box","text":"executive compensation strategies.","page_number":208,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"5330978e-13f0-49e5-8de1-8a9e74a41caa","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":208,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"843a9ffa-fa4c-45e1-a5e2-ae135815a754","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":208,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"9abc2d82-1156-4d61-a8fa-ca266718f914","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":208,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"704cb0ce-4d0b-4e2d-8066-6b6f381ba0a8","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":208,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"81baed94-ecac-4ed8-a0a4-313e42690b33","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":208,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"9cd2c2e6-6041-4ad0-b0bd-7424e1f94ff7","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":208,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"44e95a0d-2aa4-4254-b592-a468f721d9ff","block_type":"box","text":"8","page_number":208,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"40de5557-9c26-4395-864c-bd98a2b68473","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":208,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"1bdc1410-395b-47cd-809c-61fdd540388d","block_type":"box","text":"different markets.","page_number":208,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"8e96dc9a-f3af-427c-8745-c799b8486482","block_type":"box","text":"BlackRock Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cace6f9f-a697-4c58-9b1c-86ccede6ec6d","block_type":"box","text":"Global Principles | 8","page_number":208,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"3e5832f7-5c58-4a5a-a632-46ec27c8328b","block_type":"box","text":"NM0926U-5977658-208/228","page_number":208,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"afea30c3-df36-480c-9c04-57d56081839c","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":209,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"06037e8f-e168-4af5-af76-97e9451b7271","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":209,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"3402a901-b447-42fe-a667-861e694b7a94","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":209,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"a3e9727d-f3f2-4c94-9ad6-7e7af7b13ae8","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":209,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"d888b440-4adf-4414-ab91-7bdda94dfc29","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":209,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"ba83e247-0136-4eab-badb-58e8967589d9","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":209,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"fc471608-0f2f-4b90-a5d1-e62510f27bc8","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":209,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"e11e9b69-be62-4359-9190-49d15e71778c","block_type":"box","text":"whom they are charged with overseeing.","page_number":209,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"2d48e4e3-8fea-4ab6-8fba-b117b28b90bd","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":209,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"2c546c92-58d5-47a1-a4e2-d04e21efe606","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":209,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"e4d072a5-d064-41ce-b5d0-7eeb59917683","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":209,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"0f28ab55-280e-4a5f-a203-1f23c0c0252c","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":209,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"66d4e43d-a5b2-42b5-9f4d-f274325a1728","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":209,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"6a0b0652-ad00-45b3-9c75-120a6bdf0aa8","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":209,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"76d2381b-47e7-46c2-9a17-07458769e6b9","block_type":"box","text":"structures.","page_number":209,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"22cd1deb-d8ae-4441-9553-5abe4cd6bd0a","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":209,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"97e7b443-bae9-47ea-81d3-c08dd0a39fdb","block_type":"box","text":"Corporate form","page_number":209,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"2d0a70ca-9755-4ecb-b143-ae80b8c82e99","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":209,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"b5d45508-888c-4749-9f21-881cfc958ae2","block_type":"box","text":"the company’s purpose and business model.","page_number":209,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"39ba6158-1a80-444f-9f42-e87a9e4ce756","block_type":"box","text":"9","page_number":209,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"61f08554-6fde-4e01-85e2-fd0c11d123a4","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":209,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"5e0f51fc-347a-4b86-bb00-5037bd0cc2af","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":209,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"41b951e2-07ef-404f-80da-7cdaea445dcd","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":209,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"83e55991-b98a-4d15-a8f0-29b6478ab818","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":209,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"571dcd7f-af23-44c1-8cf2-1335067433ae","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":209,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"95a83be2-401a-46ef-a84a-91868d896d7a","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":209,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"fc746afb-4ead-4274-8034-adf96a3e51ea","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":209,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"62db271b-f9da-4faa-a267-073b6dd33c4b","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":209,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"a01d2d39-12d2-47c1-abf3-eac9e54ef45a","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":209,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"fd5effcf-1c4b-43bf-8e00-c2e757a1221b","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":209,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"f160b110-b319-4d47-a136-c8e0b1702787","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":209,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"31b046b7-cd3b-4197-8186-93969169b85d","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":209,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"a1fb4136-bf13-4daf-8837-29364839b0e9","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":209,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"aac5b7f2-e2d7-4435-aa9e-33190814f0d6","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":209,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"435ad4ad-2b66-408b-84ba-10a77809498a","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":209,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"7834a276-d576-4f6f-827d-27a35dd304c0","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":209,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"00d6a7e8-5373-4278-9168-8dc91cd6e768","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":209,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"d9ce7b5a-9511-40c5-8658-4b69f2ddbd85","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":209,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"452ed1