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Some of","page_number":24,"box":{"x":68,"y":385,"width":816,"height":11}},{"id":"b69d4cf9-dc94-4fd6-b77f-32fe076bac89","block_type":"box","text":"these securities may be backed by the full faith and credit of the U.S. Treasury, some may be suppor ted by the right","page_number":24,"box":{"x":68,"y":400,"width":829,"height":11}},{"id":"97cf0d7d-f87c-4683-a68b-07e02e0359bd","block_type":"box","text":"of the issuer to borrow from the U.S. Treasury, and some are backed only by the credit of the issuer itself.","page_number":24,"box":{"x":69,"y":415,"width":756,"height":11}},{"id":"d3dcffc9-97a5-4834-9b12-24ee95ba0ffa","block_type":"box","text":"The obligations of foreign governments and their related organizations have various kinds of government","page_number":24,"box":{"x":101,"y":438,"width":745,"height":11}},{"id":"0d8b6747-069d-4b4f-950d-5ed90a1fe64f","block_type":"box","text":"suppor t. These obligations may or may not be suppor ted by the full faith and credit of a foreign government. The","page_number":24,"box":{"x":69,"y":453,"width":802,"height":11}},{"id":"8836e9a5-4b27-48a7-a78f-1da69529a4df","block_type":"box","text":"Fund may invest in securities issued by international organizations designated or suppor ted by governments or","page_number":24,"box":{"x":70,"y":468,"width":789,"height":11}},{"id":"92ba81f7-c5d7-4171-af22-d6e4ab88e557","block_type":"box","text":"government agencies to promote economic reconstruction or development. Examples of these organizations include","page_number":24,"box":{"x":68,"y":483,"width":828,"height":11}},{"id":"30a7a0ec-33be-4df3-b6d1-e109c946f91a","block_type":"box","text":"the International Bank for Reconstruction and Development (the World Bank), the European Coal and Steel","page_number":24,"box":{"x":68,"y":498,"width":760,"height":11}},{"id":"2df139ab-fc2d-4719-858a-db57f5904d37","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank.","page_number":24,"box":{"x":69,"y":513,"width":601,"height":11}},{"id":"ce2939eb-bffb-4a45-99ce-7949a58fcac1","block_type":"box","text":"The debt securities in which the Fund invests may include credit-linked notes, credit-linked trust cer tificates,","page_number":24,"box":{"x":101,"y":536,"width":770,"height":11}},{"id":"d05c9f38-9e2e-4a11-9d36-ae378cf9b512","block_type":"box","text":"structured notes or other instruments evidencing interests in special purpose vehicles, trusts or other entities that","page_number":24,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"725274e3-2ccd-4724-bcc4-6498813ccef6","block_type":"box","text":"hold or represent interests in debt securities.","page_number":24,"box":{"x":69,"y":566,"width":322,"height":11}},{"id":"634e9a85-0743-459e-a8ab-eadd8b814373","block_type":"box","text":"The Fund may invest in corporate loans. Corporate loans are direct obligations of U.S. or foreign corporations","page_number":24,"box":{"x":101,"y":589,"width":777,"height":11}},{"id":"5d9de524-5e04-451b-8c75-d82ace28110b","block_type":"box","text":"that are purchased by the Fund in the secondary market.","page_number":24,"box":{"x":68,"y":604,"width":405,"height":11}},{"id":"583039a1-544d-4458-be1c-d3b1eec754be","block_type":"box","text":"The Fund may use a variety of por tfolio strategies to hedge its por tfolio against interest rate and currency risk, or","page_number":24,"box":{"x":101,"y":627,"width":808,"height":11}},{"id":"edfea86a-d1c7-44a8-ad9a-15895519b0a2","block_type":"box","text":"to seek to enhance its return. These strategies include the use of derivatives, such as options on por tfolio positions","page_number":24,"box":{"x":68,"y":642,"width":831,"height":11}},{"id":"8742692c-3b9a-4258-8311-6dd5ea3b354a","block_type":"box","text":"or currencies, financial and currency futures and options on these futures, forward foreign currency transactions,","page_number":24,"box":{"x":69,"y":657,"width":805,"height":11}},{"id":"e4ae4336-8b21-44df-89ce-cc504cb79e4c","block_type":"box","text":"indexed and inverse securities, interest rate swaps and credit default swaps. Derivatives are financial instruments","page_number":24,"box":{"x":70,"y":672,"width":814,"height":11}},{"id":"6545a5e6-2436-4fc4-b9de-b9295bf74400","block_type":"box","text":"whose value is derived from another security or an index such as the Bloomberg Global Aggregate Bond Index. The","page_number":24,"box":{"x":68,"y":687,"width":817,"height":11}},{"id":"08181aee-3e1b-4871-b878-cb8a33cb2743","block_type":"box","text":"Fund’s primary vehicle for gaining exposure to the commodities markets is expected to be through investments in the","page_number":24,"box":{"x":70,"y":702,"width":837,"height":12}},{"id":"2c484c8b-ee81-45f3-b4a8-6afa68dd97c0","block_type":"box","text":"Strategic Global Bond Fund (Cayman) (the “Subsidiary”), a wholly owned subsidiary of the Fund formed in the Cayman","page_number":24,"box":{"x":69,"y":717,"width":839,"height":12}},{"id":"db94b41d-b77b-401d-ac86-8e7aacfdbabf","block_type":"box","text":"Islands, which invests primarily in commodity-related instruments. The Subsidiary may also hold cash and invest in","page_number":24,"box":{"x":70,"y":733,"width":817,"height":11}},{"id":"52a2fb93-92e3-4c59-9ae4-414ba9a6f89e","block_type":"box","text":"other instruments, including fixed income securities, either as investments or to serve as margin or collateral for the","page_number":24,"box":{"x":69,"y":748,"width":832,"height":11}},{"id":"cbf7a0d3-1805-4565-90ae-ab4dbb18519b","block_type":"box","text":"Subsidiary’s derivative positions.","page_number":24,"box":{"x":69,"y":763,"width":234,"height":11}},{"id":"bc1f7839-891a-45ad-9315-7163f82a606b","block_type":"box","text":"Investments in the Subsidiary.","page_number":24,"box":{"x":102,"y":786,"width":214,"height":11}},{"id":"e1f7ae6d-6be2-478f-8a25-7ada25d51671","block_type":"box","text":"The Fund may invest up to 25% of its total assets in the shares of its wholly","page_number":24,"box":{"x":323,"y":785,"width":545,"height":12}},{"id":"2da8b348-b360-409d-9788-257b88784218","block_type":"box","text":"owned and controlled Subsidiary. Investments in the Subsidiary are expected to provide the Fund with exposure to","page_number":24,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"504e4947-2431-4f41-ba74-82d2f66e81ff","block_type":"box","text":"the commodity markets within the limitations of Subchapter M of the Internal Revenue Code of 1986, as amended,","page_number":24,"box":{"x":68,"y":816,"width":821,"height":11}},{"id":"771d553b-9b06-4e4a-9545-317720f96bb2","block_type":"box","text":"and recent Internal Revenue Service revenue rulings, as discussed below. The Subsidiary is advised by the Manager.","page_number":24,"box":{"x":69,"y":831,"width":833,"height":11}},{"id":"cedf3b9c-5ca6-459d-b6ea-ef6714b7f949","block_type":"box","text":"The Subsidiary (unlike the Fund) may invest without limitation in commodity-related instruments. However, the","page_number":24,"box":{"x":68,"y":846,"width":783,"height":11}},{"id":"d0d80c29-7ce1-48f6-b5a4-5bb275da2d37","block_type":"box","text":"Subsidiary is otherwise subject to the same fundamental, non-fundamental and cer tain other investment restrictions","page_number":24,"box":{"x":69,"y":861,"width":833,"height":11}},{"id":"4f286b6a-8fed-4c5f-8ea7-4007e8b43ca2","block_type":"box","text":"as the Fund, including the timing and method of the valuation of the Subsidiary’s por tfolio investments and shares of","page_number":24,"box":{"x":69,"y":876,"width":838,"height":11}},{"id":"dde3f670-6503-4c76-a863-44ccd687f659","block_type":"box","text":"the Subsidiary. The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all","page_number":24,"box":{"x":68,"y":891,"width":829,"height":12}},{"id":"48074665-1b64-41e4-a745-dbd9e013bea4","block_type":"box","text":"material respects, as the policies and procedures adopted by the Fund. The Subsidiary is a company organized under","page_number":24,"box":{"x":69,"y":906,"width":838,"height":12}},{"id":"7a3f8661-fc97-4e26-a068-0eff051618dd","block_type":"box","text":"I-6","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"ce003e9c-82a9-4da3-a354-6ff69a314496","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f156884-f1b8-4ee5-99da-1ff91cb26e26","block_type":"box","text":"the laws of the Cayman Islands, and is overseen by its own board of directors, which is comprised of John M.","page_number":25,"box":{"x":68,"y":45,"width":780,"height":11}},{"id":"6e1ca46f-fc64-4553-8224-ac8b83df24d2","block_type":"box","text":"Perlowski, a Director, President and Chief Executive Officer of the Fund, and Trent Walker, Chief Financial Officer of","page_number":25,"box":{"x":69,"y":60,"width":818,"height":10}},{"id":"13985289-26a1-48fd-8cf4-4e38a03b0409","block_type":"box","text":"the Fund. The Fund is the sole shareholder of the Subsidiary, and shares of the Subsidiary will not be sold or offered","page_number":25,"box":{"x":68,"y":75,"width":835,"height":11}},{"id":"8d5a1910-8687-4f54-b69f-d41e98808cb4","block_type":"box","text":"to other investors.","page_number":25,"box":{"x":68,"y":90,"width":129,"height":9}},{"id":"e27058fc-9d7b-4cfe-961d-2130707fa65f","block_type":"box","text":"The Subsidiary invests primarily in commodity-related instruments. Although the Fund may invest in these","page_number":25,"box":{"x":101,"y":113,"width":751,"height":11}},{"id":"e8c708a8-2c1e-4db2-983f-d64a179aea6e","block_type":"box","text":"commodity-related instruments directly, the Fund will likely gain exposure to these commodity-related instruments","page_number":25,"box":{"x":69,"y":128,"width":808,"height":11}},{"id":"c70aa5c4-dd8e-4075-b207-f9b00d6ec2ee","block_type":"box","text":"indirectly by investing in the Subsidiary. To the extent that BlackRock believes that these commodity-related","page_number":25,"box":{"x":70,"y":143,"width":764,"height":11}},{"id":"708f3185-d967-4bd9-b21d-19809fb4ea51","block_type":"box","text":"instruments provide suitable exposure to the commodities market, the Fund’s investment in the Subsidiary will likely","page_number":25,"box":{"x":70,"y":158,"width":831,"height":11}},{"id":"2f237a57-9fa7-4b8d-83c4-d56d3f98c1d9","block_type":"box","text":"increase. The Subsidiary may also hold cash and invest in other instruments, including fixed income securities, either","page_number":25,"box":{"x":70,"y":173,"width":839,"height":11}},{"id":"f7046642-a7ec-4364-b064-2e0e82922dab","block_type":"box","text":"as investments or to serve as margin or collateral for the Subsidiary’s derivative positions.","page_number":25,"box":{"x":69,"y":188,"width":647,"height":12}},{"id":"b63668bf-e0b7-4132-94d6-f69d039852eb","block_type":"box","text":"The Manager manages the assets of the Subsidiary, but receives no additional compensation for doing so. The","page_number":25,"box":{"x":101,"y":211,"width":792,"height":11}},{"id":"2b52824b-d7f9-45c9-a518-8e617c25e318","block_type":"box","text":"Manager has entered into sub-advisory agreements with BlackRock International Limited and BlackRock (Singapore)","page_number":25,"box":{"x":70,"y":226,"width":825,"height":11}},{"id":"adddb92f-67ee-4b9d-822e-abd95f12d5da","block_type":"box","text":"Limited with respect to the Subsidiary. BlackRock also provides cer tain administrative services for the Subsidiary,","page_number":25,"box":{"x":70,"y":241,"width":811,"height":11}},{"id":"2b7c4b2a-073a-4450-a0ff-fd7f20ec820b","block_type":"box","text":"but receives no additional compensation for doing so. The Subsidiary will also enter into separate contracts for the","page_number":25,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"a2769f17-f5eb-4f19-ad65-61517f83b652","block_type":"box","text":"provision of advisory, custody, accounting agent and audit services with the same or with affiliates of the same","page_number":25,"box":{"x":70,"y":271,"width":792,"height":12}},{"id":"366361cd-8e07-452f-9808-166f6756ff84","block_type":"box","text":"service providers that provide those services to the Fund.","page_number":25,"box":{"x":69,"y":287,"width":410,"height":10}},{"id":"2b3fb87c-0a9b-4c53-bd4e-d499ba34b122","block_type":"box","text":"The financial statements of the Subsidiary are consolidated with the Fund’s financial statements in the Fund’s","page_number":25,"box":{"x":101,"y":309,"width":788,"height":11}},{"id":"a74ea267-b14d-4936-abd8-c193bb36d033","block_type":"box","text":"Annual and Semi-Annual Financial Statements and Additional Information. The Fund’s Annual and Semi-Annual","page_number":25,"box":{"x":68,"y":324,"width":785,"height":9}},{"id":"87812e6b-8b29-43bd-9ce1-041ee792ac3d","block_type":"box","text":"Financial Statements and Additional Information are filed with the SEC on Form N-CSR and are provided without","page_number":25,"box":{"x":70,"y":339,"width":793,"height":11}},{"id":"5c3957cf-6842-4177-ac25-baa89ad2ea5d","block_type":"box","text":"charge upon request as indicated on the front cover of this SAI.","page_number":25,"box":{"x":69,"y":355,"width":451,"height":11}},{"id":"edcbd02d-a73c-4fd9-8676-4c33f4f69919","block_type":"box","text":"The Subsidiary is not registered under the Investment Company Act, and, unless otherwise noted in the Fund’s","page_number":25,"box":{"x":101,"y":377,"width":793,"height":12}},{"id":"5b0568ee-9b44-4f9d-9a63-33ea4ba50045","block_type":"box","text":"prospectus or this SAI, is not subject to all the investor protections of the Investment Company Act. However, the","page_number":25,"box":{"x":70,"y":392,"width":806,"height":12}},{"id":"e2db0892-9ef3-406e-8566-1421f32ab499","block_type":"box","text":"Fund wholly owns and controls the Subsidiary, and the Fund and the Subsidiary are both managed by BlackRock,","page_number":25,"box":{"x":70,"y":408,"width":802,"height":11}},{"id":"a86fd5c1-4377-4373-9847-e8521f4ce45a","block_type":"box","text":"making it unlikely that the Subsidiary will take action contrary to the interests of the Fund and its shareholders. The","page_number":25,"box":{"x":69,"y":423,"width":825,"height":11}},{"id":"0cffe6fd-4e83-4def-b4cd-f371a828ae14","block_type":"box","text":"Fund’s Board of Directors has oversight responsibility for the investment activities of the Fund, including its","page_number":25,"box":{"x":70,"y":438,"width":763,"height":11}},{"id":"c18ee352-6b21-4efc-bcd9-f86e389bf07d","block_type":"box","text":"investment in the Subsidiary, and the Fund’s role as sole shareholder of the Subsidiary. As noted above, the","page_number":25,"box":{"x":70,"y":453,"width":773,"height":11}},{"id":"b7924a2e-b5f7-4953-8ebf-25a903e1bbae","block_type":"box","text":"Subsidiary will be subject to the same investment restrictions and limitations as the Fund.","page_number":25,"box":{"x":69,"y":468,"width":643,"height":11}},{"id":"81b14eac-7b29-4237-8711-e89889d06c6c","block_type":"box","text":"The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material","page_number":25,"box":{"x":101,"y":491,"width":780,"height":11}},{"id":"67071bf9-21fb-4fba-b5f3-021046e10a37","block_type":"box","text":"respects, as the policies and procedures adopted by the Fund. In addition, changes in the laws of the United States","page_number":25,"box":{"x":69,"y":506,"width":826,"height":11}},{"id":"e9e5bc9a-ab3a-42aa-90b9-4b951a7e2a99","block_type":"box","text":"and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate as described in","page_number":25,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"cb14803a-c822-4509-b91a-6300f3576c6f","block_type":"box","text":"the Fund’s prospectus and this SAI and could adversely affect the Fund. For example, the Cayman Islands does not","page_number":25,"box":{"x":68,"y":536,"width":825,"height":11}},{"id":"4c1475cc-bb98-482e-b0c3-d1ee65e64afa","block_type":"box","text":"currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on","page_number":25,"box":{"x":69,"y":551,"width":834,"height":11}},{"id":"4dcbcb67-567b-467e-8ed7-53158d71463e","block_type":"box","text":"the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Fund","page_number":25,"box":{"x":68,"y":566,"width":786,"height":11}},{"id":"01c46670-fd4c-4701-8087-3dfaab4946b2","block_type":"box","text":"shareholders would likely suffer decreased investment returns.","page_number":25,"box":{"x":69,"y":581,"width":448,"height":11}},{"id":"a44b6790-54e6-43f3-bcbe-70443ce814c9","block_type":"box","text":"The Fund, as a “regulated investment company” under the tax rules, is required to realize at least 90 percent of","page_number":25,"box":{"x":101,"y":604,"width":801,"height":11}},{"id":"c303beaa-d0da-44e2-9d2b-b64ed3878097","block_type":"box","text":"its annual gross income from investment-related sources, specifically from dividends, interest, proceeds from","page_number":25,"box":{"x":70,"y":619,"width":779,"height":11}},{"id":"06bf8130-8f7b-4aa4-88d3-26e3ff4f1b86","block_type":"box","text":"securities lending, gains from the sales of stocks, securities and foreign currencies, other income (including, but not","page_number":25,"box":{"x":69,"y":634,"width":831,"height":12}},{"id":"93317ad8-bd7e-4603-90a7-6c6beac6a68a","block_type":"box","text":"limited to, gains from options, futures or forward contracts) derived with respect to its business of investing in such","page_number":25,"box":{"x":70,"y":649,"width":824,"height":12}},{"id":"d2b1d17a-22c2-4754-9084-b14250ae0140","block_type":"box","text":"stock, securities or currencies, or cer tain types of publicly traded par tnerships (referred to as qualifying income). The","page_number":25,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"eeb12f77-3365-4968-90d7-506b1e6995d5","block_type":"box","text":"Fund invests in commodity-related instruments indirectly through the Subsidiary because direct investments by a","page_number":25,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"f4cba3a3-aec7-486a-9940-97153e2665a2","block_type":"box","text":"regulated investment company in commodity-related instruments generally do not, under published IRS rulings,","page_number":25,"box":{"x":69,"y":695,"width":789,"height":11}},{"id":"1a3861fb-2399-4826-9182-00ee43ee7b51","block_type":"box","text":"produce qualifying income. The Fund expects its income with respect to the Subsidiary to be qualifying income.","page_number":25,"box":{"x":70,"y":710,"width":789,"height":11}},{"id":"bfdbb8f1-94c2-45be-8375-a99e333c0cd9","block_type":"box","text":"However, there is a risk that the IRS could issue regulations or other guidance holding, or could asset, that the","page_number":25,"box":{"x":70,"y":725,"width":789,"height":11}},{"id":"78cbced9-1644-48bf-ac24-5e49fb11213c","block_type":"box","text":"Fund’s income with respect to the Subsidiary will not be considered “qualifying income” for purposes of the Fund","page_number":25,"box":{"x":70,"y":740,"width":804,"height":11}},{"id":"bd48e6b2-97ac-4934-86e2-4dd9333a379f","block_type":"box","text":"remaining qualified as a regulated investment company for U.S. federal income tax purposes. In such circumstances,","page_number":25,"box":{"x":69,"y":755,"width":834,"height":11}},{"id":"3821451e-7d43-43fc-8824-eb908f6e73f8","block_type":"box","text":"the Fund may be required to make changes to its operations, which may reduce the Fund’s ability to gain investment","page_number":25,"box":{"x":68,"y":771,"width":832,"height":11}},{"id":"b8535f88-45ea-49c9-98fb-53cd6817a169","block_type":"box","text":"exposure to commodities. Fund shareholders may also experience adverse tax consequences in such circumstances.","page_number":25,"box":{"x":69,"y":786,"width":836,"height":11}},{"id":"8f73ceec-c5cb-4313-8d6b-512c640d83b4","block_type":"box","text":"The Subsidiary will not be subject to Federal income tax. It will, however, be considered a controlled foreign","page_number":25,"box":{"x":101,"y":808,"width":764,"height":11}},{"id":"a4b323ca-7773-4750-a132-c85a2a244c79","block_type":"box","text":"corporation, and the Fund will be required to include as income annually amounts earned by the Subsidiary during","page_number":25,"box":{"x":69,"y":823,"width":811,"height":12}},{"id":"359aaa8a-39b0-4dd5-8033-daeb03547ce4","block_type":"box","text":"that year, whether or not the Subsidiary distributes such amounts to the Fund. Fur thermore, the requirement for the","page_number":25,"box":{"x":68,"y":838,"width":828,"height":11}},{"id":"c49e467e-efc6-4239-b2d2-d7c585b4fb72","block_type":"box","text":"Fund to distribute net investment income, if any, and net realized capital gain, if any, at least annually, will apply to","page_number":25,"box":{"x":70,"y":853,"width":815,"height":12}},{"id":"c3c10b9b-65d9-45d9-a0e3-2809bfa80728","block_type":"box","text":"such Subsidiary income, whether or not the Subsidiary makes a distribution to the Fund during the taxable year. If the","page_number":25,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"c0bead2d-5dd1-4460-be91-719b62da55b6","block_type":"box","text":"Subsidiary incurs net losses in any year, such losses will not offset the Fund’s income or gains nor carryforward to","page_number":25,"box":{"x":69,"y":884,"width":820,"height":11}},{"id":"647cce79-4a6e-4664-8bae-2af77e9799fe","block_type":"box","text":"future years.","page_number":25,"box":{"x":68,"y":899,"width":89,"height":11}},{"id":"2f1c6f63-0bd5-4876-9315-e684a40562b7","block_type":"box","text":"I-7","page_number":25,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"d63d8c86-d51f-4ef9-818d-a1e3df73bf3b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"324a3d42-20e6-465f-a5ff-b951a95a63a2","block_type":"box","text":"Regulation Regarding Derivatives.","page_number":26,"box":{"x":102,"y":45,"width":246,"height":11}},{"id":"293adfc2-5896-47e3-9a4f-5bba0caa3012","block_type":"box","text":"The Commodity Futures Trading Commission (“CFTC”) subjects advisers to","page_number":26,"box":{"x":355,"y":45,"width":530,"height":11}},{"id":"374833d7-035c-4833-8942-3d5cc0243bde","block_type":"box","text":"registered investment companies to regulation by the CFTC if a fund that is advised by the investment adviser either","page_number":26,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"e0588c13-991f-4988-93a4-c45e44200c82","block_type":"box","text":"(i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC-regulated futures, options","page_number":26,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"a0219ed1-b3fb-455c-bc5a-4e95129de439","block_type":"box","text":"and swaps (“CFTC Derivatives”), or (ii) markets itself as providing investment exposure to such instruments. Due to","page_number":26,"box":{"x":69,"y":90,"width":823,"height":11}},{"id":"4ba6696f-5c93-4017-9cd7-cdec04482c63","block_type":"box","text":"the Fund’s potential use of CFTC Derivatives above the prescribed levels, however, the Fund will be considered a","page_number":26,"box":{"x":68,"y":105,"width":803,"height":11}},{"id":"634e6574-93bb-4f3a-9652-01193480a3a0","block_type":"box","text":"“commodity pool” under the Commodity Exchange Act. Accordingly, BlackRock, the Fund’s investment adviser, has","page_number":26,"box":{"x":70,"y":120,"width":813,"height":12}},{"id":"0b5efe0d-2ea5-4a9d-a94b-ad0c702124ce","block_type":"box","text":"registered as a “commodity pool operator” and is subject to CFTC regulation in respect of the Fund.","page_number":26,"box":{"x":69,"y":135,"width":709,"height":12}},{"id":"556cb3e6-7904-4f36-bf60-7b6bb2780c73","block_type":"box","text":"II. Investment Restrictions","page_number":26,"box":{"x":69,"y":166,"width":194,"height":9}},{"id":"2662eff0-8801-423d-b44a-d1668be53342","block_type":"box","text":"The Fund has adopted restrictions and policies relating to the investment of the Fund’s assets and its activities.","page_number":26,"box":{"x":101,"y":188,"width":800,"height":12}},{"id":"04f55c7b-0343-4e66-96c0-491f37926be6","block_type":"box","text":"Cer tain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":26,"box":{"x":69,"y":203,"width":825,"height":12}},{"id":"a52d48b1-6e9e-473c-bec3-593f010fa9eb","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":26,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"a77fe86d-61c5-4c21-a029-bd9a311635e7","block_type":"box","text":"Company Act means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the","page_number":26,"box":{"x":69,"y":234,"width":803,"height":11}},{"id":"752daea2-9766-4840-8a3c-d1d7972953dc","block_type":"box","text":"outstanding shares are represented or (ii) more than 50% of the outstanding shares). The Fund has also adopted","page_number":26,"box":{"x":69,"y":249,"width":807,"height":11}},{"id":"7e4cc6b7-4d0c-4a55-8b7a-6864e7b93671","block_type":"box","text":"cer tain non-fundamental investment restrictions, which may be changed by the Board of Directors without","page_number":26,"box":{"x":69,"y":264,"width":752,"height":11}},{"id":"6ee6291b-e23d-41ab-bc7b-4a67e9cf7523","block_type":"box","text":"shareholder approval.","page_number":26,"box":{"x":69,"y":279,"width":153,"height":11}},{"id":"cf82c9fe-94e1-4267-a52d-558f06759391","block_type":"box","text":"Set for th below are the Fund’s fundamental and non-fundamental investment restrictions. Unless otherwise","page_number":26,"box":{"x":102,"y":302,"width":767,"height":9}},{"id":"c7085a38-0fc5-40cb-8b04-2c517750b30a","block_type":"box","text":"provided, all references below to the assets of the Fund are in terms of current market value.","page_number":26,"box":{"x":70,"y":317,"width":664,"height":11}},{"id":"cdda2b74-b541-41cb-9057-c473cf88f741","block_type":"box","text":"Under its fundamental investment restrictions, the Fund may not:","page_number":26,"box":{"x":102,"y":339,"width":463,"height":12}},{"id":"5b9406dd-fa71-4453-99e0-83028a47a2df","block_type":"box","text":"(1) Concentrate its investments in a par ticular industry, as that term is used in the Investment Company","page_number":26,"box":{"x":134,"y":362,"width":745,"height":11}},{"id":"5342958a-ab4b-4cd3-85a8-bdf177e7fe73","block_type":"box","text":"Act.","page_number":26,"box":{"x":101,"y":377,"width":25,"height":9}},{"id":"a5f47cb0-b1f4-4b83-b5b3-5fc7d840088f","block_type":"box","text":"(2) Borrow money, except as permitted under the Investment Company Act.","page_number":26,"box":{"x":134,"y":400,"width":534,"height":11}},{"id":"9e4e6326-bb62-4a41-a98b-cc10918b6f78","block_type":"box","text":"(3) Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":26,"box":{"x":134,"y":423,"width":699,"height":11}},{"id":"60eced77-bc3c-4cf2-b221-559228a5b14d","block_type":"box","text":"(4) Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments","page_number":26,"box":{"x":134,"y":446,"width":746,"height":10}},{"id":"aae5415f-16be-4b24-8995-a08d30db3e3f","block_type":"box","text":"that are secured by, or linked to, real estate or interests therein, securities of real estate investment trusts,","page_number":26,"box":{"x":101,"y":460,"width":770,"height":12}},{"id":"79710f41-57ff-4caf-a243-f42b4e80d89e","block_type":"box","text":"mor tgage-related securities and securities of issuers engaged in the real estate business, and the Fund may","page_number":26,"box":{"x":102,"y":475,"width":775,"height":12}},{"id":"92a31837-9ab1-4d30-94a4-92e17eee37ba","block_type":"box","text":"purchase and hold real estate as a result of the ownership of securities or other instruments.","page_number":26,"box":{"x":102,"y":491,"width":666,"height":11}},{"id":"be7e0a8d-785e-441a-9a74-44eb7b34472b","block_type":"box","text":"(5) Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the","page_number":26,"box":{"x":134,"y":513,"width":751,"height":11}},{"id":"594fa5f3-f766-4e24-945b-d7c561161a64","block_type":"box","text":"Fund may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":26,"box":{"x":102,"y":529,"width":627,"height":11}},{"id":"7dfec79b-9f63-4b34-a0d2-eeaf637ffe56","block_type":"box","text":"(6) Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company","page_number":26,"box":{"x":134,"y":551,"width":762,"height":11}},{"id":"8479434c-46cb-4fec-a927-1562ba1d6464","block_type":"box","text":"Act.","page_number":26,"box":{"x":101,"y":566,"width":25,"height":9}},{"id":"ae83c50a-b251-4028-82c1-12f8322c4d88","block_type":"box","text":"(7) Make loans to the extent prohibited by the Investment Company Act.","page_number":26,"box":{"x":134,"y":589,"width":511,"height":11}},{"id":"858ca2c0-530f-4097-b4b6-3cbe6958a349","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":26,"box":{"x":102,"y":612,"width":511,"height":11}},{"id":"30694a15-3c4d-444a-9730-f35b156e4450","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":26,"box":{"x":101,"y":634,"width":799,"height":12}},{"id":"a2f37fa8-d989-4bb7-b30c-ec941f843a2e","block_type":"box","text":"subject to change without shareholder approval.","page_number":26,"box":{"x":69,"y":650,"width":341,"height":11}},{"id":"e341c3db-34bc-4195-8f74-4ee18f407d40","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, the Investment Company","page_number":26,"box":{"x":101,"y":672,"width":796,"height":11}},{"id":"ef5f923c-478d-4a86-bce1-6aecbdc6fe92","block_type":"box","text":"Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position","page_number":26,"box":{"x":68,"y":687,"width":811,"height":11}},{"id":"0a7c7720-7d4c-4d78-8502-7ee138c578ef","block_type":"box","text":"that investment of 25% or more of a fund’s total assets in one or more issuers conducting their principal activities in","page_number":26,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"64661276-11c3-4b93-914e-1d40fac7f7c0","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":26,"box":{"x":68,"y":717,"width":836,"height":12}},{"id":"8bc4810f-7b5e-4b64-8c22-2e19bb102edd","block_type":"box","text":"could change in the future. The policy in (1) above will be interpreted to refer to concentration as that term may be","page_number":26,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"9bd55a94-f0bc-45d2-b23f-406fd3c45408","block_type":"box","text":"interpreted from time to time. The policy also will be interpreted to permit investment without limit in the following:","page_number":26,"box":{"x":70,"y":748,"width":813,"height":11}},{"id":"3d8477e4-164d-4aef-b44b-2edaa97fe0fb","block_type":"box","text":"securities of the U.S. government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":26,"box":{"x":69,"y":763,"width":820,"height":11}},{"id":"d9867d01-763f-4e97-a5bd-20a81fec6b95","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":26,"box":{"x":69,"y":778,"width":809,"height":11}},{"id":"018ebb95-c337-4c22-a08b-5ebd4e98a251","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":26,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"a045d496-9c08-4c57-832f-5fc2fe73dcfd","block_type":"box","text":"considered to be members of any industry. There also will be no limit on investment in issuers domiciled in a single","page_number":26,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"49910b3b-3439-4ed8-90e8-95efde9a2174","block_type":"box","text":"jurisdiction or country. Finance companies will be considered to be in the industries of their parents if their activities","page_number":26,"box":{"x":67,"y":823,"width":829,"height":11}},{"id":"60bd7ca2-3e28-45f3-8474-a3d6bd933f4a","block_type":"box","text":"are primarily related to financing the activities of the parents. Each foreign government will be considered to be a","page_number":26,"box":{"x":69,"y":838,"width":805,"height":12}},{"id":"93090dfb-a124-47a8-b0bd-4349ee91632e","block_type":"box","text":"member of a separate industry. With respect to the Fund’s industry classifications, the Fund currently utilizes any one","page_number":26,"box":{"x":69,"y":853,"width":840,"height":12}},{"id":"a7ea10b5-6810-4721-adfe-4c9d4222bd6e","block_type":"box","text":"or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group","page_number":26,"box":{"x":69,"y":869,"width":803,"height":11}},{"id":"43108346-8ea0-41c4-bad6-8d6e2a6ee02f","block_type":"box","text":"indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad authority to the","page_number":26,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"46317276-8543-4bac-8a4e-1e1e66ff2e9b","block_type":"box","text":"Fund as to how to classify issuers within or among industries.","page_number":26,"box":{"x":70,"y":899,"width":438,"height":11}},{"id":"4b1d2b2b-9b23-4bfe-a713-1fdec8ba1c91","block_type":"box","text":"I-8","page_number":26,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"8559c3d8-10aa-4dad-a747-ca6ce50d2cd2","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9fa07d74-e834-4e60-81de-c407164c95e7","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set for th in (2) above, the Investment","page_number":27,"box":{"x":101,"y":45,"width":750,"height":11}},{"id":"38f32a32-f1ff-4187-bf13-ddb937a614e8","block_type":"box","text":"Company Act permits the Fund to borrow money in amounts of up to one-third of the Fund’s total assets from banks","page_number":27,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"a937dbf8-1b8c-4926-9b98-d1fa56ec3237","block_type":"box","text":"for any purpose, and to borrow up to 5% of the Fund’s total assets from banks or other lenders for temporary","page_number":27,"box":{"x":68,"y":75,"width":781,"height":11}},{"id":"34396a01-b109-4fc4-b8a8-4688a4f8bb66","block_type":"box","text":"purposes. (The Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing,","page_number":27,"box":{"x":70,"y":90,"width":815,"height":11}},{"id":"4f8b6542-2d42-4eaf-8cbc-36b757b29e1e","block_type":"box","text":"the Investment Company Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the","page_number":27,"box":{"x":68,"y":105,"width":825,"height":11}},{"id":"ba4f4f22-12eb-4d53-9e87-d99d3707bf1e","block_type":"box","text":"amount of its borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including","page_number":27,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"3fb4ac61-42fe-43a9-bb42-61a04eae4fa1","block_type":"box","text":"amounts borrowed), minus liabilities other than borrowings, bears to the aggregate amount of all borrowings.","page_number":27,"box":{"x":69,"y":135,"width":776,"height":12}},{"id":"6c404705-9ee6-4f27-8d91-c264723585b6","block_type":"box","text":"Borrowing money to increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments,","page_number":27,"box":{"x":70,"y":150,"width":828,"height":12}},{"id":"1afcc754-b9e3-4371-b0f2-671d3c087a37","block_type":"box","text":"such as reverse repurchase agreements, may be considered to be borrowings or involve leverage and thus are","page_number":27,"box":{"x":69,"y":166,"width":788,"height":11}},{"id":"5fbff2b2-5d38-4e56-aa73-f4375d3a04e4","block_type":"box","text":"subject to the Investment Company Act restrictions. In accordance with Rule 18f-4 under the Investment Company","page_number":27,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"cc85023d-4e8b-4063-9a76-e10148a2cbec","block_type":"box","text":"Act, when the Fund engages in reverse repurchase agreements and similar financing transactions, the Fund may","page_number":27,"box":{"x":68,"y":196,"width":802,"height":11}},{"id":"0b313fc3-72da-4576-bf6f-be717ea02b3d","block_type":"box","text":"either (i) maintain asset coverage of at least 300% with respect to such transactions and any other borrowings in the","page_number":27,"box":{"x":69,"y":211,"width":834,"height":11}},{"id":"e9c18bcb-5238-4fc1-aba0-12ee144032b9","block_type":"box","text":"aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to","page_number":27,"box":{"x":69,"y":226,"width":807,"height":11}},{"id":"df65a30f-f7ab-4125-b06a-46c61693e2e7","block_type":"box","text":"such transactions. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":27,"box":{"x":69,"y":241,"width":831,"height":11}},{"id":"d7a3e617-5318-483e-8b60-c7bd7d3c1275","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that","page_number":27,"box":{"x":69,"y":257,"width":835,"height":11}},{"id":"c6cece15-b10c-4f2a-a851-2379d235af40","block_type":"box","text":"may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":27,"box":{"x":69,"y":272,"width":643,"height":11}},{"id":"206b6954-3396-4f8b-b0e7-ec88e4259189","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":27,"box":{"x":101,"y":294,"width":788,"height":11}},{"id":"088501b5-7255-4260-a679-d6de26bb1902","block_type":"box","text":"Act does not prohibit the Fund from engaging in the underwriting business or from underwriting the securities of other","page_number":27,"box":{"x":68,"y":309,"width":840,"height":11}},{"id":"8f640fcb-195c-47dc-a670-992e88761718","block_type":"box","text":"issuers; in fact, in the case of diversified funds, the Investment Company Act permits the Fund to have underwriting","page_number":27,"box":{"x":70,"y":324,"width":825,"height":12}},{"id":"b80b9f9d-5509-441f-949c-9e5b8e4e6f66","block_type":"box","text":"commitments of up to 25% of its assets under cer tain circumstances. Those circumstances currently are that the","page_number":27,"box":{"x":69,"y":339,"width":811,"height":12}},{"id":"cf99fd72-2572-4f24-bc7f-d95ac9428dbe","block_type":"box","text":"amount of the Fund’s underwriting commitments, when added to the value of the Fund’s investments in issuers","page_number":27,"box":{"x":69,"y":355,"width":796,"height":11}},{"id":"36b5e7f6-db64-4e6b-be48-d98cbafeade2","block_type":"box","text":"where the Fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25%","page_number":27,"box":{"x":68,"y":370,"width":818,"height":11}},{"id":"436cded5-a504-421c-98ff-adfdca44c193","block_type":"box","text":"cap. A fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered","page_number":27,"box":{"x":69,"y":385,"width":833,"height":11}},{"id":"0f646268-d6d3-4ff7-8a98-39e8639147e3","block_type":"box","text":"to be an underwriter under the Securities Act of 1933, as amended (the “Securities Act”). Although it is not believed","page_number":27,"box":{"x":68,"y":400,"width":831,"height":11}},{"id":"89180516-8baa-4cad-ad31-2d23070aa804","block_type":"box","text":"that the application of the Securities Act provisions described above would cause the Fund to be engaged in the","page_number":27,"box":{"x":68,"y":415,"width":799,"height":11}},{"id":"a60653fe-d376-441a-abd2-b170aed19326","block_type":"box","text":"business of underwriting, the policy in (5) above will be interpreted not to prevent the Fund from engaging in","page_number":27,"box":{"x":69,"y":430,"width":769,"height":11}},{"id":"8983d605-e651-4650-bd13-4da02cfcdaa5","block_type":"box","text":"transactions involving the acquisition or disposition of por tfolio securities, regardless of whether the Fund may be","page_number":27,"box":{"x":68,"y":445,"width":811,"height":12}},{"id":"1f65c997-51e0-4d21-9ebd-135ca763bece","block_type":"box","text":"considered to be an underwriter under the Securities Act or is otherwise engaged in the underwriting business to the","page_number":27,"box":{"x":69,"y":460,"width":834,"height":12}},{"id":"6eef12ed-bdca-4dac-8895-b27bb4b719ed","block_type":"box","text":"extent permitted by applicable law.","page_number":27,"box":{"x":69,"y":476,"width":245,"height":11}},{"id":"db8eea35-9e3b-439c-bad2-2dcec113ec46","block_type":"box","text":"With respect to the fundamental policy relating to lending set for th in (7) above, the Investment Company Act","page_number":27,"box":{"x":101,"y":498,"width":778,"height":11}},{"id":"4671a8a3-1522-43fa-8410-8ba04c5022bf","block_type":"box","text":"does not prohibit the Fund from making loans (including lending its securities); however, Commission staff","page_number":27,"box":{"x":69,"y":513,"width":759,"height":12}},{"id":"c68cce90-ca42-462d-98a6-e3d62057c9bd","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":27,"box":{"x":70,"y":528,"width":807,"height":12}},{"id":"099db6a2-f290-4028-8365-267adf9cd2b4","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":27,"box":{"x":69,"y":543,"width":784,"height":12}},{"id":"cdac155f-3e3d-4f8c-9159-c3f768fb197e","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":27,"box":{"x":69,"y":559,"width":791,"height":11}},{"id":"83bf166d-9e7e-4f3c-b89c-d65718683ea5","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":27,"box":{"x":70,"y":574,"width":803,"height":11}},{"id":"fed3fa97-1d7f-41ab-8494-52f99fea9f9e","block_type":"box","text":"loans.","page_number":27,"box":{"x":70,"y":589,"width":40,"height":9}},{"id":"9090f760-9eac-47a8-a82d-2b2ef34760e4","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":27,"box":{"x":101,"y":612,"width":777,"height":11}},{"id":"4d02b693-31f5-4168-89af-56459e2910bf","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":27,"box":{"x":70,"y":627,"width":751,"height":11}},{"id":"59b017d4-3c4c-408d-848b-debb3212570a","block_type":"box","text":"government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":27,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"87e02b14-8cfd-428f-85e0-4cf0db27bca9","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":27,"box":{"x":69,"y":657,"width":827,"height":11}},{"id":"94fbb6b1-4506-444b-8314-cf140aa4b39d","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":27,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"aaf990ff-efa0-429f-b670-e9a77f428c09","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":27,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"dd57f8a3-2cf7-4ae1-90dc-950dc8f2f535","block_type":"box","text":"Investment Company Act, a fund cannot change its classification from diversified to non-diversified without","page_number":27,"box":{"x":70,"y":702,"width":757,"height":12}},{"id":"7f14c179-63d3-45fa-94fe-49f3cab8b577","block_type":"box","text":"shareholder approval.","page_number":27,"box":{"x":69,"y":718,"width":153,"height":10}},{"id":"fee27140-7412-4cb6-89d3-af18b7418c6f","block_type":"box","text":"Under the Fund’s non-fundamental investment restrictions, the Fund may not:","page_number":27,"box":{"x":102,"y":740,"width":550,"height":11}},{"id":"f4758d6c-da25-4c25-8483-209ae37def28","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":27,"box":{"x":134,"y":763,"width":747,"height":11}},{"id":"69ebd68f-9ecd-4295-9504-31135de38444","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":27,"box":{"x":102,"y":778,"width":759,"height":11}},{"id":"7fe02d99-6688-4d9e-af17-4120c7c8ab4b","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":27,"box":{"x":102,"y":793,"width":779,"height":11}},{"id":"9424a663-c319-45cf-bf19-f308bd978387","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":27,"box":{"x":101,"y":808,"width":761,"height":11}},{"id":"9200f6c6-4aa7-4154-9b4e-3b5124c24567","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":27,"box":{"x":102,"y":823,"width":795,"height":12}},{"id":"8757cd22-ddcd-419f-ba9c-8f7fdb7b6355","block_type":"box","text":"12(d)(1).","page_number":27,"box":{"x":102,"y":838,"width":60,"height":11}},{"id":"2cd9f789-65b5-4567-9ae8-82f7bb9e1c08","block_type":"box","text":"(b) Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Fund’s","page_number":27,"box":{"x":134,"y":861,"width":770,"height":11}},{"id":"d2e9fcbd-370f-42e5-a379-bd1214c928d6","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":27,"box":{"x":102,"y":876,"width":740,"height":11}},{"id":"9b921784-f8c5-40de-8b17-f3003cbbd681","block_type":"box","text":"I-9","page_number":27,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"9606f06b-2950-4a01-8537-1376926dc678","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"318badf8-0990-4ae9-b118-189fc7e8a334","block_type":"box","text":"Unless otherwise indicated, all limitations under the Fund’s fundamental or non-fundamental investment","page_number":28,"box":{"x":102,"y":45,"width":744,"height":10}},{"id":"38023737-8162-4065-9bf4-f26da303ab2e","block_type":"box","text":"restrictions apply only at the time that a transaction is under taken. Any change in the percentage of the Fund’s","page_number":28,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"42ead1cb-e65c-4aac-af43-ef20c30b2008","block_type":"box","text":"assets invested in cer tain securities or other instruments resulting from market fluctuations or other changes in the","page_number":28,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"53216adf-2c1d-434d-9753-acf7a5d92299","block_type":"box","text":"Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines that it is","page_number":28,"box":{"x":70,"y":90,"width":780,"height":11}},{"id":"10039cb1-2c86-4a27-81c2-ba13291b5135","block_type":"box","text":"practicable to sell or close out the investment without undue market or tax consequences.","page_number":28,"box":{"x":70,"y":105,"width":642,"height":11}},{"id":"1bd782b8-80fe-45d7-aa0a-94945e3c5204","block_type":"box","text":"The Subsidiary will follow the Fund’s fundamental and non-fundamental investment restrictions, described above,","page_number":28,"box":{"x":101,"y":128,"width":807,"height":11}},{"id":"5361c637-bc66-4806-b6e4-4bc91405236d","block_type":"box","text":"with respect to its investments.","page_number":28,"box":{"x":68,"y":143,"width":224,"height":11}},{"id":"40d8e48f-5c35-4787-a827-93230986ba0b","block_type":"box","text":"III. Information on Directors and Officers","page_number":28,"box":{"x":69,"y":173,"width":294,"height":9}},{"id":"5e675d90-6537-44d1-a50c-a03104be1eb5","block_type":"box","text":"The Board of Directors (the “Board”) of the Fund consists of nine individuals (each a “Director”), seven of whom","page_number":28,"box":{"x":101,"y":196,"width":799,"height":11}},{"id":"44dc9104-01c8-45f6-9a06-b9a63826a79d","block_type":"box","text":"are not “interested persons” of the Fund as defined in the Investment Company Act (the “Independent Directors”).","page_number":28,"box":{"x":69,"y":211,"width":815,"height":11}},{"id":"ae693778-3ca8-4338-9873-0ece0eca9829","block_type":"box","text":"The registered investment companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are","page_number":28,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"fdd2c0ed-9f90-4218-8d5c-305d84573208","block_type":"box","text":"organized into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex","page_number":28,"box":{"x":69,"y":241,"width":818,"height":11}},{"id":"e8fe8032-0d49-4980-9ac5-9628e47f1965","block_type":"box","text":"(each, a “BlackRock Fund Complex”). The Fund is included in the BlackRock Fund Complex referred to as the","page_number":28,"box":{"x":69,"y":256,"width":776,"height":11}},{"id":"bbc81557-a2b6-4ad0-9f5c-4626026c2457","block_type":"box","text":"BlackRock Fixed-Income Complex. The Directors also oversee as board members the operations of the other open","page_number":28,"box":{"x":70,"y":271,"width":815,"height":11}},{"id":"cf79d4db-794b-445d-80b3-559a5d82dcc5","block_type":"box","text":"end and closed-end registered investment companies included in the BlackRock Fixed-Income Complex.","page_number":28,"box":{"x":69,"y":287,"width":736,"height":11}},{"id":"8d758c9a-ae4a-4975-83b2-f84caa602800","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund. The Chair of the Board and the Chief Executive","page_number":28,"box":{"x":101,"y":309,"width":802,"height":11}},{"id":"2ae7a7ce-cc0c-4a58-9002-ce2a0941d1d2","block_type":"box","text":"Officer are different people. Not only is the Chair of the Board an Independent Director, but also the Chair of each","page_number":28,"box":{"x":69,"y":324,"width":811,"height":11}},{"id":"18beda11-8dfd-442d-b37d-45ac653d2e3d","block_type":"box","text":"Board committee (each, a “Committee”) is an Independent Director. The Board has six standing Committees: an","page_number":28,"box":{"x":70,"y":340,"width":800,"height":11}},{"id":"ecc1a621-24ec-40cc-b41b-5bef146b63ca","block_type":"box","text":"Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Per formance Oversight","page_number":28,"box":{"x":68,"y":355,"width":801,"height":11}},{"id":"4f78c20e-8d91-4bb6-814f-5189e109088e","block_type":"box","text":"Committee, a Securities Lending Committee and an Executive Committee. The role of the Chair of the Board is to","page_number":28,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"7afb7a9f-029a-42c9-8346-b9d6bfb9bc4b","block_type":"box","text":"preside over all meetings of the Board and to act as a liaison with service providers, officers, attorneys, and other","page_number":28,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"8f93ea54-f534-470a-884d-4eb0b081aac6","block_type":"box","text":"Directors between meetings. The Chair of each Committee per forms a similar role with respect to the Committee.","page_number":28,"box":{"x":70,"y":400,"width":809,"height":11}},{"id":"e06db48c-abaf-4f83-a8e8-865b5461b27d","block_type":"box","text":"The Chair of the Board or a Committee may also per form such other functions as may be delegated by the Board or","page_number":28,"box":{"x":68,"y":415,"width":826,"height":11}},{"id":"cd8bf16a-44c9-473e-8593-2dbf16a692e2","block_type":"box","text":"the Committee from time to time. The Independent Directors meet regularly outside the presence of the Fund’s","page_number":28,"box":{"x":68,"y":430,"width":793,"height":11}},{"id":"fb9af8d0-7c2e-4b70-ba15-89f13bf5d866","block_type":"box","text":"management, in executive sessions or with other service providers to the Fund. The Board has regular meetings five","page_number":28,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"ecd34075-591d-4578-873f-d151236d44ef","block_type":"box","text":"times a year, including a meeting to consider the approval of the Fund’s investment management agreement, and, if","page_number":28,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"5a578b47-e280-45e4-ba39-74e27bc3ecfe","block_type":"box","text":"necessary, may hold special meetings before its next regular meeting. The Audit Committee, the Governance and","page_number":28,"box":{"x":69,"y":475,"width":806,"height":12}},{"id":"e9a84c61-655e-44d3-834d-30aa77c3d84c","block_type":"box","text":"Nominating Committee, the Compliance Committee, the Per formance Oversight Committee and the Securities","page_number":28,"box":{"x":70,"y":491,"width":782,"height":11}},{"id":"b6182372-8d9a-4f9d-b344-b8842251c51c","block_type":"box","text":"Lending Committee each meets regularly and the Executive Committee meets on an ad hoc basis to conduct the","page_number":28,"box":{"x":70,"y":506,"width":801,"height":11}},{"id":"6522d09d-3c84-49a2-bad3-8bf3e1faeeb4","block_type":"box","text":"oversight functions delegated to that Committee by the Board and repor ts its findings to the Board. The Board and","page_number":28,"box":{"x":69,"y":521,"width":816,"height":11}},{"id":"c2ed9fd2-2ae1-48e5-bfc1-b9ca5ab3cdbf","block_type":"box","text":"each standing Committee conduct annual assessments of their oversight function and structure. The Board has","page_number":28,"box":{"x":69,"y":536,"width":797,"height":11}},{"id":"92cdcd84-5cc4-4c64-a82b-529eb2bec2f8","block_type":"box","text":"determined that the Board’s leadership structure is appropriate because it allows the Board to exercise independent","page_number":28,"box":{"x":69,"y":551,"width":833,"height":11}},{"id":"e6c900e1-874a-4c34-ba6b-de76df49941a","block_type":"box","text":"judgment over management and to allocate areas of responsibility among Committees and the Board to enhance","page_number":28,"box":{"x":67,"y":566,"width":807,"height":11}},{"id":"19a0528d-5d3d-463e-b93a-9858efc8ec28","block_type":"box","text":"oversight.","page_number":28,"box":{"x":69,"y":582,"width":67,"height":11}},{"id":"1cf4ff7c-2a0c-4fcc-b917-21af7843770e","block_type":"box","text":"The Board decided to separate the roles of Chief Executive Officer from the Chair because it believes that having","page_number":28,"box":{"x":101,"y":604,"width":805,"height":11}},{"id":"2063144c-4c85-412c-9168-ec7be0ac27f1","block_type":"box","text":"an independent Chair:","page_number":28,"box":{"x":69,"y":619,"width":155,"height":11}},{"id":"cdbd4369-93ec-468c-8b95-1364b792d6dd","block_type":"box","text":"•","page_number":28,"box":{"x":102,"y":642,"width":6,"height":5}},{"id":"2a3010d2-97c7-47b2-bba4-64a2aa6afcee","block_type":"box","text":"increases the independent oversight of the Fund and enhances the Board’s objective evaluation of the Chief","page_number":28,"box":{"x":135,"y":639,"width":771,"height":12}},{"id":"6bb647ca-3a85-4a51-aadf-47db5c19402c","block_type":"box","text":"Executive Officer;","page_number":28,"box":{"x":135,"y":654,"width":121,"height":11}},{"id":"4ec22eb4-c59c-460d-a39f-611f10c1fc58","block_type":"box","text":"•","page_number":28,"box":{"x":102,"y":677,"width":6,"height":5}},{"id":"44f65c91-4427-45ba-9eb9-51ecd52bef6f","block_type":"box","text":"allows the Chief Executive Officer to focus on the Fund’s operations instead of Board administration;","page_number":28,"box":{"x":134,"y":675,"width":717,"height":11}},{"id":"62854cf7-a8be-422d-b751-7b6f0c0f7859","block_type":"box","text":"•","page_number":28,"box":{"x":102,"y":698,"width":6,"height":4}},{"id":"252abe33-6f76-47c9-8a50-3f6684b11aff","block_type":"box","text":"provides greater oppor tunities for direct and independent communication between shareholders and the","page_number":28,"box":{"x":135,"y":695,"width":742,"height":11}},{"id":"558ab546-8fc4-49e9-ba71-6aa0e7d00ffb","block_type":"box","text":"Board; and","page_number":28,"box":{"x":135,"y":710,"width":76,"height":10}},{"id":"c1527a2b-cee6-418a-abbe-b1f1d08e3f4f","block_type":"box","text":"•","page_number":28,"box":{"x":102,"y":733,"width":6,"height":4}},{"id":"bc5ac46b-6e56-444c-b1d4-982a30fe0cfc","block_type":"box","text":"provides an independent spokesman for the Fund.","page_number":28,"box":{"x":135,"y":730,"width":356,"height":11}},{"id":"8090b5e7-6f80-45de-b5e5-d39dfd0e8a32","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":28,"box":{"x":101,"y":753,"width":777,"height":11}},{"id":"46f1d70e-89de-48e2-b639-2b862279598c","block_type":"box","text":"overseeing the Manager, sub-advisers, other service providers, the operations of the Fund and associated risks in","page_number":28,"box":{"x":69,"y":768,"width":811,"height":11}},{"id":"70fba27a-39af-4ce5-a7dc-f96c6505ac7d","block_type":"box","text":"accordance with the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s char ter,","page_number":28,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"d24da8e8-4e72-42f1-a902-1684053c0e6e","block_type":"box","text":"and the Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s","page_number":28,"box":{"x":69,"y":798,"width":743,"height":11}},{"id":"907c7096-7481-4c6c-90a0-7788e6efe6e2","block_type":"box","text":"per formance, operations, and investment strategies and techniques. The Board also conducts reviews of the","page_number":28,"box":{"x":70,"y":813,"width":776,"height":11}},{"id":"e6f190f4-1f50-4d15-b9a7-4e9b27a94cf3","block_type":"box","text":"Manager and its role in running the operations of the Fund.","page_number":28,"box":{"x":70,"y":828,"width":419,"height":12}},{"id":"44478c0b-3196-43ec-9dde-f1b499228ffd","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager, sub-advisers or other","page_number":28,"box":{"x":102,"y":851,"width":793,"height":11}},{"id":"6e97653e-2dab-4cf1-bda8-3919feefc769","block_type":"box","text":"service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":28,"box":{"x":69,"y":866,"width":787,"height":11}},{"id":"83470e25-b878-4d08-b871-8b6cd33478b0","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":28,"box":{"x":69,"y":881,"width":832,"height":11}},{"id":"d669ae65-be5d-4586-bff0-9e0ea7c8ddf1","block_type":"box","text":"there are a number of risk management functions per formed by the Manager, sub-advisers or other service providers,","page_number":28,"box":{"x":68,"y":896,"width":839,"height":12}},{"id":"3cd6fa48-5a92-425f-9bfc-d3e64adabc66","block_type":"box","text":"as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight is par t of the","page_number":28,"box":{"x":69,"y":911,"width":789,"height":12}},{"id":"fd21cf42-5299-497b-a8fe-74da4da2261e","block_type":"box","text":"I-10","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"d6fc38cc-103a-4faa-b930-ae90a981bbca","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6abe50c-1cf1-4638-aba1-3de6910c4ad6","block_type":"box","text":"Board’s general oversight of the Fund and is addressed as par t of various Board and Committee activities. The","page_number":29,"box":{"x":70,"y":45,"width":790,"height":11}},{"id":"8bb28b8d-fde6-49d8-9059-a70b525aa34f","block_type":"box","text":"Board, directly or through Committees, also reviews repor ts from, among others, management, the independent","page_number":29,"box":{"x":70,"y":60,"width":799,"height":11}},{"id":"b85c9a8a-c78b-4f28-a33b-4c05568bf4a9","block_type":"box","text":"registered public accounting firm for the Fund, the Manager, sub-advisers and internal auditors for the Manager or its","page_number":29,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"dda56783-ec07-49ff-87cf-f1130f82f175","block_type":"box","text":"affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s risk","page_number":29,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"924ca7e5-fbae-469a-b41b-be148b12b4b4","block_type":"box","text":"functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors and","page_number":29,"box":{"x":68,"y":105,"width":811,"height":11}},{"id":"a8dbb8da-02b0-43e9-a233-a354fda20ba9","block_type":"box","text":"facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities and","page_number":29,"box":{"x":68,"y":120,"width":818,"height":12}},{"id":"3c1653bb-200b-4783-964d-4552149549a4","block_type":"box","text":"associated risks. The Board has approved the appointment of a Chief Compliance Officer (“CCO”), who oversees the","page_number":29,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"15038295-f22c-42b9-8f1e-dabeb19fa610","block_type":"box","text":"implementation and testing of the Fund’s compliance program and repor ts regularly to the Board regarding","page_number":29,"box":{"x":70,"y":150,"width":760,"height":12}},{"id":"b3458981-cfbb-4186-974f-db3e8a292a76","block_type":"box","text":"compliance matters for the Fund and its service providers. The Independent Directors have engaged independent","page_number":29,"box":{"x":69,"y":166,"width":807,"height":11}},{"id":"a8884feb-a0cc-4890-9b1c-9946876903ad","block_type":"box","text":"legal counsel to assist them in per forming their oversight responsibilities.","page_number":29,"box":{"x":70,"y":181,"width":524,"height":11}},{"id":"49724a61-2ca6-4f8b-a281-37bcb173f519","block_type":"box","text":"Audit Committee.","page_number":29,"box":{"x":101,"y":203,"width":122,"height":9}},{"id":"d1479f4a-230b-451d-9c5f-fe580b8e8a3b","block_type":"box","text":"The Board has a standing Audit Committee composed of Lorenzo A. Flores (Chair), J. Phillip","page_number":29,"box":{"x":229,"y":203,"width":651,"height":12}},{"id":"d62f1f5d-05d1-4ac3-83e8-f71128697dd7","block_type":"box","text":"Holloman and Ar thur P. Steinmetz, all of whom are Independent Directors. The principal responsibilities of the Audit","page_number":29,"box":{"x":70,"y":218,"width":822,"height":11}},{"id":"c9be7023-bc1e-4ad7-8371-4921b92e95d1","block_type":"box","text":"Committee are to assist the Board in fulfilling its oversight responsibilities relating to the accounting and financial","page_number":29,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"2b23c51d-e2a6-4f20-a3c4-609838b83be0","block_type":"box","text":"repor ting policies and practices of the Fund. The Audit Committee’s responsibilities include, without limitation:","page_number":29,"box":{"x":69,"y":249,"width":786,"height":11}},{"id":"67409537-650b-4c48-a1ca-d062103594ce","block_type":"box","text":"(i) approving, and recommending to the full Board for approval, the selection, retention, termination and","page_number":29,"box":{"x":69,"y":264,"width":739,"height":11}},{"id":"56f3cc82-f3be-40ed-b220-585c2441c779","block_type":"box","text":"compensation of the Fund’s independent registered public accounting firm (the “Independent Registered Public","page_number":29,"box":{"x":69,"y":279,"width":792,"height":11}},{"id":"ed9fa6db-b5e6-4a26-980a-82dbd3e0bf4c","block_type":"box","text":"Accounting Firm”) and evaluating the independence and objectivity of the Independent Registered Public Accounting","page_number":29,"box":{"x":68,"y":294,"width":824,"height":11}},{"id":"3251fb6f-1c5c-4c63-82ef-2240f27ae6d9","block_type":"box","text":"Firm; (ii) approving all audit engagement terms and fees for the Fund; (iii) reviewing the conduct and results of each","page_number":29,"box":{"x":70,"y":309,"width":822,"height":11}},{"id":"64273558-8b3c-4884-867b-c5d18cc85409","block_type":"box","text":"audit; (iv) reviewing any issues raised by the Fund’s Independent Registered Public Accounting Firm or management","page_number":29,"box":{"x":69,"y":325,"width":824,"height":11}},{"id":"dfd2c67a-5e70-44f4-a1db-523b86475ee8","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund, its internal controls, and, as","page_number":29,"box":{"x":69,"y":339,"width":785,"height":12}},{"id":"4da49d22-ecf6-4e9c-975c-ea80d0aed5d6","block_type":"box","text":"appropriate, the internal controls of cer tain service providers and management’s response to any such issues;","page_number":29,"box":{"x":69,"y":355,"width":791,"height":11}},{"id":"eab0c600-0ed4-41f4-b64d-2b89215732cf","block_type":"box","text":"(v) reviewing and discussing the Fund’s audited and unaudited financial statements and disclosure in the Fund’s","page_number":29,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"ea31dc94-cf6e-4d13-80b8-87aefc93f265","block_type":"box","text":"shareholder repor ts relating to the Fund’s per formance; (vi) assisting the Board’s responsibilities with respect to the","page_number":29,"box":{"x":69,"y":385,"width":833,"height":11}},{"id":"fa910bf2-6e06-44b4-9d0e-3828a7df062d","block_type":"box","text":"internal controls of the Fund and its service providers with respect to accounting and financial matters; and","page_number":29,"box":{"x":70,"y":400,"width":764,"height":11}},{"id":"5ca8a69b-68c0-42c9-9535-c9626e0eed1e","block_type":"box","text":"(vii) resolving any disagreements between the Fund’s management and the Fund’s Independent Registered Public","page_number":29,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"9d66c807-cb32-4ea3-9d1c-0356ee56b064","block_type":"box","text":"Accounting Firm regarding financial repor ting. The Board has adopted a written char ter for the Board’s Audit","page_number":29,"box":{"x":68,"y":430,"width":770,"height":11}},{"id":"8555f433-aef4-4bcc-bb86-0dbb1c2e8bb0","block_type":"box","text":"Committee. During the fiscal year ended December 31, 2025, the Audit Committee met four times.","page_number":29,"box":{"x":69,"y":445,"width":706,"height":12}},{"id":"8110af88-7f3a-4174-a2cb-73e82d2bdc34","block_type":"box","text":"Governance and Nominating Committee.","page_number":29,"box":{"x":102,"y":468,"width":286,"height":11}},{"id":"8e9c9ffe-fd12-4704-b902-b2c2d555ba31","block_type":"box","text":"The Board has a standing Governance and Nominating Committee","page_number":29,"box":{"x":394,"y":468,"width":471,"height":11}},{"id":"86e0495f-09c6-48a1-84de-85e3d1eac14c","block_type":"box","text":"composed of W. Carl Kester (Chair), Cynthia L. Egan, J. Phillip Holloman and R. Glenn Hubbard, all of whom are","page_number":29,"box":{"x":69,"y":483,"width":791,"height":11}},{"id":"befeb04c-c709-4a6c-a774-57e8b91bf573","block_type":"box","text":"Independent Directors. The principal responsibilities of the Governance and Nominating Committee are: (i) identifying","page_number":29,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"9a975ac2-8b65-416a-9490-ad300a205eb1","block_type":"box","text":"individuals qualified to serve as Independent Directors and recommending Board nominees that are not “interested","page_number":29,"box":{"x":70,"y":513,"width":823,"height":12}},{"id":"1bed7e0b-cda5-4984-9c0e-1ef2957ece73","block_type":"box","text":"persons” of the Fund (as defined in the Investment Company Act) for election by shareholders or appointment by the","page_number":29,"box":{"x":70,"y":528,"width":829,"height":12}},{"id":"77a2e0fc-4241-4e87-a4a5-51c723727d5f","block_type":"box","text":"Board; (ii) advising the Board with respect to Board composition, procedures and Committees of the Board (other","page_number":29,"box":{"x":70,"y":543,"width":806,"height":12}},{"id":"58dca18e-038a-4a85-b593-70f8914badcc","block_type":"box","text":"than the Audit Committee); (iii) overseeing periodic self-assessments of the Board and Committees of the Board","page_number":29,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"181cf372-519f-43dc-b9bf-6cb442d21f94","block_type":"box","text":"(other than the Audit Committee); (iv) reviewing and making recommendations in respect to Independent Director","page_number":29,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"94bad5e5-7d4c-4a62-9c39-fe90bb2fbf11","block_type":"box","text":"compensation; (v) monitoring corporate governance matters and making recommendations in respect thereof to the","page_number":29,"box":{"x":69,"y":589,"width":823,"height":11}},{"id":"d3b9d4ee-4af9-4eb0-bfac-7614413e4efa","block_type":"box","text":"Board; (vi) acting as the administrative committee with respect to Board policies and procedures, committee policies","page_number":29,"box":{"x":70,"y":604,"width":831,"height":11}},{"id":"5f1fd80c-47d5-406c-bfa2-08fc8ec20f44","block_type":"box","text":"and procedures (other than the Audit Committee) and codes of ethics as they relate to the Independent Directors;","page_number":29,"box":{"x":69,"y":619,"width":811,"height":11}},{"id":"9b673bc9-9e88-4ad6-9c3f-c8977dc89e59","block_type":"box","text":"and (vii) reviewing and making recommendations to the Board in respect of Fund share ownership by the Independent","page_number":29,"box":{"x":69,"y":634,"width":838,"height":12}},{"id":"29b176d0-2f66-481f-8b19-1f276e5c3c77","block_type":"box","text":"Directors. The Board has adopted a written char ter for the Board’s Governance and Nominating Committee. During","page_number":29,"box":{"x":70,"y":649,"width":817,"height":12}},{"id":"97bc5782-5ac1-4e5a-bc53-c1f118353671","block_type":"box","text":"the fiscal year ended December 31, 2025, the Governance and Nominating Committee met four times.","page_number":29,"box":{"x":68,"y":664,"width":734,"height":12}},{"id":"1cb9eb4b-954e-4386-8434-c6311551d171","block_type":"box","text":"The Governance and Nominating Committee of the Board seeks to identify individuals to serve on the Board who","page_number":29,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"ea364137-92d2-4597-bc32-5ed2a1ae3f45","block_type":"box","text":"have a diverse range of viewpoints, qualifications, experiences, backgrounds and skill sets so that the Board will be","page_number":29,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"343c5503-1ab1-47a2-a1a9-6ae8478f3241","block_type":"box","text":"better suited to fulfill its responsibility of overseeing the Fund’s activities. In so doing, the Governance and","page_number":29,"box":{"x":69,"y":717,"width":759,"height":12}},{"id":"628ac563-856c-4d20-b1ee-eecb15b52f7b","block_type":"box","text":"Nominating Committee reviews the size of the Board, the ages of the current Directors and their tenure on the Board,","page_number":29,"box":{"x":70,"y":732,"width":836,"height":12}},{"id":"fd975429-b0bf-4703-9af5-b7f01cd66561","block_type":"box","text":"and the skills, background and experiences of the Directors in light of the issues facing the Fund in determining","page_number":29,"box":{"x":69,"y":748,"width":796,"height":11}},{"id":"63375e85-3634-4c0b-8d43-f3cda4f08006","block_type":"box","text":"whether one or more new directors should be added to the Board. The Board as a group strives to achieve diversity in","page_number":29,"box":{"x":68,"y":763,"width":839,"height":11}},{"id":"026dd0aa-acd0-4f2f-aa72-16fe41082989","block_type":"box","text":"terms of gender, race and geographic location. The Governance and Nominating Committee believes that the","page_number":29,"box":{"x":68,"y":778,"width":775,"height":11}},{"id":"58dacf61-feb9-47e0-affd-6ad98152077e","block_type":"box","text":"Directors as a group possess the array of skills, experiences and backgrounds necessary to guide the Fund. The","page_number":29,"box":{"x":70,"y":793,"width":802,"height":11}},{"id":"9e82597f-6f90-498f-99a3-c084f4219a8e","block_type":"box","text":"Directors’ biographies included herein highlight the diversity and breadth of skills, qualifications and exper tise that","page_number":29,"box":{"x":70,"y":808,"width":816,"height":11}},{"id":"fe0f688b-005d-480f-8485-6063c1102dcb","block_type":"box","text":"the Directors bring to the Fund.","page_number":29,"box":{"x":68,"y":823,"width":221,"height":12}},{"id":"98d04cb2-1c1a-4c1c-b5c4-122b196c2541","block_type":"box","text":"The Governance and Nominating Committee may consider nominations for Directors made by the Fund’s","page_number":29,"box":{"x":101,"y":846,"width":744,"height":11}},{"id":"071de9ad-f464-4125-9652-423a42d685a9","block_type":"box","text":"shareholders as it deems appropriate. Under the Fund’s Bylaws, shareholders must follow cer tain procedures to","page_number":29,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"bd05840e-9e82-4a5f-8490-109c134187fa","block_type":"box","text":"nominate a person for election as a Director at a shareholder meeting at which Directors are to be elected. Under","page_number":29,"box":{"x":69,"y":876,"width":810,"height":11}},{"id":"45aae7fc-7631-47a0-8eda-21b7426d5837","block_type":"box","text":"these advance notice procedures, shareholders must submit the proposed nominee by delivering a notice to the","page_number":29,"box":{"x":68,"y":891,"width":801,"height":12}},{"id":"ff472aac-66ae-4c8c-8f85-0d83d6283e52","block_type":"box","text":"Secretary of the Fund at its principal executive offices no later than the close of business on the fifth (5th) day","page_number":29,"box":{"x":69,"y":906,"width":790,"height":12}},{"id":"36f28583-718b-4a26-9684-49ee29f11c9d","block_type":"box","text":"I-11","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"d125ede7-1698-47af-97a5-afe85124bddb","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7514addb-9c93-4961-baf3-7c747efbc47b","block_type":"box","text":"following the day on which notice of the date of the meeting was mailed or public disclosure of the date of the","page_number":30,"box":{"x":68,"y":45,"width":784,"height":11}},{"id":"615875b8-3b05-4595-8abd-d69d97a0e160","block_type":"box","text":"meeting was made, whichever first occurs.","page_number":30,"box":{"x":69,"y":60,"width":302,"height":11}},{"id":"a8ab5a40-c238-4db8-be06-144a82297087","block_type":"box","text":"The Fund’s Bylaws provide that notice of a proposed nomination must include cer tain information about the","page_number":30,"box":{"x":101,"y":82,"width":768,"height":12}},{"id":"000de19c-1e84-4014-b3ac-01219c029864","block_type":"box","text":"shareholder and the nominee, as well as cer tain other information, including a written consent of the proposed","page_number":30,"box":{"x":69,"y":98,"width":791,"height":11}},{"id":"7f7fecf3-16d0-4ed1-a859-20851b9d8c9a","block_type":"box","text":"nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details.","page_number":30,"box":{"x":69,"y":113,"width":613,"height":11}},{"id":"9a85d593-ba77-4b99-985f-ede86982a98e","block_type":"box","text":"Compliance Committee.","page_number":30,"box":{"x":102,"y":135,"width":168,"height":11}},{"id":"8bdcffab-d448-40bf-a1dd-f6f2c427e157","block_type":"box","text":"The Board has a Compliance Committee composed of Cynthia L. Egan (Chair), Stayce D.","page_number":30,"box":{"x":276,"y":135,"width":628,"height":12}},{"id":"f929ba39-fc7a-498d-aa2e-971f6baa77f5","block_type":"box","text":"Harris, R. Glenn Hubbard and W. Carl Kester, all of whom are Independent Directors. The Compliance Committee’s","page_number":30,"box":{"x":70,"y":150,"width":815,"height":11}},{"id":"c747b73c-eaab-4198-b426-ba0196efb50a","block_type":"box","text":"purpose is to assist the Board in fulfilling its responsibility with respect to the oversight of regulatory and fiduciary","page_number":30,"box":{"x":70,"y":166,"width":814,"height":11}},{"id":"aead82a1-4327-4cee-9bbb-accfc8855406","block_type":"box","text":"compliance matters involving the Fund, the fund-related activities of BlackRock, and any sub-advisers and the Fund’s","page_number":30,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"cdc55a8f-9472-4658-b23f-2ee303bca01a","block_type":"box","text":"other third par ty service providers. The Compliance Committee’s responsibilities include, without limitation:","page_number":30,"box":{"x":69,"y":196,"width":765,"height":11}},{"id":"bbe34dd8-a7de-4f3a-9329-4c3cca07a2da","block_type":"box","text":"(i) overseeing the compliance policies and procedures of the Fund and its service providers and recommending","page_number":30,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"0e9cb1f0-1f10-450a-9376-c3da79e48c49","block_type":"box","text":"changes or additions to such policies and procedures; (ii) reviewing information on and, where appropriate,","page_number":30,"box":{"x":69,"y":226,"width":762,"height":11}},{"id":"458e1dbc-21aa-4499-8f55-179946a22e60","block_type":"box","text":"recommending policies concerning the Fund’s compliance with applicable law; (iii) reviewing information on any","page_number":30,"box":{"x":69,"y":241,"width":791,"height":11}},{"id":"956f2925-aa4d-4453-88b7-8079e38be093","block_type":"box","text":"significant correspondence with or other actions by regulators or governmental agencies with respect to the Fund and","page_number":30,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"a11fe250-3a66-4402-942d-23a25b9a65d4","block_type":"box","text":"any employee complaints or published repor ts that raise concerns regarding compliance matters; and (iv) reviewing","page_number":30,"box":{"x":69,"y":272,"width":822,"height":11}},{"id":"b59ed08e-25c9-46af-a91d-218d2aa4a509","block_type":"box","text":"repor ts from, overseeing the annual per formance review of, and making cer tain recommendations in respect of, the","page_number":30,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"e21fdc2b-84eb-4784-93d1-82184356beff","block_type":"box","text":"Fund’s CCO, including, without limitation, determining the amount and structure of the CCO’s compensation. The","page_number":30,"box":{"x":70,"y":302,"width":803,"height":11}},{"id":"7cb579e0-ca00-46a2-b50e-79b8b575b920","block_type":"box","text":"Board has adopted a written char ter for the Board’s Compliance Committee. During the fiscal year ended","page_number":30,"box":{"x":70,"y":317,"width":747,"height":11}},{"id":"371782a5-ca98-46ab-918f-365a90ab4805","block_type":"box","text":"December 31, 2025, the Compliance Committee met four times.","page_number":30,"box":{"x":70,"y":332,"width":460,"height":11}},{"id":"6cfbb29e-c9bd-4dbf-9764-fa436529f6e7","block_type":"box","text":"Per formance Oversight Committee.","page_number":30,"box":{"x":102,"y":355,"width":248,"height":11}},{"id":"f02a6601-ff77-419e-a267-a2318e185f41","block_type":"box","text":"The Board has a Per formance Oversight Committee composed of Ar thur P.","page_number":30,"box":{"x":356,"y":355,"width":530,"height":11}},{"id":"149d2d12-9ce4-4661-ba46-f322f85df364","block_type":"box","text":"Steinmetz (Chair), Cynthia L. Egan, Lorenzo A. Flores, Stayce D. Harris, J. Phillip Holloman, R. Glenn Hubbard and W.","page_number":30,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"165139cc-ccac-473d-8841-b934d805a699","block_type":"box","text":"Carl Kester, all of whom are Independent Directors. The Per formance Oversight Committee’s purpose is to assist the","page_number":30,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"9ce53370-97a0-49ad-b841-c793b1392af2","block_type":"box","text":"Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to the Fund’s investment","page_number":30,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"cac859d8-b58f-47f2-9050-77f42dd50614","block_type":"box","text":"objective, policies and practices. The Per formance Oversight Committee’s responsibilities include, without limitation:","page_number":30,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"8f1fd018-42d2-4d4d-92ef-94a1fb5d8a92","block_type":"box","text":"(i) reviewing the Fund’s investment objective, policies and practices; (ii) recommending to the Board any required","page_number":30,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"1752ea4e-f329-4de8-bfb9-b34cf082226f","block_type":"box","text":"action in respect of changes in fundamental and non-fundamental investment restrictions; (iii) reviewing information","page_number":30,"box":{"x":69,"y":445,"width":824,"height":12}},{"id":"0a87f9ef-fdd9-43e5-9a8c-92b6f633d374","block_type":"box","text":"on appropriate benchmarks and competitive universes; (iv) reviewing the Fund’s investment per formance relative to","page_number":30,"box":{"x":69,"y":460,"width":823,"height":12}},{"id":"975941e4-e996-4e7d-b44c-8140564bac70","block_type":"box","text":"such benchmarks; (v) reviewing information on unusual or exceptional investment matters; (vi) reviewing whether the","page_number":30,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"14f3c7d8-e5e3-43bb-8841-ffb864274723","block_type":"box","text":"Fund has complied with its investment policies and restrictions; and (vii) overseeing policies, procedures and controls","page_number":30,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"ddc1f8ab-61b2-4f4a-9f32-ceabe3e55202","block_type":"box","text":"regarding valuation of the Fund’s investments. The Board has adopted a written char ter for the Board’s Per formance","page_number":30,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"9fc80e15-d2f8-4487-9ce8-38d63251fecb","block_type":"box","text":"Oversight Committee. During the fiscal year ended December 31, 2025, the Per formance Oversight Committee met","page_number":30,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"c7fff617-51f3-4b08-a22d-74dfd5691cc0","block_type":"box","text":"four times.","page_number":30,"box":{"x":68,"y":536,"width":76,"height":9}},{"id":"8664f2a3-0cba-4bc6-bde7-33c8cc64dcd0","block_type":"box","text":"Securities Lending Committee.","page_number":30,"box":{"x":102,"y":559,"width":217,"height":11}},{"id":"0f017db1-c6e1-446a-91aa-8384e24b8998","block_type":"box","text":"The Board has a Securities Lending Committee composed of Cynthia L. Egan","page_number":30,"box":{"x":325,"y":559,"width":547,"height":11}},{"id":"1cd9db61-b4a4-41de-bf16-1c8365a00460","block_type":"box","text":"(Chair) and W. Carl Kester, both of whom are Independent Directors. The principal responsibilities of the Securities","page_number":30,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"661e4f53-d31b-48da-bc42-6d5a79158722","block_type":"box","text":"Lending Committee include, without limitation: (i) suppor ting, overseeing and organizing on behalf of the Board the","page_number":30,"box":{"x":70,"y":589,"width":815,"height":11}},{"id":"8b01191f-94c8-480b-97f0-7f9cbd44f0d2","block_type":"box","text":"process for oversight of the Fund’s securities lending activities; and (ii) providing a recommendation to the Board","page_number":30,"box":{"x":70,"y":604,"width":804,"height":11}},{"id":"84171f21-a358-450d-9331-3b25a177dfbb","block_type":"box","text":"regarding the annual approval of the Fund’s Securities Lending Guidelines and the Fund’s agreement with the lending","page_number":30,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"9619d993-c5e3-4e67-9c93-c37e4fe33272","block_type":"box","text":"agent. The Board has adopted a written char ter for the Board’s Securities Lending Committee. During the fiscal year","page_number":30,"box":{"x":69,"y":634,"width":829,"height":12}},{"id":"401933ae-817c-4000-bc08-4d137cd3b0d6","block_type":"box","text":"ended December 31, 2025, the Securities Lending Committee met two times.","page_number":30,"box":{"x":69,"y":649,"width":555,"height":12}},{"id":"2914d13e-21ed-45fc-b285-08e9ffffb0ea","block_type":"box","text":"Executive Committee.","page_number":30,"box":{"x":102,"y":672,"width":152,"height":9}},{"id":"0440d972-0053-4b3c-89e7-ecd656a7a73c","block_type":"box","text":"The Board has an Executive Committee composed of R. Glenn Hubbard (Chair) and W. Carl","page_number":30,"box":{"x":260,"y":672,"width":645,"height":11}},{"id":"66e5b82d-e2d6-48c7-a5d5-aa08acf59c09","block_type":"box","text":"Kester, both of whom are Independent Directors, and John M. Perlowski, who serves as an interested Director. The","page_number":30,"box":{"x":70,"y":687,"width":819,"height":11}},{"id":"2a85497d-1ceb-4ecf-b4b5-dc3e7e518916","block_type":"box","text":"principal responsibilities of the Executive Committee include, without limitation: (i) acting on routine matters between","page_number":30,"box":{"x":70,"y":702,"width":832,"height":12}},{"id":"902c5076-ceed-4047-bee6-4978dbeceff0","block_type":"box","text":"meetings of the Board; (ii) acting on such matters as may require urgent action between meetings of the Board; and","page_number":30,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"2cc2a0c3-ae5b-4107-9ca0-8cefd499e2f3","block_type":"box","text":"(iii) exercising such other authority as may from time to time be delegated to the Executive Committee by the Board.","page_number":30,"box":{"x":69,"y":732,"width":826,"height":12}},{"id":"dcdea541-afa1-4d6c-ad82-5c1abaf45f88","block_type":"box","text":"The Board has adopted a written char ter for the Board’s Executive Committee. During the fiscal year ended","page_number":30,"box":{"x":68,"y":748,"width":764,"height":11}},{"id":"579ba78d-8f29-4a6b-aab4-f79c30ee26e4","block_type":"box","text":"December 31, 2025, the Executive Committee did not meet.","page_number":30,"box":{"x":70,"y":763,"width":429,"height":10}},{"id":"15a049ab-e0b0-4127-b32c-7e267d9e4c27","block_type":"box","text":"The Independent Directors have adopted a statement of policy that describes the experiences, qualifications,","page_number":30,"box":{"x":101,"y":785,"width":778,"height":12}},{"id":"7dfb33f3-44d9-4db5-940a-bee2800a5d89","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":30,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"a555d2a0-4bce-4bf1-b75d-54b83ca3d3ae","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":30,"box":{"x":69,"y":816,"width":833,"height":11}},{"id":"59d4f533-56e8-4ea0-97d0-efcd5ca591c0","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy as well as the","page_number":30,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"0a0537d7-895f-4cc0-bf2d-5024634c8628","block_type":"box","text":"standards set for th in the Fund’s Bylaws. Fur thermore, in determining that a par ticular Director was and continues to","page_number":30,"box":{"x":69,"y":846,"width":836,"height":11}},{"id":"a42088d3-3245-4f85-97e1-54578973ecde","block_type":"box","text":"be qualified to serve as a Director, the Board has considered a variety of criteria, none of which, in isolation, was","page_number":30,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"5e356160-1ccd-4782-9975-2f427abd2ddb","block_type":"box","text":"controlling. The Board believes that, collectively, the Directors have balanced and diverse experiences, skills,","page_number":30,"box":{"x":69,"y":876,"width":775,"height":11}},{"id":"7dd36f40-f11e-44e9-aa36-8fc5e6d77454","block_type":"box","text":"attributes and qualifications, which allow the Board to operate effectively in governing the Fund and protecting the","page_number":30,"box":{"x":69,"y":891,"width":812,"height":12}},{"id":"2c860a08-add0-4dd3-8dfe-a4e3f4dffaab","block_type":"box","text":"interests of shareholders. Among the attributes common to all Directors is their ability to review critically, evaluate,","page_number":30,"box":{"x":70,"y":906,"width":817,"height":12}},{"id":"88e89361-82bb-4006-a0e4-161800405ba7","block_type":"box","text":"I-12","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a8e01701-ff78-4dbf-92ed-93f443a76923","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"623eb531-ec54-4448-9862-31addb8aefe9","block_type":"box","text":"question and discuss information provided to them, to interact effectively with the Manager, sub-advisers, other","page_number":31,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"518ef1ef-3b9e-4bfa-a84a-dffddde6ac00","block_type":"box","text":"service providers, counsel and independent auditors, and to exercise effective business judgment in the","page_number":31,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"38380fd3-ad67-4fff-abb3-aea37fce96c7","block_type":"box","text":"per formance of their duties as Directors. Each Director’s ability to per form his or her duties effectively is evidenced","page_number":31,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"963510b2-dda5-4008-9cc8-e4bcbe5bde31","block_type":"box","text":"by his or her educational background or professional training; business, consulting, public service or academic","page_number":31,"box":{"x":69,"y":90,"width":788,"height":11}},{"id":"ce75edb4-1380-4e71-88db-ac1610a35213","block_type":"box","text":"positions; experience from service as a board member of the Fund or the other funds in the BlackRock Fund","page_number":31,"box":{"x":70,"y":105,"width":769,"height":11}},{"id":"a59d3082-1a29-4557-b2ea-503c9d54a2f5","block_type":"box","text":"Complexes (and any predecessor funds), other investment funds, public companies, or not-for-profit entities or other","page_number":31,"box":{"x":69,"y":120,"width":828,"height":11}},{"id":"185989e5-6e15-4abd-a0f6-6402dc1618e4","block_type":"box","text":"organizations; ongoing commitment and par ticipation in Board and Committee meetings, as well as his or her","page_number":31,"box":{"x":69,"y":135,"width":782,"height":12}},{"id":"023f7ec0-f6b4-42d4-a286-b7af6fa39698","block_type":"box","text":"leadership of standing and other committees throughout the years; or other relevant life experiences.","page_number":31,"box":{"x":70,"y":150,"width":719,"height":12}},{"id":"70ad471f-adca-4a6e-a400-fb6da5ef0a03","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each Director that suppor t the","page_number":31,"box":{"x":101,"y":173,"width":787,"height":11}},{"id":"ea95f5f7-a481-4ae1-998b-044838412dda","block_type":"box","text":"conclusion that he or she should serve on the Board.","page_number":31,"box":{"x":69,"y":188,"width":378,"height":9}},{"id":"4baa974e-e8ef-4d0f-82d0-fb4e54dad283","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":31,"box":{"x":69,"y":217,"width":408,"height":8}},{"id":"a4cc62ac-7f1c-42c9-b66e-d3aad08f85d4","block_type":"box","text":"Independent Directors","page_number":31,"box":{"x":70,"y":233,"width":156,"height":11}},{"id":"27c68960-bc3f-4ce2-8ea4-5739cc08c168","block_type":"box","text":"R. Glenn Hubbard R. Glenn Hubbard has served in numerous roles in the field of economics, including as","page_number":31,"box":{"x":70,"y":248,"width":814,"height":11}},{"id":"5239791f-d321-4b73-aaec-fb4e2ada58b2","block_type":"box","text":"the Chairman of the U.S. Council of Economic Advisers of the President of the United","page_number":31,"box":{"x":264,"y":263,"width":606,"height":9}},{"id":"9cddb7e8-53f7-4ba7-822f-486dd7baafce","block_type":"box","text":"States. Dr. Hubbard has served as the Dean of Columbia Business School, as a member","page_number":31,"box":{"x":265,"y":278,"width":635,"height":11}},{"id":"a9ddb4a6-4868-47e1-9676-1a5e51f7523e","block_type":"box","text":"of the Columbia Faculty and as a Visiting Professor at the John F. Kennedy School of","page_number":31,"box":{"x":265,"y":293,"width":602,"height":12}},{"id":"da0e0510-be50-4c06-8984-18746540afc9","block_type":"box","text":"Government at Harvard University, the Harvard Business School and the University of","page_number":31,"box":{"x":265,"y":309,"width":608,"height":11}},{"id":"bb43329e-b27e-40b8-af51-9bfd281b4534","block_type":"box","text":"Chicago. Dr. Hubbard’s experience as an adviser to the President of the United States","page_number":31,"box":{"x":265,"y":324,"width":613,"height":11}},{"id":"bd2c0a81-88bd-4e91-8a99-5b2dc1f664c2","block_type":"box","text":"adds a dimension of balance to the Fund’s governance and provides perspective on","page_number":31,"box":{"x":265,"y":339,"width":595,"height":11}},{"id":"ca7e3f2c-cfe6-47fa-b353-58fdd0b1042b","block_type":"box","text":"economic issues. Dr. Hubbard’s service on the boards of ADP and Metropolitan Life","page_number":31,"box":{"x":265,"y":354,"width":597,"height":11}},{"id":"d715ee1a-0b85-4eb2-8cdf-3eb957d0498a","block_type":"box","text":"Insurance Company provides the Board with the benefit of his experience with the","page_number":31,"box":{"x":265,"y":369,"width":581,"height":11}},{"id":"7ad9acf2-e114-462d-9b35-c9e1165ea042","block_type":"box","text":"management practices of other financial companies. Dr. Hubbard’s long-standing service","page_number":31,"box":{"x":265,"y":384,"width":632,"height":11}},{"id":"0fb07109-e179-45e2-84bd-821f93866e13","block_type":"box","text":"on the boards of directors/trustees of the closed-end funds in the BlackRock Fixed","page_number":31,"box":{"x":265,"y":399,"width":594,"height":11}},{"id":"458fc117-fb30-4663-a189-1ef54811a384","block_type":"box","text":"Income Complex also provides him with a specific understanding of the Fund, its","page_number":31,"box":{"x":265,"y":414,"width":573,"height":12}},{"id":"b623ebad-f761-415d-b4eb-51db44479c15","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Hubbard’s","page_number":31,"box":{"x":265,"y":429,"width":589,"height":12}},{"id":"86e35b15-51fa-4140-868b-61cd28dae349","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Chair of the","page_number":31,"box":{"x":265,"y":445,"width":595,"height":11}},{"id":"166e1b42-7ff9-4b78-bdce-b47ce87e417b","block_type":"box","text":"Board, Chair of the Executive Committee and a member of the Governance and","page_number":31,"box":{"x":265,"y":460,"width":562,"height":10}},{"id":"9f64dbed-3e08-4a94-8e6d-26ce4a69256e","block_type":"box","text":"Nominating Committee, the Compliance Committee and the Per formance Oversight","page_number":31,"box":{"x":265,"y":475,"width":592,"height":11}},{"id":"b04f3989-2fc2-44eb-8c14-c8fa9be58b29","block_type":"box","text":"Committee.","page_number":31,"box":{"x":265,"y":490,"width":80,"height":9}},{"id":"3228dc88-c81e-423a-be4a-81d9d6f6e0da","block_type":"box","text":"W. Carl Kester The Board benefits from W. Carl Kester’s experiences as a professor and author in","page_number":31,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"b9aa3c6f-e43f-4ada-b275-2336fb50301a","block_type":"box","text":"finance, and his experience as the George Fisher Baker Jr. Professor of Business","page_number":31,"box":{"x":264,"y":528,"width":578,"height":11}},{"id":"cb848e65-412b-4f5e-8043-6a33253e22bd","block_type":"box","text":"Administration at Harvard Business School and as Deputy Dean of Academic Affairs at","page_number":31,"box":{"x":264,"y":543,"width":618,"height":11}},{"id":"43707fc6-f7cf-40d9-97cd-f34f29bf78f7","block_type":"box","text":"Harvard Business School from 2006 through 2010 adds to the Board a wealth of","page_number":31,"box":{"x":265,"y":558,"width":581,"height":11}},{"id":"79d80a05-bba5-4886-8df3-f26c3f0df6bb","block_type":"box","text":"exper tise in corporate finance and corporate governance. Dr. Kester has authored and","page_number":31,"box":{"x":265,"y":573,"width":613,"height":11}},{"id":"1f0564d6-85f2-459b-a9ff-29ab2ebeb96c","block_type":"box","text":"edited numerous books and research papers on both subject matters, including co-editing","page_number":31,"box":{"x":265,"y":588,"width":641,"height":12}},{"id":"1c55f77e-e312-4876-bca2-6e4e7b391da2","block_type":"box","text":"a leading volume of finance case studies used worldwide. Dr. Kester’s long-standing","page_number":31,"box":{"x":265,"y":603,"width":599,"height":12}},{"id":"ae3aa08d-3d38-42cd-b5e2-06a11c17ee03","block_type":"box","text":"service on the boards of directors/trustees of the closed-end funds in the BlackRock","page_number":31,"box":{"x":265,"y":618,"width":605,"height":12}},{"id":"b65f29c7-fd08-4e50-8c28-68f903084674","block_type":"box","text":"Fixed-Income Complex also provides him with a specific understanding of the Fund, its","page_number":31,"box":{"x":265,"y":634,"width":613,"height":11}},{"id":"ae09fc47-0956-4ded-8cf9-348b7b44f334","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Kester’s","page_number":31,"box":{"x":265,"y":649,"width":576,"height":11}},{"id":"7ffc0252-92d7-4b0f-a88c-3550e6bebc9e","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Vice Chair of the","page_number":31,"box":{"x":265,"y":664,"width":630,"height":11}},{"id":"f678ae80-f275-483e-9820-3e9bf0f6ba3c","block_type":"box","text":"Board, Chair of the Governance and Nominating Committee and a member of the","page_number":31,"box":{"x":265,"y":679,"width":576,"height":11}},{"id":"d6cdb671-5b80-4e00-9f06-a20cb5bf6e10","block_type":"box","text":"Executive Committee, the Compliance Committee, the Per formance Oversight Committee","page_number":31,"box":{"x":265,"y":694,"width":634,"height":11}},{"id":"c20a334e-d74a-465f-aa16-3d4021c5168b","block_type":"box","text":"and the Securities Lending Committee.","page_number":31,"box":{"x":265,"y":709,"width":275,"height":11}},{"id":"5714f285-3d9b-4b29-ad46-162585fa858c","block_type":"box","text":"I-13","page_number":31,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"49160c9a-0d96-4659-9e8e-dfdb16b8e786","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6048ebb-7d5f-44de-ac95-a5036edb03e2","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":32,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"7bd985dd-769c-4363-80e5-3aa575405475","block_type":"box","text":"Cynthia L. Egan Cynthia L. Egan brings to the Board a broad and diverse knowledge of investment","page_number":32,"box":{"x":69,"y":65,"width":775,"height":12}},{"id":"cdf9cd42-6db1-4b3c-8530-868f53155e8c","block_type":"box","text":"companies and the retirement industry as a result of her many years of experience as","page_number":32,"box":{"x":264,"y":81,"width":613,"height":11}},{"id":"367b7b14-114f-498a-922f-d9d9c8bdaf2e","block_type":"box","text":"President, Retirement Plan Services, for T. Rowe Price Group, Inc. and her various senior","page_number":32,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"b608ecd9-9570-4e97-a1a8-2be1242ac6d2","block_type":"box","text":"operating officer positions at Fidelity Investments, including her service as Executive Vice","page_number":32,"box":{"x":265,"y":111,"width":636,"height":11}},{"id":"20a11fbe-7858-43dd-a0d0-cd975ba69a89","block_type":"box","text":"President of FMR Co., President of Fidelity Institutional Services Company and President","page_number":32,"box":{"x":265,"y":126,"width":629,"height":11}},{"id":"2feecbab-7795-43c6-be34-f3979e0d549d","block_type":"box","text":"of the Fidelity Charitable Gift Fund. Ms. Egan has also served as an advisor to the U.S.","page_number":32,"box":{"x":265,"y":141,"width":617,"height":11}},{"id":"9cce6618-e956-452e-8667-485e66218df3","block_type":"box","text":"Depar tment of Treasury as an exper t in domestic retirement security. Ms. Egan began her","page_number":32,"box":{"x":265,"y":156,"width":642,"height":11}},{"id":"79a8085c-504f-424f-9f75-d4c088316c1d","block_type":"box","text":"professional career at the Board of Governors of the Federal Reserve and the Federal","page_number":32,"box":{"x":265,"y":171,"width":608,"height":11}},{"id":"061163a5-9dcb-4ce2-8b09-76ed891b334f","block_type":"box","text":"Reserve Bank of New York. Ms. Egan is also a director of UNUM Corporation, a publicly","page_number":32,"box":{"x":265,"y":186,"width":620,"height":12}},{"id":"19a40f15-ec6a-4a49-9dd3-def27c19b5b1","block_type":"box","text":"traded insurance company providing personal risk reinsurance, and a director and Chair of","page_number":32,"box":{"x":264,"y":201,"width":643,"height":12}},{"id":"7cf11e52-5300-4bcc-9a3d-08eabef6a7a0","block_type":"box","text":"the Board of The Hanover Group, a public proper ty casualty insurance company. Ms. Egan","page_number":32,"box":{"x":264,"y":217,"width":640,"height":11}},{"id":"660e365a-b08e-4e2f-bea0-43add3a56116","block_type":"box","text":"is also the lead independent director and non-executive Vice Chair of the Board of","page_number":32,"box":{"x":265,"y":232,"width":583,"height":11}},{"id":"4743dd38-a5da-4404-ac3d-7ce379c8e1d0","block_type":"box","text":"Huntsman Corporation, a publicly traded manufacturer and marketer of chemical products.","page_number":32,"box":{"x":265,"y":247,"width":643,"height":11}},{"id":"7a4a6f3c-ec98-4081-9c18-b64fe4876a59","block_type":"box","text":"Ms. Egan’s independence from the Fund and the Manager enhances her service as Chair","page_number":32,"box":{"x":265,"y":262,"width":636,"height":11}},{"id":"988852dc-3b8f-493d-b5ce-05c5239a83a7","block_type":"box","text":"of the Compliance Committee, Chair of the Securities Lending Committee and a member","page_number":32,"box":{"x":265,"y":277,"width":631,"height":11}},{"id":"f2d2df6f-a432-442e-bb6f-c882cb780b83","block_type":"box","text":"of the Governance and Nominating Committee and the Per formance Oversight Committee.","page_number":32,"box":{"x":265,"y":292,"width":642,"height":11}},{"id":"77be36b4-75ee-4a81-adad-e522d96fb139","block_type":"box","text":"Lorenzo A. Flores The Board benefits from Lorenzo A. Flores’s many years of business, leadership and","page_number":32,"box":{"x":70,"y":315,"width":796,"height":11}},{"id":"7ad35fcb-136b-42f4-87e5-7aac835cd5a0","block_type":"box","text":"financial experience in his roles at various public and private companies. In par ticular,","page_number":32,"box":{"x":264,"y":330,"width":612,"height":11}},{"id":"1ea49bf6-468f-4bc9-913c-87cd3f806530","block_type":"box","text":"Mr. Flores’s service as Chief Financial Officer of Lattice Semiconductor Corporation, a","page_number":32,"box":{"x":265,"y":345,"width":611,"height":11}},{"id":"f464bbd6-6349-4e8b-8bc1-823b2e4ebd5a","block_type":"box","text":"semiconductor company that designs, develops, and markets programmable logic","page_number":32,"box":{"x":265,"y":360,"width":582,"height":12}},{"id":"ef8e0a57-ccfb-4b5e-991d-2d96657fd3b4","block_type":"box","text":"products and related software, Chief Financial Officer of Intel Foundry, a semiconductor","page_number":32,"box":{"x":265,"y":375,"width":622,"height":11}},{"id":"cdc96dab-cce0-4b71-821c-9dfca5f5929c","block_type":"box","text":"manufacturing unit of Intel Corporation, Chief Financial Officer and Corporate Controller of","page_number":32,"box":{"x":265,"y":390,"width":639,"height":12}},{"id":"1ce47d09-0055-4177-aa65-1c45fe9159ba","block_type":"box","text":"Xilinx, Inc., a technology and semiconductor company that supplies programmable logic","page_number":32,"box":{"x":264,"y":406,"width":622,"height":11}},{"id":"cdb25234-90f3-4805-8bc5-8346302912da","block_type":"box","text":"devices, and Vice Chairman of Kioxia, Inc., a manufacturer and supplier of flash memory","page_number":32,"box":{"x":265,"y":421,"width":631,"height":11}},{"id":"54aebefb-9b17-49af-97fb-7874947e0ac8","block_type":"box","text":"and solid state drives, and his long experience in the technology industry allow him to","page_number":32,"box":{"x":265,"y":436,"width":610,"height":11}},{"id":"10fab5f9-a34b-475e-a7e3-c828c6b1a8d8","block_type":"box","text":"provide insight into financial, business and technology trends. Mr. Flores’s knowledge of","page_number":32,"box":{"x":265,"y":451,"width":629,"height":11}},{"id":"290984ba-23e4-4c63-8f20-25c52a85f74b","block_type":"box","text":"financial and accounting matters qualifies him to serve as Chair of the Audit Committee.","page_number":32,"box":{"x":264,"y":466,"width":630,"height":11}},{"id":"265c4c38-2a2c-43e2-beb3-9289070bea91","block_type":"box","text":"Mr. Flores’s independence from the Fund and the Manager enhances his service as a","page_number":32,"box":{"x":265,"y":481,"width":610,"height":11}},{"id":"2dff46c8-d5df-43a4-847c-4a767c7ccad1","block_type":"box","text":"member of the Per formance Oversight Committee.","page_number":32,"box":{"x":265,"y":496,"width":358,"height":12}},{"id":"9f1b60e7-b3e4-4988-a30a-1c8bd1addee2","block_type":"box","text":"Stayce D. Harris The Board benefits from Stayce D. 