e9-e149-4195-829c-a0d2e279589b","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":209,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"9af063a0-8ab8-4548-ac1f-38c6b188e6eb","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":209,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"e8126948-6c42-43a9-9285-00d9b7b77854","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":209,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"08e134c7-2ed1-4329-8e9e-9c244c982580","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":209,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"60c572ab-21f6-4af6-9dc0-87a42a37253c","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":209,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"88d15820-f029-40b0-8083-4b01aaed90cc","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":209,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"10e36308-ddeb-4da0-932c-57548c3446a3","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":209,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"b881f256-3d8a-4bbb-bfc7-95432e8c0a10","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":209,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"d55c6b39-3802-4247-bdbb-dc5a2bcc6f33","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":209,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"e426e183-0d9d-4606-9743-9f105bc905fe","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":209,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"80f11af4-915a-4bfc-8b3f-b3bdcad5662d","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":209,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"fa97ea02-bfc0-42a6-a6e5-8faab6df4950","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":209,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"ce0370d2-94aa-4fa8-a945-8be47c32c46d","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":209,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"5ff1423a-56b7-4028-8b3c-732a33ff539f","block_type":"box","text":"9","page_number":209,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"b2602d25-165e-45b7-8696-65f1ea982ce9","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":209,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"70cb2e4a-ee3f-4c58-abe7-e87b01618fa8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"82755162-d2c8-412a-a287-8a670be09eb1","block_type":"box","text":"Global Principles | 9","page_number":209,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"9e530d90-8270-4044-acd7-ec6272a456e6","block_type":"box","text":"NM0926U-5977658-209/228","page_number":209,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"c333ba8b-c06c-4c3f-85e9-eb1674a59561","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":210,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"b111f0fb-c761-4aed-9a62-a69ce237908f","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":210,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"c1bd1d3a-a473-4fc1-a0ae-d4b78af076ba","block_type":"box","text":"long-term financial interests.","page_number":210,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"e0b32f08-e5f0-4b2f-8fed-548c6a84acc4","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":210,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"b63a42d4-913b-4551-baaf-2b0dac509ee3","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":210,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"f86ed911-79da-4ab7-8529-b58bd4e8fd17","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":210,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"467cbf21-d5e9-4117-bd94-1086ea711ff2","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":210,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"acb94005-6e3c-49f3-8d86-9e514cdb9f83","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":210,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"d0065df5-179b-45a2-8ff7-54088785aaad","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":210,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"46d4c0d2-a113-4864-9e5f-750e53d20423","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":210,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"4388967a-cd73-4ded-bae4-992ee6d7af2b","block_type":"box","text":"term financial value creation.","page_number":210,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"0041c1ac-cc9f-43fd-90d7-2db435f2adda","block_type":"box","text":"10","page_number":210,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"781bb076-8233-44e8-8738-4990711fb5f8","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":210,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"6ac11652-12f7-43ab-925c-659302f2879f","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":210,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"356fca2c-1e25-46b4-aa29-98311a256256","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":210,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"d5575d3b-d995-48fc-bd86-bb5b3f35e814","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":210,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"d7577849-800d-4a65-9f2a-c3d0b6ae0b9b","block_type":"box","text":"industry-specific metrics.","page_number":210,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"0aa9a9f0-6baa-4b66-b946-225bf608f18a","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":210,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"c71e52b0-5209-41ee-95bd-248964fc9fb7","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":210,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"8a7dd820-b62b-42d6-9e86-4e78e3ac50d5","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":210,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"86fade39-10fe-4859-b99d-630a798241d2","block_type":"box","text":"11","page_number":210,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"f4e2cb66-b667-4449-bb41-25bde2eabec1","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":210,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"ea2d961c-a9dc-4224-99b0-8f90319eb943","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":210,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"11651f32-986c-47ec-8854-21a49e138197","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":210,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"305c9973-5aea-47b9-a0f5-a6ddca9b8cc9","block_type":"box","text":"specific.","page_number":210,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"1e166974-049b-4d82-8fc1-2fc649868f5c","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":210,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"b3ebb7de-8322-472b-b2e9-f625fd927b99","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":210,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"0dfc71c7-c4a5-42e6-8d53-dafacfc8629b","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":210,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"72725841-040b-4935-9c77-0d9d815cb48c","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":210,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"7ef54252-2936-4219-a897-17bf07c9b2e5","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":210,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"361dfcab-a254-49a2-ba0d-006b9c345066","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":210,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"e442468f-566b-447d-8507-fce953fbba15","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":210,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"e58cfea6-aea2-4e36-b158-93522915c4b1","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":210,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"e7798526-251f-42dc-a507-05f3627bb3e0","