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In addition, the Chair of the","page_number":36,"box":{"x":69,"y":871,"width":838,"height":11}},{"id":"b0ee4bce-cfdc-471f-a3e1-8f302a6da744","block_type":"box","text":"Board and the Vice Chair of the Board are paid an additional annual retainer of $140,000 and $84,000, respectively.","page_number":36,"box":{"x":70,"y":886,"width":835,"height":11}},{"id":"dc60cbe3-6564-4004-a3bf-df46d80f6105","block_type":"box","text":"The Chairs of the Audit Committee, Per formance Oversight Committee, Compliance Committee, Governance and","page_number":36,"box":{"x":68,"y":901,"width":801,"height":12}},{"id":"fc9d47ca-5000-44be-a1b2-9781f8f5ed53","block_type":"box","text":"I-18","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"2de2420c-a39d-4404-af74-2e70c812606f","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fc95b42a-d4db-4bfc-a110-4e120a7e1621","block_type":"box","text":"Nominating Committee, and Securities Lending Committee are paid an additional annual retainer of $55,000,","page_number":37,"box":{"x":70,"y":44,"width":780,"height":12}},{"id":"ea5ada79-126d-482e-a256-bdb49431748e","block_type":"box","text":"$42,500, $50,000, $42,500 and $20,000, respectively. 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The Fund will pay a pro rata por tion quar terly","page_number":37,"box":{"x":69,"y":120,"width":819,"height":11}},{"id":"88f7ccc1-125d-44c9-955c-5a3efd17f60b","block_type":"box","text":"(based on relative net assets) of the foregoing Trustee fees paid by the funds in the BlackRock Fixed-Income","page_number":37,"box":{"x":69,"y":135,"width":772,"height":12}},{"id":"5a5c0ac2-8626-4794-a4f9-2330435266ea","block_type":"box","text":"Complex.","page_number":37,"box":{"x":69,"y":151,"width":64,"height":10}},{"id":"6c2f5f00-91ec-4396-ac8f-7e3812ffe3b3","block_type":"box","text":"The Independent Directors have agreed that a maximum of 50% of each Independent Director’s total","page_number":37,"box":{"x":101,"y":173,"width":717,"height":11}},{"id":"8d946f5a-dcd2-45dc-a3d4-469a30f1a497","block_type":"box","text":"compensation paid by funds in the BlackRock Fixed-Income Complex may be deferred pursuant to the BlackRock","page_number":37,"box":{"x":69,"y":188,"width":801,"height":11}},{"id":"db3d1359-15ac-48ad-8e89-6488e530f632","block_type":"box","text":"Fixed-Income Complex’s deferred compensation plan. Under the deferred compensation plan, deferred amounts earn","page_number":37,"box":{"x":70,"y":203,"width":833,"height":11}},{"id":"ef72764b-d0aa-4a7b-b7fc-0120a188a410","block_type":"box","text":"a return for the Independent Directors as though equivalent dollar amounts had been invested in shares of cer tain","page_number":37,"box":{"x":69,"y":218,"width":815,"height":12}},{"id":"c46dabe2-996c-4369-b837-4b9d3c41c2a0","block_type":"box","text":"funds in the BlackRock Fixed-Income Complex selected by the Independent Directors. This has approximately the","page_number":37,"box":{"x":68,"y":234,"width":804,"height":11}},{"id":"824f158b-6294-4623-bd42-46ee025c3a37","block_type":"box","text":"same economic effect for the Independent Directors as if they had invested the deferred amounts in such funds in","page_number":37,"box":{"x":69,"y":249,"width":817,"height":11}},{"id":"d9caca22-1914-4b08-901c-3f3dfc192e9a","block_type":"box","text":"the BlackRock Fixed-Income Complex. The deferred compensation plan is not funded and obligations thereunder","page_number":37,"box":{"x":68,"y":264,"width":800,"height":11}},{"id":"fb0351fe-9cac-47a3-bc5a-a9e7c74ccc18","block_type":"box","text":"represent general unsecured claims against the general assets of a fund and are recorded as a liability for","page_number":37,"box":{"x":69,"y":279,"width":760,"height":11}},{"id":"c61b9506-83fa-4b2f-8875-16ea7ac2a3c6","block_type":"box","text":"accounting purposes.","page_number":37,"box":{"x":69,"y":294,"width":151,"height":11}},{"id":"63d116bb-ab6e-4496-beae-627afec8b9ed","block_type":"box","text":"The following table sets for th the compensation paid to the Directors by the Fund for the fiscal year ended","page_number":37,"box":{"x":101,"y":317,"width":756,"height":11}},{"id":"8c7e240f-8dde-47c9-82b7-794d5b4252b6","block_type":"box","text":"December 31, 2025 and the aggregate compensation, including deferred compensation amounts, paid to them by all","page_number":37,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"a5faa7d9-4ed9-4f57-8d87-a74aba3cf789","block_type":"box","text":"BlackRock-advised Funds for the calendar year ended December 31, 2025.","page_number":37,"box":{"x":70,"y":347,"width":533,"height":11}},{"id":"e6a647b5-dfcc-42a3-8092-4729f61dedc2","block_type":"box","text":"Name","page_number":37,"box":{"x":69,"y":406,"width":32,"height":7}},{"id":"d5aa1e59-2c30-42f7-82c1-0d5fc76c6b42","block_type":"box","text":"1","page_number":37,"box":{"x":102,"y":406,"width":4,"height":3}},{"id":"36334294-6442-474f-8a8d-aed5844908d7","block_type":"box","text":"Compensation","page_number":37,"box":{"x":516,"y":395,"width":83,"height":9}},{"id":"05695c73-763e-4097-80b3-6484bef5cf7a","block_type":"box","text":"from the Fund","page_number":37,"box":{"x":517,"y":406,"width":81,"height":7}},{"id":"b0b7e77c-f68c-4df8-9f71-f71d6faac4ef","block_type":"box","text":"Estimated Annual","page_number":37,"box":{"x":630,"y":385,"width":101,"height":8}},{"id":"31464665-b743-4ea0-a970-ab055a044ec8","block_type":"box","text":"Benefits upon","page_number":37,"box":{"x":641,"y":395,"width":79,"height":9}},{"id":"318fc4df-ec18-4c69-bef9-cbb95c6c19e7","block_type":"box","text":"Retirement","page_number":37,"box":{"x":648,"y":406,"width":65,"height":7}},{"id":"0036d0e3-4cbf-46d0-a911-e509650cfcb7","block_type":"box","text":"Aggregate Compensation","page_number":37,"box":{"x":761,"y":375,"width":148,"height":9}},{"id":"f7d485b4-6bce-4159-9cc9-aef5cc41a278","block_type":"box","text":"from the Fund and","page_number":37,"box":{"x":782,"y":385,"width":106,"height":8}},{"id":"7039fcff-4c51-4b57-878a-ff03813ae66d","block_type":"box","text":"Other BlackRock","page_number":37,"box":{"x":785,"y":395,"width":102,"height":8}},{"id":"030aa927-b45c-487a-9a5e-34b441ef5a9c","block_type":"box","text":"Advised Funds","page_number":37,"box":{"x":788,"y":406,"width":84,"height":7}},{"id":"25ae5245-45ea-451c-a078-7c84229d39e5","block_type":"box","text":"2,3","page_number":37,"box":{"x":873,"y":406,"width":9,"height":4}},{"id":"4c3016e7-b830-4d43-92db-ec1ddc06b443","block_type":"box","text":"Independent Directors","page_number":37,"box":{"x":70,"y":423,"width":156,"height":11}},{"id":"405a36b8-3688-40fd-b9f6-e2a47be864a3","block_type":"box","text":"Cynthia L. Egan","page_number":37,"box":{"x":79,"y":438,"width":108,"height":12}},{"id":"03022a02-f94c-4a88-a4c5-1945be790508","block_type":"box","text":"4","page_number":37,"box":{"x":189,"y":439,"width":4,"height":4}},{"id":"551616e9-cd05-48e5-9581-e9136beb1656","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,488","page_number":37,"box":{"x":198,"y":438,"width":386,"height":11}},{"id":"04926877-62d7-47de-92b7-44b277799a5a","block_type":"box","text":"None $580,000","page_number":37,"box":{"x":663,"y":438,"width":208,"height":11}},{"id":"8abed041-a4e7-4dcb-9972-f457922f2e53","block_type":"box","text":"Lorenzo A. Flores","page_number":37,"box":{"x":79,"y":454,"width":121,"height":8}},{"id":"fa23c756-844c-4e08-8c52-96cdc706c2d6","block_type":"box","text":"5","page_number":37,"box":{"x":201,"y":454,"width":4,"height":4}},{"id":"b9e4c2b9-7dfa-47c4-98b1-cdef394c140b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,218","page_number":37,"box":{"x":214,"y":453,"width":370,"height":11}},{"id":"d231cbcf-d400-45df-826a-aa5a927f6592","block_type":"box","text":"None $400,000","page_number":37,"box":{"x":663,"y":453,"width":208,"height":11}},{"id":"cf2adbf0-dc77-4d3f-918d-911f59015516","block_type":"box","text":"Stayce D. Harris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,205","page_number":37,"box":{"x":79,"y":468,"width":505,"height":12}},{"id":"6401d71f-4c61-4c29-af44-28465e0c6aeb","block_type":"box","text":"None $395,000","page_number":37,"box":{"x":663,"y":468,"width":208,"height":11}},{"id":"6fff78c0-eaa9-449b-a2b2-e2f19aeb45b1","block_type":"box","text":"J. Phillip Holloman","page_number":37,"box":{"x":78,"y":484,"width":130,"height":11}},{"id":"4818c3e3-3144-4411-8a70-d71da5a6d70f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,286","page_number":37,"box":{"x":214,"y":483,"width":370,"height":11}},{"id":"6f06188a-a9d6-4744-855c-7bbed8da5d19","block_type":"box","text":"None $425,000","page_number":37,"box":{"x":663,"y":483,"width":208,"height":11}},{"id":"64ef4333-5d70-4ef2-9626-735e754952a8","block_type":"box","text":"R. Glenn Hubbard","page_number":37,"box":{"x":79,"y":499,"width":124,"height":9}},{"id":"62b86e8d-c158-44af-92f3-6b2d4670b1ce","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,650","page_number":37,"box":{"x":206,"y":498,"width":378,"height":11}},{"id":"2e50184c-2f05-46f7-a4fa-4a4c1b2fc861","block_type":"box","text":"None $560,000","page_number":37,"box":{"x":663,"y":498,"width":208,"height":11}},{"id":"b878016a-6a5d-4971-90af-407de410d7d6","block_type":"box","text":"W. Carl Kester","page_number":37,"box":{"x":78,"y":514,"width":102,"height":9}},{"id":"61fbd7ce-e749-44b9-b889-e7571a095b87","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,694","page_number":37,"box":{"x":182,"y":513,"width":402,"height":11}},{"id":"7685cab9-fd36-4793-af69-b07f5108bb4e","block_type":"box","text":"None $671,500","page_number":37,"box":{"x":663,"y":513,"width":208,"height":11}},{"id":"63791b7a-b0bc-4813-814a-e34fb19bd5a9","block_type":"box","text":"Catherine A. Lynch","page_number":37,"box":{"x":79,"y":529,"width":131,"height":11}},{"id":"3700f26e-2d98-4bf8-b5d2-9b9312d81834","block_type":"box","text":"6","page_number":37,"box":{"x":211,"y":529,"width":5,"height":5}},{"id":"3d183fed-9b31-43cb-8085-ecc37975a26d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,538","page_number":37,"box":{"x":223,"y":528,"width":361,"height":12}},{"id":"005c0da2-d294-4005-9446-0dcad936458d","block_type":"box","text":"None $610,000","page_number":37,"box":{"x":663,"y":528,"width":208,"height":12}},{"id":"076c5df6-d1c9-4cde-88ac-130f17861b42","block_type":"box","text":"Ar thur P. Steinmetz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,373","page_number":37,"box":{"x":78,"y":544,"width":506,"height":11}},{"id":"49ba0644-3237-4d77-97f5-751860f7d250","block_type":"box","text":"None $537,500","page_number":37,"box":{"x":663,"y":544,"width":208,"height":11}},{"id":"49579ba8-df56-4c5f-8f0b-9f81eb6f6033","block_type":"box","text":"Interested Directors","page_number":37,"box":{"x":70,"y":560,"width":140,"height":8}},{"id":"a1c60ace-70cb-498a-89bd-3c11bfdd9b1a","block_type":"box","text":"Rober t Fairbairn . . .","page_number":37,"box":{"x":79,"y":575,"width":137,"height":8}},{"id":"216efd86-0969-4912-9ade-5ac7576025ee","block_type":"box","text":".................................","page_number":37,"box":{"x":223,"y":582,"width":262,"height":1}},{"id":"fadc7ff8-96a0-4d82-98ac-6dc1089e6a53","block_type":"box","text":"None None None","page_number":37,"box":{"x":541,"y":575,"width":312,"height":8}},{"id":"4c4b925a-d4da-49b7-97c7-a4e071343a2d","block_type":"box","text":"John M. Perlowski . .","page_number":37,"box":{"x":78,"y":590,"width":146,"height":9}},{"id":"ce25c7cb-d4e6-46c6-8bed-03e023a80b96","block_type":"box","text":"................................","page_number":37,"box":{"x":231,"y":597,"width":254,"height":1}},{"id":"97141c45-7b35-4619-b6d7-9fa590f2f758","block_type":"box","text":"None None None","page_number":37,"box":{"x":541,"y":590,"width":312,"height":9}},{"id":"ffe822ba-41dc-4d88-ba89-cfa6ee821e2c","block_type":"box","text":"1","page_number":37,"box":{"x":69,"y":629,"width":3,"height":4}},{"id":"c73d4475-42f5-40a8-b7b2-342cd4276e21","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation see the Biographical Information Char t beginning","page_number":37,"box":{"x":94,"y":629,"width":813,"height":9}},{"id":"22e202e2-c2cd-41bd-956c-33367339ed36","block_type":"box","text":"on page I-15.","page_number":37,"box":{"x":93,"y":639,"width":74,"height":9}},{"id":"dc858c74-f1fc-4214-ae1b-b4900bcc964b","block_type":"box","text":"2","page_number":37,"box":{"x":69,"y":652,"width":3,"height":3}},{"id":"7c914877-fee0-472a-bd20-72213d49b798","block_type":"box","text":"For the Independent Directors, this amount represents the aggregate compensation earned from the funds in the BlackRock Fixed-Income","page_number":37,"box":{"x":94,"y":652,"width":784,"height":9}},{"id":"507409c3-3be9-4e00-890f-79cb5f73a89a","block_type":"box","text":"Complex during the calendar year ended December 31, 2025. Of this amount, Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard, Dr. Kester,","page_number":37,"box":{"x":93,"y":662,"width":801,"height":9}},{"id":"ae953ecc-a90d-4dbf-a782-1b64cf932296","block_type":"box","text":"Ms. Lynch and Mr. Steinmetz deferred $200,000, $197,500, $212,500, $280,000, $546,859, $603,900 and $268,750, respectively,","page_number":37,"box":{"x":94,"y":671,"width":776,"height":10}},{"id":"bd877e38-97bc-4aff-bc21-c1ba95ca089c","block_type":"box","text":"pursuant to the BlackRock Fixed-Income Complex’s deferred compensation plan.","page_number":37,"box":{"x":94,"y":682,"width":457,"height":9}},{"id":"a6fcf3ad-2c0f-4634-96b9-97b7ddcfcf58","block_type":"box","text":"3","page_number":37,"box":{"x":69,"y":695,"width":3,"height":3}},{"id":"9acc2276-a0a0-4180-a33c-f9314f6893f0","block_type":"box","text":"Total amount of deferred compensation payable by the BlackRock Fixed-Income Complex to Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard,","page_number":37,"box":{"x":93,"y":695,"width":810,"height":9}},{"id":"a030a2a4-5e31-4220-95d6-8c4efe514e46","block_type":"box","text":"Dr. Kester, Ms. Lynch and Mr. Steinmetz is $1,055,218, $1,032,387, $1,101,752, $5,907,215, $2,544,830, $720,927 and $603,379,","page_number":37,"box":{"x":94,"y":704,"width":787,"height":10}},{"id":"e4a5f6fb-adef-4cba-a4be-b4931a945b6b","block_type":"box","text":"respectively, as of December 31, 2025. Ms. Egan did not par ticipate in the deferred compensation plan as of December 31, 2025.","page_number":37,"box":{"x":94,"y":715,"width":748,"height":9}},{"id":"9add26ca-5920-4309-bede-85bf073a0a57","block_type":"box","text":"4","page_number":37,"box":{"x":68,"y":728,"width":4,"height":3}},{"id":"628208c4-c4ef-4854-aa84-83a26ad763f0","block_type":"box","text":"Ms. Egan became Chair of the Securities Lending Committee, effective March 9, 2026.","page_number":37,"box":{"x":94,"y":727,"width":496,"height":9}},{"id":"697d5489-451c-468b-a0ee-f797a22b7423","block_type":"box","text":"5","page_number":37,"box":{"x":69,"y":740,"width":3,"height":4}},{"id":"bee831f0-6723-43e9-b12b-76b5a62ff572","block_type":"box","text":"Mr. Flores became Chair of the Audit Committee, effective March 9, 2026.","page_number":37,"box":{"x":94,"y":740,"width":423,"height":8}},{"id":"19e2b50d-db22-4224-9076-531b9f07f964","block_type":"box","text":"6","page_number":37,"box":{"x":69,"y":753,"width":3,"height":3}},{"id":"1c3f87ea-612e-40a1-b3d7-f04d3027cabe","block_type":"box","text":"Ms. Lynch resigned as director of the Fund, effective as of March 9, 2026.","page_number":37,"box":{"x":94,"y":753,"width":425,"height":9}},{"id":"e4072d5f-0e06-4148-9e1e-b5780842da13","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":37,"box":{"x":69,"y":781,"width":432,"height":11}},{"id":"b6741d36-863a-4cf4-a6a1-97e9816e7960","block_type":"box","text":"The Fund has entered into an investment advisory agreement with the Manager (the “Management Agreement”),","page_number":37,"box":{"x":101,"y":804,"width":802,"height":11}},{"id":"84777a59-4962-4917-bf39-ef1654b68e33","block_type":"box","text":"pursuant to which the Manager receives as compensation for its services to the Fund, a fee with respect to the Fund","page_number":37,"box":{"x":70,"y":819,"width":831,"height":11}},{"id":"c4fd5acb-bd66-4283-9bd9-8298ecfda753","block_type":"box","text":"at the end of each month.","page_number":37,"box":{"x":69,"y":834,"width":183,"height":9}},{"id":"5689db7e-429f-41f1-8e3c-1ce088e909e7","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":37,"box":{"x":102,"y":857,"width":800,"height":11}},{"id":"4975ef78-7dd7-4830-8aa5-f6117a17f3e4","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":37,"box":{"x":70,"y":872,"width":834,"height":11}},{"id":"e37fcdb3-0f39-4898-80b3-58dceacf0da9","block_type":"box","text":"to per form investment advisory services with respect to the Fund. In addition, the Manager may delegate cer tain of","page_number":37,"box":{"x":68,"y":887,"width":825,"height":11}},{"id":"746ad5e2-a46d-4c67-9d96-a9b03b96a49d","block_type":"box","text":"its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":37,"box":{"x":70,"y":902,"width":801,"height":11}},{"id":"5b3fe1d1-ce00-4343-9055-d97ec38d5839","block_type":"box","text":"I-19","page_number":37,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"0eeb9707-5b4f-46bb-8dd7-7a8bbad2fa35","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1cd32393-680b-4c5c-b476-c97ceee929df","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":38,"box":{"x":70,"y":45,"width":823,"height":11}},{"id":"b017c5d9-58be-4ee0-9c6a-b65af66f4abb","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":38,"box":{"x":70,"y":60,"width":508,"height":11}},{"id":"519d288c-dba2-451e-a14f-8a6247eb8a73","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":38,"box":{"x":102,"y":82,"width":762,"height":12}},{"id":"3e592e83-f928-459b-8245-83e178c93f05","block_type":"box","text":"assets estimated to be attributable to investments in (i) other equity and fixed-income mutual funds and ETFs","page_number":38,"box":{"x":69,"y":98,"width":780,"height":11}},{"id":"90151942-a657-43e7-9cb6-27dbc2e6d7f6","block_type":"box","text":"managed by BlackRock or its affiliates that have a contractual management fee and (ii) other exchange-traded","page_number":38,"box":{"x":69,"y":113,"width":783,"height":11}},{"id":"20876ee3-f83d-44be-a081-94c76ab93419","block_type":"box","text":"products sponsored by BlackRock or its affiliates, through June 30, 2027. BlackRock has contractually agreed to","page_number":38,"box":{"x":70,"y":128,"width":805,"height":11}},{"id":"5590fda6-ff29-468b-aa85-59170aee8c5f","block_type":"box","text":"waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through","page_number":38,"box":{"x":68,"y":143,"width":834,"height":11}},{"id":"6f629611-24f8-4287-966e-776f2adf78f3","block_type":"box","text":"its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2027. The","page_number":38,"box":{"x":70,"y":158,"width":756,"height":11}},{"id":"035e98ab-3571-4d73-b4ff-cf0a1f6496db","block_type":"box","text":"contractual agreements may be terminated upon 90 days’ notice by a majority of the Independent Directors or by a","page_number":38,"box":{"x":69,"y":173,"width":819,"height":11}},{"id":"2c1046ca-bb48-49e5-870c-47333161d93e","block_type":"box","text":"vote of a majority of the outstanding voting securities of the Fund.","page_number":38,"box":{"x":68,"y":188,"width":468,"height":12}},{"id":"360053b1-079a-4787-91d3-b9ddedc995ec","block_type":"box","text":"The Manager has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":38,"box":{"x":101,"y":211,"width":792,"height":11}},{"id":"d1163c76-6204-4c54-982f-cbce83f31ac9","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":38,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"18afa67b-e539-4d2e-8f3c-949682ed265c","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the","page_number":38,"box":{"x":70,"y":241,"width":811,"height":11}},{"id":"8f5568b1-af7a-4595-8066-62fdab34cbba","block_type":"box","text":"Fund’s Prospectus)) as a percentage of average daily net assets to 0.78% for Investor A Shares, 1.53% for Investor C","page_number":38,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"ae382bfd-0da0-46a3-9fdf-e0cd3dd6f611","block_type":"box","text":"Shares, 0.53% for Institutional Shares and 0.48% for Class K Shares through June 30, 2027. The contractual","page_number":38,"box":{"x":69,"y":271,"width":782,"height":12}},{"id":"4a0eae8b-903a-4563-b594-8ad95c8ae531","block_type":"box","text":"agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors or by a vote of a","page_number":38,"box":{"x":69,"y":286,"width":793,"height":12}},{"id":"d8d5db28-21e7-42cd-8a80-42ef4862cff8","block_type":"box","text":"majority of the outstanding voting securities of the Fund.","page_number":38,"box":{"x":69,"y":302,"width":400,"height":11}},{"id":"fa581a7d-ac98-438b-b788-e4d0df16d4ee","block_type":"box","text":"The Manager has entered into sub-advisory agreements (the “Sub-Advisory Agreements”) with BlackRock","page_number":38,"box":{"x":101,"y":324,"width":749,"height":12}},{"id":"9c152527-adeb-4196-a550-8f442c5fb8a5","block_type":"box","text":"International Limited (“BIL”) and BlackRock (Singapore) Limited (“BRS” and together with BIL, the “Sub-Advisers”)","page_number":38,"box":{"x":70,"y":340,"width":810,"height":11}},{"id":"b316d41b-a965-48fa-a7bb-274199e1e340","block_type":"box","text":"pursuant to which the Sub-Advisers receive for the services for that por tion of the Fund for which the Sub-Adviser","page_number":38,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"2f97fc60-15a9-486d-a1bd-e16c1b88351e","block_type":"box","text":"served as sub-adviser a monthly fee at an annual rate equal to a percentage of the management fee paid to the","page_number":38,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"c06b76d5-4a02-4aee-be2a-85ce77d14947","block_type":"box","text":"Manager under the Management Agreement.","page_number":38,"box":{"x":70,"y":385,"width":316,"height":11}},{"id":"0f16fe92-803e-41c4-bc46-f3dff52485ee","block_type":"box","text":"In rendering investment advisory services to the Fund, the Manager uses the por tfolio management, research","page_number":38,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"a1e063f2-c257-4e44-afd2-5468eb8d408f","block_type":"box","text":"and other resources of BlackRock Investment Management (Australia) Limited (“BlackRock Australia”), a foreign","page_number":38,"box":{"x":69,"y":423,"width":798,"height":11}},{"id":"2509669d-d7e7-490f-b8aa-c023f972199a","block_type":"box","text":"affiliate of BlackRock that is not registered under the Investment Advisers Act of 1940, as amended (the “Advisers","page_number":38,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"06d0ccc0-89e3-47c0-8080-d222b5ecdb43","block_type":"box","text":"Act”). BlackRock Australia provides services to the Fund through a “par ticipating affiliate” arrangement, as that term","page_number":38,"box":{"x":68,"y":453,"width":834,"height":11}},{"id":"a3594a65-6f67-4af8-b1e4-910d12d57c11","block_type":"box","text":"is used in relief granted by the staff of the SEC allowing U.S. registered investment advisers to use por tfolio","page_number":38,"box":{"x":70,"y":468,"width":770,"height":11}},{"id":"ab27d579-8349-4c93-b19e-940379e0ffe3","block_type":"box","text":"management or research resources of advisory affiliates subject to the regulatory supervision of the registered","page_number":38,"box":{"x":69,"y":483,"width":794,"height":11}},{"id":"5d68c549-0129-480a-b03b-950641c3abdd","block_type":"box","text":"investment adviser. Under the par ticipating affiliate arrangement, BlackRock Australia is considered a par ticipating","page_number":38,"box":{"x":70,"y":498,"width":819,"height":11}},{"id":"53ccb9fd-2dd9-4b21-84be-096b898b8e0b","block_type":"box","text":"affiliate of BlackRock, and BlackRock Australia and cer tain designated employees are considered “associated","page_number":38,"box":{"x":69,"y":513,"width":784,"height":12}},{"id":"f8d6c64f-2742-47a1-8a96-05730dba6dbd","block_type":"box","text":"persons” of BlackRock (as that term is defined in the Advisers Act) and investment professionals from BlackRock","page_number":38,"box":{"x":70,"y":528,"width":807,"height":11}},{"id":"e46e6e84-eaa3-442c-afa0-0fec115e8d73","block_type":"box","text":"Australia may render por tfolio management, research and other services to the Fund subject to the supervision of","page_number":38,"box":{"x":68,"y":543,"width":816,"height":12}},{"id":"b219c803-38ab-4ce1-91c6-b2718c94b1a9","block_type":"box","text":"BlackRock. The Fund pays no additional fees and expenses as a result of such arrangement.","page_number":38,"box":{"x":70,"y":559,"width":659,"height":11}},{"id":"d7e80e62-7997-4f83-9c93-bcac5de657fd","block_type":"box","text":"Set for th below are the total management fees paid by the Fund to the Manager (which includes amounts paid by","page_number":38,"box":{"x":102,"y":581,"width":808,"height":12}},{"id":"abaeedd6-2c02-4f58-ae5b-09f542258712","block_type":"box","text":"the Manager to the Sub-Advisers), and the amounts waived and/or reimbursed by the Manager, for the periods","page_number":38,"box":{"x":68,"y":596,"width":789,"height":12}},{"id":"05a1904a-6e3f-4473-9f10-beb4c965104a","block_type":"box","text":"indicated:","page_number":38,"box":{"x":70,"y":612,"width":67,"height":9}},{"id":"70cf72c5-e97f-4ba9-8d6f-71234a515243","block_type":"box","text":"Fees Paid","page_number":38,"box":{"x":582,"y":640,"width":56,"height":7}},{"id":"7636ea26-1c33-4a02-8e1f-b7f3c6aa10bd","block_type":"box","text":"to the Manager","page_number":38,"box":{"x":565,"y":650,"width":90,"height":9}},{"id":"dcd67c1f-b58b-4ced-9537-f0ac25cee48a","block_type":"box","text":"Fees Waived","page_number":38,"box":{"x":696,"y":640,"width":72,"height":7}},{"id":"69123616-61fa-4da3-a890-76a64d3ac2e2","block_type":"box","text":"by the Manager","page_number":38,"box":{"x":685,"y":650,"width":91,"height":9}},{"id":"4f7a7304-7ed1-4572-a7ab-1bcf10959826","block_type":"box","text":"1","page_number":38,"box":{"x":776,"y":650,"width":4,"height":4}},{"id":"5b3505df-8741-473a-96b6-5ceb7258579d","block_type":"box","text":"Fees Reimbursed","page_number":38,"box":{"x":810,"y":640,"width":99,"height":7}},{"id":"f2e1b54b-7621-4d06-a4a2-5bdbe404d0e8","block_type":"box","text":"by the Manager","page_number":38,"box":{"x":812,"y":650,"width":91,"height":9}},{"id":"b4117432-7d29-45d5-aca4-fd283442bf4a","block_type":"box","text":"2","page_number":38,"box":{"x":903,"y":650,"width":4,"height":4}},{"id":"64ac1b0e-ffef-4aaa-9cd8-bc42d60e346c","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . $4,306,681 $1,164,191 $717,704","page_number":38,"box":{"x":70,"y":667,"width":825,"height":11}},{"id":"71636ea9-e6bd-427d-a15c-1336b0ec6628","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . $3,956,273 $ 993,310 $663,224","page_number":38,"box":{"x":70,"y":682,"width":825,"height":11}},{"id":"b393c45c-a786-429e-b6e0-606bb4e0982b","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . $3,743,514 $1,075,594 $693,099","page_number":38,"box":{"x":70,"y":697,"width":825,"height":11}},{"id":"6cfe759c-bb97-4c85-80c7-22c5c0dc4727","block_type":"box","text":"1","page_number":38,"box":{"x":69,"y":722,"width":3,"height":4}},{"id":"4ac2546d-7292-4888-9c21-1bcb4aa284c6","block_type":"box","text":"The Manager may waive a por tion of the Fund’s management fee in connection with the Fund’s investment in an affiliated money market fund.","page_number":38,"box":{"x":93,"y":722,"width":812,"height":9}},{"id":"a6faec85-1f24-4110-a97e-ccb61f2d9e02","block_type":"box","text":"2","page_number":38,"box":{"x":69,"y":735,"width":3,"height":4}},{"id":"1f3fac2b-aa72-4320-9d30-e4db84b63079","block_type":"box","text":"The Manager has contractually agreed to waive and/or reimburse fees or expenses to limit Total Annual Fund Operating Expenses After Fee","page_number":38,"box":{"x":93,"y":735,"width":794,"height":9}},{"id":"41230ac4-67ab-41cb-8980-759ccab2ca14","block_type":"box","text":"Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses, and cer tain","page_number":38,"box":{"x":93,"y":745,"width":784,"height":9}},{"id":"df55f0a1-945e-44a3-b15b-b376ead8713d","block_type":"box","text":"other Fund expenses) as a percentage of average daily net assets to 0.78% (for Investor A Shares), 1.53% (for Investor C Shares), 0.53% (for","page_number":38,"box":{"x":93,"y":755,"width":808,"height":9}},{"id":"b9760c49-2681-4b81-9847-d6f47b03a2bc","block_type":"box","text":"Institutional Shares), and 0.48% (for Class K Shares) of average daily net assets through June 30, 2027. The contractual agreement may be","page_number":38,"box":{"x":94,"y":765,"width":801,"height":9}},{"id":"f7bfebd9-7fb4-4a0f-a102-572a940fd755","block_type":"box","text":"terminated upon 90 days’ notice by a majority of the independent trustees of the Fund or by a vote of a majority of the outstanding voting","page_number":38,"box":{"x":93,"y":775,"width":784,"height":9}},{"id":"2331e3eb-c528-4d8d-9603-09a9b46665af","block_type":"box","text":"securities of the Fund.","page_number":38,"box":{"x":93,"y":785,"width":126,"height":8}},{"id":"ab3fdfa6-c573-4c9e-a5ec-55f59b105d7f","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":38,"box":{"x":69,"y":814,"width":335,"height":11}},{"id":"fc0ab708-fe26-4857-9355-885e1a2e9bdd","block_type":"box","text":"Rick Rieder, Russell Brownback and Dylan Price are the Fund’s por tfolio managers and are jointly and primarily","page_number":38,"box":{"x":102,"y":836,"width":788,"height":12}},{"id":"d80c8299-7dbf-4845-8a57-e13ade2d4e45","block_type":"box","text":"responsible for the day-to-day management of the Fund’s por tfolio.","page_number":38,"box":{"x":69,"y":852,"width":474,"height":11}},{"id":"1f5a1415-2f93-403e-a5d2-cfcc87233065","block_type":"box","text":"I-20","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c4caf859-bbc3-4a8b-881d-7d6b87e61485","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d5170a49-fd6c-4911-9c9f-b89c8cb7ac17","block_type":"box","text":"Other Funds and Accounts Managed","page_number":39,"box":{"x":70,"y":45,"width":265,"height":11}},{"id":"02f2ace7-aae5-49fd-bbde-b0d98365ea6d","block_type":"box","text":"The following table sets for th information about the funds and accounts other than the Fund for which the","page_number":39,"box":{"x":101,"y":67,"width":753,"height":12}},{"id":"efaf9966-793a-4207-a682-2b8f222c6551","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of December 31, 2025.","page_number":39,"box":{"x":70,"y":82,"width":798,"height":12}},{"id":"0e45fa37-5d70-4b51-8c3f-3a510047fe85","block_type":"box","text":"Number of Other Accounts Managed","page_number":39,"box":{"x":348,"y":111,"width":211,"height":9}},{"id":"debf3b08-b517-400a-98fd-0dc801164c61","block_type":"box","text":"and Assets by Account Type","page_number":39,"box":{"x":371,"y":121,"width":165,"height":9}},{"id":"a295eadc-4038-47df-8069-e71c998ffa98","block_type":"box","text":"Number of Other Accounts and Assets","page_number":39,"box":{"x":648,"y":111,"width":223,"height":7}},{"id":"ea481428-ea40-43c3-a9db-6d8c7427782f","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":39,"box":{"x":627,"y":121,"width":265,"height":9}},{"id":"0d09c276-4114-41d9-8e7a-9884d3e3052f","block_type":"box","text":"Name of Portfolio Manager","page_number":39,"box":{"x":74,"y":164,"width":157,"height":8}},{"id":"3c9ea593-994b-4644-8c7c-5f858cfebb69","block_type":"box","text":"Other","page_number":39,"box":{"x":337,"y":133,"width":31,"height":8}},{"id":"4f3c453f-1de7-4215-a23d-d15a85d25dc5","block_type":"box","text":"Registered","page_number":39,"box":{"x":321,"y":144,"width":62,"height":8}},{"id":"12f8a59d-a8ba-4f34-b683-dedd2f5b1fe6","block_type":"box","text":"Investment","page_number":39,"box":{"x":320,"y":154,"width":65,"height":7}},{"id":"91bae18a-55a6-4d34-b187-bb8494d728a6","block_type":"box","text":"Companies","page_number":39,"box":{"x":321,"y":164,"width":63,"height":8}},{"id":"f92a3d7b-08dc-42dc-9609-ffb191af261b","block_type":"box","text":"Other 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Pooled","page_number":39,"box":{"x":709,"y":144,"width":74,"height":7}},{"id":"937223ba-5cb3-4c7e-844c-fb2b75b2e025","block_type":"box","text":"Investment","page_number":39,"box":{"x":714,"y":154,"width":64,"height":7}},{"id":"9bc5ab59-ed3e-42a3-b4cf-7c22a693fb05","block_type":"box","text":"Vehicles","page_number":39,"box":{"x":722,"y":164,"width":48,"height":7}},{"id":"e72b6db1-b7b1-4e9f-8447-6788637cbe75","block_type":"box","text":"Other","page_number":39,"box":{"x":838,"y":154,"width":32,"height":7}},{"id":"9efb5df8-cc6e-49ad-b082-ad897fccc923","block_type":"box","text":"Accounts","page_number":39,"box":{"x":826,"y":164,"width":55,"height":7}},{"id":"10590fea-bd5f-47ea-9b00-d9bea7d29bb8","block_type":"box","text":"Rick Rieder 22 27 41 0 4 1","page_number":39,"box":{"x":74,"y":178,"width":783,"height":7}},{"id":"33d1c6a7-fbab-4879-80ca-5a77c9154ccb","block_type":"box","text":"$121.26 Billion $50.35 Billion $5.28 Billion $0 $27.92 Million $104.87 Million","page_number":39,"box":{"x":308,"y":190,"width":591,"height":8}},{"id":"eb75c254-2e0b-4969-b392-59fd08d50628","block_type":"box","text":"Russell Brownback 13 17 28 0 0 8","page_number":39,"box":{"x":74,"y":203,"width":783,"height":7}},{"id":"8887dc64-9486-4462-9a0f-9762d38be016","block_type":"box","text":"$76.49 Billion $28.97 Billion $13.20 Billion $0 $0 $5.49 Billion","page_number":39,"box":{"x":312,"y":215,"width":578,"height":8}},{"id":"24397314-893f-40f4-9c2c-a8b7be2b219d","block_type":"box","text":"Dylan Price 3 6 5 0 0 1","page_number":39,"box":{"x":74,"y":228,"width":783,"height":9}},{"id":"9ea27cb9-aa70-407c-b3df-da306d6c4892","block_type":"box","text":"$60.30 Billion $3.70 Billion $1.79 Billion $0 $0 $301.81 Million","page_number":39,"box":{"x":312,"y":240,"width":587,"height":8}},{"id":"8e895311-3cba-473d-bcd5-2cc6c22cdab1","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":39,"box":{"x":69,"y":275,"width":304,"height":11}},{"id":"63df7fe6-cd19-4a93-a7fc-7111b5ec91e9","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of December 31, 2025.","page_number":39,"box":{"x":101,"y":297,"width":700,"height":12}},{"id":"335e45e5-4f15-40de-bfa4-9153c36f6eb6","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":39,"box":{"x":102,"y":320,"width":774,"height":11}},{"id":"9d63e548-7f41-43ab-ab41-39211a18ba9e","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":39,"box":{"x":70,"y":335,"width":837,"height":11}},{"id":"a1053bca-d353-4261-bfc7-fe56e24173e8","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":39,"box":{"x":69,"y":350,"width":823,"height":11}},{"id":"bc11a5bb-c087-4a32-83b2-590a9e1eccc9","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":39,"box":{"x":69,"y":365,"width":799,"height":11}},{"id":"6eaa5c2a-b0ef-4cf2-837f-ed889bc2c564","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":39,"box":{"x":70,"y":380,"width":670,"height":12}},{"id":"efa3fc61-68ab-44d7-ba3f-644a50f5055f","block_type":"box","text":"Base Compensation.","page_number":39,"box":{"x":102,"y":403,"width":148,"height":11}},{"id":"3ef4ed92-1bf8-4193-b07f-0091bacbe6b5","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":39,"box":{"x":257,"y":403,"width":640,"height":11}},{"id":"2296d752-dc13-463a-925c-3317ff397c4c","block_type":"box","text":"firm.","page_number":39,"box":{"x":68,"y":418,"width":32,"height":9}},{"id":"cb66e62b-61ee-4bd7-a136-78da587bb3cd","block_type":"box","text":"Discretionary Incentive Compensation.","page_number":39,"box":{"x":102,"y":441,"width":281,"height":11}},{"id":"988441e6-54d0-4c1b-967e-e2252f85f589","block_type":"box","text":"Discretionary incentive compensation is a function of several","page_number":39,"box":{"x":391,"y":441,"width":432,"height":11}},{"id":"5f4d4168-eac8-4799-b424-44d4b98467a1","block_type":"box","text":"components: the per formance of BlackRock, Inc., the per formance of the por tfolio manager’s group within","page_number":39,"box":{"x":69,"y":456,"width":759,"height":11}},{"id":"7af2397c-36a1-4571-bbf9-47a4ff2ac1f0","block_type":"box","text":"BlackRock, the investment per formance, including risk-adjusted returns, of the firm’s assets under management or","page_number":39,"box":{"x":70,"y":471,"width":821,"height":11}},{"id":"e76c1f76-2e82-4700-921d-fbbb428786a2","block_type":"box","text":"supervision by that por tfolio manager relative to predetermined benchmarks, and the individual’s per formance and","page_number":39,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"7c2af9f3-c786-4680-824a-aba273e316d9","block_type":"box","text":"contribution to the overall per formance of these por tfolios and BlackRock. In most cases, these benchmarks are the","page_number":39,"box":{"x":69,"y":501,"width":832,"height":11}},{"id":"f17f9cfd-a18d-44d7-b582-dae7b3733f9d","block_type":"box","text":"same as the benchmark or benchmarks against which the per formance of the Funds or other accounts managed by","page_number":39,"box":{"x":69,"y":516,"width":824,"height":12}},{"id":"203f7e8b-e309-4c57-89b9-496655600677","block_type":"box","text":"the por tfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":39,"box":{"x":68,"y":532,"width":832,"height":11}},{"id":"a70186eb-d755-47e7-9675-d65d235f1653","block_type":"box","text":"determination with respect to each por tfolio manager’s compensation based on the per formance of the Funds and","page_number":39,"box":{"x":69,"y":547,"width":818,"height":11}},{"id":"af8c8744-d60a-4d52-918f-a3944c15ea8f","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance of fixed-income","page_number":39,"box":{"x":69,"y":562,"width":832,"height":11}},{"id":"61884b9a-5699-4fa7-adaa-1c67898d3d44","block_type":"box","text":"funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods,","page_number":39,"box":{"x":68,"y":577,"width":822,"height":11}},{"id":"f75d93a7-a616-4849-8760-6dd818654791","block_type":"box","text":"as applicable. With respect to these por tfolio managers, such benchmarks for the Fund and other accounts are: A","page_number":39,"box":{"x":69,"y":592,"width":813,"height":11}},{"id":"f2e21df7-6185-4772-8368-bd2aa55fb055","block_type":"box","text":"combination of market-based indices (e.g., Bloomberg U.S. Aggregate Bond Index), cer tain customized indices and","page_number":39,"box":{"x":69,"y":607,"width":816,"height":11}},{"id":"89b0843a-1b4a-4e1c-9486-5d0ca7919592","block_type":"box","text":"cer tain fund industry peer groups.","page_number":39,"box":{"x":69,"y":622,"width":241,"height":12}},{"id":"646fe81e-8f9d-4faa-aa0a-dc08a429f497","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":39,"box":{"x":102,"y":645,"width":389,"height":11}},{"id":"e039d69e-9352-47f8-a759-ffe175d1b5be","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":39,"box":{"x":499,"y":645,"width":383,"height":11}},{"id":"e1e8f653-111c-4d91-86d8-77917bc4b0cb","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":39,"box":{"x":70,"y":660,"width":815,"height":11}},{"id":"9ccd2eed-ed20-43da-848f-aece3a03056a","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":39,"box":{"x":68,"y":675,"width":522,"height":11}},{"id":"9ae724c5-fcdb-4583-8b54-df3f1a7c48fb","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":39,"box":{"x":102,"y":698,"width":760,"height":11}},{"id":"d7ce1549-3673-4272-b4c7-9632314fc107","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":39,"box":{"x":69,"y":713,"width":795,"height":11}},{"id":"47487d74-1b0f-4a79-98a8-1933382a8d34","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":39,"box":{"x":69,"y":728,"width":805,"height":11}},{"id":"9dd67fc6-ed6c-4cfa-a036-31002f355fb9","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":39,"box":{"x":69,"y":743,"width":822,"height":12}},{"id":"c82d2525-4dbf-4f73-8cbd-7b911c6b6510","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":39,"box":{"x":68,"y":758,"width":839,"height":12}},{"id":"4feffce3-ecba-4949-928b-3be6f3be7781","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":39,"box":{"x":69,"y":773,"width":802,"height":12}},{"id":"b7fdb86d-7c06-480a-9d81-eb8c3082f778","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":39,"box":{"x":70,"y":789,"width":820,"height":11}},{"id":"28fbfa92-c5ec-4680-859f-1a9563db9ad8","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":39,"box":{"x":70,"y":804,"width":801,"height":11}},{"id":"77810006-273c-4205-89ad-e62435a6e6c3","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":39,"box":{"x":70,"y":819,"width":831,"height":11}},{"id":"3a84f3ae-2c23-4f0e-b224-fa5f61a04d78","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":39,"box":{"x":69,"y":834,"width":479,"height":11}},{"id":"846d70b9-3073-42d2-8aa4-2f22d83ccc2f","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":39,"box":{"x":102,"y":857,"width":785,"height":11}},{"id":"006d966b-c0dd-44d3-8a5c-df5835a726e6","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":39,"box":{"x":68,"y":872,"width":836,"height":11}},{"id":"709cf63c-7e22-49f7-8e63-1510df27c8c0","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":39,"box":{"x":68,"y":887,"width":821,"height":11}},{"id":"1bad79d6-259c-44cb-86e2-6ddaab2e2eac","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":39,"box":{"x":69,"y":902,"width":829,"height":11}},{"id":"c5982c03-6af0-42ff-b8e3-b66e891e2eae","block_type":"box","text":"I-21","page_number":39,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"11e57345-d746-4764-9839-4204951d071c","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff1302ca-5c52-4f90-a31d-24eac25ec68b","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":40,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"b4f0c9ee-62e9-4127-8066-077f75a29926","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":40,"box":{"x":69,"y":60,"width":414,"height":11}},{"id":"7d31220e-99b5-4583-a899-86a54881de05","block_type":"box","text":"Other Compensation