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":210,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"fc031cc8-14af-496b-af59-55bf2b42af58","block_type":"box","text":"10","page_number":210,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"cf309e34-7cb6-465c-a3ff-edbc176fae08","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":210,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"c140436f-4bc9-414b-a3ab-8d96cea5a26d","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":210,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"e227fc7e-1f0e-4cd3-8b45-86eec8bb7b91","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":210,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"c94e0329-f6aa-4e53-b6bf-28597025f57e","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":210,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"a21f1ef1-40e3-422c-9dfd-b65e0e42dd37","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":210,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"a666593d-1947-4c58-8c62-4e9c9d7e4620","block_type":"box","text":"11","page_number":210,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"8dbd1f6c-3a33-412b-9182-0fc5909951dd","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":210,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"f94deff0-23c6-439e-8085-cb122c54fdb9","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":210,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"28fe0511-a548-46f2-85a0-ffe7bacc4714","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":210,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"0c5a2bde-85cf-4ff2-af45-f925d7a00904","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":210,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"5658f43b-9b34-477a-bd2f-b5de368b7f6c","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":210,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"f0e3dd12-cf8a-475f-9cea-4c12021017ad","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":210,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"7f71cac6-28d5-4cda-b410-6a2405daf60e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e391fc00-3d27-476d-a22e-1052daef0297","block_type":"box","text":"Global Principles | 10","page_number":210,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"592518db-6530-4271-b316-bcb87b99c69e","block_type":"box","text":"NM0926U-5977658-210/228","page_number":210,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"7489c4a1-cb2e-49ea-908a-e5f1b12a440b","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":211,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"64f7d449-11ee-484a-9479-3ee82fb4ca8a","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":211,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"3ff18710-5df1-4539-9d16-55eb864e5ebd","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":211,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"781c0d99-297b-4375-b02a-393c4b9df3ad","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":211,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"9a700e86-7b42-4aaa-873e-64a63c25e75b","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":211,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"551223fa-b646-4616-84f1-352cc283d3f9","block_type":"box","text":"12, 13","page_number":211,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"10862a58-39d4-4c25-8615-8d6aa7ea6e08","block_type":"box","text":"From company disclosures and","page_number":211,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"cab41349-287d-43c2-bf54-29c101b4c55f","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":211,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"336f17dc-5fa2-4c4a-a387-bb52781bd20c","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":211,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"9f00df81-a4ac-45aa-b727-a96b891c1006","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":211,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"e11966c4-8490-479a-b7e1-87e615f45b84","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":211,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"05ccfc92-c463-47e1-9df0-0bb83c6d5a61","block_type":"box","text":"viewed as best practice in the market.","page_number":211,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"3dfa15d2-09bd-4bb7-92c1-2aa6c2257b33","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":211,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"21a4a08f-e350-4e51-99cb-55c86e2b8cf4","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":211,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"b4980106-14a7-41ae-94b8-371c5f4391ad","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":211,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"e1b3cf5b-36eb-46e9-bb29-f1410fdc3872","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":211,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"57209faf-976a-44c4-a60a-ae70d2464798","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":211,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"4cc6738a-b60e-4d68-aefc-e9701c1d7da0","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":211,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"69be79fa-6233-4513-a36b-89fa056e26ad","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":211,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"477177f5-42eb-4285-ac4b-8842dd797d05","block_type":"box","text":"interests of their investors.","page_number":211,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"d6f7ce3d-805e-4897-baba-b4c7384616ec","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":211,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"beb73e04-392f-423a-9959-b1b5a1bbd693","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":211,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"d87a9b8a-2a2f-45db-bcf4-22780158fc86","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":211,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"7dbc395a-82f0-41fa-af75-aa4b05575b2a","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":211,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"9dbb59e0-bbfc-4966-bbad-39d405c8443d","block_type":"box","text":"good-faith basis as methodology develops.","page_number":211,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"0c112718-cd69-4803-8fd1-4b0ca8479dff","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":211,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"840726c1-5577-4f89-966b-09bb5c3287aa","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":211,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"9a85cca7-d621-456e-b54e-098c2e5a5e49","block_type":"box","text":"generate long-term financial