Benefits.","page_number":40,"box":{"x":101,"y":82,"width":218,"height":11}},{"id":"a13dbb66-71db-4911-b57b-4bc0b5d77f6c","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":40,"box":{"x":327,"y":82,"width":552,"height":12}},{"id":"1ddc7541-62aa-437b-a690-a24ffb9ab165","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":40,"box":{"x":69,"y":98,"width":582,"height":11}},{"id":"fe31ef89-3075-4932-9db1-74c1eed34cc0","block_type":"box","text":"Incentive Savings Plans","page_number":40,"box":{"x":102,"y":120,"width":167,"height":12}},{"id":"7ff0b90a-e270-4029-aa4d-138681d52d2d","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":40,"box":{"x":274,"y":120,"width":614,"height":12}},{"id":"b891b8b7-f0b2-454e-9ba9-22bf5456e89e","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":40,"box":{"x":69,"y":135,"width":831,"height":12}},{"id":"af92bd1d-7453-468a-bb8e-a0ef353e8abb","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":40,"box":{"x":70,"y":150,"width":785,"height":12}},{"id":"610ffd4f-d0fb-4528-b28c-23fff4525c1b","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":40,"box":{"x":69,"y":165,"width":830,"height":12}},{"id":"ed1b9e52-1643-4213-bbef-86b33b19ac4d","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":40,"box":{"x":69,"y":181,"width":799,"height":11}},{"id":"7ff59341-6ac2-4d7e-a8fd-673d610bf592","block_type":"box","text":"($350,000 for 2025). The RSP offers a range of investment options, including registered investment companies and","page_number":40,"box":{"x":69,"y":195,"width":831,"height":12}},{"id":"c24055fe-4fb2-4bc4-878d-1a73182100b6","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":40,"box":{"x":69,"y":211,"width":798,"height":11}},{"id":"fc0dfde1-2833-40b6-9ad8-6d9351462e6b","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":40,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"7f4fb9a5-c4aa-49dd-9c2c-45853edbe9f8","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":40,"box":{"x":68,"y":241,"width":793,"height":11}},{"id":"88ba387a-20b3-4f3c-8de4-b3309246a88b","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":40,"box":{"x":70,"y":256,"width":832,"height":11}},{"id":"9599ef54-c10e-4de5-8ba4-15f7a1ff21ab","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":40,"box":{"x":68,"y":271,"width":805,"height":11}},{"id":"e85a8462-e2b4-4433-a91e-1f7a96f1aed2","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":40,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"7bf54988-44f4-46af-8ef9-a88675684325","block_type":"box","text":"par ticipate in these plans.","page_number":40,"box":{"x":70,"y":302,"width":185,"height":11}},{"id":"db3c753c-5616-4ac4-95b0-f22437a2c459","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":40,"box":{"x":69,"y":332,"width":268,"height":11}},{"id":"32d6c0ed-c7e2-41b8-9ff4-651a25a26cce","block_type":"box","text":"As of December 31, 2025, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":40,"box":{"x":101,"y":355,"width":775,"height":11}},{"id":"5c2e8306-bc05-4bb5-9c34-dc47a5d68ca2","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":40,"box":{"x":69,"y":370,"width":519,"height":11}},{"id":"a6466192-baba-4ced-be83-9fb9a563c9bf","block_type":"box","text":"Portfolio Manager","page_number":40,"box":{"x":69,"y":408,"width":105,"height":9}},{"id":"b270c6a0-f878-46a0-82a2-c2e966b54b94","block_type":"box","text":"Dollar Range of Equity","page_number":40,"box":{"x":757,"y":398,"width":129,"height":9}},{"id":"b6d7bb88-b58c-4283-9230-5f0560ffef4b","block_type":"box","text":"Securities Beneficially Owned","page_number":40,"box":{"x":732,"y":408,"width":173,"height":9}},{"id":"943ebf31-feea-4f86-b885-8ab2b00a56c0","block_type":"box","text":"1","page_number":40,"box":{"x":906,"y":408,"width":4,"height":4}},{"id":"134a6385-d3b2-44e9-8299-07e3625aacac","block_type":"box","text":"Rick Rieder . . .","page_number":40,"box":{"x":70,"y":426,"width":102,"height":9}},{"id":"b8d1a144-9d58-4f57-a65f-d5abb224c5a9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":40,"box":{"x":178,"y":425,"width":640,"height":11}},{"id":"71c2ca5f-823f-42bf-9cf3-7ebaa70d37b6","block_type":"box","text":"000,000","page_number":40,"box":{"x":820,"y":426,"width":63,"height":10}},{"id":"1fa16e64-576f-4687-aba4-4d6915b49cfa","block_type":"box","text":"Russell Brownback . .","page_number":40,"box":{"x":70,"y":441,"width":150,"height":9}},{"id":"116241ac-3d56-42ea-88b0-d8bba203b7f4","block_type":"box","text":"...........................................................","page_number":40,"box":{"x":227,"y":448,"width":474,"height":2}},{"id":"8465e869-7722-4d3e-8f81-2d32a9553815","block_type":"box","text":"$100,001 - $500,000","page_number":40,"box":{"x":742,"y":440,"width":158,"height":11}},{"id":"3dd74945-2575-44ed-9a86-93bdc9f1e68c","block_type":"box","text":"Dylan Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":70,"y":456,"width":631,"height":11}},{"id":"0ca5c36b-e121-42e4-8770-65185d0cf376","block_type":"box","text":"None","page_number":40,"box":{"x":804,"y":456,"width":35,"height":9}},{"id":"870ccfa0-ed42-4baf-8ccf-d9ac960c3ea1","block_type":"box","text":"1","page_number":40,"box":{"x":69,"y":481,"width":3,"height":3}},{"id":"64f9de0c-79fa-4914-bafe-f8d6c27ab1c5","block_type":"box","text":"Includes securities attributable to the por tfolio manager’s par ticipation in cer tain deferred compensation and retirement programs.","page_number":40,"box":{"x":94,"y":480,"width":746,"height":9}},{"id":"bf0530fa-0414-400a-bcad-67903bd34c0b","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":40,"box":{"x":69,"y":509,"width":403,"height":11}},{"id":"1199bcea-acb3-46d5-9d7b-ef4676bfb49d","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":40,"box":{"x":102,"y":532,"width":727,"height":11}},{"id":"b6c6563a-7b78-430c-aa50-69dd7b6ba77b","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":40,"box":{"x":70,"y":547,"width":814,"height":11}},{"id":"16b48cea-b8ee-48b5-b60a-e0ecc873a7d1","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":40,"box":{"x":70,"y":562,"width":837,"height":11}},{"id":"16da568b-d123-498a-9195-9b42b76429c5","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":40,"box":{"x":70,"y":577,"width":810,"height":11}},{"id":"de025c1f-56fb-4566-8dd9-279e1a1cf007","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":40,"box":{"x":69,"y":592,"width":782,"height":11}},{"id":"7b0a35c4-0de3-4f27-a35d-27057096c4f3","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":40,"box":{"x":69,"y":607,"width":830,"height":11}},{"id":"313d768a-4cec-4d35-aa99-9f119f8278a2","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":40,"box":{"x":69,"y":623,"width":828,"height":11}},{"id":"3b7fb834-839b-48eb-b052-96b762695e1e","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":40,"box":{"x":68,"y":637,"width":834,"height":12}},{"id":"75b51804-b215-4cf2-97e9-bbcca2fb1ba5","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":40,"box":{"x":70,"y":652,"width":777,"height":12}},{"id":"fe3dbc4d-56e5-4d2b-a9ee-25d72a833e52","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":40,"box":{"x":70,"y":668,"width":821,"height":11}},{"id":"e31c5007-ae06-4266-8f91-df9d2984e854","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":40,"box":{"x":69,"y":683,"width":819,"height":11}},{"id":"87686f3e-2276-4c26-817f-fc87944bf17a","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":40,"box":{"x":69,"y":698,"width":832,"height":11}},{"id":"ffc0d904-66ae-4ead-b493-a688f16e324e","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":40,"box":{"x":68,"y":713,"width":804,"height":11}},{"id":"5438798f-4cd3-4b8d-9c63-557581e2ef9b","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":40,"box":{"x":69,"y":728,"width":760,"height":11}},{"id":"ecd95585-b867-47b9-927f-92cf7d4f7456","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":40,"box":{"x":69,"y":743,"width":834,"height":12}},{"id":"9ce487fd-6a19-4c7e-8233-acbe4c2aafe1","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":40,"box":{"x":69,"y":758,"width":836,"height":12}},{"id":"6a783a70-cdd1-42d6-8f56-a91a61f7de77","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":40,"box":{"x":69,"y":773,"width":822,"height":12}},{"id":"030baa24-0db9-4ad5-b3de-4e2bb5a94b4a","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":40,"box":{"x":70,"y":789,"width":835,"height":11}},{"id":"91e8ef80-f617-494c-9cd0-8626af8cd59f","block_type":"box","text":"be opposed to the strategy utilized for a Fund. It should also be noted that Messrs. Rieder, Brownback and Price may","page_number":40,"box":{"x":69,"y":804,"width":835,"height":11}},{"id":"38636585-6141-4ddf-843d-f810e4529f2a","block_type":"box","text":"be managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only","page_number":40,"box":{"x":69,"y":819,"width":834,"height":11}},{"id":"70025210-c0a1-47ef-a4d8-56a89a640468","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Rieder, Brownback and Price may therefore be entitled to receive a","page_number":40,"box":{"x":69,"y":834,"width":796,"height":11}},{"id":"db857241-f586-440e-9b23-ea80db54679c","block_type":"box","text":"por tion of any incentive fees earned on such accounts.","page_number":40,"box":{"x":70,"y":849,"width":390,"height":11}},{"id":"d1c87b32-7ae8-4799-bba1-1776519e6e10","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":40,"box":{"x":101,"y":872,"width":788,"height":11}},{"id":"029fcad9-5cad-4c16-9d55-29036973a2cd","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":40,"box":{"x":70,"y":887,"width":839,"height":11}},{"id":"e4086600-0bca-4601-9d8b-8052b844ab17","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":40,"box":{"x":68,"y":902,"width":823,"height":11}},{"id":"4f314f4b-253f-43e9-a490-fab48026ee29","block_type":"box","text":"I-22","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"52384e49-faea-4d0c-9931-1c80fc4bc424","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"915e0f0a-4413-498f-ac4f-e5082d012ee3","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":41,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"16961206-1eaf-44b3-9818-465c2d458c96","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":41,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"4278e18a-c6e5-4d50-8eb2-ec692570580d","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":41,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"71be5849-01cb-47a8-9c30-05377d69d643","block_type":"box","text":"Accounting Services","page_number":41,"box":{"x":68,"y":105,"width":150,"height":11}},{"id":"2d7bb133-94de-48b5-b848-155008b84315","block_type":"box","text":"State Street records investment, capital share and income and expense activities; verifies and transmits trade","page_number":41,"box":{"x":102,"y":128,"width":787,"height":11}},{"id":"43b96274-d2cb-42f8-9488-68d1fdc83ba5","block_type":"box","text":"tickets; maintains accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s","page_number":41,"box":{"x":68,"y":143,"width":820,"height":11}},{"id":"d9033b72-ca7f-465f-a5f7-a7146eccebf0","block_type":"box","text":"custodian; repor ts cash balances to the Manager; prepares cer tain financial statements; calculates expenses, gains,","page_number":41,"box":{"x":69,"y":158,"width":837,"height":11}},{"id":"45070068-eaaa-4607-a081-de939a779266","block_type":"box","text":"losses and income; controls disbursements; works with independent pricing sources; and computes and repor ts net","page_number":41,"box":{"x":70,"y":173,"width":829,"height":11}},{"id":"1ef877a5-354d-4c08-950c-433ccf13dbe4","block_type":"box","text":"asset value. In connection with its accounting services, State Street also provides cer tain administration services.","page_number":41,"box":{"x":69,"y":188,"width":817,"height":12}},{"id":"99762815-5aa2-4886-8dff-873e335c6a34","block_type":"box","text":"The table below shows the amount paid by the Fund to State Street and the Manager for accounting services for","page_number":41,"box":{"x":101,"y":211,"width":802,"height":11}},{"id":"18208440-585d-4f11-a3f5-ef7b2d8c9daa","block_type":"box","text":"the periods indicated:","page_number":41,"box":{"x":68,"y":226,"width":154,"height":11}},{"id":"8a306e5f-525a-4c8e-9b6c-961f4a751ed7","block_type":"box","text":"Fees Paid","page_number":41,"box":{"x":718,"y":254,"width":56,"height":7}},{"id":"1dcfdc6f-63c3-4384-8703-1be99ce24f5b","block_type":"box","text":"to State Street","page_number":41,"box":{"x":702,"y":264,"width":88,"height":8}},{"id":"4eea578f-9dfb-4ba0-a73b-3a4d529c3727","block_type":"box","text":"Fees Paid","page_number":41,"box":{"x":837,"y":254,"width":55,"height":7}},{"id":"27b939e8-bfa9-42d7-a5f2-4377d61fe417","block_type":"box","text":"to the Manager","page_number":41,"box":{"x":819,"y":265,"width":90,"height":8}},{"id":"6baaffd1-fee0-48ae-987f-496c2d5763bb","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . .","page_number":41,"box":{"x":70,"y":282,"width":463,"height":11}},{"id":"65e45145-6a0b-4af8-a705-ca1b10878fd2","block_type":"box","text":".................","page_number":41,"box":{"x":539,"y":290,"width":132,"height":1}},{"id":"a145769b-32c1-4b47-b803-b4cabb6b9c55","block_type":"box","text":"$139,038 $0","page_number":41,"box":{"x":710,"y":281,"width":164,"height":12}},{"id":"82c3e095-ea19-41ee-abb2-3b4701defb65","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . .","page_number":41,"box":{"x":70,"y":297,"width":463,"height":11}},{"id":"a3d84d92-6db2-4214-9733-a10e61edd265","block_type":"box","text":".................","page_number":41,"box":{"x":539,"y":305,"width":132,"height":1}},{"id":"a4b32ca9-4df6-4982-893f-034d7191397d","block_type":"box","text":"$122,758 $0","page_number":41,"box":{"x":710,"y":297,"width":164,"height":11}},{"id":"0199ad81-7dc6-4a83-9d7a-dd31c32a9ea0","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . .","page_number":41,"box":{"x":70,"y":312,"width":463,"height":11}},{"id":"2bb01d31-6c23-422a-b335-538221080366","block_type":"box","text":".................","page_number":41,"box":{"x":539,"y":320,"width":132,"height":1}},{"id":"440e1b4c-1324-4b36-925a-ae4b82f8d4ad","block_type":"box","text":"$117,568 $0","page_number":41,"box":{"x":710,"y":312,"width":164,"height":11}},{"id":"10e14320-106a-400d-a4cb-cea29e1bb301","block_type":"box","text":"Custodian Services","page_number":41,"box":{"x":69,"y":344,"width":139,"height":9}},{"id":"aeac46f0-f2d4-4022-823b-92fdd4cecce9","block_type":"box","text":"State Street Bank and Trust Company (“State Street”) has been retained to act as custodian for the Fund and is","page_number":41,"box":{"x":102,"y":366,"width":800,"height":12}},{"id":"f8be6b03-c04a-42dd-a7ac-6b8c91b073f0","block_type":"box","text":"located at 1 Congress Street, Suite 1, Boston, Massachusetts 02114-2016. The custodian, among other things,","page_number":41,"box":{"x":70,"y":382,"width":803,"height":11}},{"id":"01c91fa9-2550-473d-84f6-b58a8f15d484","block_type":"box","text":"maintains a custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon","page_number":41,"box":{"x":69,"y":397,"width":832,"height":11}},{"id":"35d852dd-3b2c-4dd3-a3c6-06de29dec24e","block_type":"box","text":"purchase and upon sale or maturity, and collects and receives all income and other payments and distributions on","page_number":41,"box":{"x":70,"y":412,"width":813,"height":11}},{"id":"d3e515ae-92e7-465e-9263-1df715967b6d","block_type":"box","text":"account of the assets of the Fund.","page_number":41,"box":{"x":69,"y":427,"width":244,"height":9}},{"id":"d8bebb53-6330-43e7-ba4d-55a21acad981","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":41,"box":{"x":68,"y":457,"width":432,"height":11}},{"id":"b48993bc-4bca-4783-b79c-d94f2699b872","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), which has its principal place of business at 118","page_number":41,"box":{"x":102,"y":480,"width":765,"height":11}},{"id":"75844d7f-c927-4a71-ab2c-05047ca0568b","block_type":"box","text":"Flanders Road, Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the","page_number":41,"box":{"x":70,"y":495,"width":838,"height":11}},{"id":"f7c45e62-3a75-41f6-8243-cb2bf85662c4","block_type":"box","text":"Fund.","page_number":41,"box":{"x":70,"y":510,"width":36,"height":9}},{"id":"2862f417-91f1-446d-bb3b-6670bb7ef139","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides cer tain shareholder","page_number":41,"box":{"x":102,"y":533,"width":762,"height":11}},{"id":"a809e0a5-9eed-4cd4-84ab-302f97e0fbdf","block_type":"box","text":"liaison services in connection with the Fund’s investor service center. The Fund reimburses the Manager for its costs","page_number":41,"box":{"x":70,"y":548,"width":834,"height":11}},{"id":"7db85683-6e02-47cc-aa4e-c622e3a3ee00","block_type":"box","text":"in maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses,","page_number":41,"box":{"x":70,"y":563,"width":823,"height":11}},{"id":"50caea47-dac4-4077-b475-dce87321381a","block_type":"box","text":"and other out-of-pocket expenses which are a component of the transfer agency fees in the Fund’s annual repor t.","page_number":41,"box":{"x":69,"y":578,"width":807,"height":11}},{"id":"768c1668-93a9-4bf3-ac16-d4bf1aa2cc98","block_type":"box","text":"Set for th below are the amounts the Fund reimbursed BlackRock pursuant to the Shareholders’ Administrative","page_number":41,"box":{"x":102,"y":601,"width":786,"height":11}},{"id":"99be6f88-bf7a-40f4-9c40-4160d407a522","block_type":"box","text":"Services Agreement for the periods indicated:","page_number":41,"box":{"x":69,"y":616,"width":325,"height":11}},{"id":"4a579797-c4ed-4118-9e00-d058385bfbe7","block_type":"box","text":"Fees Paid","page_number":41,"box":{"x":730,"y":644,"width":56,"height":7}},{"id":"cf932b54-905f-471a-adb6-6e58f9772245","block_type":"box","text":"to BlackRock","page_number":41,"box":{"x":716,"y":654,"width":80,"height":7}},{"id":"d36e2f77-f266-4a5c-af9f-4f612defc095","block_type":"box","text":"1","page_number":41,"box":{"x":796,"y":654,"width":4,"height":4}},{"id":"a1f53187-d431-4542-8435-94613abb65be","block_type":"box","text":"Fees Waived","page_number":41,"box":{"x":833,"y":644,"width":72,"height":7}},{"id":"801e3397-f190-46ea-b1ff-48d60f02eb61","block_type":"box","text":"by BlackRock","page_number":41,"box":{"x":830,"y":654,"width":80,"height":9}},{"id":"fad76aae-0199-411a-b5e8-f293d822ba93","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . . . .","page_number":41,"box":{"x":70,"y":672,"width":453,"height":11}},{"id":"9b4eec50-df2f-451c-92f2-7b1e98c45d08","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $5,575 $5,575","page_number":41,"box":{"x":529,"y":671,"width":366,"height":12}},{"id":"47d67c58-3c6f-4dd1-953a-846b5481deae","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . .","page_number":41,"box":{"x":70,"y":687,"width":453,"height":11}},{"id":"992ba332-274e-46df-b202-a8f3fc1547d9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $6,897 $6,897","page_number":41,"box":{"x":529,"y":686,"width":366,"height":12}},{"id":"f8e72ad2-0e83-4983-9c2e-923e5bf44d79","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . .","page_number":41,"box":{"x":70,"y":702,"width":453,"height":11}},{"id":"73b4ac18-e371-425c-b288-26c575a176d1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $7,382 $7,382","page_number":41,"box":{"x":529,"y":702,"width":366,"height":11}},{"id":"24f12e73-ae7d-42a5-b1b0-186cfef408c7","block_type":"box","text":"1","page_number":41,"box":{"x":69,"y":727,"width":3,"height":3}},{"id":"3ded05f4-530f-4222-b00f-24492386ccdd","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides cer tain shareholder liaison services in connection with","page_number":41,"box":{"x":94,"y":727,"width":809,"height":9}},{"id":"b27c688d-1ce3-476e-a830-95a6c57b1242","block_type":"box","text":"the Fund’s investor service center. The Fund reimburses the Manager for its costs in maintaining the service center, which costs include,","page_number":41,"box":{"x":93,"y":737,"width":781,"height":9}},{"id":"54cea64f-718b-4a29-8178-3b85472c8188","block_type":"box","text":"among other things, employee salaries, leasehold expenses, and other out-of-pocket expenses which are a component of the transfer agency","page_number":41,"box":{"x":93,"y":747,"width":806,"height":9}},{"id":"d2d6aca0-7d84-4684-8973-6129327aa39e","block_type":"box","text":"fees in the Fund’s annual repor t.","page_number":41,"box":{"x":93,"y":757,"width":187,"height":9}},{"id":"d0f764ff-f22c-4677-99ea-ca0b124b7021","block_type":"box","text":"Organization and Management of Wholly-Owned Subsidiary","page_number":41,"box":{"x":69,"y":785,"width":428,"height":12}},{"id":"69851443-5d60-4302-9da3-cdcc5c742abc","block_type":"box","text":"The Fund intends to gain exposure to commodity markets by investing up to 25% of its total assets in the","page_number":41,"box":{"x":101,"y":808,"width":751,"height":11}},{"id":"5b22abbd-ac92-4083-96a8-7c4ad5f4bb39","block_type":"box","text":"Subsidiary. The Subsidiary invests primarily in commodity-related instruments.","page_number":41,"box":{"x":69,"y":823,"width":557,"height":11}},{"id":"4865eda4-8df5-4766-9883-1d3a10d623e7","block_type":"box","text":"The Subsidiary is a company organized under the laws of the Cayman Islands, whose registered office is located","page_number":41,"box":{"x":101,"y":846,"width":803,"height":11}},{"id":"164680f4-1d74-4838-a733-a19bd35ded51","block_type":"box","text":"at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland House, Grand Cayman KYI-1104, Cayman","page_number":41,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"6addb18b-a874-4df7-a063-bfa48cc8b84c","block_type":"box","text":"Islands. The Subsidiary’s affairs are overseen by a board of directors, which is comprised of John M. Perlowski and","page_number":41,"box":{"x":70,"y":876,"width":821,"height":11}},{"id":"9922d19f-b47f-481e-a722-c08ffcec191f","block_type":"box","text":"Trent Walker.","page_number":41,"box":{"x":68,"y":891,"width":91,"height":9}},{"id":"43280390-f5a5-436c-b285-5582300b1b35","block_type":"box","text":"I-23","page_number":41,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"0fc1c426-4b9e-43ca-a4d4-af2067c85aab","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"afb3d9c5-51bb-405d-9461-9518d3755620","block_type":"box","text":"The Manager provides investment management and administrative services to the Subsidiary. The Manager does","page_number":42,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"17725033-12b5-4e7e-8fbe-ee5c28496994","block_type":"box","text":"not receive separate compensation from the Subsidiary for providing it with investment advisory or administrative","page_number":42,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"eb833af0-73f2-4c33-931e-7a34122e7941","block_type":"box","text":"services. However, the Fund pays the Manager based on the Fund’s assets, including the assets invested in the","page_number":42,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"97b59ea4-b1cd-49fa-bffa-92a73b2b4f7b","block_type":"box","text":"Subsidiary. The Subsidiary entered into contracts for the provision of custody and audit services with the same","page_number":42,"box":{"x":69,"y":90,"width":792,"height":11}},{"id":"ba83c9f7-24bf-4f84-b66f-4e7fcba13e57","block_type":"box","text":"service providers that provide those services to the Fund.","page_number":42,"box":{"x":69,"y":105,"width":410,"height":11}},{"id":"a4af3ba8-0d16-4f70-9e60-f0d57b45cc43","block_type":"box","text":"The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material","page_number":42,"box":{"x":101,"y":128,"width":780,"height":11}},{"id":"7c06805f-4efa-432d-a761-f95346cba012","block_type":"box","text":"respects, as the policies and procedures adopted by the Fund. As a result, the Manager, in managing the","page_number":42,"box":{"x":69,"y":143,"width":750,"height":11}},{"id":"587246c4-2046-4749-99e6-7b6cee6e8b2f","block_type":"box","text":"Subsidiary’s por tfolio, is subject to the same investment policies and restrictions that apply to the management of","page_number":42,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"ac548cb9-c146-4f7f-bf40-3fc8ad9f9cb7","block_type":"box","text":"the Fund, and, in par ticular, to the requirements relating to por tfolio leverage, liquidity, brokerage, and the timing and","page_number":42,"box":{"x":68,"y":173,"width":836,"height":11}},{"id":"61d599f3-48db-4590-824a-16ba4b7eff67","block_type":"box","text":"method of the valuation of the Subsidiary’s por tfolio investments and shares of the Subsidiary. These policies and","page_number":42,"box":{"x":69,"y":188,"width":818,"height":11}},{"id":"b588aa06-0c88-4d5d-a4f9-b8de2e3c9563","block_type":"box","text":"restrictions are described elsewhere in detail in this SAI. The Fund and the Subsidiary test for compliance with","page_number":42,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"2f5dbf79-751a-4f40-b9ab-fbcb054d7ad7","block_type":"box","text":"cer tain investment restrictions on a consolidated basis.","page_number":42,"box":{"x":69,"y":219,"width":397,"height":8}},{"id":"dffde43b-697f-40b0-baf6-1058a856fad2","block_type":"box","text":"Credit Agreement","page_number":42,"box":{"x":69,"y":249,"width":129,"height":11}},{"id":"a6d17a82-296a-4d9d-be70-6c06f2cf3883","block_type":"box","text":"The Fund, along with cer tain other funds managed by the Manager and its affiliates (“Par ticipating Funds”),","page_number":42,"box":{"x":101,"y":271,"width":765,"height":12}},{"id":"85c9bbc4-b0a5-4c0d-bde2-efc4fbc6a587","block_type":"box","text":"is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on","page_number":42,"box":{"x":70,"y":286,"width":748,"height":12}},{"id":"5b33936e-eadf-4c00-898e-85f13feac334","block_type":"box","text":"April 8, 2027 unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated","page_number":42,"box":{"x":68,"y":302,"width":818,"height":11}},{"id":"65044551-dc42-4b93-abcc-0974ed13202f","block_type":"box","text":"for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up to an aggregate","page_number":42,"box":{"x":68,"y":317,"width":757,"height":11}},{"id":"b42fd618-5b65-4cfd-90f6-516f4106de52","block_type":"box","text":"commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as","page_number":42,"box":{"x":69,"y":331,"width":801,"height":12}},{"id":"97745e05-36da-4a0c-87c9-6a57c7f98659","block_type":"box","text":"specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet shareholder","page_number":42,"box":{"x":69,"y":347,"width":751,"height":11}},{"id":"25e3039e-7e4f-47cc-a9d4-692a159d9b25","block_type":"box","text":"redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit Agreement for","page_number":42,"box":{"x":69,"y":362,"width":784,"height":11}},{"id":"d4b913dc-0b63-4df2-b26b-dd2e27feeaac","block_type":"box","text":"leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses and SAI, subject","page_number":42,"box":{"x":70,"y":377,"width":839,"height":12}},{"id":"e4d12310-fcac-4d8e-838b-c56d2b2ed2ce","block_type":"box","text":"to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other fees and","page_number":42,"box":{"x":68,"y":392,"width":794,"height":12}},{"id":"ae37b768-d62f-4e9c-92d9-44cf13994327","block_type":"box","text":"expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the Fund’s","page_number":42,"box":{"x":69,"y":407,"width":809,"height":12}},{"id":"639ea752-19ce-44a2-89f3-e0d12fd86e4c","block_type":"box","text":"return. The Fund will be charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":42,"box":{"x":69,"y":423,"width":753,"height":11}},{"id":"8646e217-592b-45f0-bac9-c72603b25723","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund is","page_number":42,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"6c881090-0c84-42a8-822e-fd1049195cb8","block_type":"box","text":"charged interest at a variable rate.","page_number":42,"box":{"x":69,"y":453,"width":245,"height":11}},{"id":"68206980-3d94-4ab0-9e17-ac33b63102cd","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":42,"box":{"x":68,"y":483,"width":491,"height":11}},{"id":"c107dabb-548a-46dd-aed0-3c3696850a5f","block_type":"box","text":"Distribution Agreement and Distribution and Service Plan.","page_number":42,"box":{"x":102,"y":506,"width":421,"height":11}},{"id":"f889d57c-af10-4a3e-b088-312f1a9051ee","block_type":"box","text":"The Fund has entered into a distribution agreement","page_number":42,"box":{"x":529,"y":506,"width":366,"height":11}},{"id":"293a08b2-4810-4768-84b8-d2ea0d5de1e1","block_type":"box","text":"with BlackRock Investments, LLC (“BRIL,” or the “Distributor”) under which BRIL, as agent, offers shares of the Fund","page_number":42,"box":{"x":68,"y":521,"width":834,"height":11}},{"id":"e224ad52-ccd4-438b-944a-9f199828d931","block_type":"box","text":"on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is not","page_number":42,"box":{"x":69,"y":536,"width":774,"height":11}},{"id":"946656f0-05a2-482c-a878-c08fe575b1b6","block_type":"box","text":"obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New York,","page_number":42,"box":{"x":69,"y":551,"width":822,"height":11}},{"id":"b2eea169-182d-4cac-9008-75753261e2e5","block_type":"box","text":"New York 10001. BRIL is an affiliate of BlackRock.","page_number":42,"box":{"x":70,"y":566,"width":359,"height":9}},{"id":"3a05cf91-ba33-4277-8e73-d2b954a68ee7","block_type":"box","text":"The Fund may also pay shareholder servicing fees (also referred to as general shareholder liaison services fees)","page_number":42,"box":{"x":101,"y":589,"width":803,"height":11}},{"id":"583ae8e7-76d5-42c6-8537-357037cfa2b4","block_type":"box","text":"to affiliated and unaffiliated brokers, dealers, financial institutions, insurance companies, retirement plan record","page_number":42,"box":{"x":68,"y":604,"width":808,"height":11}},{"id":"b47e6076-5c1d-492b-9332-ca321f51f028","block_type":"box","text":"keepers and other financial intermediaries (including BlackRock, BRIL and their affiliates) (collectively, “Service","page_number":42,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"e12a9599-a33e-492a-b17a-fc7e347caf25","block_type":"box","text":"Organizations”) for cer tain suppor t services rendered by Service Organizations to their customers who are the","page_number":42,"box":{"x":69,"y":634,"width":786,"height":12}},{"id":"bf6fd749-069c-45be-88f1-2fd314d009cb","block_type":"box","text":"beneficial owners of Investor A and Investor C Shares of the Fund.","page_number":42,"box":{"x":69,"y":649,"width":470,"height":9}},{"id":"c3a6376d-a996-4bd2-afec-61697f926607","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":42,"box":{"x":102,"y":672,"width":773,"height":11}},{"id":"a18b9747-b35a-4111-93fe-15501a015d7d","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of BlackRock, for the periods indicated.","page_number":42,"box":{"x":69,"y":687,"width":720,"height":11}},{"id":"00cf9181-d9b3-4665-bb62-17b16aa0577b","block_type":"box","text":"Investor A Sales Charges Information","page_number":42,"box":{"x":70,"y":717,"width":264,"height":12}},{"id":"daf2bf2d-1ee9-4029-a6ff-a629c1d1187f","block_type":"box","text":"Investor A Shares","page_number":42,"box":{"x":638,"y":746,"width":102,"height":7}},{"id":"cd6e2bec-4302-494f-9d04-3d6a4cd382f8","block_type":"box","text":"Gross Sales","page_number":42,"box":{"x":468,"y":761,"width":68,"height":8}},{"id":"aaedd95a-4f3a-41ec-8edd-65cda043e31c","block_type":"box","text":"Charges","page_number":42,"box":{"x":478,"y":772,"width":48,"height":8}},{"id":"58ef2a09-cb6f-4529-9ce2-431ee9a8005f","block_type":"box","text":"Collected","page_number":42,"box":{"x":475,"y":782,"width":54,"height":7}},{"id":"ddac7526-93fc-44da-8508-1d798a225e6a","block_type":"box","text":"Sales Charges","page_number":42,"box":{"x":566,"y":761,"width":84,"height":9}},{"id":"6e702f8a-2dce-41ba-a38f-19354e826b0e","block_type":"box","text":"Retained by","page_number":42,"box":{"x":574,"y":772,"width":69,"height":8}},{"id":"a3a81fde-23c4-4c2f-8ad0-d675a28b4218","block_type":"box","text":"BRIL","page_number":42,"box":{"x":595,"y":782,"width":27,"height":7}},{"id":"b4c8cfa6-7520-43ab-805e-0b7b9faa7851","block_type":"box","text":"Sales Charges","page_number":42,"box":{"x":679,"y":761,"width":84,"height":9}},{"id":"f5313ca0-b771-4197-a514-7a495fbeb70d","block_type":"box","text":"Paid to","page_number":42,"box":{"x":701,"y":772,"width":41,"height":7}},{"id":"4589719e-ee3b-40a2-8d56-a046ee7ca415","block_type":"box","text":"Affiliates","page_number":42,"box":{"x":695,"y":782,"width":52,"height":7}},{"id":"f9870828-f250-49fe-9645-597250aa2c49","block_type":"box","text":"CDSCs Received","page_number":42,"box":{"x":803,"y":761,"width":96,"height":8}},{"id":"da16b65a-e7f4-41c2-bd92-a2fd32b8e55d","block_type":"box","text":"on Redemption of","page_number":42,"box":{"x":800,"y":771,"width":103,"height":9}},{"id":"7af1a51b-e89e-4a4e-8b69-11031fa58847","block_type":"box","text":"Load-Waived Shares","page_number":42,"box":{"x":793,"y":782,"width":116,"height":7}},{"id":"83e2025a-52d3-40b8-ac18-fa3e332498c9","block_type":"box","text":"Fiscal Year Ended December 31, 2025","page_number":42,"box":{"x":70,"y":799,"width":273,"height":11}},{"id":"261337e4-4fc3-4e9a-b90b-70881f609f09","block_type":"box","text":"...........","page_number":42,"box":{"x":354,"y":807,"width":83,"height":1}},{"id":"2d2fa44c-2318-4156-a782-7066213b008e","block_type":"box","text":"$19,735 $1,453 $1,453 $ 0","page_number":42,"box":{"x":471,"y":799,"width":399,"height":11}},{"id":"a3e16369-776c-4eae-bf44-2d87ca7acfb4","block_type":"box","text":"Fiscal Year Ended December 31, 2024","page_number":42,"box":{"x":70,"y":815,"width":274,"height":10}},{"id":"322b2ba1-59a9-4388-82c5-45be8f92a208","block_type":"box","text":"...........","page_number":42,"box":{"x":354,"y":822,"width":83,"height":1}},{"id":"3b8c1b0c-0bb3-420b-a24c-ad935cfc577e","block_type":"box","text":"$19,206 $1,622 $1,622 $218","page_number":42,"box":{"x":471,"y":814,"width":399,"height":11}},{"id":"a343851a-9359-4df9-8512-80a3782df399","block_type":"box","text":"Fiscal Year Ended December 31, 2023","page_number":42,"box":{"x":70,"y":830,"width":273,"height":10}},{"id":"1d85f185-7735-42e7-9f07-5c3fd0069fed","block_type":"box","text":"...........","page_number":42,"box":{"x":354,"y":837,"width":83,"height":1}},{"id":"3ceef552-327e-47e9-8f5f-70d6e026b517","block_type":"box","text":"$23,496 $1,677 $1,677 $430","page_number":42,"box":{"x":471,"y":829,"width":399,"height":11}},{"id":"55f7d56b-fff9-473e-84b5-e7e336458880","block_type":"box","text":"I-24","page_number":42,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"27b4e786-9d8b-4da8-918a-491f8530ef7a","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"827a0f85-4b3e-4df3-bd28-5a60b63360b1","block_type":"box","text":"Investor C Sales Charges Information","page_number":43,"box":{"x":70,"y":45,"width":265,"height":11}},{"id":"ac2e2622-978c-4122-96a4-f0d4eeca639d","block_type":"box","text":"Investor C Shares","page_number":43,"box":{"x":752,"y":73,"width":103,"height":7}},{"id":"316881a3-d9ad-4d69-a7d0-46edeb51ff6c","block_type":"box","text":"CDSCs Received","page_number":43,"box":{"x":698,"y":89,"width":96,"height":7}},{"id":"d458a29f-3274-499e-8b62-0521cf4eae73","block_type":"box","text":"by BRIL","page_number":43,"box":{"x":724,"y":99,"width":44,"height":9}},{"id":"def73ff2-16b9-4f2e-a3d2-67070c0e46d4","block_type":"box","text":"CDSCs Paid to","page_number":43,"box":{"x":824,"y":89,"width":85,"height":7}},{"id":"d71df679-17b0-40ce-aef6-420cc9a5b2f6","block_type":"box","text":"Affiliates","page_number":43,"box":{"x":841,"y":99,"width":52,"height":7}},{"id":"7076f06e-95ab-4aba-8910-19484e6b1829","block_type":"box","text":"Fiscal Year Ended December 31, 2025. . .","page_number":43,"box":{"x":70,"y":117,"width":295,"height":10}},{"id":"be092772-34af-4164-a8f1-7da4d1145022","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15 $ 15","page_number":43,"box":{"x":371,"y":116,"width":515,"height":10}},{"id":"0c298c31-e833-468e-b6ab-21eaa385b9ce","block_type":"box","text":"Fiscal Year Ended December 31, 2024. . .","page_number":43,"box":{"x":70,"y":132,"width":295,"height":10}},{"id":"fe971717-998f-4afd-af75-8885df6ec6ce","block_type":"box","text":".....................................","page_number":43,"box":{"x":371,"y":139,"width":295,"height":1}},{"id":"8c69f739-66c5-455a-aeeb-5f76fbee81a4","block_type":"box","text":"$731 $731","page_number":43,"box":{"x":727,"y":131,"width":159,"height":10}},{"id":"ce8aed02-23f5-46dd-af1e-ef16b265403c","block_type":"box","text":"Fiscal Year Ended December 31, 2023. . .","page_number":43,"box":{"x":70,"y":147,"width":295,"height":10}},{"id":"10b518aa-c49f-464b-9751-55eb49ebb202","block_type":"box","text":".....................................","page_number":43,"box":{"x":371,"y":154,"width":295,"height":2}},{"id":"7ed141ab-f0bd-4f19-9583-cdd82e883816","block_type":"box","text":"$165 $165","page_number":43,"box":{"x":727,"y":146,"width":159,"height":10}},{"id":"eba37a12-10e8-4dea-8e49-097540473789","block_type":"box","text":"The table below provides information for the fiscal year ended December 31, 2025 about the 12b-1 fees the","page_number":43,"box":{"x":101,"y":171,"width":774,"height":11}},{"id":"6b122267-03be-4767-b625-d14e1b3fe5b2","block_type":"box","text":"Fund paid to BRIL under the Fund’s 12b-1 plans. A significant amount of the fees collected by BRIL were paid to","page_number":43,"box":{"x":70,"y":186,"width":796,"height":11}},{"id":"30c79f45-81e8-4db6-94da-d300c9ff6570","block_type":"box","text":"affiliates, for providing shareholder servicing activities for Investor A Shares and for providing shareholder servicing","page_number":43,"box":{"x":69,"y":201,"width":823,"height":11}},{"id":"b57f859f-e4fb-425b-b496-04ff96ddb2c6","block_type":"box","text":"and distribution-related activities and services for Investor C Shares.","page_number":43,"box":{"x":69,"y":216,"width":488,"height":9}},{"id":"f413511b-f944-43d1-86a2-adf268f389f2","block_type":"box","text":"Class Name","page_number":43,"box":{"x":69,"y":254,"width":68,"height":7}},{"id":"2f9eaf2e-e42f-4e8a-abf3-4fcff75ff1aa","block_type":"box","text":"Fees Paid","page_number":43,"box":{"x":845,"y":244,"width":56,"height":7}},{"id":"744a1831-0eff-46b5-9b62-aaa16d009c31","block_type":"box","text":"to BRIL","page_number":43,"box":{"x":851,"y":254,"width":44,"height":7}},{"id":"9d18696e-eda7-414a-a2fc-e9f623f96931","block_type":"box","text":"Investor A Shares . .","page_number":43,"box":{"x":70,"y":272,"width":140,"height":9}},{"id":"f271fcdf-d7fe-46ec-b205-862028ffb562","block_type":"box","text":".........................................................................","page_number":43,"box":{"x":217,"y":279,"width":588,"height":2}},{"id":"fcc54581-dc2c-45de-9c3d-0d762d9b9bb7","block_type":"box","text":"$213,626","page_number":43,"box":{"x":837,"y":271,"width":72,"height":12}},{"id":"16845201-250b-45cf-9533-494c0e24cb18","block_type":"box","text":"Investor C Shares","page_number":43,"box":{"x":70,"y":287,"width":125,"height":9}},{"id":"6e5c03eb-7d0e-4ede-8c52-b43be8a3e1c2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,949","page_number":43,"box":{"x":200,"y":286,"width":709,"height":12}},{"id":"9181eee1-3574-4c9e-9e71-fadf1bd9f46e","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":43,"box":{"x":68,"y":319,"width":318,"height":11}},{"id":"30e193f4-9d3c-4be5-998b-37f22187a851","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund’s, based on","page_number":43,"box":{"x":101,"y":341,"width":780,"height":12}},{"id":"c24957e1-077d-48f7-9da3-42912da4242d","block_type":"box","text":"the value of the Fund’s Investor A Shares’ net assets and number of Investor A Shares outstanding as of","page_number":43,"box":{"x":68,"y":356,"width":750,"height":12}},{"id":"8e8d6717-a5b3-4758-8eba-cc7dcdaca40a","block_type":"box","text":"December 31, 2025 follows:","page_number":43,"box":{"x":70,"y":372,"width":202,"height":10}},{"id":"21c6a816-48c5-4cab-b72f-61c35c88aeb2","block_type":"box","text":"Investor A Shares","page_number":43,"box":{"x":807,"y":400,"width":102,"height":7}},{"id":"2c211ec8-8e22-4a04-bed3-b86a9d45411e","block_type":"box","text":"Net Assets","page_number":43,"box":{"x":70,"y":418,"width":76,"height":9}},{"id":"5a238a67-61ed-4891-8017-87eace0efeb8","block_type":"box","text":".............................................................................","page_number":43,"box":{"x":154,"y":425,"width":621,"height":1}},{"id":"92b97aba-64c0-4b29-a07e-8e48e9caa1d3","block_type":"box","text":"$86,206,850","page_number":43,"box":{"x":810,"y":417,"width":96,"height":11}},{"id":"e00ef4c8-98bd-46f1-bd43-195f778f982a","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":43,"box":{"x":70,"y":433,"width":444,"height":11}},{"id":"635285f8-675f-4730-bde4-2a2975c3c201","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,","page_number":43,"box":{"x":521,"y":433,"width":321,"height":10}},{"id":"dfaa76c8-3fbb-471b-93d5-825071ba4148","block_type":"box","text":"998,286","page_number":43,"box":{"x":844,"y":433,"width":62,"height":10}},{"id":"7349d6aa-e046-490a-be77-044701845f52","block_type":"box","text":"Net Asset Value Per Share","page_number":43,"box":{"x":70,"y":448,"width":185,"height":9}},{"id":"fa5df248-4d02-4bf6-8e0e-7c159a4ea69a","block_type":"box","text":"(net assets divided by number of shares outstanding) . . . . . . . . .","page_number":43,"box":{"x":79,"y":462,"width":452,"height":12}},{"id":"71bc7864-43b4-4a13-bd30-7a4067a84551","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.39","page_number":43,"box":{"x":537,"y":462,"width":369,"height":10}},{"id":"db081be4-5cba-4627-b9c6-204de7f4fd84","block_type":"box","text":"Sales Charge ( 4.00% of offering price; 4.17% of net asset value per share)","page_number":43,"box":{"x":69,"y":477,"width":538,"height":12}},{"id":"ab4199e9-120c-4a32-9e8e-27a7b9cc6cb1","block_type":"box","text":"1","page_number":43,"box":{"x":609,"y":478,"width":4,"height":4}},{"id":"b9f0e595-0d4d-48c4-b6da-4255d705ad38","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $0.22","page_number":43,"box":{"x":619,"y":477,"width":287,"height":10}},{"id":"62fbd8d9-163c-49b4-8d7a-cc43bc8de5e3","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.61","page_number":43,"box":{"x":69,"y":496,"width":837,"height":12}},{"id":"18cdc525-f2c2-45ed-a736-82ef9165338d","block_type":"box","text":"1","page_number":43,"box":{"x":69,"y":529,"width":3,"height":4}},{"id":"c9f8f48c-fbc2-49fb-8d30-61dea26e7c5c","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge applicable.","page_number":43,"box":{"x":94,"y":529,"width":527,"height":9}},{"id":"8dd39591-6f57-4d9f-a929-7d4ad90670ab","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":43,"box":{"x":101,"y":550,"width":787,"height":11}},{"id":"6a76f61f-9ab9-435b-8520-38c9dc79c915","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":43,"box":{"x":69,"y":565,"width":833,"height":11}},{"id":"8ec4c89f-e66b-487c-9c91-8bfc058faabe","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":43,"box":{"x":69,"y":580,"width":813,"height":11}},{"id":"ec9d8093-c5f9-4e60-9eed-5866c91f162f","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":43,"box":{"x":69,"y":595,"width":377,"height":11}},{"id":"f89a4689-8881-4b51-9963-ff5122d97407","block_type":"box","text":"The Subsidiary is subject to the same valuation policies as the Fund as described in “Pricing of Shares” in Par t II","page_number":43,"box":{"x":101,"y":618,"width":807,"height":11}},{"id":"58a8ed88-6fbf-4627-9052-91b5c7f3e8f6","block_type":"box","text":"of this SAI. The Fund’s investment in the Subsidiary is valued based on the value of the Subsidiary’s por tfolio","page_number":43,"box":{"x":69,"y":633,"width":783,"height":11}},{"id":"b64c6c38-494f-40e7-879a-3aa553ea35bb","block_type":"box","text":"investments. The Subsidiary prices its por tfolio investments pursuant to the same pricing and valuation","page_number":43,"box":{"x":70,"y":648,"width":738,"height":11}},{"id":"5d0136bf-02e7-4d53-ad18-2446e3bd8ea0","block_type":"box","text":"methodologies and procedures used by the Fund, which require, among other things, that each of the Subsidiary’s","page_number":43,"box":{"x":69,"y":663,"width":816,"height":12}},{"id":"ab85696b-50fb-4f38-9803-a0016e33702f","block_type":"box","text":"por tfolio investments be marked-to-market (that is, the value on the Subsidiary’s books changes) each business day","page_number":43,"box":{"x":70,"y":678,"width":830,"height":12}},{"id":"86f70ddd-7ce6-4e10-9836-f1a75b9d012a","block_type":"box","text":"to reflect changes in the market value of the investment.","page_number":43,"box":{"x":68,"y":693,"width":404,"height":12}},{"id":"20705e5c-5e77-4bab-a501-336ff7e47abb","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":43,"box":{"x":68,"y":724,"width":302,"height":11}},{"id":"01d10a70-08a9-4273-9ee1-edbb1549fee4","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":43,"box":{"x":102,"y":746,"width":609,"height":12}},{"id":"ebf32c02-5c87-4c44-a927-78aa6691d66b","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates of the","page_number":43,"box":{"x":102,"y":769,"width":790,"height":11}},{"id":"516d42a2-253a-4ea7-9f03-9b734bceb024","block_type":"box","text":"Manager, is set for th in the following table:","page_number":43,"box":{"x":70,"y":784,"width":304,"height":11}},{"id":"d2fd393b-1ed0-4055-977b-9c44b70e1362","block_type":"box","text":"Aggregate Brokerage","page_number":43,"box":{"x":648,"y":813,"width":125,"height":8}},{"id":"bd7ab681-96fd-4735-aeba-372125ba1cf5","block_type":"box","text":"Commissions Paid","page_number":43,"box":{"x":658,"y":823,"width":105,"height":7}},{"id":"4aa14935-f322-4e0b-82f3-d1c6bbc26255","block_type":"box","text":"Commissions Paid","page_number":43,"box":{"x":803,"y":812,"width":106,"height":8}},{"id":"3aaf086e-2272-4f34-8db8-add225daa21b","block_type":"box","text":"to Affiliates","page_number":43,"box":{"x":822,"y":823,"width":68,"height":7}},{"id":"68034d8c-b133-44fa-beb2-21d81e2973f0","block_type":"box","text":"Fiscal Year Ended December 31, 2025","page_number":43,"box":{"x":70,"y":840,"width":273,"height":11}},{"id":"825f8b6c-386c-48d6-9dbd-b6ee89af6ce8","block_type":"box","text":"..................................","page_number":43,"box":{"x":346,"y":848,"width":271,"height":1}},{"id":"8d0136c6-dcf4-4657-8540-ba2a42f7a521","block_type":"box","text":"$280,843 $0","page_number":43,"box":{"x":675,"y":840,"width":190,"height":11}},{"id":"358ab947-d15a-44f0-9117-a1bc010ee3f1","block_type":"box","text":"Fiscal Year Ended December 31, 2024","page_number":43,"box":{"x":70,"y":855,"width":274,"height":11}},{"id":"80b575da-bc2a-49b4-b5ba-18557f663a26","block_type":"box","text":"..................................","page_number":43,"box":{"x":346,"y":863,"width":271,"height":1}},{"id":"fe737ab5-5b0c-453b-b7b4-4080c3294946","block_type":"box","text":"$354,170 $0","page_number":43,"box":{"x":675,"y":855,"width":190,"height":11}},{"id":"4d8a3cdf-78c1-4037-83d6-2a1eb80926eb","block_type":"box","text":"Fiscal Year Ended December 31, 2023","page_number":43,"box":{"x":70,"y":871,"width":273,"height":10}},{"id":"112cdc8e-ee91-4c34-ace8-e39486c400a6","block_type":"box","text":"..................................","page_number":43,"box":{"x":346,"y":878,"width":271,"height":1}},{"id":"8afd8c63-d442-4134-aa59-e5630bb91879","block_type":"box","text":"$363,148 $0","page_number":43,"box":{"x":675,"y":870,"width":190,"height":11}},{"id":"58610985-08e0-48da-82a4-d4c6b4e4f23b","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing third-par ty","page_number":43,"box":{"x":101,"y":894,"width":790,"height":12}},{"id":"e0f1d4d8-8c70-46be-b218-2d0ccd17b7cf","block_type":"box","text":"research services and the approximate dollar amount of the transactions involved for the fiscal year ended","page_number":43,"box":{"x":69,"y":909,"width":760,"height":12}},{"id":"05989904-0b43-4bb9-a627-ae375703b951","block_type":"box","text":"I-25","page_number":43,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"67021c35-871d-4c16-b6d4-04ee9ef97e17","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e15dda94-09a3-45d1-ba64-6d8c14adf4dd","block_type":"box","text":"December 31, 2025. The provision of third-par ty research services was not necessarily a factor in the placement of","page_number":44,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"5e197cfe-3e77-41f0-bd06-7504c1fc5e9e","block_type":"box","text":"all brokerage business with such brokers.","page_number":44,"box":{"x":69,"y":60,"width":296,"height":11}},{"id":"be0a6461-d7e5-469a-8044-5da9dbb8bc54","block_type":"box","text":"Amount of Commissions","page_number":44,"box":{"x":277,"y":88,"width":141,"height":7}},{"id":"95b5ea52-cacf-411f-ac97-266871d0d66d","block_type":"box","text":"Paid to Brokers for","page_number":44,"box":{"x":293,"y":98,"width":109,"height":7}},{"id":"5a08c5e4-6d06-4247-97cf-e57a7f8dd794","block_type":"box","text":"Providing Research Services","page_number":44,"box":{"x":265,"y":108,"width":165,"height":9}},{"id":"31bf864e-b059-4609-9234-0a1e82062f5d","block_type":"box","text":"Amount of Brokerage","page_number":44,"box":{"x":588,"y":98,"width":124,"height":9}},{"id":"7929c5b3-124e-4c10-ba6c-b0859e8d24d8","block_type":"box","text":"Transactions Involved","page_number":44,"box":{"x":587,"y":108,"width":126,"height":7}},{"id":"85624d62-b4d5-49d6-a44a-ee0abc61e1c3","block_type":"box","text":"$0 $0","page_number":44,"box":{"x":339,"y":125,"width":321,"height":11}},{"id":"bd42ee50-2784-4d8e-98e1-1854f129419d","block_type":"box","text":"As of December 31, 2025, the value of the Fund’s holdings of the securities of its regular brokers or dealers (as","page_number":44,"box":{"x":101,"y":150,"width":802,"height":11}},{"id":"8ab52b0c-165e-46e1-b608-cee9f220e212","block_type":"box","text":"defined in Rule 10b-1 under the Investment Company Act), if any por tion of such holdings were purchased during the","page_number":44,"box":{"x":69,"y":165,"width":832,"height":11}},{"id":"62140f34-22e4-473e-a569-2758a9b61a0d","block_type":"box","text":"fiscal year ended December 31, 2025, is as follows:","page_number":44,"box":{"x":68,"y":180,"width":374,"height":11}},{"id":"b93f282d-5b6a-4359-8a4f-5d099c4fa9c4","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":44,"box":{"x":69,"y":208,"width":840,"height":9}},{"id":"d1d325f8-aba6-4c07-9e18-26bf778be130","block_type":"box","text":"Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D","page_number":44,"box":{"x":70,"y":226,"width":594,"height":11}},{"id":"ca31e1bb-212f-42bd-86e1-221db38371a1","block_type":"box","text":"$13,963","page_number":44,"box":{"x":797,"y":225,"width":62,"height":12}},{"id":"543b211f-b392-4677-8e11-7f095f588d95","block_type":"box","text":"Wells Fargo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D","page_number":44,"box":{"x":68,"y":241,"width":596,"height":11}},{"id":"d950aca0-8977-4680-af6e-642c2bb7343b","block_type":"box","text":"$10,990","page_number":44,"box":{"x":797,"y":241,"width":62,"height":11}},{"id":"a7863c1d-54b1-450f-a46e-27ea486a1e6c","block_type":"box","text":"Citigroup Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D","page_number":44,"box":{"x":69,"y":256,"width":595,"height":12}},{"id":"cbbaf1b9-ebf9-4759-8fb2-1db74a50b906","block_type":"box","text":"$10,203","page_number":44,"box":{"x":797,"y":256,"width":62,"height":11}},{"id":"5e3d6b87-8c6f-4616-9f0a-8eb1d4371c7e","block_type":"box","text":"UBS Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 3,506","page_number":44,"box":{"x":70,"y":271,"width":789,"height":11}},{"id":"6dbc2c0f-2203-4107-9e54-6432ff41bbb9","block_type":"box","text":"BNP paribas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 463","page_number":44,"box":{"x":70,"y":286,"width":789,"height":11}},{"id":"fa9ed3bf-0680-45d0-b808-1bdbb90d19b1","block_type":"box","text":"Citigroup Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 126","page_number":44,"box":{"x":69,"y":301,"width":790,"height":12}},{"id":"f2ce4169-8940-48f2-a3a1-79db884772af","block_type":"box","text":"Goldman Sachs Group Inc . .","page_number":44,"box":{"x":69,"y":317,"width":200,"height":11}},{"id":"560d3b2e-f374-45b0-9bdf-4bf30e0e373a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 45","page_number":44,"box":{"x":276,"y":316,"width":583,"height":11}},{"id":"7d87254d-c3ae-4859-9c0f-fff7f71f1ac5","block_type":"box","text":"The Subsidiary follows the same brokerage practices as the Fund.","page_number":44,"box":{"x":101,"y":356,"width":470,"height":11}},{"id":"2532cbca-4e11-4dd0-a1d6-0fca9f9bf861","block_type":"box","text":"Securities Lending","page_number":44,"box":{"x":68,"y":386,"width":135,"height":11}},{"id":"1fb7a308-9ab3-4f99-8047-d0ff960f7c74","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":44,"box":{"x":101,"y":409,"width":807,"height":11}},{"id":"564c8fdf-d103-4eb5-b120-e6b438961af1","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":44,"box":{"x":69,"y":424,"width":817,"height":11}},{"id":"083f7c84-90e2-460c-840c-2d260e0f97e9","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":44,"box":{"x":69,"y":439,"width":813,"height":11}},{"id":"7fd6d00e-d3ed-4d10-8714-826f9cb53e61","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”), acts as securities lending agent for the Fund, subject to","page_number":44,"box":{"x":70,"y":454,"width":816,"height":11}},{"id":"f1af366e-441b-436a-9f7a-70868f2875d3","block_type":"box","text":"the overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency","page_number":44,"box":{"x":68,"y":469,"width":745,"height":11}},{"id":"321f4b0b-1278-4fb6-a823-f674ed257de6","block_type":"box","text":"Agreement”). BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":44,"box":{"x":68,"y":485,"width":747,"height":11}},{"id":"5c8b1396-eb86-4724-b6f9-5358185dc500","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":44,"box":{"x":101,"y":507,"width":735,"height":11}},{"id":"1da3c9ea-7de3-46d5-a08e-c3229f83dab1","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":44,"box":{"x":69,"y":522,"width":834,"height":11}},{"id":"47b65fc2-ea2b-4338-b12e-b83d5cf5e78d","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":44,"box":{"x":70,"y":537,"width":822,"height":11}},{"id":"e57fb752-5bea-4a5a-afb2-c5920cf5204e","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":44,"box":{"x":69,"y":552,"width":787,"height":12}},{"id":"a4171af8-992e-47bd-871c-c43e3e09c897","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":44,"box":{"x":69,"y":567,"width":783,"height":12}},{"id":"1c72dac6-c344-4387-bef2-604dc5974ed4","block_type":"box","text":"investment of cash collateral received for securities on loan in money market funds managed by BlackRock (the","page_number":44,"box":{"x":70,"y":583,"width":794,"height":11}},{"id":"f8dbda4c-8ace-4398-84eb-47be5f09f298","block_type":"box","text":"“collateral investment fees”); however, BIM has agreed to reduce the amount of securities lending income it receives","page_number":44,"box":{"x":70,"y":598,"width":834,"height":11}},{"id":"4b682c71-a65b-4e44-bd2f-87aefc26f268","block_type":"box","text":"in order to effectively limit the collateral investment fees a Fund bears to an annual rate of 0.04%. Such money","page_number":44,"box":{"x":70,"y":613,"width":792,"height":11}},{"id":"3954d256-d96a-4119-9cca-5183d8c25d8f","block_type":"box","text":"market fund shares will not be subject to a sales load, distribution fee or service fee. To the extent that the Fund","page_number":44,"box":{"x":69,"y":628,"width":805,"height":11}},{"id":"abc9191b-3bd7-48a7-9ed1-c810a3ef2f3e","block_type":"box","text":"invests cash collateral in a non-government money market fund, the Fund may be subject to a discretionary liquidity","page_number":44,"box":{"x":70,"y":643,"width":823,"height":11}},{"id":"7e00dcc6-ad04-40bf-8019-4e0e62568eda","block_type":"box","text":"fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the","page_number":44,"box":{"x":68,"y":658,"width":800,"height":11}},{"id":"c52cc129-94fa-4754-8da0-c15a26afc236","block_type":"box","text":"discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would","page_number":44,"box":{"x":69,"y":673,"width":828,"height":12}},{"id":"ee0b744d-f7b0-4bbc-b777-f4bd59d23c24","block_type":"box","text":"be, or would not be, respectively, in the best interest of the money market fund. Additionally, the Fund will be subject","page_number":44,"box":{"x":69,"y":688,"width":832,"height":12}},{"id":"a9bb4f68-d176-4b80-ad47-26c4d7dc5387","block_type":"box","text":"to a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the","page_number":44,"box":{"x":68,"y":703,"width":790,"height":12}},{"id":"72513720-eed2-4d97-8586-2c498d8dd8ea","block_type":"box","text":"money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less than one basis point (0.01%)).","page_number":44,"box":{"x":69,"y":719,"width":821,"height":11}},{"id":"1f67887f-cc28-4e81-8a8e-43c589cc96d2","block_type":"box","text":"The money market fund will determine the size of the mandatory liquidity fee by making a good faith estimate of","page_number":44,"box":{"x":68,"y":734,"width":800,"height":11}},{"id":"111acc03-a37e-445c-86ec-40c92feb5d41","block_type":"box","text":"cer tain costs the money market fund would incur if it were to sell a pro rata amount of each security in the por tfolio","page_number":44,"box":{"x":69,"y":749,"width":824,"height":11}},{"id":"0a41610f-288e-4cde-ab07-a51df24c10be","block_type":"box","text":"to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the","page_number":44,"box":{"x":68,"y":764,"width":826,"height":11}},{"id":"8058241e-fd84-4640-a9d1-c4f62ac80107","block_type":"box","text":"money market fund cannot estimate the costs of selling a pro rata amount of each por tfolio security in good faith and","page_number":44,"box":{"x":69,"y":779,"width":838,"height":11}},{"id":"1e1cf5b3-f1ac-4e05-91c5-1b0d1270c158","block_type":"box","text":"suppor ted by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.","page_number":44,"box":{"x":69,"y":794,"width":818,"height":11}},{"id":"46d95e04-9b69-43b9-9cf5-cd80236c6b09","block_type":"box","text":"The imposition of any such discretionary or mandatory liquidity fee would reduce the Fund’s returns on securities","page_number":44,"box":{"x":68,"y":809,"width":807,"height":12}},{"id":"0c9e97b9-d0b8-48ef-bf65-71b068e67c3c","block_type":"box","text":"lending.","page_number":44,"box":{"x":70,"y":825,"width":53,"height":11}},{"id":"95827053-0075-475e-896b-e6270da02aaa","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":44,"box":{"x":102,"y":847,"width":774,"height":11}},{"id":"39fe2958-6305-4b82-8128-945e485defac","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":44,"box":{"x":69,"y":862,"width":790,"height":12}},{"id":"b025d63b-5c04-49bd-9929-fff369a7b889","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":44,"box":{"x":68,"y":877,"width":809,"height":12}},{"id":"6a0177d9-a8cd-4112-b55f-4baee9f05bfc","block_type":"box","text":"Fund and BIM.","page_number":44,"box":{"x":70,"y":893,"width":100,"height":9}},{"id":"2efe5e49-307d-4469-88b3-89f2bb52c2be","block_type":"box","text":"I-26","page_number":44,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5e727441-cb50-4ae9-ab26-2f537f4cf15a","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0153ce69-2e4d-4c73-b830-3694fc69ce77","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) if the Fund were to engage in securities lending, the","page_number":45,"box":{"x":102,"y":45,"width":774,"height":11}},{"id":"839a28d2-3194-4efc-a75d-df8ab5329f04","block_type":"box","text":"Fund retains 82% of securities lending income (which excludes collateral investment fees); and (ii) this amount can","page_number":45,"box":{"x":70,"y":60,"width":818,"height":11}},{"id":"9e64570d-8146-4b23-bb96-9bc790b84e45","block_type":"box","text":"never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":45,"box":{"x":69,"y":75,"width":683,"height":11}},{"id":"c3046b92-e7ba-4adb-854b-f38cbfc6957a","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":45,"box":{"x":102,"y":98,"width":753,"height":11}},{"id":"fbab1f59-0959-4cf0-90dc-537266c3d6b2","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":45,"box":{"x":69,"y":113,"width":778,"height":11}},{"id":"e1236c6c-0cd3-4f85-bfb6-2a4134a90989","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":45,"box":{"x":70,"y":128,"width":817,"height":11}},{"id":"c543f264-e1b2-4fa3-b2c5-75cd586f1dfd","block_type":"box","text":"lending income as follows: (i) if the Fund were to engage in securities lending, 85% of securities lending income","page_number":45,"box":{"x":70,"y":143,"width":794,"height":11}},{"id":"e9c511f8-20e7-45a4-b9da-be1f18967064","block_type":"box","text":"(which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities","page_number":45,"box":{"x":69,"y":158,"width":832,"height":11}},{"id":"8a32ae1c-e9ca-4afb-8b11-3f4a520de23b","block_type":"box","text":"lending income plus collateral investment fees.","page_number":45,"box":{"x":70,"y":173,"width":334,"height":11}},{"id":"b4e013cc-1f78-4978-9893-36b99b5e55e3","block_type":"box","text":"Prior to January 1, 2025, the Fund was subject to a different securities lending fee arrangement.","page_number":45,"box":{"x":102,"y":196,"width":690,"height":11}},{"id":"7f5d4ae3-b633-45de-8e69-278869ddc41e","block_type":"box","text":"The Fund had no income and fees/compensation related to its securities lending activities during its most recent","page_number":45,"box":{"x":101,"y":218,"width":807,"height":12}},{"id":"75a51d09-75e7-426b-a822-4b59f62d0e66","block_type":"box","text":"fiscal year ended December 31, 2025.","page_number":45,"box":{"x":68,"y":234,"width":276,"height":11}},{"id":"adef5956-b6a7-4330-a4e7-a7837e4384c0","block_type":"box","text":"VIII. Additional Information","page_number":45,"box":{"x":68,"y":264,"width":195,"height":9}},{"id":"9017ba04-6da1-4d1d-8d55-a0f90b361fd0","block_type":"box","text":"The Fund was incorporated under Maryland law on July 1, 1988 as a closed-end investment company. On","page_number":45,"box":{"x":101,"y":287,"width":749,"height":11}},{"id":"7bb0fc7a-3dda-4fbf-bacf-d1d8fb92c760","block_type":"box","text":"October 25, 1991, the shareholders of the Fund voted to conver t the Fund to an open-end investment company. The","page_number":45,"box":{"x":69,"y":302,"width":829,"height":11}},{"id":"fbf64d7a-38b4-47d5-904e-82b3379c2780","block_type":"box","text":"Fund was conver ted to an open-end investment company on November 15, 1991 and commenced operations as","page_number":45,"box":{"x":70,"y":317,"width":801,"height":11}},{"id":"09bb4652-7cac-4888-96f7-3936307a9337","block_type":"box","text":"such on November 18, 1991. 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All investments are generally","page_number":48,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"167d5dc3-7501-49fa-abbe-6d8f82f30b29","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":48,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"e5214b8e-36d0-4f91-a38d-9fb4c9e59fdf","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":48,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"ca82d992-68de-49f2-a239-48cd97de37e4","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":48,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"32060c9e-b230-4bbb-b156-9efc0bbfeec2","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":48,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"73511a08-17ca-425a-8bf2-25a87dda6d77","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":48,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"d621468b-9906-4ba9-8b99-4981f2dc7840","block_type":"box","text":"par ticular Fund.","page_number":48,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"630403be-7c98-4477-9319-3be0713d8a23","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":48,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"bc9e56ca-61d2-4117-8672-54f13303e4da","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":48,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"8e4d559f-b6bb-42d8-9bfe-18fc6e363c43","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":48,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"2f8ae62e-764b-4904-a675-2823e964b4bd","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":48,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"e00a312a-a582-4703-ba3e-0a08390cafdb","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":48,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"6d254891-f522-4af4-8e28-7c8c7a7b4ae7","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":48,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"e150d24d-7a52-4aed-ad3b-b305e5c52e4a","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":48,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"7abdb579-38ee-4429-9511-8c55aed3fa7b","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":48,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"961ac159-e028-4f0c-8aa2-efb3625acfab","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":48,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"eb43069d-e934-4c61-8e9f-374a805db2ee","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":48,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"93288005-5cb4-4115-9107-f2b4015d952e","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":48,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"b924d149-4106-4925-bd92-45e0a4e8ca70","block_type":"box","text":"Asset-Backed Securities.","page_number":48,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"fc6f562c-7a3b-4979-af0c-12dfd123917b","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":48,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"941a9938-eac0-473a-a6ed-0de30402f13b","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":48,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"f6152642-fc55-4a98-98ce-dc6a28adc23e","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":48,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"0a0d9c3e-a14e-41d0-9da4-3f3ca9398561","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":48,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"3f1c3864-268b-4157-8cf4-e93a7831869d","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":48,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"f55c47a0-72e3-48b5-a9e8-5a5278e37cf8","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":48,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"25558b0e-3d51-4b24-a607-08220836554c","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":48,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"2b6f4b01-a56c-42a0-8dcc-2eaf735aefb3","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":48,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"b35ec33f-9af8-4fda-aa79-10364709db80","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":48,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"75bcfad3-e8c8-4652-9ec6-cb196ff151b7","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":48,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"8d2345fd-fbfc-43d3-b386-873bd458094c","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":48,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"00600c7a-fb0b-46d5-9bb9-dead88edfa36","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":48,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"01b90b52-1f1e-455e-b853-6619ea784ad4","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":48,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"cff5e8e6-1626-46c9-9fb4-e1649bb3d01e","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":48,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"30c28771-cada-4a74-aa0d-0f12d8e7ce6e","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":48,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"0a44a65b-c034-49bb-ae67-685e6593d716","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":48,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"aeeadef8-0611-4398-bd96-df6db4336071","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":48,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"bc0a39f7-52ae-4982-9e51-a4e3575fc170","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":48,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"f968daa9-c066-43fc-bae5-d6700aad52e3","block_type":"box","text":"II-1","page_number":48,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"0f47f949-51c4-4381-a4d1-0287a82de885","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5c9c430-9a27-42c3-83b9-acfeb44b03cb","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":49,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"6189a55f-1b82-4469-ba06-871d766025ae","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":49,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"9ab17c96-a4bc-4e9a-b654-e1da41d4bdc2","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":49,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"5b0a11ee-f83f-4cc7-b4f3-f6ac376c8401","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":49,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"63104474-1681-494b-b46b-96d567f80d7c","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":49,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"e3c3addc-382c-48c6-ae19-cfc3e5bbdade","block_type":"box","text":"Asset-Based Securities.","page_number":49,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"9964f2fd-dd15-48a4-a5c8-e7b178e41538","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":49,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"b4ad846b-3a80-48b5-8d58-1cecbe5879ac","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":49,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"fd8e03bd-2912-4df1-82a7-4ec4d4e688ee","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":49,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"36a447db-a7d8-4a49-bb7f-a53e454e1a5b","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":49,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"22da9968-bf8d-42d9-8078-246ea03b683b","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":49,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"0acfab83-7cf9-4474-a0b6-7ec15e398000","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":49,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"74c32b0c-7550-4098-8357-f6b04a2a1809","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":49,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"9bf70900-2da3-4629-bf24-161f30d58faa","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":49,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"6c20686f-a2b9-48e9-bfae-cc599acf7a20","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":49,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"abc8452e-0ceb-43ce-afe2-89f89f6fdf7d","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":49,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"42c87300-d20c-4f4c-bfe5-ef118a71f6c2","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":49,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"d3f80537-c7a8-4386-8f97-fdc2247571da","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":49,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"1700bb0b-ad27-4472-abbe-0db4cdca0390","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":49,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"1221b5c3-b5ae-4bc6-aa93-1b1b2d9d1a11","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":49,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"a9c11dc5-c0f0-4636-b42d-fd224b3f1806","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":49,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"5255f8ef-1ab9-4021-8e18-d3d0d4df3e6e","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":49,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"771273e4-ae3e-45aa-ba60-c4a36446eb52","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":49,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"6c628ee8-5c50-4583-b89d-6077fb43b662","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":49,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"2af6f670-ed70-46c4-b985-5468602fb1f8","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":49,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"c401713b-5c3b-4581-af88-efa5cd7b42bf","block_type":"box","text":"appreciation in the underlying asset.","page_number":49,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"c91f1727-fa94-4da8-9975-eb6d3765ec98","block_type":"box","text":"Precious Metal-Related Securities.","page_number":49,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"dbd38af6-8da1-4c0f-84b7-9bebc2d66a95","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":49,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"45ecad4c-9a93-4316-a3bc-daa7f1dd7b03","block_type":"box","text":"explore for, extract, process or deal in precious metals (e.g., gold, silver and platinum), and in asset-based securities","page_number":49,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"d39968b1-5f34-4984-aed8-61e08f066cbd","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":49,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"7cb83970-1978-42b8-b173-d2594966ae4a","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":49,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"473bcb43-c47b-4b3b-81c4-0a19e44e9442","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":49,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"4dca787e-474b-4f30-9c1c-6a32f26c317b","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":49,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"875b243c-c294-4cc9-a998-fd871bb528e6","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":49,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"29fa7935-f0c4-4742-aba8-c7324082f879","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":49,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"4257cd46-5e72-44d0-af0c-b4be5f05edc3","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":49,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"bed62070-e45e-4d8e-9810-cc2c58789db5","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":49,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"7465bc74-9c80-4016-95f5-25b183684ee6","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":49,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"ab509d9e-082c-4cbe-b620-6a937da23ea7","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":49,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"0b7955b2-f7d6-4415-a618-372dd5c31617","block_type":"box","text":"South African gold production.","page_number":49,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"5ad68756-52bb-4292-a3d4-44a3f85e9f35","block_type":"box","text":"Borrowing and Leverage.","page_number":49,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"17bde0a7-ba79-4fb0-8435-f393a01df048","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":49,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"8859e059-f728-401a-8bc2-642de9c48593","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":49,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"a3d56dc2-97f3-4ab1-9978-20c56bc02aa3","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":49,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"dc7065e2-8403-4c2d-9042-f8b690e160b2","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":49,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"658c1fa0-ccec-4b42-ad47-bcd920410c53","block_type":"box","text":"other securities transactions.","page_number":49,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"a77142b7-7cf7-4a40-8e14-69f708919490","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":49,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"23de2882-66a9-4188-9cce-76a36a327a80","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":49,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"9c0e7193-7e75-4f44-ad9c-5da0bbb6d21c","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":49,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"1b7d8c49-7f65-4b63-b92b-f6d4a5d3bf4f","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":49,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"dc1a7ec7-ff01-409f-baa6-754df93c6f5a","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":49,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"d45d7d5b-a357-45a9-9666-47543600c76b","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":49,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"8f234c39-4429-42d7-83a2-aba0da7ca121","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":49,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"ee092756-58b9-4c8b-893f-8c9f91243774","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":49,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"cad6f5a4-bbef-48b7-9bff-f08f3acc970c","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":49,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"4e0f0fd9-b742-4282-85c8-a681ad8f1138","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":49,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"c43a658f-ba51-45b4-b1ef-064d3e9fdb20","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":49,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"0304bff0-4e81-498c-832d-694a8d4586f1","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":49,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"f3b4b7e4-be3b-4de2-ac28-f7045ea2f6b7","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":49,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"29ccb12a-c960-4e65-a9ed-aa2e6e27ae6f","block_type":"box","text":"II-2","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"0ab407c8-5167-4199-9fbe-0eba1a5988ad","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f91d470-ae8b-44cf-8514-26b6544bd9e2","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":50,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"039d24cf-ab8a-4f9f-99eb-9b765dea05ad","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":50,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"364447ab-d8c4-4c66-845b-9785ae2ccfd7","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":50,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"9a301876-d2f5-4fd3-a466-580513fdafcd","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":50,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"5e487cad-0ce4-4e03-b944-fc6a204314b8","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":50,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"d8fd5ffe-d48c-436a-9cc2-76b61bade4bd","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":50,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"a125e14c-feb9-47ec-a445-71a2c57f47c1","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":50,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"efe5ea70-d473-4545-b728-e3393a442beb","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":50,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"54a1097f-afd5-4e7a-8168-855846e34785","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":50,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"49f9c6c9-792d-4470-8a12-dd8e386272a3","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":50,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"13bec66e-96b8-4bb6-93ba-30d4c1bf8787","block_type":"box","text":"Cash Management.","page_number":50,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"45beaee6-23b4-4613-b168-f7d544cb969e","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":50,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"eeb51928-d6c8-4457-8786-551fdc61ecc8","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":50,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"8b9d7986-ae22-425b-8783-04b2def4e291","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":50,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"087cfe8b-42a8-4c85-aedf-0756b9842f0e","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":50,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"b5d99a4b-064a-458e-a503-37d6e10c4977","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":50,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"88b5c12d-c222-4bf6-ab0f-f48021d92d43","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":50,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"3a53b1b9-beb7-4331-89b4-26d4d83cafbf","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":50,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"9f49a9b9-3412-42d2-a86a-2d11b5e17a41","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":50,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"697e713f-7457-4c14-a3e0-16c785a71dc3","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":50,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"a825b509-a292-4569-a96c-5cc2495236fc","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":50,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"28c8ce6f-0acf-42e6-9b5a-2fd34dba43f9","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":50,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"a42da69a-504c-4a19-ada8-92bec510e5f5","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":50,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"562baf81-a3ef-4c0a-87d4-259867560db0","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":50,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"0804a961-376b-4129-8dcc-12bcd91808e7","block_type":"box","text":"Collateralized Debt Obligations.","page_number":50,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"681aca99-a5e1-44d0-8062-da09bb8d96f9","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":50,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"d909a4ca-bf43-4bbb-b4e1-54911af2cc80","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":50,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"63709de4-b57b-4a17-914a-97d8ce17fb9a","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":50,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"d5929ce1-9bcc-4746-894d-9ff8baf25849","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":50,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"a4c1152e-4f01-46a8-9f46-db225b7319c4","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":50,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"463e72f7-59a0-43c6-a3d3-5cf6bf3bcc49","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":50,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"ff0bdcff-8bbb-4f96-938d-7b4a876474be","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":50,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"b0170b06-b8fe-469d-af79-2cf2928372dd","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":50,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"f39c730f-5171-4007-b7bd-f8f28bebf82d","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":50,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"d4a5e9e7-df39-4410-9b7c-7edc524bd7bb","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":50,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"42cdcf95-9f08-493b-a359-6ddc6709995a","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":50,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"0bda997b-1774-43e9-bd75-09460f6c1ca3","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":50,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"a9b5543b-ec06-4bc6-9acf-216ca13c36e4","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":50,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"148bdf9a-a3bc-45e4-a73c-2617710fa318","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":50,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"757fe4cf-98f1-45eb-b112-24c260e964e3","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":50,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"b7315958-5d10-4515-9d96-8233ad0f5646","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":50,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"d9481145-a1ab-4485-980d-eb2722fd4b75","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":50,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"642c4926-930c-4d80-a226-d0332cf632ab","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":50,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"c996ce5d-b148-451e-a928-54c2c40b03f6","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":50,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"fa2142c0-d11e-4fea-b6ef-ddde24a048c5","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":50,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"39866025-db54-4e17-af77-5c6b9d9d2d8e","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":50,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"2a3d215c-4fde-400e-9f42-6206b9ac982b","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":50,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"13e6490c-3f3c-4db3-b4f1-2985c6eaded4","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":50,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"330913a1-4aa5-490d-96f8-e53fc02f2ebf","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":50,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"bb5efc1a-df32-49c0-94ff-bcb642cb5628","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":50,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"0331d88a-2bb8-4274-8299-1df4444aff88","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":50,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"f8866c3d-52fa-4bee-879a-f6fe571bee6b","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":50,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"63ca28eb-7b99-46c6-b0f8-a48634211c0d","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":50,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"684bee73-97db-4b68-a4e5-d268db85ccd8","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":50,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"5ea56dcb-3431-4ea4-820d-1a5202340456","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":50,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"8b0c7dbf-43c8-4d71-be5a-ded1a11115be","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":50,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"a00aaaed-4f70-4868-a16a-49f428371b9b","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":50,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"d1f9e783-3472-4ed0-b2f7-7de43963054f","block_type":"box","text":"II-3","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d5dceeeb-641f-492e-9c96-5ae750b61cb3","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1553d50-6b62-4786-8f1e-b71611b432d9","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":51,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"0dd663d2-a964-407c-9055-24101e96cbf2","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":51,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"275d074a-51dc-4aa7-9c71-3247bb278dd8","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":51,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"e7b23e09-8a6a-47cf-9018-325328e6c583","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":51,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"247d232b-a031-4855-a820-7080157dd9af","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":51,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"81a4f702-8e7c-41f8-bf57-754185d55d31","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":51,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"8b3fb17d-5d83-4dfa-a63a-f2996f8f8467","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":51,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"6fe0daab-b29c-415b-93aa-a8f4e321162d","block_type":"box","text":"Commercial Paper.","page_number":51,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"d37a24cd-895d-487b-9fe0-54ff2c4543cf","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":51,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"b54fd1ab-b855-491f-855f-e5ae63c0d410","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":51,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"e93d6a4d-b68d-4dfb-8eeb-ebe755c51503","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":51,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"ff707eeb-a23d-4dd4-9df3-65ab895dc737","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":51,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"01f26bb2-62a1-419c-b843-14bfa79495e1","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":51,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"93ea1b17-60bd-46f1-9037-66a7da75da49","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":51,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"75ebff4f-7e9c-497a-aef4-2a395d319e20","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":51,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"be102528-a477-473e-b6cc-40b3581cb311","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":51,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"0ea530f6-0b35-4a1c-8826-39ca72af1d24","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":51,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"7ae9c0b2-a92e-46aa-8b29-05b14ef177e0","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":51,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"4d0bf4ed-b787-44fb-a207-cebabf937623","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":51,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"3a842e10-800b-43c1-ab1e-8ed1bd83503c","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":51,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"8cd91cb4-6cf2-431e-88c1-a0f8cee26ec1","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":51,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"d8b91cef-95bb-4580-8945-121e9b9521bf","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":51,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"f131af1c-3036-4a4a-b605-dd8f57557647","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":51,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"38e49e9c-05fc-4530-8129-0e44e911bbdd","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":51,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"5618fab1-9d09-4e40-9800-fcb2f377d60f","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":51,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"c32bb9f0-cb13-46f0-8525-29604c31bc3b","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":51,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"eb5bdcd2-d46b-47cf-96c8-824367ac55af","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":51,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"2e87a230-3fa6-4002-8f6e-53350b8e29b0","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":51,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"f180178d-6853-4d39-9667-9afb54536484","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":51,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"451a2445-f95c-4a96-ba94-6f9422e18340","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":51,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"e15aaea3-62b4-4a95-9fe1-cd80f4fd0d55","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":51,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"80f54056-1568-4334-bb1e-9baae261de13","block_type":"box","text":"variable.","page_number":51,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"02e88aa2-8ec1-460e-8400-a34ef14a3840","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":51,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"cacfe539-7edd-48a6-ba71-a9a224bfaa70","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":51,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"a224a62f-9c6e-4b40-950e-31bf70fdcc09","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":51,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"8ede08f4-67b1-44d9-8930-b258d2c041ea","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":51,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"90211fec-fa13-4391-b5dd-d66602ce8f63","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":51,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"81e9d788-5da4-4d04-8563-5c1bcdb896d0","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":51,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"5620a672-7ea1-4741-b5cc-21c5c93735b2","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":51,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"c1cb95d0-5fd8-4151-a9e6-1e4989155824","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":51,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"eafaa5d5-51f0-494c-bf5a-92b29e368278","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":51,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"d25fb896-3c94-4951-9f6b-72e2e595f0be","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":51,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"742988f7-3905-4e2f-a1ce-46b90e6b6621","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":51,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"ee2a94f2-fb4b-40d0-8fd2-dbf2e5d15620","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":51,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"e8226703-b73b-4103-8975-8c85486e756e","block_type":"box","text":"correlation with stocks and bonds.","page_number":51,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"dc71b723-3b65-47d7-a78e-1a40d96172b3","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":51,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"8c269a01-d868-4f2a-a99f-8a6f11aba8b9","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":51,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"2058c681-e14d-40a4-bcd3-0bf4f150de11","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":51,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"fb0594fe-d273-4685-813e-ef138c7f91f3","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":51,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"2815df85-abb8-48f5-99cd-47d1748fd186","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":51,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"96428d40-8731-4582-af49-17dd72bbc8d2","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":51,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"c37c7e16-8efa-42fc-be12-46747966af07","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":51,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"33f5d561-ec8d-4a66-bc8f-ef24eb113307","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":51,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"50fd3bf7-0f9a-407f-95c5-bcaf320c5a9c","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":51,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"09626a37-6c39-4a1a-a7b0-ab80246598ce","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":51,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"d1812f34-6cab-408c-aa15-05a6bba25fe0","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":51,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"1e75c9cd-c47e-407c-aa5d-bd6e983199ab","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":51,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"f332ffd8-e3e6-4938-b2d9-8748882c7aa1","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":51,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"014a45f7-2ecf-4419-be1f-bbfd19bc9fd6","block_type":"box","text":"II-4","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e75980a1-2f78-4a85-9121-a4fd9baf2219","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e384b17-d147-4a44-92e9-31e657e0b182","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":52,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"a4ff8e77-4a2f-451c-843e-6ac434b15cd4","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":52,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"0690dde4-2cfb-4439-81ca-eb96e7ece648","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":52,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"53edd5d8-05ad-414a-9598-43e25e58b5d9","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":52,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"eca6ae8f-92ee-4853-befc-bdb2d6469a94","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":52,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"81cf9144-1320-44ec-aa13-84143252b3d2","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":52,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"84c9b906-f7fd-45d7-97c5-b034abda2427","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":52,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"0b186afd-aac7-44c7-9adc-f55c9948064a","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":52,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"737b7917-20dc-4b00-9b0a-9e1bd3fe785b","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":52,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"17f23b77-8552-403e-9449-db5f5914bbb4","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":52,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"b042f39d-b42d-48bf-9b2d-116bde7908a7","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":52,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"79426339-7d9e-4cd2-9e9c-f60dfa810af2","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":52,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"450999fb-0cc3-431d-b59e-13f1dada8644","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":52,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"8a9d0c17-e868-4d4a-b0e3-ac0ee4044c37","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":52,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"99143b3e-2189-409b-9cc1-306268ecdc2a","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":52,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"e16a2973-b5aa-4fc3-bca9-75bc950cf1d4","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":52,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"28be1c28-9e9b-4a74-9619-8c4551de5be0","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":52,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"44bae75f-2454-49d4-89dc-aab6877dc1b4","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":52,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"acf0bc7b-c378-4e19-939d-1720b7f65b4b","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":52,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"0b835c66-2e71-404c-9e95-45cfcf446383","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":52,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"762c4335-9bd4-4e94-90ec-1a2d93aa93f2","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":52,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"34893da9-b462-40c8-908c-56a9ef101ac2","block_type":"box","text":"the Manager believes are relevant.","page_number":52,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"ab0fab29-dc1a-4f71-afe3-640e75285681","block_type":"box","text":"Limitations on Leverage.","page_number":52,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"210dace9-7734-4ea2-8861-5d5931abb35a","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":52,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"7f23ed99-cd99-4aae-a806-a06151e669da","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":52,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"115eded9-98af-48b8-95b9-4a747a9f5a1a","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":52,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"6c9b5c9e-f9c0-4807-9fc9-9f88bcca1b8e","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":52,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"5f2fc685-9ffa-43b7-991a-04a3933e83bc","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":52,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"570a306d-adfe-469e-8dbb-a1df69b15058","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":52,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"3abeb3f9-b0b6-4091-b48c-17656a5fb37e","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":52,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"4890f1e6-aa28-464f-acd0-0ad4259619a8","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":52,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"4b41a170-b16b-45df-88a6-7c13b6f34812","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":52,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"76de785f-45f5-43fd-a5f4-2f165e1737c6","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":52,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"9e420b21-5549-4c48-a7b8-f30d070cba76","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":52,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"541b05ab-4296-4c01-8140-b36e7cef2bda","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":52,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"565e070c-5b3a-47d0-be7e-64076998695a","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":52,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"b545892c-a587-4514-a2f8-6619cc3cde5f","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":52,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"fa68bc2f-eeaa-4cc3-a64f-25bc8445d8da","block_type":"box","text":"Counterpar ty Risk.","page_number":52,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"b7c345a7-21d7-4fe1-8d07-7afed1822773","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":52,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"1823db73-d5bb-41f6-b1ad-455e63b0a4e2","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":52,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"f8946deb-fd57-4f62-a27f-4940722e1090","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":52,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"cf83433e-28e4-4d05-a94d-82827ae746c7","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (e.g.,","page_number":52,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"6ddd3db3-bb95-405f-853b-5019cbebadc5","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":52,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"bac5802d-70c0-48c7-988b-5afc6f584366","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":52,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"5ce69ad0-ead4-4c23-9226-1cc6ef486718","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":52,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"4da9fcd0-cf45-4334-bc0c-833f0ee8bb5e","block_type":"box","text":"obligations under the structured note.","page_number":52,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"d50acde6-ab00-41a0-b2d6-164c31549aa5","block_type":"box","text":"Convertible Securities.","page_number":52,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"e7dae96a-7407-4c91-a4e1-ef757e3ab99d","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":52,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"49de5975-cd13-4349-a669-361cbe9181fa","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":52,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"35e94379-5e56-4e27-aa9a-4939c999318f","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":52,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"0dbaceb6-5cb1-4604-8dec-75e7c067f8ae","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":52,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"ee1f5163-593f-4339-a142-a88817de90b9","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":52,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"3f1d2b7f-d35e-4314-8470-50f1f3940642","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":52,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"ab197016-d14c-43f4-ac7b-dff289ce4bf3","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":52,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"38bcbc06-40db-4a2b-a574-6a60f8ee710d","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":52,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"43823142-2559-4e52-bdd6-1abca6e223a7","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":52,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"f46e5a59-0182-4c2b-a9ad-a21ce08ffeb4","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":52,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"cfa20e08-6c5b-4256-b02e-3de10f0bc2a0","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":52,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"9bddf2aa-c754-4248-bac9-44867253483b","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":52,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"c7c0d2e9-e39f-41db-8d1b-68ec714e710c","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":52,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"31810873-09c9-44ce-acbe-c95a83c6ca83","block_type":"box","text":"II-5","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b169195b-575e-468b-aa74-10df1ea0f66a","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd50e783-8c92-4654-ad0d-cd1a10733f6b","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":53,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"62fb5885-785c-403e-b70e-68907affdc54","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":53,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"ffa11faa-08e8-4c84-9f17-d12075ad4622","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":53,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"f624aea7-cfde-46f5-b02d-b5e06b3f0533","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":53,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"c9147e49-7f81-4c12-b68e-b6446148e03f","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":53,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"884e138b-c114-48c9-8f81-dec64ab079a3","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":53,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"ec91967f-a9c7-4164-8e58-1da7f0d6d72a","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":53,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"2d8cf568-7257-4bc4-a31f-0eec5bb71905","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":53,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"6a2810f9-613f-4c8e-a2fa-35cafb48ee0a","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":53,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"f2878ebd-5fc0-4d60-a365-16d221f6badf","block_type":"box","text":"things.","page_number":53,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"09fd3871-fbaf-4c0f-9ca2-75c520f88c86","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":53,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"7e1439d6-d5d1-4879-9b5a-d99e7826c455","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":53,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"8ec65327-1c0f-46cf-9513-b70b2ee1bf28","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":53,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"930713eb-4ca8-4c6f-83ed-ea88a3b8b48d","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":53,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"05f378f1-0a71-4e79-9228-200747b5f145","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":53,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"43749f6e-3f19-4c46-9928-d0ba67032d6d","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":53,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"6db66ac8-0052-4e19-8603-fbd088cdd2c4","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":53,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"abf8b4b7-f8fe-4039-95ce-9941cc9121c2","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":53,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"f3acd5ac-c1b8-4ddb-9089-efb9647bb8c3","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":53,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"e7040487-8552-48e7-9234-04a0d2db334e","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":53,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"8a69ddfb-4ae5-4933-8c54-200e70b4665e","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":53,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"4d03ba80-1554-49a4-8a6c-63b55a29c58d","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (i.e., strictly on the basis of its yield) is","page_number":53,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"7c45c7e9-3618-429a-ab5e-a4ef3a796cd7","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":53,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"6c9c7e26-47b9-4dce-8267-d22a33c2ce97","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":53,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"ab3ba37e-3583-4758-b16f-cdbb8044a041","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":53,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"f5b4d26d-4f0e-44be-a5df-99d2bc5bd0c8","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":53,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"f12a36dc-0474-404a-bf9f-01f8a284180e","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":53,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"ebd69a20-d04e-406f-90ad-e1277a57e9b5","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":53,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"4610aac3-c67e-4007-ad14-4da6ec4f6ca5","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":53,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"e0e320f0-f237-40a7-8a1f-7c86f6e9474c","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":53,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"457646d6-0c2b-459c-85e4-307a597a9ccb","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":53,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"7c8823f9-e63a-43a4-96d5-f5f5a1b4a68f","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":53,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"bec9c1e2-94a6-4ce3-a90c-3877d7f522cd","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":53,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"469d6707-b053-42c9-897c-a6a132ecf675","block_type":"box","text":"than the securities’ investment value.","page_number":53,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"31cb0acd-fbed-4490-8a16-48fb7e8b73f4","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":53,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"c92d7374-b853-4998-9fc5-d6c9a7460c07","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":53,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"34763193-d97e-4f2a-aa8c-820095ff19fd","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":53,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"01949d4c-4179-44e8-b83f-aeeff58eea38","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":53,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"dae4c1ae-cb75-40a1-b85e-6ccb51bc5f45","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":53,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"185367b9-c45d-49c5-8ce0-5e176b02e403","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":53,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"b351b06a-6f3d-4b40-af5d-9ab725321972","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":53,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"8872c60f-ff46-405c-9d0d-d2a173badabd","block_type":"box","text":"security under cer tain circumstances.","page_number":53,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"a3c575c3-124f-4ccf-9d5b-da031622e04d","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":53,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"91bb8f6e-1f5d-4513-8847-8d364a788113","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":53,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"b92fdf8f-ee05-477b-a1bb-91327efccc15","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":53,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"120e0045-cd3b-478a-b934-36ab3bc3df96","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":53,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"c07323ab-2b12-405e-bc6c-35c44a613ce4","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":53,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"2adeadf8-41b8-4217-912c-6e4d87ea0de3","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":53,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"e492984e-4f73-4703-a06d-43396ab0fabb","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":53,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"a772c82a-a51b-40cc-a8c7-92fae3ebea1c","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security, i.e., fixed-income (“fixed","page_number":53,"box":{"x":69,"y":823,"width":808,"height":11}},{"id":"8908035b-795c-4a58-a507-7c9c0dc83bdd","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":53,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"74a30250-3625-47c5-bd82-52b49cb6d36d","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":53,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"30655aa5-2413-4c5a-9343-26fa14b91131","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":53,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"493c0d9b-c5ed-4ff6-aa8e-fd03818add26","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":53,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"1261b5f2-3b5a-426a-a6dc-07ef453c68cf","block_type":"box","text":"II-6","page_number":53,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2a507f9e-d607-46fb-9092-cd3997eddf55","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eaa3272e-a095-45f1-9f5f-d9266f5ff422","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":54,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"a3654252-abbe-4553-82fa-ac2b0eb56fdb","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":54,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"575b0bd6-7930-4560-86e1-763ccfff6f34","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":54,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"e0c969da-457a-4052-859a-c85e351cc2bd","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":54,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"adf9c1c6-1359-4d72-aa76-17db717138f2","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":54,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"2cbaed15-4b9d-477b-a4b6-e45dcdc7c6e2","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":54,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"a7a6f307-7f9e-4ec1-b6e2-a244e17f93ac","block_type":"box","text":"component.","page_number":54,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"df191b14-d2d1-4dd2-adbb-5a8704ffb19f","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":54,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"59d97786-cd92-4073-80e1-85d982e926b3","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":54,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"4967bbb6-bcc3-4ee8-977d-99c95e573ced","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":54,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"5964a7a6-d32f-4b43-8191-57ade6ce2108","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":54,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"03aa1d6c-dc47-46f8-ac82-19c6219b7df4","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":54,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"24cbd0b7-fdfc-485e-92ba-393c184f6b4d","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":54,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"cad2397c-d76c-4da7-b813-c38916e67a1c","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":54,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"7ffc42f1-ff5f-462a-995b-8bf3ae470dea","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":54,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"c21bde08-25f8-4589-9898-38beb7106e4f","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":54,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"2481db19-ae98-4c04-98f5-b5631327c678","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":54,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"1a9537f0-d655-4081-b0db-10e42d5ebf05","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":54,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"649c7d90-8f03-431b-ad14-18bc0e294085","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":54,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"3341dd15-6ba7-4135-8b07-c7cc141bbe82","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":54,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"1307220b-8265-4f02-8c15-628ddbb64878","block_type":"box","text":"favorable market conditions.","page_number":54,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"85c8320f-61f9-4101-aa6e-6bc47e2950f9","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":54,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"959d0073-f727-4744-a9c0-c0cdf3443c03","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":54,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"5e4a0262-ccaa-4ecb-bbc5-25f37d18ee84","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":54,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"51b4d92e-2c91-42a2-a77e-0d48d5a7049a","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":54,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"ad1025e5-2c1f-4505-9be1-de2fa7c5b30c","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":54,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"dd23c2f1-3903-45e8-915a-f123d785d894","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":54,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"f656b119-d5cd-4a8f-8881-a24821a5940e","block_type":"box","text":"Corporate Loans.","page_number":54,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"0af0b185-8e61-424d-92d7-a2939a13538a","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":54,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"0a0f9cc0-82b1-44ae-82fc-9be3bac63fc0","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":54,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"a48b619b-9114-4e22-aacc-cc9db4028da5","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":54,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"9b9b7678-62d5-45c9-ab90-3e839fe8a92d","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":54,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"d5f0ea73-90ae-44f7-8a8f-28dc39563a0d","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":54,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"f646b073-03cc-42d7-831e-8853dec559f3","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":54,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"715801e8-8668-4f4c-b9f7-00c25b98b019","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":54,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"77bc1cf2-cab2-4737-bc68-2565a1b016ff","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":54,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"9896f7c8-5570-431e-916d-570961dc9684","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":54,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"144e3e0d-8058-4cbf-af97-684b3276ad04","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":54,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"f570dd61-0f09-4605-bed8-458612ae392e","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":54,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"394d41a3-5860-473b-9193-da4899c5f3a9","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":54,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"bbc5ee35-e8c3-4f48-8a27-a2dfce4634a5","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":54,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"c407c7c9-dd72-4870-8cea-92d5f2f1aeb3","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":54,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"435749ae-3867-484f-89f3-290befce2bb3","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":54,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"7201acda-8f4a-4fe7-baf8-97b5c6536d94","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":54,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"e5c078cf-db3b-4129-a596-7c8c9818caa0","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":54,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"a58fdbd1-391d-4348-aa03-08bfe6f521db","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":54,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"8cf78c25-e233-45f3-be4f-e3712c7668ac","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":54,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"56129efd-1ca2-4092-a400-3e779d7894fd","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":54,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"675bfe21-3841-4738-a7b9-ca1609aea1c5","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":54,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"22ca6126-5a5b-4fd2-a390-78fe55f881b6","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":54,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"f99e497d-6ccb-421c-8aa1-020e7c31227e","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":54,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"395454f8-9acf-4870-91f2-bbf011a69481","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":54,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"66b28d65-b33c-4d03-b03c-a67af6c70b7f","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":54,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"5f411e76-5f63-4b35-a885-63bb388b3cf1","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":54,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"ece8a6ce-73ed-4b2d-89fa-a9fa624bbaf9","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":54,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"30a366d7-e1c1-4fc0-8222-071f7c83b10b","block_type":"box","text":"of the borrower.","page_number":54,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"69206ca2-0ac0-42ca-b26c-a502e4cac386","block_type":"box","text":"II-7","page_number":54,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"054c733c-bcb7-4784-9be1-d347ef9accaf","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24f03fe2-28c5-4759-8364-ac57081c30ea","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":55,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"0006ddba-1b9d-4856-81ae-2f8130ea519c","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":55,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"f7dd2803-c942-4d57-9671-d6d48037d0a8","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":55,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"3197d37e-32e5-4e43-b56b-4af06791505b","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":55,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"ecbd9c16-859f-4115-b439-e1b83669afd5","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":55,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"a0100663-d2a3-4584-96cf-0e698b4ec95f","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":55,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"91a4f783-268b-4a96-8b58-98efc2acd1db","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":55,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"42e44986-b87c-4028-a6bd-8b753f77700c","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":55,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"87970243-5eb7-4133-97ed-ea7858f2e9ef","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":55,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"723483df-3f65-48d5-92ba-b8dc2adffb54","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":55,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"bc46293f-5c40-4509-af33-0d07f52c2b23","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":55,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"65e6f9c1-4adb-4f4b-bae4-bd1cdb440ad7","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":55,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"a7e374f1-93fd-4cbe-ab1f-b2be960fdc02","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":55,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"29bb50f6-8dd6-4f48-bab5-2a08680404a9","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":55,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"c4d6879c-2e65-4e56-b5f8-71f1b6c29f50","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":55,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"b6bc83f8-25e9-4ae2-8c92-89473a4514af","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":55,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"babec551-06dc-40d2-8893-346b43638d92","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":55,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"0fca6716-ec0e-450b-a5d3-7801e00f18d7","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":55,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"59b89bd0-421e-47b8-a521-e0d17bcdef8d","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":55,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"f193f356-bbaa-42a9-92f6-2d1e1e8e4c39","block_type":"box","text":"state law.","page_number":55,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"62049940-5127-43be-abc4-448f6551571c","block_type":"box","text":"Direct Lending. The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":55,"box":{"x":102,"y":377,"width":771,"height":12}},{"id":"b802e9ad-9e21-4689-b7ca-b581285acbf9","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":55,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"795e6926-36e0-4ff3-8005-301c4157d619","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":55,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"b25d1f12-36f3-4e2f-9c22-5309bccd09e5","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":55,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"bee038fc-1a1b-42e6-af15-396dd2e7d38a","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":55,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"49e73771-9338-4752-9da1-f2bc2d1e45d2","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":55,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"da838d4a-a677-4099-94cd-4b2615116b82","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":55,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"1da891e4-97b4-4e6c-9bca-8917a5e0ba51","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":55,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"b37c9d00-d760-4a54-9d05-25945e17e9b6","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":55,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"371f6e86-4c55-46b8-985c-2b821af41ae4","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":55,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"ff5cb711-d237-4155-a383-dd2e76a2d96c","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":55,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"5ce4211e-c8a4-4a2e-b4e5-06b86cc6d4b2","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":55,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"36b13c3f-e0e4-46b7-ab8b-6fb591352a28","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":55,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"3a863fdf-7f4d-4b53-8271-2ae872e5022d","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":55,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"c7e72b07-0edd-4c8b-a851-af6baa037ad7","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":55,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"7c983a11-3cff-405e-adf8-a6cda6e0abd3","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":55,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"028e43ea-3e6e-4579-955a-626b7af36471","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":55,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"dc19a8b9-a24d-4eb5-8055-6494d49a9ac5","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":55,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"951dc450-3e60-4cdd-bb7c-356130d6fd8a","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":55,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"e8512782-e319-4301-9b44-981faff2905a","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":55,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"30757f66-bbd3-4d72-bb68-a485c01e0f3c","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":55,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"61408046-00b8-4b1b-a450-17527688589c","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":55,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"a85ac1ba-628a-4860-8739-1dc74f43a583","block_type":"box","text":"Credit Linked Securities.","page_number":55,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"17f93d5a-40fc-408e-93ab-efabd440baa3","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":55,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"a7536374-bc64-4bcc-99b4-a285238636bc","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":55,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"8ebbf1f7-697b-4cd1-b8f2-a4a915d49775","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":55,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"d2326cad-4e40-4912-bcd5-595c3d299131","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":55,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"a14e4cf8-0d32-4dae-8f4d-a11fc999e904","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":55,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"17690d4e-b483-4265-8f99-5e6849f5e24c","block_type":"box","text":"traditional income producing securities are not available.","page_number":55,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"fd4e1ae5-e20f-4ee4-82ac-8bc7739b290b","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":55,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"2f28cc17-eb86-40fc-b312-ffc4e3e9d13f","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":55,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"8e964936-407c-41f0-a287-d9a53a01ba70","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":55,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"5430b84d-6fab-46b5-ae5f-b8af0b3f7bfe","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":55,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"03e687ef-6b12-4b02-92f7-6475d4e344fc","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":55,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"e2d6bd3f-7d17-4751-92fb-771f306250da","block_type":"box","text":"II-8","page_number":55,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"67b64e67-17d4-4ca7-8fff-046b75f5e9ca","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9a58ee25-3bd6-478a-9a1f-73c54311443f","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":56,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"95748996-e8fe-4c52-9f14-cba6c405d350","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":56,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"cb9a24ab-0a1e-4a4b-85ab-5885cdce0bde","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":56,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"d8b95000-83a7-490c-a86f-e5680b87e45d","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":56,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"db753d6c-d920-47ee-8462-aad2ef3ba3d6","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":56,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"bda7404c-e505-48c8-986d-39333a7bd2ac","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":56,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"d99ebe15-8dd6-4c62-b942-916e2f63a6dc","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":56,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"65a47b05-f005-4628-8a78-c6854fd40d49","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":56,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"814742bb-ba2f-4ee0-ac1f-b84218eb27bb","block_type":"box","text":"investments.","page_number":56,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"5d955588-d584-415a-945e-7bb47bf976f1","block_type":"box","text":"Debt Securities.","page_number":56,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"042ae18b-f0d5-415d-addd-bbc113e08edc","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":56,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"e92e065f-0157-4909-b35f-7dcfebe242ab","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":56,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"a9757f94-cfe2-4cac-a647-e274ff7ed56e","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":56,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"d7ddd1b3-5598-46ea-8baf-bad58ce7b7c4","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":56,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"89ccd38f-6b9b-4840-be70-7e0ddb0262a1","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":56,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"c52e3516-dd54-44ca-ae11-63590949faad","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":56,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"320b3528-f592-4ab9-9fe9-a8221dc31fb2","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":56,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"a74b243e-1b56-4a01-a411-1dc44d05fcd7","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":56,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"d97b8bcd-4cd5-494a-b7ca-6e72014478a4","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":56,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"3b40496f-f426-44d9-88fd-6ea636331efb","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":56,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"b00c2677-6131-4663-915d-2540b8dc9530","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":56,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"d7e5186d-c153-44e7-847c-7d655bdd91da","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":56,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"5ea3e085-fe20-409e-a06e-9036de16edd6","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":56,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"06d4c131-52a8-4914-ab22-90d4005e9a6a","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":56,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"f02744d6-370b-44ac-b803-5b2e67783d2d","block_type":"box","text":"lose value. This is known as extension risk.","page_number":56,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"a633bf34-8f2b-41fe-9afd-a9e0b6e6d031","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":56,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"8b65b808-0af5-4a0f-90ee-71f95b0f1d56","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":56,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"cac02842-c435-4ea9-86f1-c0c15fab034c","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":56,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"7ace93fa-44be-41d1-bf6b-450df3b2372d","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":56,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"0c29a726-24a8-458d-add5-d879c1936883","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":56,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"0d142dcd-30af-4d95-aef5-d6e2bef7fde5","block_type":"box","text":"Floating and Variable Rate Securities","page_number":56,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"4a405d50-d573-48c1-9b9b-0e0107255504","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":56,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"428bf6ea-8f76-4531-862b-d4ed458b943e","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":56,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"2c8316a2-1c96-4e86-b485-3bfea42a161d","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":56,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"51a80ce8-1338-4793-8550-ad854b9dbce2","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":56,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"b34e3c77-4f8b-40f0-bb33-8debc00f8ac5","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":56,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"b5c406a5-eddb-4d39-908b-2aa5c09823d1","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":56,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"7725e32a-1821-4b0f-958d-e97bb7d97ec1","block_type":"box","text":"market interest rates.","page_number":56,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"fa7a52bd-1dd2-4123-a175-47769e1529a7","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":56,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"5adab7c1-cb62-4118-815e-05df975edf20","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":56,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"6f346ac5-6c6b-47bd-9386-56e5bb3de127","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":56,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"6e65ac6f-d07a-49f9-b1ff-f1ab1e800ec1","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":56,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"aae2a5f4-9a1d-4b29-a78c-a4e19041add7","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":56,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"0133c9d3-48f8-44e1-acb6-54cdfe436f76","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":56,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"3d6b362f-25f9-49e6-aa51-b2fffe760b19","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":56,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"1419cd27-f441-4cf6-92f8-715b5f4a8423","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":56,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"fbf27225-ef56-43c5-ac00-dc36e1423eea","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":56,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"933db9f5-f892-4218-b017-732f6584bc4d","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":56,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"3a48be43-e7cf-4691-b4e9-5101421222b8","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":56,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"e67c0f0f-301d-4210-9da1-e36bf6af9fde","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":56,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"51f79722-3cd4-42c8-8fc8-1a7700f73d2e","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":56,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"ec8d3079-c5f7-44b0-9008-1f954da91532","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":56,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"0f20578c-b8a0-48f8-9f6d-46e4ec2fec01","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":56,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"0be9830a-f930-4f8a-ab53-ed84c28f959d","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":56,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"ce8b830b-84ef-47e1-860f-00f6d1032136","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":56,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"ea19669f-734f-48dd-947a-475ff20ca03e","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":56,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"41099bad-4683-455c-86bd-6d895b381ed3","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":56,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"bbe909ad-d763-46c5-ac71-62406e3ca606","block_type":"box","text":"II-9","page_number":56,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"c2698c65-eac4-4cef-a291-3d46dd200be5","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7c6b05b-ccaa-40ef-84f3-e623e3a5cd3b","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":57,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"b9211a61-9977-4f93-a721-c71ee44c3cb5","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":57,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"7434ecdc-b203-4c04-b170-62c7cb43d29c","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":57,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"9e482f4b-f4e8-4256-8974-02d8b36e69f1","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":57,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"6916d12f-d993-4991-98f0-5fc8253e2195","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":57,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"36b191b9-14b2-4c99-a470-f1b0dc12a707","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":57,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"b443180f-ca0a-4d92-879c-4e63c2215451","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":57,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"98bf85fc-75e4-413a-9834-3ee5b2174336","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":57,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"0a6c35ee-c15c-4681-bdf4-a264d64ab32b","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":57,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"121e3282-60ea-4020-935a-51c2bc16f2b2","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":57,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"614bc00b-57fb-496b-ac8c-c9eda84daf61","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":57,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"790829b5-e305-4d58-8753-abce406cdf7a","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":57,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"133c7811-01ea-40e9-9211-9a817718c572","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":57,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"530a5962-1199-4589-85b4-98ae9318a724","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":57,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"e630c49c-05f7-4867-8877-c4b7bd7295cf","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":57,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"b1d1c735-dedb-4bd7-b4dc-1419e4cc1ab1","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":57,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"d3fc07ec-08c4-4350-82dd-9bea208e7b29","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":57,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"653a658d-44c2-4bba-9aae-c0d5e52c5a76","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":57,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"db1c1ce7-c92b-449b-8a5f-b8479b46afb9","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":57,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"365f6d6d-d56e-47e1-93b2-d1ef2e39e30d","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":57,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"93d45178-2634-469f-9112-dc049cb52a40","block_type":"box","text":"United