returns.","page_number":211,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"9d1f6678-13cc-4240-a5a2-b9b8587ce1a4","block_type":"box","text":"14","page_number":211,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"7dd6f37a-479b-4b29-b4cc-3ec661e0b3d4","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":211,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"9ddb4d48-fa1f-4e71-8c42-7e32749cb585","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":211,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"85d76036-6293-491e-869d-429cecc4497c","block_type":"box","text":"15","page_number":211,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"608cc173-0110-480a-9908-4a2f7f6459c6","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":211,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"5999cd0c-85f9-49df-bea9-e2d412dc4861","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":211,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"60cd5ff3-18f7-4d07-8795-ce11b8341393","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":211,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"e1b51604-c838-4b2b-b9c5-488c4c326d97","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":211,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"4eecbcb6-16f9-4fdb-8ef6-3f33593182f2","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":211,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"85528521-1377-4daf-a837-3a1f8da8b097","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":211,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"36013090-4e23-4283-b965-906dd31204be","block_type":"box","text":"12","page_number":211,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"5954af9b-a76e-46f3-92dd-f830b591ec2e","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":211,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"c5749270-51d8-4573-ae17-80fa84d66df1","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":211,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"f9fa5c01-3897-429a-880b-8d82d08226c5","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":211,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"4589eb4e-cd7e-4f33-91aa-b18b28876c22","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":211,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"d11e059e-c47f-427d-b4bb-9f8365c0afb7","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":211,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"d2d1b830-3d6f-43e5-a478-92257c38539b","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":211,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"4e292dd1-1ffb-451e-b981-a0c2253d773e","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":211,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"c1045571-d1dd-4451-b410-4d070e11d735","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":211,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"6a0d15fa-3090-458b-bf97-e2e676cd0b82","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":211,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"cbc4e35e-b550-4587-b7ab-851ce5b524c4","block_type":"box","text":"13","page_number":211,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"2a92aa47-e269-4c97-ab5a-644a0f586051","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":211,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"5947f074-2b35-4627-9634-30843b0292e8","block_type":"box","text":"2025.","page_number":211,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"4be977ff-6622-4992-873b-df5fcaf53c7a","block_type":"box","text":"14","page_number":211,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"4ac75262-f4a6-4c7f-81cd-43d998e92185","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":211,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"a0624d58-b197-4ad2-b411-602dc88ae3a8","block_type":"box","text":"2025.","page_number":211,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"a6d818f0-ef58-49e3-9f38-c95675770a46","block_type":"box","text":"15","page_number":211,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"4771e6c1-b397-4f57-a991-d708970aba0d","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":211,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"b8084d4e-93a5-4c08-8ce5-35ee03aa468e","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":211,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"265b06a7-cc4e-4cd2-b4f6-415bd4a66423","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":211,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"a302f329-3503-4d01-9b3f-70539fcf86c6","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":211,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"01c3d548-d5f0-4fb3-991a-7f80150b7d2b","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":211,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"f57c626a-9594-408e-9525-6de7fe75c9b8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0765568b-1e7d-479e-9980-ff8adcde69b5","block_type":"box","text":"Global Principles | 11","page_number":211,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"e48147fa-0528-4df0-874e-130d25050c5b","block_type":"box","text":"NM0926U-5977658-211/228","page_number":211,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"d9928e9a-499e-4927-92de-501eb27f201f","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":212,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"071d12e8-5662-4a2d-ace4-b2976e344ac5","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":212,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"4969145e-e51f-4d0c-907f-b317a21d708c","block_type":"box","text":"16","page_number":212,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"834567db-c6f4-4012-b892-8456712b263c","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":212,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"6f1f843e-ff71-4d4e-98d1-25d0c87ee02d","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":212,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"f247a1ec-5b69-483e-9532-8496a88da17b","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":212,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"393e33c3-1a72-4972-a166-75a9528525b1","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":212,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"f0bb6467-3620-4f95-b015-b7fc866e71ad","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":212,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"9ae50610-a4bc-4283-98fc-a6e2c672a65e","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":212,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"830aa509-02ed-4ee8-98c9-a4b317f5e7f8","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":212,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"d001122a-1a2e-4426-b25c-ce018f6a847d","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":212,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"3620b32f-8520-48a2-b49d-18cce45b956b","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":212,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"5b0d7a36-a9a8-4e74-ab42-1df4c7625a97","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":212,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"6a84e2db-e583-4201-a3b9-f370f18a108d","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":212,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"bf3420a5-8ba6-418f-a4b9-0254176adf4f","block_type":"box","text":"impacts.","page_number":212,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"8267759d-29b9-4e43-846a-9ad48a48c1e3","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":212,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"7e612800-d675-4590-a571-f4da2449addd","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":212,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"a3b3aa7e-3006-4a7d-b3fb-8c77069f36e4","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":212,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"c9f1e78b-d4ea-4f27-b650-f471bd37dd28","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":212,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"26e193e5-499b-42d1-912d-d7e392d31b17","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":212,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"9a350803-45d5-4f9b-871a-e167e124882f","block_type":"box","text":"clients at the global and regional level.","page_number":212,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"06d8ce19-9b66-4a9d-b264-39787ac0cfb9","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":212,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"d64ccca1-dadc-4f3f-af5f-6fc2f497adf7","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":212,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"b6bb3f86-e14b-4d12-bab7-039eba47118a","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":212,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"35ca74ac-e2d9-44e8-a062-3f000fe2a99d","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":212,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"e3f73f75-95b9-4ff5-9ec7-ecfa7f3c721e","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":212,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"8019c072-cecc-4df7-b4d8-0c9fecb6bd3c","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":212,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"55ee5fd2-750c-40e6-9835-b600c859f5c1","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":212,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"e7a16d47-9cf4-421b-b150-2ffed494149f","block_type":"box","text":"are independent from the investment stewardship function.","page_number":212,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"4a7f9738-82a5-4e14-8422-730f4def590d","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":212,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"c1d6dc54-64ba-4643-8a0b-577b76eeaf00","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":212,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"78f59db8-0023-434e-9f8e-afc75064a79e","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":212,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"3fecfb46-e994-4219-a1d8-4425b4717faa","block_type":"box","text":"VOTE EXECUTION","page_number":212,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"5352bcad-7ac4-4555-a985-9d0b99c6014f","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":212,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"9c6f100a-70a3-4e32-9ebd-d47018962b5f","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":212,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"bf4249ea-5e25-4868-8df0-13c80fcabb8a","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":212,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"74a27c73-c713-424e-85af-a33beb89c4d4","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":212,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"0c160ec1-1dfe-4aca-92c3-b27e5b3b2706","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":212,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"abc0c779-1e24-4865-95e5-27cd9cdfb12a","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":212,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"b53ec6fa-ca73-445b-8c44-61bfd284de35","block_type":"box","text":"management policies and procedures,” below).","page_number":212,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"66e92702-ff0d-4c91-85d1-ee456c6e7850","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":212,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"670a55bc-fef2-4826-8887-f3b73e15d0f4","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":212,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"30bc370e-500d-47e9-b2b0-32199270d22e","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":212,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"28aa5e09-fceb-403d-92e2-f2891caf9a70","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":212,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"4f8e248b-eec2-4c2a-ab47-cd65bc9e0575","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":212,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"4de3edc3-005f-4317-97f0-1185deaa3f95","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":212,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"4ecee785-fd15-42b0-a530-fa3015ac7e5c","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":212,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"fa36dcc9-8aef-4977-aabe-c4d647efc97a","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":212,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"5dd3c636-6598-4506-b296-86db35fca703","block_type":"box","text":"16","page_number":212,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"eca39269-da7e-4d26-822c-cbbe5b2d7e1f","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":212,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"88579748-7fbe-4243-a688-e72614c87d0f","block_type":"box","text":"December 2025.","page_number":212,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"4964bac9-e434-4423-9327-959b710f7f54","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d5c4f611-fae9-4081-9750-5b23a90fda8d","block_type":"box","text":"Global Principles | 12","page_number":212,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"0244af6b-098a-48fc-b950-6fa87eb92e47","block_type":"box","text":"NM0926U-5977658-212/228","page_number":212,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e55bac6d-bb3c-4cfa-9716-7dbb59f78f0f","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":213,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"08fe2cfd-145e-4562-9964-062bd3f18641","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":213,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"3a02c62c-409a-46ba-a58a-1ace0cc68795","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":213,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"84b0cd0e-576a-4871-ade4-20af2808b224","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":213,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"ff2bd49a-bb37-4111-accb-2e50cf9adfd2","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":213,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"655e293a-557c-4d77-83a5-86736eda6959","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":213,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"32cde53c-2827-4bfa-ba97-275692c9fe85","block_type":"box","text":"enterprise-level vendor management activities.","page_number":213,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"b431ade3-3fe0-4226-9ff2-3c215d220151","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":213,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"27705073-0094-4e72-8f3c-fb851e9cb1b3","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":213,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"36e6a904-dc64-40aa-bdb4-cef3bc96e8b5","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":213,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"2fbd2e7b-6eca-4a2a-88a7-0f3a9ace3ed0","block_type":"box","text":"BlackRock employees.","page_number":213,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"5921c77e-b9d6-4157-9b68-c70583362cda","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":213,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"98850897-bfe6-4d70-839d-f450409f83c5","block_type":"box","text":"SECURITIES LENDING","page_number":213,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"4e2c283a-5da3-4451-ae8f-823a30c0927b","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. 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Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":213,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"01b12729-4cfb-4c0e-91fe-c153041719bb","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":213,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"76bfee7c-c8f2-471f-a977-975856ac8163","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":213,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"599d8634-f71a-4b30-ba3f-17d508223d87","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":213,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"d7cf3089-4fdc-41c6-88e1-0481503fb676","block_type":"box","text":"in helping them achieve their investment goals. 