States.","page_number":57,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"98b6c68a-cbbd-4c52-9782-0652a3d73322","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":57,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"6c11a609-d8d2-48dd-8667-eb6c22c8f896","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":57,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"75520d9b-504e-4300-85d1-1588151ce509","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":57,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"d049726a-0360-4771-9266-261ce4130bcc","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":57,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"81676d96-b8c7-4349-8e02-53ec54decd87","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":57,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"a035a856-5fab-42b4-a74a-3323eacb8f90","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":57,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"0db2a4fe-72e7-4ab4-a66b-ce8e54b8c7fd","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (i.e., “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":57,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"a047103b-8f54-4fcb-8b97-0018c8d615b6","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":57,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"a2247eb0-1cb8-4217-b449-c30012d6b940","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":57,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"e6433c30-1dcc-4943-931e-da2cdc460289","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":57,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"e56e97af-7911-48aa-88b1-02b78edc96d5","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":57,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"934cd0f9-7a36-4d2a-9431-44c96dd52a36","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":57,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"4e12af90-e628-4ccf-83b3-fa12ce8aaabd","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":57,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"51511418-ba41-4530-9718-5a8bd661eede","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":57,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"537e5044-e713-45be-b1f0-dd3728183ee8","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":57,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"f09a867b-3244-42c0-9558-fc94b9b857c3","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":57,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"601faed3-20b1-49ab-bf6f-b76cc3191b6b","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":57,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"c1efefe1-f63b-4749-ad7e-782ad72387a9","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":57,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"ba17586f-1136-4e26-9ee1-fc93d09121f1","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":57,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"dd5ce7a9-7486-4c11-8626-ff9c312000f4","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":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"e8dfa4dc-9f0d-4f3d-af8a-2d5710dd1bb8","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":57,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"c168c1d2-2f19-40bc-9bf7-04c00944e6d1","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":57,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"3fdd689e-391f-412e-bee0-17f30e295c4d","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":57,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"2d41e2a5-eb8f-4a38-9be5-ad78e5050c2a","block_type":"box","text":"risk than higher rated securities.","page_number":57,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"f6e14e01-80f3-4dbe-8c0d-9dfec38efc63","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":57,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"0287e144-c1cf-4e1b-b113-8a84e580d9e0","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"18d96e4c-01c9-4648-ab9a-5becf52ab8c7","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":57,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"32d879b0-8b0b-476f-a984-6e654158c006","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":57,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"4eb0ae68-ff86-4300-bacd-13739d2cfbde","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":57,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"7459c816-0b62-472b-9bfe-7b6df8291daf","block_type":"box","text":"unavailability of additional financing.","page_number":57,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"44d7232d-d19a-4f21-8cf4-a787b72ce8b9","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"5b87fe85-6342-4efb-b17e-64529d1004ef","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":57,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"c53ec0f0-9d1a-46af-bb88-0cc4184c7980","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":57,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"ebbb3a2f-7f8a-4b8c-8873-c37950412d81","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":57,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"26920c6b-6b64-4f5a-8551-e11e5191fd2e","block_type":"box","text":"II-10","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a9529dbb-032c-43d2-8eee-26debe35b1b7","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6eb99780-897f-479b-9470-a41898f5a535","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":58,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"dbba1095-c97a-4363-80de-3ca472dfba06","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":58,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"c1403b83-5e8f-4064-ac35-9e6a34094712","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"724ef08e-e26d-4145-b1e3-c1d6a5f3e452","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":58,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"528aae5f-6cdb-432a-8f40-1fa2d05c337e","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":58,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"9f16273f-6c34-4cdb-9113-980baef08646","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":58,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"4fe70e7d-4492-42e4-9983-074b0c5d0019","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":58,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"a66584bd-d454-462e-a710-6b6ac0b73012","block_type":"box","text":"investors in higher rated securities.","page_number":58,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"ac5471ae-be99-4118-a824-3d688cce67fd","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"09c5b88d-66c6-4a9d-9ce5-9efda0f41d0e","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":58,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"1b9b20d9-c648-49fa-a5b6-c877f71d2f55","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":58,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"216d6197-07b1-491f-9a70-38ca29e15d97","block_type":"box","text":"lower yields and may lose income.","page_number":58,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"013f2ee9-bb59-4f72-9ba3-b5817d73efca","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"c0d2d352-02cb-401b-ab25-22f4d6aec499","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":58,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"f61c4027-942e-4a81-88ec-dcce22db2dea","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":58,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"2822c07e-f82e-4568-b751-6636b27a2a52","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"cdbe13e2-ba55-4c4f-8097-bf5aaa3e924d","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":58,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"d8e21070-447f-42b8-b212-97f385082042","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":58,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"f06042bd-19a7-4058-b524-f9800d80014b","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":58,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"0b4ce887-d281-4282-8651-f69759dec378","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":58,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"3ee08dd5-0352-4c44-a303-eaa9825e860d","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":58,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"15a26c61-39a4-4408-a5f9-b4e370271752","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":58,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"acf2f9f9-1044-4087-b4ef-1e46156f2a55","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":58,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"0d8d4422-0db8-45b8-b095-5f152d5c9991","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"77e25f11-b2d2-47c7-be59-db962365d5cd","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":58,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"b70b01d3-21de-43ed-88d8-66e5cabca667","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":58,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"66eb5980-248e-4511-88d1-db24268eb227","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":58,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"13af621b-d746-467e-8201-7ee4c9113589","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":58,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"02b4e62e-3a7c-49cf-b5d8-342b679469a0","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":58,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"3729ec81-966d-4fea-b651-b45aa30d26a0","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":58,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"796ce513-0e70-4254-88b0-47425fd0244a","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":58,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"d6754551-8e99-469b-85f6-9435d2d578ba","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":58,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"f310dfc6-6310-476d-9574-0eb1c2e94c59","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":58,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"03b8d417-31c3-401b-8d2c-e3601a616530","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":58,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"83a9efa5-6895-4eee-b432-5459de27fcf6","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":58,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"275bb8fa-2ab2-4ba4-8662-6d3a78204e11","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":58,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"15020ac4-9cd7-4f25-869b-476dbe0f7479","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":58,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"50067453-5550-4370-a1a0-faa898da6d6d","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":58,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"39ca980b-e41d-4902-95c9-ae0db215210a","block_type":"box","text":"role in determining such valuations.","page_number":58,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"0162e0dd-8471-405d-a51e-6dc44ed9a446","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"09aa6332-84b6-40c5-b0d7-da3d667d2e29","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":58,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"c525763a-a6e4-4c4a-9371-bcffb3390c41","block_type":"box","text":"a defaulting issuer.","page_number":58,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"403ffcd6-29fd-465e-971e-62ff203e1760","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"bbf6d779-95b3-4b0a-b631-20f93fc7042c","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":58,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"cecb6e8b-39b0-4003-ac1b-539921de3150","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":58,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"a47bf19f-151e-4afa-97a7-68373aa9e2f3","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":58,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"d4eababa-def9-4655-b69f-8a4448eeb6bf","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":58,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"c342d2c7-7518-450c-9d84-89c63cee3d0d","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":58,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"a3a0aaf3-b1fc-43ce-9069-376b1f76c67f","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":58,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"dd61c89e-5efa-435c-b9ff-bb7ab05cd318","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":58,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"22d77290-6a59-4237-80c1-61ebd7667c98","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":58,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"65df833f-eb64-47ad-a167-62027e3c3434","block_type":"box","text":"•","page_number":58,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"c20ed53e-1f2d-46e6-9401-e19160d6c4fa","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":58,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"ca6545be-664e-4129-80da-e984e6e3fea2","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":58,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"771c1e5b-d592-4f74-a6ce-8b8fed35fcad","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":58,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"8156747e-5bdb-4a68-b289-7a9eb82cc4ab","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":58,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"63c5c874-7ef6-4d23-87bf-27fb7ae5ed09","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":58,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"965d5a95-9ae0-4621-93de-e1233d7f5730","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":58,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"91580d5b-ae90-4353-81fc-98fe8cf831fb","block_type":"box","text":"higher-rated securities.","page_number":58,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"3baa84d1-8c01-4882-937f-6e66b40adced","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":58,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"f6d857d1-636b-47a9-80e6-d9724870e535","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":58,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"ee281559-6dd2-42d7-847f-0263ce8464c1","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":58,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"37f89bff-6281-4a2a-880a-94a4115ebdc6","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":58,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"5ec56160-e865-4000-8b40-bac46121c6d6","block_type":"box","text":"II-11","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7246e261-2c30-4de4-bef3-5fc9a3364c84","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94489477-694c-4128-b15a-1ca268336481","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":59,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"7e511f88-03af-46e9-b41e-7309df89c397","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":59,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"d3980261-870a-4d51-8396-8d4c486c650f","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":59,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"dc8527d2-d9a8-431f-b977-f1564990bd6e","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":59,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"884b9bb9-6fe6-4018-842d-75912799afc0","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":59,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"626ef6b9-3473-450e-8d61-f345618581f8","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":59,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"cc7422e6-fc38-4d3d-acaa-e28e7041921e","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":59,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"0d9f1b5f-f02a-49ad-82bf-90dd5990b757","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":59,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"4c914849-9c20-4a46-98ca-c92ddb255ad7","block_type":"box","text":"Mezzanine Investments.","page_number":59,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"83d7adb6-944e-4300-bbae-404c1e05cd66","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":59,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"13e58c66-3985-401c-a14b-b2d737b5139a","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":59,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"6eeb68c1-cb55-4e2d-bb25-bedaa9f1fcbb","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (e.g., with","page_number":59,"box":{"x":69,"y":219,"width":794,"height":11}},{"id":"16d5f3e1-5949-4d41-a3c9-2bbd914bd231","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":59,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"11ebb01e-c60d-41f7-8ff5-4f4dcec46c55","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":59,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"da327cc6-1b7b-4859-b04b-86cfa42a787f","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":59,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"7469eec0-5b96-4ceb-8eaa-8c8e9a575119","block_type":"box","text":"other obligations of the issuer.","page_number":59,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"1f726bc6-ec2a-42f9-8129-b8991c2a2cc1","block_type":"box","text":"Pay-in-kind Bonds.","page_number":59,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"3fea3de2-a126-4d31-b485-886858e31cd0","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":59,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"33ac8819-f8d1-45c6-9628-b68f33fda15e","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":59,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"4e1a17b4-4b77-4b54-be57-25cd8bd162e2","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":59,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"030ad2c6-8a6e-4392-a5c3-2d31930a0f0e","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":59,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"d574a987-28eb-4620-b86f-e07f60847b6a","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":59,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"8abc1f8c-0662-4edc-ab85-cc77d517175f","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":59,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"26040605-ea61-404f-a1bf-4a63569cd6db","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":59,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"0dcd924f-4c83-4df1-9362-e366a753bb54","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":59,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"b5590332-25cf-41ae-bbd1-78d5d85b5203","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":59,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"22c07bbc-c68a-4077-8cd7-e0b9a9a33ee5","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":59,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"a50feed3-5bbc-45c8-b274-045fc4eaa49e","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":59,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"46548ac3-eba0-483c-b0fa-bf354445ff08","block_type":"box","text":"Supranational Entities.","page_number":59,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"a716d6ba-8499-4b07-8780-eee36ca6de00","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":59,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"f4a26305-1651-4502-9742-b3ae4fe6999e","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":59,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"5a1fe2ab-6270-4ed0-9f31-6e65011a65bb","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":59,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"e477695b-cfc5-42cb-866c-7a9e7b8a51a2","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":59,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"469cbee8-9d97-4c8a-b8a3-f57f3a0e4fe6","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":59,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"f3c6e101-6e7c-4118-b841-a869fbf85361","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":59,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"9391c88d-5c99-423a-bed4-4b6ec9c56239","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":59,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"5ba08043-d42f-4bfc-bb39-d803abae23bb","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":59,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"3a9cf2ed-706a-42d1-b1c9-4728bab5b19e","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":59,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"e01bf000-cfff-4a6e-ab7c-37ff691199a8","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":59,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"9b86d7c9-5736-452b-955f-b230fd170132","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":59,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"d098613c-7b52-4c4f-95f4-60c10581a5e6","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":59,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"5b222ffd-ac5c-4e20-8b70-94bb836bce4f","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":59,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"56db8b4d-7e13-46f8-a516-cdd297805a87","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":59,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"8ed5fb5d-eec3-4985-8ba2-254fbdc5dc64","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":59,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"fc9eaca8-b024-45db-99c8-23c91919553f","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":59,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"8ad4774e-9129-4257-adbf-be4a81fa759d","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":59,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"ab095f5e-fc72-4599-9ca3-523885ce5ce9","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":59,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"50dc10fc-76e5-43f4-87a3-140cd9f78f4e","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":59,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"1cbda1f7-12d9-4d7a-a2eb-f37def8bf462","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":59,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"89263197-7e5b-4f07-8d42-cfb2ee46dbb4","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":59,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"0a72ee1f-e684-417c-b1e4-55d0483a4e6d","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":59,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"7ce6e62f-9e25-4092-acf3-11dbd73c86f9","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":59,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"4002eb03-ca6c-478d-9b0c-c19b39894c9b","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":59,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"006b2eca-ed66-472f-be14-fc382653012a","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":59,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"3af2b088-8b5d-48a8-8129-ae5669b80243","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":59,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"935781a3-23a5-4b07-b128-abb191c9e9d8","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":59,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"f8d2466f-d931-4d68-a706-237cfed052cf","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":59,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"5e6ab0b9-1e18-449e-91e2-30f4421ed6f4","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":59,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"cfc328a8-d70a-4b8d-82ae-872412e24ffb","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":59,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"41e48955-bda1-46de-9802-faa5c851ec55","block_type":"box","text":"II-12","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5d2b6298-7136-4345-b22b-cee5893b45dc","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"572e3d92-4e29-43ee-91f2-e188a9541cce","block_type":"box","text":"Derivatives.","page_number":60,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"036ef650-462b-474c-96b4-03760c3a5662","block_type":"box","text":"General.","page_number":60,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"0733b5e0-7622-438f-8f6e-6feeabe91efd","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":60,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"3b5717e6-6fa9-4ac2-a8b7-adfad583bfee","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies (including bitcoin and ether),","page_number":60,"box":{"x":68,"y":82,"width":815,"height":12}},{"id":"fb8264ba-cfd7-40c1-9de4-a25a349b9165","block_type":"box","text":"interest rates, credit events or indices (a measure of value or rates, such as the S&P 500 Index or the prime lending","page_number":60,"box":{"x":70,"y":98,"width":831,"height":11}},{"id":"8af1d4a1-d8bd-4e8d-8ba2-b4636d7f7a57","block_type":"box","text":"rate) or other reference asset. Derivatives may allow a Fund to increase or decrease the level of risk to which the","page_number":60,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"982880d5-c250-435e-b1b5-b6fc37c11276","block_type":"box","text":"Fund is exposed more quickly and efficiently than with other transactions. Cer tain Funds may use derivatives to","page_number":60,"box":{"x":70,"y":128,"width":793,"height":11}},{"id":"e5e7b2ac-475c-4377-b245-2e2800d24470","block_type":"box","text":"maintain a por tion of their long and shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain","page_number":60,"box":{"x":69,"y":143,"width":837,"height":11}},{"id":"ad6b4e7c-7aeb-45d7-b002-f4f695a92249","block_type":"box","text":"exposure to an asset or asset class it is prohibited by its investment restrictions from purchasing directly. As","page_number":60,"box":{"x":69,"y":158,"width":777,"height":11}},{"id":"ae5f4e1d-584e-416a-96e0-8db73ba71a87","block_type":"box","text":"described below, derivatives can be used for hedging or speculative purposes. Funds will engage in transaction-level","page_number":60,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"54a67719-23a8-4824-99c7-7442be09bc9b","block_type":"box","text":"payment netting, i.e., the payment obligations of derivatives contracts are netted against one another with the Fund","page_number":60,"box":{"x":70,"y":188,"width":822,"height":12}},{"id":"dcc74f81-c990-446d-ad07-8df11127c3b9","block_type":"box","text":"receiving or paying, as the case may be, only the net amount of the two payment streams.","page_number":60,"box":{"x":69,"y":203,"width":642,"height":12}},{"id":"89c84611-dec1-4ac8-9800-bd5dfb08e164","block_type":"box","text":"Hedging.","page_number":60,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"b81a922d-6607-4319-86fc-2a784bb54a0c","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":60,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"7eb3e3fa-eefe-43e4-b27a-5a7b91795500","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":60,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"2e11c5c9-c90a-4dba-8e03-125d91ba39a6","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":60,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"738fd54b-d5ad-4077-a901-8c3953ecf68d","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":60,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"9f682b37-8d0e-4988-99e3-38ce59505d9e","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":60,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"ae0cb5e0-794a-48d8-ad8c-65856c429f2c","block_type":"box","text":"correlation risk, i.e., the risk that changes in the value of the derivative will not match those of the holdings being","page_number":60,"box":{"x":69,"y":302,"width":809,"height":11}},{"id":"5b8d78b9-6953-473e-930b-1d6db6c14f7d","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":60,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"fedd5e51-5bb6-4869-8a20-1655b8d22188","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":60,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"5714c24c-fddd-49cf-9225-5cee3470a450","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":60,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"0885ad3a-c288-432c-9c81-fa90140a9991","block_type":"box","text":"Speculation.","page_number":60,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"fd8931f2-9c07-4091-acb2-3619801dec61","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":60,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"491a0e65-1d00-4e51-b819-472309244faf","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":60,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"d5d9c990-1f5d-4f52-802b-1ad72e836b5b","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":60,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"93d7bc98-f56a-4856-8a79-02aed810114f","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":60,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"38e3fb31-96e6-45d8-9bda-4f4dda8798c4","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":60,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"e440f194-3c9f-4b09-8608-f8d0e5a58925","block_type":"box","text":"Regulation of Derivatives.","page_number":60,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"99f056f3-00d2-49c3-a6f6-75cff1762d2e","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act. Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":60,"box":{"x":102,"y":475,"width":798,"height":12}},{"id":"21a0ccf3-b0a1-4630-9167-42fe8f75c6cd","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":60,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"6ba72bfe-8a61-4eb3-94f9-b08344c16baa","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":60,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"cec78216-69c2-4fcf-b10d-87d2bd5bfee2","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":60,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"b0d0c73a-4161-4c1e-acdb-79f96efaf524","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":60,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"74e16180-32de-4691-ae12-b80d105487bf","block_type":"box","text":"coverage”).","page_number":60,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"88d2fdd7-4ba2-4624-9e7c-52820aa40e7e","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":60,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"9d875bbd-a87d-4f54-a5c6-786e683b226b","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":60,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"b4115959-9a7a-49d1-9b9d-b6a84e3195fe","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":60,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"0f0168d7-ce4c-44fa-947e-411e3d8ce7d5","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":60,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"25b5c4a0-daa3-4105-b581-9bf1dbcf087f","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":60,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"c4e81915-11bd-4b3e-880b-2cb00f597e0f","block_type":"box","text":"financing transactions (e.g., recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":60,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"802858d8-88c8-463a-b8a1-8f89e71cf897","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":60,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"3c865c1a-bb94-4814-aa1b-22f5b2b88aa3","block_type":"box","text":"securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":60,"box":{"x":69,"y":680,"width":811,"height":11}},{"id":"29f6561f-6746-49b7-8254-2bb5fbc12ff9","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":60,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"4d0d7cca-d533-4bf0-8ca2-287583956166","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":60,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"9b103779-35ab-4d97-8bc8-c4025200159b","block_type":"box","text":"Commitments”).","page_number":60,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"9efa6fe1-02c6-498e-bce4-755d79200b94","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":60,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"c7210522-e771-4170-8266-85a043e5c1ef","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":60,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"bf5df1fc-33a9-4ba4-870f-e30502f3f42f","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":60,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"6b7087eb-0565-4331-baf2-266644530816","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":60,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"c5a6e753-580c-4f02-8d06-4f9029f7103b","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":60,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"e0dfdc43-b266-4d57-b509-2fcef1b8d82c","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":60,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"b3488815-66af-44ff-9a91-5321fff5bfb0","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":60,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"649afde9-927f-4066-a15d-388773ef905e","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":60,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"e19cde6c-22a1-492a-9815-a30ebb9eb7fd","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":60,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"c3f8ac33-9194-4588-80bc-437efc1d951c","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":60,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"69d1da20-8309-4615-9dfa-ac7d9c6818b2","block_type":"box","text":"II-13","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb3c88df-8b22-4076-97b8-b4188e89f0bf","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aac91872-7620-4cc4-9bec-0bfa28b913f0","block_type":"box","text":"Dodd-Frank Regulations.","page_number":61,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"57ac6344-ea94-4e86-aa9f-3060407d6bb6","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":61,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"33d510c9-1632-4a71-bb2f-8c0d7ef5d44d","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":61,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"229313eb-02ec-4534-ac7b-cc761348ea6c","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":61,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"d6026032-0a93-4b59-b2d2-3c29b2d6d162","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":61,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"cc595b5b-61a1-49c9-8963-eebe63e36d19","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":61,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"52ca8e7a-b1f2-41d5-b283-a527c64b3a42","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or ultimately be","page_number":61,"box":{"x":102,"y":128,"width":767,"height":11}},{"id":"84394534-429f-4105-b6fa-923b207a49d4","block_type":"box","text":"required to register with the SEC as “security-based swap dealers”. Registered swap dealers and security-based","page_number":61,"box":{"x":69,"y":143,"width":799,"height":11}},{"id":"c9351d74-597f-4301-b4a6-39129bb6a695","block_type":"box","text":"swap dealers are subject to various regulatory requirements, including, but not limited to, margin, recordkeeping,","page_number":61,"box":{"x":69,"y":158,"width":806,"height":11}},{"id":"5d723ac0-f7aa-440b-b651-8268ab8b487b","block_type":"box","text":"repor ting, transparency, position limits, limitations on conflicts of interest, business conduct standards, minimum","page_number":61,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"6cac34c4-c7c4-4b25-9bcb-757ef63933fb","block_type":"box","text":"capital requirements and other regulatory requirements, which indirectly impact the Funds that enter into","page_number":61,"box":{"x":69,"y":188,"width":747,"height":12}},{"id":"10e6d40f-0bf1-4d06-9d4e-b24ed871d28c","block_type":"box","text":"transactions with them.","page_number":61,"box":{"x":68,"y":204,"width":167,"height":8}},{"id":"09361bf2-a5b3-4a93-bc3a-00329152cc79","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":61,"box":{"x":101,"y":226,"width":745,"height":11}},{"id":"e12f61ea-66b2-46ef-ac9a-6889831cfef0","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":61,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"028ab65b-a60f-4dd6-908a-090d264acd4b","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":61,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"39c9a052-63e1-4dff-a2d9-d98494f865b8","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":61,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"9fb39b63-1c63-4484-91cc-f4c0eb3ab9d7","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":61,"box":{"x":69,"y":286,"width":794,"height":12}},{"id":"419a34e4-06b0-4a83-b085-81c997222f12","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":61,"box":{"x":69,"y":302,"width":815,"height":11}},{"id":"89679294-2a00-4cfa-9b75-980d0179f342","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":61,"box":{"x":69,"y":317,"width":770,"height":11}},{"id":"b0da3e77-e041-4cd1-b491-e84725459237","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":61,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"81c637e8-7c7a-4ae7-b50a-ec65055cf68b","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":61,"box":{"x":68,"y":347,"width":804,"height":11}},{"id":"a1f6d1c1-ba39-4d6b-babc-6cfa83b4c330","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":61,"box":{"x":69,"y":362,"width":839,"height":11}},{"id":"edb94726-8253-44b1-8a96-434d482cf3c0","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":61,"box":{"x":69,"y":377,"width":814,"height":11}},{"id":"a00974f6-18a9-47ed-a25f-9d39ba803829","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":61,"box":{"x":68,"y":392,"width":796,"height":12}},{"id":"08cb734b-b59f-4376-a886-2bd9f7db8578","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":61,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"ead82242-08e3-4795-997e-89581bd292fe","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":61,"box":{"x":69,"y":423,"width":370,"height":11}},{"id":"b4c45f0d-a5b6-4fed-a52e-268a1b412b5e","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":61,"box":{"x":101,"y":445,"width":766,"height":11}},{"id":"3a868af9-1056-4c10-ba61-0490344c3299","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":61,"box":{"x":69,"y":460,"width":826,"height":12}},{"id":"c729cf88-8921-4633-98e0-1814fffd8c49","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":61,"box":{"x":69,"y":475,"width":825,"height":12}},{"id":"1c01f92c-9e22-4ea4-a1eb-009b05dd5f9a","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":61,"box":{"x":70,"y":491,"width":791,"height":11}},{"id":"ac361d8e-e414-4cd8-a3b1-3de99ecccc02","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":61,"box":{"x":69,"y":506,"width":793,"height":11}},{"id":"8597173a-7f3e-43d5-8199-c294fc2b1453","block_type":"box","text":"member.","page_number":61,"box":{"x":69,"y":521,"width":60,"height":9}},{"id":"be6c16b8-c6ba-49ae-9f4c-36dce5229346","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":61,"box":{"x":102,"y":544,"width":782,"height":11}},{"id":"f702fd89-4971-4c46-a550-ed98a7ca7bc0","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":61,"box":{"x":69,"y":559,"width":837,"height":11}},{"id":"cd67af11-7367-43fe-b5d8-afd54db96f99","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":61,"box":{"x":68,"y":574,"width":811,"height":11}},{"id":"9f45fed5-a292-4828-a4a1-d6d1e91fd002","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":61,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"ee737644-fdf6-489a-85de-7ac8343708bc","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":61,"box":{"x":70,"y":604,"width":754,"height":11}},{"id":"cae83547-985c-4155-9d7b-74894ff3bc61","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":61,"box":{"x":69,"y":619,"width":815,"height":11}},{"id":"09421daf-cf57-4f89-b7bb-cf0f231b9c41","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":61,"box":{"x":70,"y":634,"width":817,"height":12}},{"id":"2574dc57-84a0-4b71-9b37-0927327f1897","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":61,"box":{"x":70,"y":649,"width":788,"height":12}},{"id":"c860f3d9-c72c-4b95-ad51-e02ad01750de","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":61,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"2250e092-a8fa-44d1-9315-9112d7c8a509","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":61,"box":{"x":70,"y":680,"width":829,"height":11}},{"id":"8e4e572d-de4d-4d10-bfea-6dad53a9f62d","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":61,"box":{"x":68,"y":695,"width":346,"height":11}},{"id":"4dbf3c3b-9a2c-43c0-819e-890217a3ce00","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":61,"box":{"x":101,"y":718,"width":762,"height":11}},{"id":"bab2cb93-64b3-4065-aed5-8fd8b4ffefaa","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":61,"box":{"x":69,"y":733,"width":820,"height":11}},{"id":"974398c7-1b66-462d-a1d1-f36a37cce009","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":61,"box":{"x":69,"y":748,"width":816,"height":11}},{"id":"2811117e-42b2-4209-bae0-5d56e111d667","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":61,"box":{"x":69,"y":763,"width":825,"height":11}},{"id":"017a2533-3d26-4c2f-91a9-fb0acf95c1c7","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":61,"box":{"x":69,"y":778,"width":590,"height":11}},{"id":"238e21e8-db19-4ddb-9980-a666d523d553","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":61,"box":{"x":101,"y":801,"width":783,"height":11}},{"id":"0b6c6fdf-5dbd-4e11-8491-e2ca202a85bc","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":61,"box":{"x":69,"y":816,"width":833,"height":11}},{"id":"70e2e8fc-388c-4c5f-a356-9db9306ca6e5","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":61,"box":{"x":68,"y":831,"width":837,"height":11}},{"id":"7da3256c-e977-403d-b79c-a9b714381f9b","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":61,"box":{"x":69,"y":846,"width":789,"height":11}},{"id":"59bde308-f319-41a5-8eae-c621bbc791b2","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":61,"box":{"x":69,"y":861,"width":818,"height":11}},{"id":"e3cd56d9-c296-45d4-b908-87894df41318","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":61,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"d92e423d-fbe9-4fa1-bd61-e54cd286ef8e","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":61,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"82f4c856-ad31-4742-8497-947f2bd376af","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":61,"box":{"x":69,"y":906,"width":827,"height":12}},{"id":"5327217f-3d30-47e8-8442-84301827b677","block_type":"box","text":"II-14","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fba47c5e-5c3c-43d0-814d-f14a045509d8","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b99b4eb2-4409-4b0f-963c-0a1efda8ab82","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":62,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"e56dccaf-1858-41f3-b11b-54951bba3a8e","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":62,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"3500b836-2825-4cae-8ba8-aa95641b2ff7","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":62,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"90586292-752c-4b29-b855-d9c0613533ac","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":62,"box":{"x":69,"y":90,"width":785,"height":11}},{"id":"54c78173-21d7-43a9-8272-3d7638dacbf1","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":62,"box":{"x":70,"y":105,"width":350,"height":11}},{"id":"845fceec-2c3b-4c4f-875a-b90b6a0622f6","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":62,"box":{"x":101,"y":128,"width":256,"height":11}},{"id":"caad3ab2-7ce7-4c5d-9192-f5cebda42ddf","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":62,"box":{"x":364,"y":128,"width":513,"height":11}},{"id":"db3155b1-59d4-4d8c-b4a8-0cba493c86a4","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":62,"box":{"x":70,"y":143,"width":757,"height":11}},{"id":"586eb29e-ac48-4104-b504-ef20203d8e7b","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":62,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"02735619-8cd2-499a-ba33-da479179914f","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":62,"box":{"x":68,"y":173,"width":762,"height":11}},{"id":"e91c6bc5-1a9a-4100-a992-ee6fba723ffe","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":62,"box":{"x":69,"y":188,"width":825,"height":12}},{"id":"6c47380a-3751-4e70-ac83-12363bbf999b","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":62,"box":{"x":69,"y":203,"width":798,"height":12}},{"id":"a6b7805e-706a-4194-994e-0e7536484887","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":62,"box":{"x":70,"y":218,"width":785,"height":12}},{"id":"648e1fe8-9902-4704-b3ef-03e6af9850a1","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":62,"box":{"x":69,"y":234,"width":787,"height":11}},{"id":"01a6cc71-5b5a-4bff-ac18-ea0347c8cc27","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":62,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"2761e5f8-384f-4e61-94bc-878cd52f1891","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":62,"box":{"x":69,"y":264,"width":771,"height":11}},{"id":"beca0558-b34a-4e3b-8395-92b5ac39c526","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":62,"box":{"x":70,"y":279,"width":812,"height":11}},{"id":"e4648fc3-cc1a-4ed5-b697-e5d2dafd9b6b","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":62,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"02559fb6-824a-49aa-8242-28ce093c6700","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":62,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"410925f8-56f2-4181-8e15-5cc13cc08f1e","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":62,"box":{"x":69,"y":324,"width":765,"height":12}},{"id":"d8e648b9-41c4-41fa-934b-ed9162973f7b","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":62,"box":{"x":69,"y":339,"width":720,"height":12}},{"id":"2a95e924-a210-465b-ae13-d7bfc45e493e","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":62,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"fe3605d3-2149-4873-8167-bcb8cf561e77","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":62,"box":{"x":69,"y":377,"width":762,"height":12}},{"id":"53546973-8de0-4941-abf0-e8bc675364d8","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":62,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"ddaecc07-8c2d-4ecf-8b81-02981c1ce71e","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":62,"box":{"x":69,"y":407,"width":812,"height":12}},{"id":"6f928640-6aae-4a5a-9210-467a8abd9d13","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":62,"box":{"x":68,"y":423,"width":787,"height":11}},{"id":"18b6248c-1bf5-4f8c-b458-b9303be537f0","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":62,"box":{"x":69,"y":438,"width":810,"height":11}},{"id":"443991e7-60fb-4e77-b529-1a171280bd38","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":62,"box":{"x":67,"y":453,"width":795,"height":11}},{"id":"3916a7a1-e465-48ef-b5da-44288a148599","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":62,"box":{"x":70,"y":468,"width":835,"height":11}},{"id":"713bbf1f-ad2d-47f0-9525-6e43f29af689","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":62,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"8f6a67d8-0b5a-4ca0-bfbd-8f4d0b479c17","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":62,"box":{"x":68,"y":498,"width":814,"height":11}},{"id":"d9c0d0e2-f1fa-4b8a-9a67-501a49c1d3fc","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":62,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"db6a86ab-109c-48b2-92cf-2ded6d3afa3e","block_type":"box","text":"collateral