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Under the Guidelines, the dedicated team","page_number":220,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"49e06098-3a7d-4b22-b407-44f39410bbe8","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":220,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"a944bf90-aa38-4421-a7d6-9f8f48d87d68","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":220,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"df026e55-c945-4383-ad39-9b9e9ae1a3b0","block_type":"box","text":"Voting approach under the Guidelines","page_number":220,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"6b04f1e9-80c7-4001-980c-157d4da53638","block_type":"box","text":"12","page_number":220,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"750e79d6-ec3a-4300-83ae-ebc599f86e8a","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":220,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"90e2a675-8d5e-4a37-a387-77cb49cd81e0","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":220,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"f924a242-b712-4483-b475-3c992b3b3c4d","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":220,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"1e4f5e84-750a-4c9c-8005-53fe425df335","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":220,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"3816af26-a2c6-4272-9aa1-8a18f61c0210","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":220,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"3bbf984d-eb6a-4fa8-aa97-8f230596d7de","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":220,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"e1cacba2-492f-4e5e-9242-8289a076a28a","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":220,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"26092c97-bc81-4b61-814a-f6aa56ccf144","block_type":"box","text":"Corporate Disclosures","page_number":220,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"4450f0e7-57bd-4178-8bd8-4571ea31d817","block_type":"box","text":"13","page_number":220,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"e54b5eaf-43a6-4b05-96eb-21e1ba0755b3","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":220,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"43ea36bf-0526-46c7-b9b0-f78227864f00","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":220,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"b2a4cb31-6de8-43f7-b27c-f1315bc0f8a8","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":220,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"3f7ce7c2-6a16-4894-96ef-d36388dc1105","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":220,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"4a48d725-4cf3-4d24-bb1b-b6d41a80f064","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":220,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"61bb65a0-8ff4-4a50-ac31-06ce1bccf591","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":220,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"497038c7-cea6-4c30-b907-9d5b42e01aba","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":220,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"a10735d6-818a-439b-bd09-80c185a127a5","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":220,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"c3b9f606-7232-4a24-bacb-161ecb73097d","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":220,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"29bf10ec-a2e7-4269-a351-ef18d0237c1a","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":220,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"e874860c-c7c1-4cb1-837c-ad5c131212eb","block_type":"box","text":"14, 15","page_number":220,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"b8229ddf-8753-436b-9f20-6fdaabe94f15","block_type":"box","text":"IFRS","page_number":220,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"2aaadffb-a00a-4955-983c-0ea0f9fa01d9","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":220,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"823e049b-df30-417c-8077-59acc0b68f45","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":220,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"21e37935-4af1-4e88-a28a-a3057a292489","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":220,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"180ff5bb-c00d-40be-b48b-bd3d773e59fb","block_type":"box","text":"and assurance standards are developed.","page_number":220,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"d47070ef-0faa-4fec-90a5-e649f15a576f","block_type":"box","text":"12","page_number":220,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"b178c84b-4c16-4ddc-a086-0ace61dc7bed","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":220,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"89429dc0-6bef-4334-a1a0-5751397c4fc0","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":220,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"b92319c6-c480-4a3a-9d2a-4c654e961394","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":220,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"0c6899d9-f196-430b-bc24-f14a631ebed0","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":220,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"ef42aeb2-4925-4776-9cdb-5549aaa398ee","block_type":"box","text":"13","page_number":220,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"0a962500-5ea5-4118-b854-42a3f96b6bb7","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":220,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"d5966ccb-c699-4936-b596-66abeac43634","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":220,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"d4285b09-ca28-4756-adda-41d86832d284","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":220,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"44eb2ddd-cad9-4d54-941d-962f2f9d6611","block_type":"box","text":"14","page_number":220,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"3e07152b-c1d4-41f4-8e90-8db778eca549","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":220,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"a70bf8ab-d40a-4339-b6a1-40a3c2abd54b","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":220,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"014377f0-1da9-47a6-be7e-2faf66f7fcb6","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":220,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"52490614-755f-4340-8302-19844ff88d33","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":220,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"90edf44d-b7ad-4c8c-953d-36f3dedad9b5","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":220,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"1f759b5e-254b-4e9e-9452-8c64f0297d15","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":220,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"36ba9571-1f94-4169-896a-34d41e219505","block_type":"box","text":"15","page_number":220,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"0bf6f645-a17b-4836-a680-3ea5c15fdc95","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":220,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"12117a7b-c8ec-4bcc-91fc-668c756df9cb","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":220,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"207a9e9d-6dcc-4c0d-9cde-99618b904023","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":220,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"097da3bd-f274-4e35-9268-9b17851e85d3","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":220,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"f93c4d8e-e50c-4ba6-90ce-be5f61a6b3fa","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":220,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"7d107ef4-ba51-4024-9f22-11f1241113ae","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"015c76ba-1492-4e20-b96d-8321d2f1fa94","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":220,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"5961ae96-74b0-47f4-9e76-e841eb0dce19","block_type":"box","text":"NM0926U-5977658-220/228","page_number":220,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"6091dcbd-b6a6-4c2a-99ef-5e99fe1a7e4b","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":221,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"968faef4-7770-4c6c-8760-692d1f4bcb5b","block_type":"box","text":"16, 17","page_number":221,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"23a26c1d-fd2d-4b9d-abe2-f9f4b31b4bfc","block_type":"box","text":"In addition, the dedicated team looks to","page_number":221,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"4d0d4b3d-6e0f-41ec-8392-0de705564e60","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":221,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"6c38cc52-5606-4790-99a3-07821a92bfe7","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":221,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"c655e4ac-b4b9-479a-b2f7-79b65004fdc0","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":221,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"ada2db26-0fc1-4b47-a932-02a918cd08ca","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":221,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"15c827a8-1384-4f9b-b771-8401197af508","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":221,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"ebb22003-2110-40ee-9520-e63dc2a624e9","block_type":"box","text":"18","page_number":221,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"5f23cc0e-38be-4a78-966c-80ecc25dcf5c","block_type":"box","text":"However,","page_number":221,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"dbc5b739-8026-4eeb-8146-2b58c3750628","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":221,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"de4867ee-00b7-4305-aa05-ffaff26cf472","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":221,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"aaf2c21f-2b4b-4258-ab0f-58ac1af194c9","block_type":"box","text":"their decarbonization targets. 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This may include","page_number":221,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"8b073bcb-82e6-47bb-abf4-56be8d941bab","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":221,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"309e0cab-bbe1-4d8b-96d1-565bb5aedbf4","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":221,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"3166fde4-f453-4148-8df7-2a39835b0f18","block_type":"box","text":"transition risks.","page_number":221,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"0c4670d4-e44e-4fe4-a45a-9ce4e75bfbd1","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":221,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"276eb4b3-e8fa-4d69-bc0d-5030167f78e9","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":221,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"46ca361c-49aa-47fc-9761-ef0e2ea50b9d","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":221,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"98f48889-55f0-4d53-b1da-0056188385ae","block_type":"box","text":"Transition plans","page_number":221,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"4f226eda-e078-4f24-8366-69da1e242988","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":221,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"b344d10f-e44a-48ae-9301-04acca6f10ee","block_type":"box","text":"transition strategies. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":221,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"2bcbdebb-b2eb-422c-b60d-40dac8570df3","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":221,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"0c8dbda6-b2ea-40a1-a743-a05d05028636","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":221,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"8b652b82-959a-41d8-9ad8-ed0ea388040a","block_type":"box","text":"18","page_number":221,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"7f38261e-244c-46e2-a461-e15715657792","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":221,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"b11ddb03-ded6-4c21-bc32-b820ce2175d6","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. 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BlackRock views transition plans as a method","page_number":221,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"4716c1c5-aa22-4f55-876c-a7d187cb75a4","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":221,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"bb529839-fa00-4c11-8941-75a293707632","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":221,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"acef6f02-4c13-4692-8458-3f83643296a4","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":222,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"f105a572-eaeb-456a-9476-c37ddd65a2a5","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":222,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"fd784398-45fa-4e67-a53b-dce90cd8c056","block_type":"box","text":"with the different constituents in their value chain.","page_number":222,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"4c048785-1fe0-4cb6-b9a8-52dfc70d1984","block_type":"box","text":"21","page_number":222,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"a6db1c87-b67e-40f7-b5db-75507bd92595","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"f9116ba4-b2e0-4afd-8629-13e6383e7396","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":222,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"aa6314aa-5c07-45a7-bb1b-3f9e34946763","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":222,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"3435fc32-7f3a-431d-8a0b-38a84d683675","block_type":"box","text":"22","page_number":222,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"b88c546b-8606-431d-b153-cac2b95072c1","block_type":"box","text":"The dedicated team looks for","page_number":222,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"ed2fb6dc-7f2c-4059-9c98-bfd61cda419a","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":222,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"1003fad3-678f-45a9-b8d8-36972068ffd3","block_type":"box","text":"related to the low-carbon transition.","page_number":222,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"3c43040e-412a-42ef-a801-2efc983dae47","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":222,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"282f71b0-faa9-4c17-aff5-3ea5448005b4","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":222,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"f29309f5-43f2-43d2-8d2f-bcac32a6c1c8","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":222,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"b26485ef-7551-45e0-8fb2-f88edea80eda","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":222,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"08b54eca-cbb9-44fc-bb21-ddc791a9bb46","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":222,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"cac96e40-e346-4ca7-b180-43cf399ecbc9","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":222,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"d11c42b8-d4e0-44ee-bd8f-ac441bc718eb","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":222,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"abe9b3bd-7462-4048-906b-6ebf81f774b9","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The Guidelines consider these","page_number":223,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"c52c92c9-a532-4df5-9c0a-894ba805f347","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":223,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"b375613e-4f5f-4d3c-9119-48abda5f5dd6","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":223,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"dcaf5c9a-7380-4a32-bc5e-e8e354ab4418","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":223,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"5999dcdb-f85e-42cf-8b0b-f4d105b40f4d","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":223,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"ad72887e-677b-4557-93ae-6ced835f5e0d","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":223,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"17cf1695-1579-4154-8466-5d81481894d5","block_type":"box","text":"transition plan and targets.","page_number":223,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"dce5394b-bc32-403f-9ac6-0eee2969da54","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":223,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"529af93f-1c8b-4052-aa5b-27fe864ea05c","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":223,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"dc0c3e58-812f-4f65-b40a-5fdc69f2b92b","block_type":"box","text":"long as certain requirements are met. 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Under the Guidelines, the team may support","page_number":223,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"9e4abb9f-33d3-48e1-92a5-b4998b1f3268","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":223,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"c7985b26-088f-4ae7-b405-6a1cea86be8b","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"85d8187a-7a69-4baf-a07d-4efbb4bfb7f0","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":223,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"c5b1c592-f860-42bc-a56d-164b3b165673","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":223,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"d2b9b17a-6b20-4d69-b320-0d3e55231bda","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"002021e3-6358-4f0a-8a2c-868221d30d9a","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":223,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"0170106f-4774-4298-870f-a8441b711f8d","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":223,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"95367bfd-970c-42e5-a06b-826edac3a260","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"5762d422-442d-4ddb-ac94-a18eb93da6e9","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":223,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"d737a55f-e527-4318-b73e-400b076634da","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"5a35fa68-cf4f-4f93-bf4d-4c3d1dd673ce","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":223,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"3acd7fd2-c9ca-4f62-8ae3-67e45da3958f","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":223,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"25121d9e-3d7f-415f-abd4-c9f26ed92112","block_type":"box","text":"25","page_number":223,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"4dcd394f-9968-4253-80a7-8ec200e93b29","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":223,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"3bea9a76-2f70-42bf-828a-7e01933157fc","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":223,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"359bca95-1b32-4470-9483-bbf8917e0c09","block_type":"box","text":"RELATED MATTERS","page_number":223,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"cf4b9bef-c3a2-4a45-9bcb-ea00795cd42c","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":223,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"60fa09bf-67aa-49f1-9c1b-e9f1b4b42c64","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":223,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"3cebbedb-5edb-4587-8312-e603deaaea5f","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. 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The dedicated team will continue to take a","page_number":223,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"5cba70c2-a26b-46d8-b587-ab6637bf33ea","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":223,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"17cb21c4-3230-4350-b11b-cfc571b917fc","block_type":"box","text":"25","page_number":223,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"ddd4ffe3-2dc1-47c1-b00c-9f5a1f1bfa2f","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":223,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"d993fe8f-1339-401f-814f-3c729e7d06bb","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":223,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"c487da67-f0bd-484f-b83d-00618a64fdf8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a405e8ff-290c-4d31-9bb6-2823feeb8ae5","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":223,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"b9f3ebd4-da95-44bb-841a-8bb2db296c9e","block_type":"box","text":"NM0926U-5977658-223/228","page_number":223,"box":{"x":764,"y":970,"width":154,"height":7}},{"id":"e18c9267-d63f-48f6-9007-cbde47d6a11c","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":224,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"3876e19b-13dd-4486-a9b3-c24f03098d0e","block_type":"box","text":"strategy and risk management.","page_number":224,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"d5f18a92-e1b7-4999-92d8-f59b43c2f61c","block_type":"box","text":"Auditors and audit-related issues","page_number":224,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"b86ab06d-7cb4-45ad-95bd-e0f5a9db2ece","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":224,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"ccbc23c9-fe37-49b7-9553-58180d152838","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":224,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"ecbe0539-9f70-470f-97c5-3d13c919cfa0","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":224,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"0a196e55-1669-47f8-8a2a-21b97562fb25","block_type":"box","text":"context of its audit report. 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These include a company’s impacts or dependencies on natural capital and key","page_number":224,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"1d4b1b5e-0b18-4539-a4a7-0dc078dafa84","block_type":"box","text":"stakeholders.","page_number":224,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"c3da4029-88bf-45aa-857d-68254d6c286e","block_type":"box","text":"26","page_number":224,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"47965099-dafd-4cc2-84ce-734a96a6049d","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":224,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"ab5141e5-7bc2-4da9-92e8-86f77398f734","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":224,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"8a4ce952-d042-4ac5-882d-0b37474825c5","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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This can be carried out by countries, companies and even","page_number":225,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"f523edd4-fa63-4ed7-8bcd-0709ba580b04","block_type":"box","text":"individual consumers. 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