received under such contracts.","page_number":62,"box":{"x":69,"y":529,"width":288,"height":8}},{"id":"298b5295-1507-413a-96a7-a12a4e3cd3d5","block_type":"box","text":"Regulatory changes or actions may alter the nature of an investment in bitcoin or ether futures or restrict the use","page_number":62,"box":{"x":102,"y":551,"width":807,"height":11}},{"id":"5f5a1134-2a21-45ac-bc03-62e423a8b465","block_type":"box","text":"of bitcoin or ether or the operations of digital asset networks or exchanges on which bitcoin or ether trades in a","page_number":62,"box":{"x":69,"y":566,"width":793,"height":11}},{"id":"6e3b03de-9181-43bd-bb26-db8eb67865cf","block_type":"box","text":"manner that adversely affects the price of such digital asset futures, which could adversely impact a Fund.","page_number":62,"box":{"x":69,"y":581,"width":759,"height":12}},{"id":"0cf71555-e0ad-469e-97de-5e944ee41a4e","block_type":"box","text":"Risk Factors in Derivatives.","page_number":62,"box":{"x":102,"y":604,"width":191,"height":9}},{"id":"c149657b-407d-42a9-acf0-724878c29023","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":62,"box":{"x":101,"y":627,"width":597,"height":11}},{"id":"301adbfd-45b1-453e-9509-7db00e333281","block_type":"box","text":"Correlation Risk","page_number":62,"box":{"x":102,"y":649,"width":114,"height":9}},{"id":"f8ce986a-df14-4c6d-b0a1-e1397fe75ea4","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":62,"box":{"x":220,"y":649,"width":668,"height":12}},{"id":"f304c8d5-e9b5-4ec7-b257-2619e79cbd67","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":62,"box":{"x":68,"y":664,"width":837,"height":12}},{"id":"dad74465-5872-4699-a06c-b5fba4c931de","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":62,"box":{"x":68,"y":680,"width":818,"height":11}},{"id":"5451a360-09cf-4155-bbb2-ed883d4226b0","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":62,"box":{"x":70,"y":695,"width":806,"height":11}},{"id":"a1b56bec-0007-4ba7-9259-026a099c2e37","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":62,"box":{"x":69,"y":710,"width":725,"height":11}},{"id":"30f47ee5-b9fa-4316-aa28-66cb6e420956","block_type":"box","text":"Counterpar ty Risk","page_number":62,"box":{"x":102,"y":733,"width":128,"height":11}},{"id":"280bf7bd-0616-4ce6-b7a8-aad1b03d7383","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":62,"box":{"x":233,"y":733,"width":632,"height":11}},{"id":"62cbc60a-b8e3-4a2c-a94b-2745186e80e4","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":62,"box":{"x":70,"y":748,"width":830,"height":11}},{"id":"d8eb10a5-5a86-4023-b0f6-f71e50e35a89","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":62,"box":{"x":69,"y":763,"width":824,"height":11}},{"id":"aa398fb7-7686-4da3-b574-a5de3043d3b9","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":62,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"3c73b906-9bd4-47fe-ac4e-79b89dfc9417","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":62,"box":{"x":70,"y":793,"width":831,"height":11}},{"id":"1d4fc5de-a141-4f11-8f18-6f5a5e4f6f8e","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":62,"box":{"x":69,"y":808,"width":806,"height":11}},{"id":"2decb71c-d2e3-4bbd-9d27-171c23202e77","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":62,"box":{"x":69,"y":823,"width":803,"height":12}},{"id":"bad1b984-1703-49b7-a313-017cccea5ed4","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":62,"box":{"x":70,"y":839,"width":760,"height":11}},{"id":"daee72b9-6450-43f5-ba6d-5ee76027595a","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":62,"box":{"x":68,"y":853,"width":819,"height":12}},{"id":"d76e3d88-15a0-477e-9818-f791511906f6","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":62,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"41e082fb-ab10-4c9b-8e4d-d32ddd7d4976","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":62,"box":{"x":68,"y":884,"width":826,"height":11}},{"id":"f618cc28-51a7-4034-bfce-8d3fa95203df","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":62,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"88aa34b2-3bb4-4c79-bb52-7951b3b14d13","block_type":"box","text":"II-15","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"31f9534f-ed8d-437f-8044-a11cea3b1905","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49166d23-3628-4844-b3cf-ff8b26392a36","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":63,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"e0ea1f2c-8225-47e8-97d6-edcae59dc076","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":63,"box":{"x":70,"y":60,"width":816,"height":11}},{"id":"4c4e67ab-02ba-4fe1-b635-eda9c5b6abd5","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":63,"box":{"x":70,"y":75,"width":771,"height":11}},{"id":"1757dbd1-7964-4ad5-a913-76793387e716","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":63,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"847577fa-3b6d-4051-bf0e-007f63e4aedf","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":63,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"8dea7436-086a-4971-9b47-e28acbcbfe5b","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":63,"box":{"x":69,"y":120,"width":829,"height":12}},{"id":"c13c3d1c-fc9e-4a3a-8f9c-57258e5349c1","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":63,"box":{"x":69,"y":135,"width":827,"height":12}},{"id":"434da885-4acd-4861-a01d-8c3b81dbd6b9","block_type":"box","text":"by the clearing member.","page_number":63,"box":{"x":69,"y":151,"width":169,"height":11}},{"id":"97c19a31-fa37-4fce-bb16-c0819217e370","block_type":"box","text":"Credit Risk","page_number":63,"box":{"x":102,"y":173,"width":78,"height":9}},{"id":"a8322135-2f49-452e-9a33-8130b62e2c95","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":63,"box":{"x":184,"y":173,"width":698,"height":11}},{"id":"ef544118-6ef0-4820-af77-ffb85854f0cc","block_type":"box","text":"honor its financial obligations.","page_number":63,"box":{"x":69,"y":188,"width":213,"height":12}},{"id":"f10c4993-4f74-4bc9-b92c-f67af24b6ee3","block_type":"box","text":"Currency Risk","page_number":63,"box":{"x":102,"y":211,"width":98,"height":11}},{"id":"295844fd-9aaf-43b6-abf2-7756a43ccfc3","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":63,"box":{"x":204,"y":211,"width":669,"height":11}},{"id":"a254cd05-bf05-4820-9149-3188389af958","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":63,"box":{"x":68,"y":226,"width":300,"height":11}},{"id":"f72ea6c6-0857-4da5-8bef-d8d9eb95a624","block_type":"box","text":"Illiquidity Risk","page_number":63,"box":{"x":102,"y":249,"width":98,"height":11}},{"id":"e09c8858-fc21-403a-b191-182ea9f8c4be","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":63,"box":{"x":204,"y":249,"width":693,"height":11}},{"id":"6c35b3ed-7d28-4aa4-abc4-79862e36f4c9","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":63,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"b4368c04-7230-4069-84ec-d210e227a61b","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":63,"box":{"x":69,"y":279,"width":799,"height":11}},{"id":"b7b303fe-20ed-41ac-88c5-7a32e3086bd5","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":63,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"ee8fe0a9-c639-400b-bbb3-4e5c39c1a74c","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":63,"box":{"x":70,"y":309,"width":824,"height":11}},{"id":"0e08cf87-4f19-4e45-b815-eee9756b5efe","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":63,"box":{"x":70,"y":324,"width":830,"height":11}},{"id":"294967a6-9fdd-49f2-91fe-1e8e0c0ea402","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":63,"box":{"x":70,"y":339,"width":762,"height":12}},{"id":"22acb094-93a4-4e99-aed5-41adb6ebc353","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":63,"box":{"x":70,"y":355,"width":827,"height":11}},{"id":"ad9e8c4c-529e-49f9-98de-ab73d238c2c5","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":63,"box":{"x":69,"y":370,"width":816,"height":11}},{"id":"d7541fd9-fa0b-4037-b723-15787dd7b035","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":63,"box":{"x":68,"y":385,"width":831,"height":11}},{"id":"6b8f04b0-a37d-481a-8310-7d28cbb06a84","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":63,"box":{"x":69,"y":400,"width":828,"height":11}},{"id":"3bd00145-0a3d-43df-9dd7-5de95c037a21","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":63,"box":{"x":68,"y":415,"width":809,"height":11}},{"id":"b60c73cc-bbf1-464c-a7fe-ce64f87707f2","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":63,"box":{"x":68,"y":430,"width":826,"height":11}},{"id":"496beb8f-d20b-41d9-acc1-db763b1eefc4","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":63,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"7849c62e-c217-49e9-8764-3245b2231124","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":63,"box":{"x":68,"y":460,"width":838,"height":12}},{"id":"5d478d8f-c868-4585-a8ea-8e2ec749d376","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":63,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"da512abd-aaf8-4f07-9022-415fae8aa714","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":63,"box":{"x":69,"y":491,"width":828,"height":11}},{"id":"615fb50c-0446-4583-823d-933452f16fff","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":63,"box":{"x":69,"y":506,"width":796,"height":11}},{"id":"f7a92ac7-145d-45ae-9dda-f8ff56bc76f1","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":63,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"30002e18-5cff-4294-800f-2f290b841a23","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":63,"box":{"x":70,"y":536,"width":837,"height":11}},{"id":"5f74135a-10ca-4e72-bd10-9aea37074087","block_type":"box","text":"may be disadvantageous to do so. A Fund’s investment in digital asset futures may involve illiquidity risk, as digital","page_number":63,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"a6f700c0-7227-4a9d-9638-34644d0820e1","block_type":"box","text":"asset futures are not as heavily traded as other futures given that the digital asset futures market is relatively new.","page_number":63,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"0c4481c7-4d20-4635-a70a-4e1ca6282fda","block_type":"box","text":"Index Risk","page_number":63,"box":{"x":102,"y":589,"width":73,"height":9}},{"id":"a9b871a9-d510-47b0-9b90-7e927990db46","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":63,"box":{"x":179,"y":589,"width":714,"height":11}},{"id":"25985d51-cfc2-46b2-a3a9-71451664441e","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":63,"box":{"x":68,"y":604,"width":800,"height":11}},{"id":"b4188580-55e8-43b5-8622-6683bc8c1f54","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":63,"box":{"x":69,"y":619,"width":678,"height":11}},{"id":"a383d872-7f92-45e0-9659-d59e0f272913","block_type":"box","text":"Legal Risk","page_number":63,"box":{"x":102,"y":642,"width":73,"height":11}},{"id":"87b0d0c3-09ac-4c17-a49a-2e195e81c433","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":63,"box":{"x":179,"y":642,"width":717,"height":11}},{"id":"02bf047e-fb1c-4b42-987b-83b274e56444","block_type":"box","text":"or enforceability of a contract.","page_number":63,"box":{"x":69,"y":657,"width":211,"height":11}},{"id":"b79ac385-a34f-4cb5-aeb8-c82db77801d6","block_type":"box","text":"Leverage Risk","page_number":63,"box":{"x":102,"y":680,"width":99,"height":11}},{"id":"1d7396f8-32e1-4e19-9fa7-1eb9c90d5eef","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":63,"box":{"x":205,"y":680,"width":648,"height":11}},{"id":"784b516e-c314-4264-9d95-68ddbf12800b","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":63,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"7ba73e18-b7cd-432f-862b-4e23156de2a3","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":63,"box":{"x":70,"y":710,"width":425,"height":11}},{"id":"004b77c0-2270-4d47-89be-9e26746fce82","block_type":"box","text":"Market Risk","page_number":63,"box":{"x":102,"y":733,"width":85,"height":9}},{"id":"f5ed921d-c02e-4f95-b987-685bc07318c0","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":63,"box":{"x":191,"y":732,"width":716,"height":12}},{"id":"f1e9d10f-6809-4f5b-b7a7-1dd9e94b2289","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":63,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"85b3cd30-9c71-4299-b1eb-3e56c76c2e5f","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":63,"box":{"x":69,"y":763,"width":794,"height":11}},{"id":"cc23c327-39ca-40b3-a964-2393edc95e5b","block_type":"box","text":"affected.","page_number":63,"box":{"x":69,"y":778,"width":62,"height":9}},{"id":"ce8ecc00-450d-488c-b1ad-b914ba258cc5","block_type":"box","text":"Operational Risk","page_number":63,"box":{"x":102,"y":801,"width":117,"height":11}},{"id":"2cb20173-928e-4e0b-b3c8-d9b20dc1fd50","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":63,"box":{"x":223,"y":801,"width":674,"height":11}},{"id":"4a4eb820-375f-4749-b597-403201077b20","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":63,"box":{"x":70,"y":816,"width":451,"height":11}},{"id":"e215a40b-87cd-463b-a517-b7ae746f2d20","block_type":"box","text":"Valuation Risk","page_number":63,"box":{"x":103,"y":839,"width":99,"height":8}},{"id":"c902bcd1-61e7-4b69-8d2d-e1a02aff0415","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":63,"box":{"x":206,"y":838,"width":701,"height":11}},{"id":"f7553ff4-61f6-431a-be61-a025bc074908","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":63,"box":{"x":70,"y":853,"width":779,"height":12}},{"id":"b40a172e-5c62-4db2-8e1a-80ddcd72fd0e","block_type":"box","text":"complex instruments or quote prices for them. Exchanges where bitcoin or ether is traded (which are the source of","page_number":63,"box":{"x":69,"y":869,"width":817,"height":11}},{"id":"61091448-e9b6-441b-9869-8bbceb4c65ef","block_type":"box","text":"the price(s) used to determine the cash settlement amount for a Fund’s bitcoin or ether futures) have experienced","page_number":63,"box":{"x":68,"y":884,"width":814,"height":11}},{"id":"81595391-f4fc-421e-b326-4c9b08e3f7ae","block_type":"box","text":"II-16","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2af9e3b4-62c9-4718-8ce5-a5574c96ee4a","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"23bdeadf-36bc-4fc7-844e-9d0b73b84b30","block_type":"box","text":"technical and operational issues, making bitcoin or ether prices unavailable at times. In addition, the cash market in","page_number":64,"box":{"x":68,"y":45,"width":830,"height":11}},{"id":"2ab4a364-ae02-40c8-bf2c-9136b4510fa3","block_type":"box","text":"bitcoin or ether has been the target of fraud and manipulation, which could affect the pricing of bitcoin or ether","page_number":64,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"fcfcab86-cd77-4e8c-a1a2-7efd611eaa82","block_type":"box","text":"futures contracts.","page_number":64,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"21059366-c0d6-4516-be1b-465bcaad9683","block_type":"box","text":"Volatility Risk","page_number":64,"box":{"x":103,"y":98,"width":93,"height":11}},{"id":"d8d2fd41-4d04-48f1-932c-bba767a0c909","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period. In","page_number":64,"box":{"x":200,"y":98,"width":670,"height":11}},{"id":"0eae7056-6ee5-41b2-a8de-1aac0ecca556","block_type":"box","text":"par ticular, bitcoin, ether, bitcoin futures and ether futures have generally exhibited significant price volatility relative","page_number":64,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"8e0909bb-e436-40e4-8ae1-042eebc73255","block_type":"box","text":"to more traditional asset classes. Bitcoin and ether futures may also experience significant price volatility as a result","page_number":64,"box":{"x":68,"y":128,"width":835,"height":11}},{"id":"847dbe34-f522-40ce-82b4-469ff92556e1","block_type":"box","text":"of the market fraud and manipulation noted above.","page_number":64,"box":{"x":69,"y":143,"width":361,"height":11}},{"id":"90a5fb7f-be12-40dc-a569-5b43bff1d9fb","block_type":"box","text":"Types of Derivatives Transactions.","page_number":64,"box":{"x":103,"y":166,"width":240,"height":11}},{"id":"42c8b3b8-cc9e-4cbf-9d77-fabddc5ca834","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":64,"box":{"x":101,"y":188,"width":771,"height":12}},{"id":"41c38d6d-ed14-45bc-a44e-b4ba955331d5","block_type":"box","text":"including the following:","page_number":64,"box":{"x":70,"y":203,"width":159,"height":12}},{"id":"6e5558b4-5144-4fa4-b954-0618373d1643","block_type":"box","text":"Futures.","page_number":64,"box":{"x":102,"y":226,"width":56,"height":9}},{"id":"708a54c4-5527-4fa6-b0ab-de6eeaadc831","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":64,"box":{"x":101,"y":249,"width":791,"height":11}},{"id":"4e26dc0c-26e9-4513-9192-679d1bc41b1b","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":64,"box":{"x":69,"y":264,"width":799,"height":11}},{"id":"6c3b1c65-88d5-4775-9281-1c7de5a69a4d","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":64,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"e544e113-1719-4429-8deb-d8c158aa41f0","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":64,"box":{"x":69,"y":294,"width":838,"height":11}},{"id":"0896940d-a873-48d5-bee6-7e74ec64d8a4","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":64,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"d8c62458-486c-4b16-825f-7af06479478b","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":64,"box":{"x":69,"y":324,"width":478,"height":11}},{"id":"49fdf4f9-af90-453a-9a6c-38447cf8ccdb","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":64,"box":{"x":101,"y":347,"width":801,"height":11}},{"id":"3d3a15aa-822e-4a73-b890-7af4611932d8","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":64,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"4d337a22-3115-4aaf-99c8-a16226c6b636","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":64,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"2264f4b4-8011-4081-ad7d-28c66542db11","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":64,"box":{"x":68,"y":392,"width":830,"height":12}},{"id":"c973b52c-c794-49e4-96c0-237a807ac0a5","block_type":"box","text":"of the futures contract.","page_number":64,"box":{"x":69,"y":407,"width":162,"height":9}},{"id":"a819126c-7c82-42d0-9976-944407cd7bcf","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":64,"box":{"x":101,"y":430,"width":756,"height":11}},{"id":"bf62cea2-287a-4b59-be27-fb8be61f73bf","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":64,"box":{"x":69,"y":446,"width":820,"height":10}},{"id":"16703e48-abe4-47b5-94f0-440170087e13","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":64,"box":{"x":69,"y":460,"width":789,"height":12}},{"id":"11294791-2f83-4f20-9cc6-f09c48e48560","block_type":"box","text":"relating to the futures position.","page_number":64,"box":{"x":69,"y":475,"width":219,"height":12}},{"id":"718d3294-618d-4baf-a168-110402b21c30","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":64,"box":{"x":102,"y":498,"width":757,"height":11}},{"id":"21f0f7c3-c792-4d1d-8ddc-0ef147e09004","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":64,"box":{"x":69,"y":513,"width":797,"height":12}},{"id":"00e32fdb-55cc-48f8-bfcb-96f4eaece273","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":64,"box":{"x":70,"y":528,"width":816,"height":12}},{"id":"5cb38110-bcb5-42d7-8100-e7eeeb8d742e","block_type":"box","text":"Regulations” above.","page_number":64,"box":{"x":70,"y":544,"width":140,"height":11}},{"id":"a6f94245-9920-4aa1-9c81-01d9f4fa1e4f","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":64,"box":{"x":101,"y":566,"width":799,"height":11}},{"id":"aea8ad9d-1a95-4fd1-83aa-03ee4c8eeeec","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":64,"box":{"x":69,"y":581,"width":818,"height":12}},{"id":"72d198fa-f70d-4a57-8bc0-9ef303706c31","block_type":"box","text":"(i.e., conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":64,"box":{"x":69,"y":596,"width":831,"height":12}},{"id":"faca114f-f464-423e-b526-8f9275407596","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":64,"box":{"x":69,"y":612,"width":830,"height":11}},{"id":"e54ea163-7565-47d2-8a40-f84752355d80","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":64,"box":{"x":68,"y":627,"width":835,"height":11}},{"id":"0e282e28-878b-427b-aae7-1381a713cd28","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":64,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"0b19e988-9475-4883-975c-ec92d012b9a1","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":64,"box":{"x":69,"y":657,"width":826,"height":11}},{"id":"e106e13d-98e0-432c-bcd4-ca66b076a7fd","block_type":"box","text":"Fund intends to purchase.","page_number":64,"box":{"x":70,"y":672,"width":183,"height":11}},{"id":"8f3fed06-2fff-4ac3-8038-ba0d14d4bafc","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":64,"box":{"x":101,"y":695,"width":768,"height":11}},{"id":"7005fd2c-09a8-44ce-a63c-da247ba6b807","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":64,"box":{"x":69,"y":710,"width":835,"height":11}},{"id":"7b3bc59d-475c-4d87-a088-7299ccb50e0a","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":64,"box":{"x":69,"y":725,"width":839,"height":11}},{"id":"f0167bbb-ad9a-4e51-9c0d-192c6eec2181","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":64,"box":{"x":69,"y":740,"width":773,"height":11}},{"id":"ac2e2037-18b2-4224-b40f-391beb19886d","block_type":"box","text":"illiquidity.","page_number":64,"box":{"x":70,"y":755,"width":63,"height":11}},{"id":"0e2d7d24-9892-49f8-9205-0a11e9aca89c","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":64,"box":{"x":102,"y":778,"width":757,"height":11}},{"id":"ccb8e74c-76e5-4c51-91b7-e11c709f4f9d","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":64,"box":{"x":70,"y":793,"width":807,"height":11}},{"id":"c4842089-f6a6-4add-97ab-7e1b6d9929b5","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":64,"box":{"x":70,"y":808,"width":269,"height":9}},{"id":"deab79ef-eee8-470c-938d-3d4574fee0a6","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":64,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"c82b2d5c-8f2a-445d-854e-5e684c0c3c8e","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":64,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"da807f93-9b6c-4087-b7d3-569a1fd1c153","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":64,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"415d8eb9-dfbc-4d4e-ae20-90a38b6f1834","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":64,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"56cb5b15-2278-4482-b2b2-8fe2db88a2a6","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":64,"box":{"x":68,"y":891,"width":657,"height":9}},{"id":"c1753ec1-4e73-449f-8cea-29bb7dd79d60","block_type":"box","text":"II-17","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"075d55d7-fad3-476f-bf94-a225df9a6837","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0fb18d9-5df6-4e31-aa18-735abc56338c","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":65,"box":{"x":101,"y":45,"width":792,"height":11}},{"id":"f8f0ef98-e6d3-4865-98e8-df2d75854511","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":65,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"69be742b-6035-45a5-b3ce-63171f292185","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":65,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"b8dd9528-13e8-481c-84c4-d5a83e84e9b2","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":65,"box":{"x":68,"y":90,"width":841,"height":11}},{"id":"7d30604e-f2bd-4602-a48f-db9a2196baee","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":65,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"cda56c62-1871-4ef5-b712-b992feb65db7","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":65,"box":{"x":69,"y":120,"width":637,"height":12}},{"id":"a1b072fd-a353-4bec-8c41-b37b64477e83","block_type":"box","text":"Swap Agreements.","page_number":65,"box":{"x":102,"y":143,"width":131,"height":11}},{"id":"5d4abd0d-c614-4f32-ad85-fcd2447853d6","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":65,"box":{"x":101,"y":166,"width":782,"height":11}},{"id":"8ea7fcdc-12f2-45f8-b976-1a09155b0568","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":65,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"37c732ff-dc66-4c86-82e3-64d2af0e7b91","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":65,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"a47aee10-7f92-4d1c-a678-ef234ce322f6","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":65,"box":{"x":69,"y":211,"width":792,"height":11}},{"id":"10c055a3-e849-4d72-8d9f-556aa9b0587c","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":65,"box":{"x":68,"y":226,"width":832,"height":11}},{"id":"4f7284b8-a7c8-4495-864a-5daf2772ff34","block_type":"box","text":"a “notional amount,” e.g., the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":65,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"2d81a272-9fd1-4358-8051-67219314ba6b","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":65,"box":{"x":70,"y":256,"width":787,"height":12}},{"id":"70144626-a085-4623-8140-687ce7a05d84","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":65,"box":{"x":69,"y":271,"width":762,"height":12}},{"id":"61d2f269-bfad-4945-a0d7-dd648dd13a75","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":65,"box":{"x":69,"y":287,"width":828,"height":11}},{"id":"5bb09d28-b0cf-4c96-9a47-1f8849663b62","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":65,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"d37a3fb2-b783-4d7b-8da0-f24bb9af29c0","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":65,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"ffd2338e-b4f6-47ef-bc9e-3c555e28da58","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":65,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"2ec6009d-4d79-480b-8e50-5b04811af512","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":65,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"0bbde301-e4a2-4370-9674-2de7049a0399","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":65,"box":{"x":68,"y":362,"width":763,"height":11}},{"id":"967645ba-8c3b-4c7a-a974-accb4f3fba75","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":65,"box":{"x":102,"y":385,"width":329,"height":11}},{"id":"9f9ddd2b-02bc-4b77-a028-fb2449ceebdf","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":65,"box":{"x":438,"y":385,"width":439,"height":11}},{"id":"460aebae-5b56-44e3-9891-f64b936dfe93","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":65,"box":{"x":70,"y":400,"width":821,"height":11}},{"id":"5fc3b5c0-9a96-4b84-a8a7-6dce5111692a","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":65,"box":{"x":70,"y":415,"width":831,"height":11}},{"id":"4823bda0-c890-4fcd-bc5a-6adc50c99e03","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":65,"box":{"x":69,"y":430,"width":801,"height":11}},{"id":"f1d31789-06d5-4789-bf90-ba4c1f917bfd","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":65,"box":{"x":69,"y":445,"width":829,"height":11}},{"id":"bd2d36a2-91c4-4bd4-b031-3b0acd37fc39","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":65,"box":{"x":68,"y":460,"width":798,"height":12}},{"id":"89923fe6-c9d7-4d33-9917-eb30f9398f27","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":65,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"61f74107-16d2-466e-83cc-50795ea8bab0","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":65,"box":{"x":69,"y":491,"width":836,"height":11}},{"id":"e6ce64a5-e4c4-47ec-a94d-d4891bc1b63a","block_type":"box","text":"index CDS.","page_number":65,"box":{"x":70,"y":506,"width":75,"height":9}},{"id":"ba8b182a-52c1-4845-a984-9a3ed29b6647","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":65,"box":{"x":102,"y":528,"width":800,"height":12}},{"id":"40fa515a-cabd-4356-bed7-9b8ff230b16a","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":65,"box":{"x":69,"y":544,"width":806,"height":9}},{"id":"5abe450d-8089-42d1-8611-e767899b2dc1","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":65,"box":{"x":69,"y":559,"width":828,"height":11}},{"id":"1b30bebd-23d4-433e-ba13-e9b71e06703c","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":65,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"d9c36822-1ab2-45ec-8374-c82539163d8a","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":65,"box":{"x":70,"y":589,"width":812,"height":11}},{"id":"501f616f-98ff-45d2-b12d-6a94e1a2f136","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":65,"box":{"x":69,"y":604,"width":798,"height":11}},{"id":"434a7a49-704f-44d0-93a8-f82581ef1a04","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":65,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"e21e3d54-cae2-4135-87d3-349d6c7058e5","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":65,"box":{"x":69,"y":634,"width":810,"height":12}},{"id":"9512c17d-fca7-4fa2-b3ea-34571e65e2d6","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":65,"box":{"x":69,"y":649,"width":821,"height":12}},{"id":"98b4783e-bf40-46a0-8016-89b55206f3e3","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":65,"box":{"x":69,"y":664,"width":811,"height":11}},{"id":"7f67c892-18f4-413e-b745-e89a0d755d10","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":65,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"3499a823-c6be-42d4-a45e-bc1b97a44361","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":65,"box":{"x":69,"y":695,"width":827,"height":11}},{"id":"23538480-6d51-4f0b-b06e-4700e7c188e7","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":65,"box":{"x":70,"y":710,"width":834,"height":10}},{"id":"a4455da2-5c6d-4277-9d28-4da581dfbb96","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":65,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"b49ba92f-97bc-40cd-8e2c-f1f02a2545e6","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":65,"box":{"x":69,"y":740,"width":809,"height":11}},{"id":"e072e095-83b1-4bc0-a083-87b101210780","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":65,"box":{"x":69,"y":755,"width":815,"height":11}},{"id":"7470efec-f0b4-4c97-86c7-a5bcba87ac19","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":65,"box":{"x":69,"y":771,"width":807,"height":10}},{"id":"5b4a9041-418e-4265-a027-b313f1dc1175","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":65,"box":{"x":69,"y":785,"width":832,"height":12}},{"id":"0a365ead-5ae4-488b-bce3-b656324a542d","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":65,"box":{"x":70,"y":801,"width":711,"height":11}},{"id":"39706215-471b-4460-9ab3-953ce01d2ada","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":65,"box":{"x":102,"y":823,"width":757,"height":11}},{"id":"6c12a8b7-d7fd-464d-a4a1-9b0bbeb7d908","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":65,"box":{"x":69,"y":838,"width":794,"height":12}},{"id":"dccf091a-16f3-4451-8d5b-83791f6494de","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":65,"box":{"x":69,"y":853,"width":830,"height":12}},{"id":"5788b854-628e-4bb4-bc56-71d8dff3a9b3","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":65,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"6d10d5c5-40b6-4759-83b6-807bc8ce3430","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":65,"box":{"x":70,"y":884,"width":817,"height":11}},{"id":"b12c3903-9285-4961-92b1-2bd62b16a5a1","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":65,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"26f4c696-924b-483d-9adf-0091574fec03","block_type":"box","text":"II-18","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"91b030b8-1aac-4a5b-8ec8-5471e883ccf6","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02a27a14-38d9-4d39-a1db-cdff6d267d84","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":66,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"c2328d17-166d-48b3-a9cb-ac14364ce3c6","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":66,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"d4e0ef7e-22e1-4d03-8648-ca84ebcff5df","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":66,"box":{"x":68,"y":75,"width":820,"height":9}},{"id":"60987d8b-36cf-4a0f-b546-b0c6f61cf5f1","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":66,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"c02d06c5-9ada-437d-9fbc-812830883e00","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":66,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"71ba2a4e-01bd-4c5d-82e5-0d133971ae1a","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":66,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"f4fa3765-8cc1-4143-bdc8-e159df252905","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":66,"box":{"x":69,"y":135,"width":766,"height":12}},{"id":"65e48e43-fbcf-40e7-adcb-cccd12de113b","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":66,"box":{"x":69,"y":151,"width":840,"height":11}},{"id":"678e77e2-c2f0-4936-adb3-8f998e8ccb52","block_type":"box","text":"conditions.","page_number":66,"box":{"x":69,"y":166,"width":76,"height":9}},{"id":"c922a642-a483-47a0-9f1a-b4b360b9f679","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":66,"box":{"x":102,"y":188,"width":762,"height":12}},{"id":"d6a1992c-4252-4fca-a3fa-50db591d1fdc","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":66,"box":{"x":69,"y":203,"width":824,"height":12}},{"id":"2056bbf8-239d-4f8f-bee2-3d8b10e17cf1","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":66,"box":{"x":69,"y":219,"width":727,"height":11}},{"id":"29ee8052-0e25-4722-9d49-4f5ed21b7553","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":66,"box":{"x":69,"y":234,"width":819,"height":11}},{"id":"aa260bf3-2b7d-46d1-b00d-b6d928b530c8","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":66,"box":{"x":69,"y":249,"width":764,"height":11}},{"id":"28abc3d8-98b4-46fe-9d9e-6cdce52c313e","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":66,"box":{"x":69,"y":264,"width":813,"height":11}},{"id":"4e0162a9-8bcf-493e-bca7-7525749e8ed4","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":66,"box":{"x":69,"y":279,"width":813,"height":11}},{"id":"adfb7b1a-dab3-465a-9c63-cefbb40a8cd2","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":66,"box":{"x":69,"y":294,"width":759,"height":11}},{"id":"60c5c250-54a7-4d4a-b1d1-8ac48d38ab50","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":66,"box":{"x":70,"y":309,"width":828,"height":11}},{"id":"01403850-5a16-462c-81fb-7d6554ef8c41","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":66,"box":{"x":68,"y":325,"width":355,"height":11}},{"id":"7ef89814-00ad-4401-8710-2e44335a00d2","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":66,"box":{"x":102,"y":347,"width":750,"height":11}},{"id":"79543797-0d78-4f84-8de5-a722a77fa5a5","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":66,"box":{"x":70,"y":362,"width":836,"height":11}},{"id":"2013ce8f-bf1d-480a-8b92-83a26935e306","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":66,"box":{"x":69,"y":377,"width":785,"height":11}},{"id":"a6223e58-df22-461c-b262-c4daf00d8484","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":66,"box":{"x":69,"y":392,"width":825,"height":12}},{"id":"fc926ede-89f7-41a8-b643-c975d7502765","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":66,"box":{"x":69,"y":407,"width":814,"height":12}},{"id":"9908ce52-f944-489e-b55f-f63dde709ab2","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":66,"box":{"x":69,"y":423,"width":839,"height":11}},{"id":"19d235fa-6b21-464d-a675-498cfd963d75","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":66,"box":{"x":69,"y":438,"width":495,"height":11}},{"id":"08b46a25-51a1-4860-ae18-b5ad25ec87e0","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":66,"box":{"x":102,"y":460,"width":752,"height":12}},{"id":"d1e354b5-0f76-4b60-8ae6-93687b251be4","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":66,"box":{"x":70,"y":475,"width":814,"height":12}},{"id":"ac34de5d-cdf2-46e5-aa17-16f08fbb601d","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":66,"box":{"x":70,"y":491,"width":520,"height":11}},{"id":"49673ea8-1867-4665-9266-e7caa9cb5b73","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":66,"box":{"x":102,"y":513,"width":273,"height":11}},{"id":"4c0c219e-5f8a-4de2-ad6d-2b01c54810ff","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":66,"box":{"x":381,"y":513,"width":515,"height":11}},{"id":"44378b49-fb15-422f-af74-6c4a3ea2a6a3","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":66,"box":{"x":69,"y":528,"width":755,"height":12}},{"id":"52091647-be29-4a03-811d-9532ff3f324c","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":66,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"021f1f83-dbcd-4934-8fa3-a67226beddc2","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":66,"box":{"x":69,"y":559,"width":768,"height":11}},{"id":"0ee3daba-6067-4f60-bad9-fbb1f219a694","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":66,"box":{"x":70,"y":574,"width":461,"height":11}},{"id":"e1a48a38-606c-4661-b0b3-f02596f3dc09","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":66,"box":{"x":102,"y":596,"width":748,"height":12}},{"id":"1e3d77f2-49b1-4c4c-8aab-7a8e1c087cbf","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":66,"box":{"x":69,"y":612,"width":799,"height":11}},{"id":"f9f278f7-f32a-4c88-a0fd-2888263f48d0","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":66,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"db555916-0662-4541-9cf4-4c2d8f6694ec","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":66,"box":{"x":69,"y":642,"width":797,"height":11}},{"id":"a9cc1ff2-53fa-45ad-988c-01516a380d73","block_type":"box","text":"cleared interest rate swaps.","page_number":66,"box":{"x":69,"y":657,"width":198,"height":11}},{"id":"9c57cf87-5a85-4470-8137-e86508e579ca","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":66,"box":{"x":101,"y":680,"width":766,"height":11}},{"id":"12b49c54-24e8-47aa-aa60-0125fc95ab1e","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":66,"box":{"x":69,"y":695,"width":829,"height":11}},{"id":"e30ad445-db2b-4b67-881c-da51078249ad","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":66,"box":{"x":68,"y":710,"width":830,"height":11}},{"id":"aad3fc9c-c136-463f-be8c-acbd7c873221","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":66,"box":{"x":70,"y":725,"width":822,"height":11}},{"id":"b5f92102-96aa-4e40-91c3-2f777779313a","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":66,"box":{"x":70,"y":740,"width":829,"height":11}},{"id":"8a860e75-96a1-4bb7-bc62-632c7ed0eb44","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":66,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"a3266e5b-cba8-4e49-bd3d-6a6b84efda5f","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":66,"box":{"x":69,"y":771,"width":801,"height":10}},{"id":"6de774e9-006b-4ed7-a517-08c67744ff32","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":66,"box":{"x":70,"y":786,"width":480,"height":10}},{"id":"643bf018-2c49-419c-a518-cd4caf97b6c9","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":66,"box":{"x":102,"y":808,"width":790,"height":11}},{"id":"7c4e29f9-0433-443a-9cbc-cd781013330b","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":66,"box":{"x":68,"y":823,"width":825,"height":11}},{"id":"a7641cf4-67a3-4cfd-b41d-569cd71cad58","block_type":"box","text":"or variable interest rate, index or asset.","page_number":66,"box":{"x":69,"y":839,"width":280,"height":10}},{"id":"8ea15a18-9f4d-448c-a0f7-fab48ffc6d40","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":66,"box":{"x":101,"y":861,"width":780,"height":11}},{"id":"a84f223b-04e8-4254-8401-4a84bf8d5bc4","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":66,"box":{"x":70,"y":876,"width":805,"height":11}},{"id":"e16af7bf-bb87-430a-a383-08419cbc8119","block_type":"box","text":"such interest rate floor.","page_number":66,"box":{"x":69,"y":891,"width":165,"height":9}},{"id":"d7de78dc-b387-43ae-9017-5eab9269956e","block_type":"box","text":"II-19","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"17bdd47f-4226-45f4-a246-994cfcd8dfd3","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d3902a2-f0ec-4926-ba62-e109e9b94c35","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":67,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"ee71e73b-1e93-4082-a5fb-1ca28666d17d","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":67,"box":{"x":70,"y":60,"width":805,"height":11}},{"id":"1cfbeb8e-f94e-4f4b-b810-2ece370309aa","block_type":"box","text":"such interest rate cap.","page_number":67,"box":{"x":69,"y":75,"width":159,"height":11}},{"id":"645352b7-b8a4-4bc0-b66b-818ebbf5c7e8","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":67,"box":{"x":101,"y":98,"width":729,"height":11}},{"id":"aa05d87d-e2f7-47c9-bf7d-c878421ba524","block_type":"box","text":"commitments to pay or receive interest, e.g., an exchange of fixed rate payments for floating rate payments. For","page_number":67,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"3f8345c6-fa46-458b-9ecf-a880bacfe5cc","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":67,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"cb449c54-8809-444c-a505-b1e06e14a1e8","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":67,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"1f0f9cae-6cb4-4cf9-ae0d-ed742417b20c","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":67,"box":{"x":68,"y":158,"width":832,"height":11}},{"id":"8b03b32b-bb63-4593-99d1-f12eeb73692e","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":67,"box":{"x":69,"y":173,"width":807,"height":11}},{"id":"d9b3bc56-0e37-40f2-a6f3-08c8adc854fe","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":67,"box":{"x":69,"y":188,"width":836,"height":12}},{"id":"ebec8e09-5967-47ba-9076-f7469e4f1427","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":67,"box":{"x":69,"y":203,"width":826,"height":12}},{"id":"49cdb748-9ef9-466e-8a8d-695800a75b66","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":67,"box":{"x":69,"y":218,"width":840,"height":12}},{"id":"120f6df4-6356-49f2-8ce3-7f9fdce6a9c9","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":67,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"9b7d1ab5-309f-49f1-9281-4cc658edf265","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":67,"box":{"x":68,"y":249,"width":646,"height":11}},{"id":"b75e7731-9492-4f98-b96c-dbc621791b37","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":67,"box":{"x":102,"y":271,"width":798,"height":12}},{"id":"75a80234-4399-4e1f-8f39-2d7099897420","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":67,"box":{"x":70,"y":287,"width":490,"height":11}},{"id":"a200a9e5-65cf-47be-8aef-b66fb79cd83b","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":67,"box":{"x":102,"y":309,"width":791,"height":11}},{"id":"5404c4c9-3d56-448c-98e7-f270307ebb72","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":67,"box":{"x":69,"y":324,"width":454,"height":9}},{"id":"89e24692-4558-43b1-99ca-9224cbad7e94","block_type":"box","text":"Total Return Swaps.","page_number":67,"box":{"x":103,"y":347,"width":139,"height":11}},{"id":"ac59190e-2c0b-4feb-b14c-e514c4d06428","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":67,"box":{"x":249,"y":347,"width":634,"height":11}},{"id":"ca401d4d-5263-4574-abea-3ad42dd16552","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":67,"box":{"x":68,"y":362,"width":838,"height":11}},{"id":"9aea3da2-a984-4c3b-bf56-0eef51d7c9b5","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":67,"box":{"x":69,"y":377,"width":764,"height":12}},{"id":"5f2aa061-ba0d-49e3-837d-f850c278b38e","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":67,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"6283b861-ede8-428b-8a38-61ad3c249c73","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":67,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"66bc7844-45a9-4dec-8e34-aaf45ef63879","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":67,"box":{"x":68,"y":423,"width":838,"height":11}},{"id":"0697e4ef-98dd-4dc9-a75e-3f479df659ea","block_type":"box","text":"“contracts for difference.”","page_number":67,"box":{"x":70,"y":438,"width":184,"height":9}},{"id":"8c893d99-d6a1-4dfd-850b-6986c676f207","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":67,"box":{"x":101,"y":461,"width":770,"height":11}},{"id":"eeb5d49f-cd09-4fa9-a870-9b63627b78a4","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":67,"box":{"x":69,"y":475,"width":780,"height":12}},{"id":"e946d219-8039-4f02-8baa-7b8a0a749f19","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":67,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"06065875-1f05-4af6-bd10-281088458ec1","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":67,"box":{"x":69,"y":506,"width":816,"height":11}},{"id":"72a9c64e-8ccc-495e-826d-a43e35a37a81","block_type":"box","text":"the notional amount of the swap.","page_number":67,"box":{"x":68,"y":521,"width":235,"height":11}},{"id":"0086fd4c-c519-410b-8f1e-5199f3503235","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":67,"box":{"x":101,"y":543,"width":746,"height":12}},{"id":"818b8098-99e4-4952-9355-c458f29226ab","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":67,"box":{"x":69,"y":559,"width":433,"height":11}},{"id":"7ecb5db3-2f31-44b1-94e8-d303ec51730f","block_type":"box","text":"Options.","page_number":67,"box":{"x":102,"y":581,"width":57,"height":11}},{"id":"e596fb07-b86c-4307-a123-d35d7c08a987","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":67,"box":{"x":102,"y":604,"width":319,"height":11}},{"id":"40cf9829-9cc8-4840-a20b-c02dc02ec1a8","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":67,"box":{"x":427,"y":604,"width":418,"height":11}},{"id":"5c7325d4-afc4-4f0e-aa07-4001f93224ea","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":67,"box":{"x":69,"y":619,"width":838,"height":11}},{"id":"50aed6eb-f9e8-43d8-8380-3acc83a177aa","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":67,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"6537dab0-ebd7-4f32-8025-22b21ed0a98d","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":67,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"6ac5d72c-5e68-41c3-8b06-2709cd1c5cd8","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":67,"box":{"x":69,"y":664,"width":806,"height":12}},{"id":"a82e757c-efc1-41e6-8a95-6cc8f5219028","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":67,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"a4ed4e4d-8803-4eac-bbaf-624b78de7e75","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":67,"box":{"x":69,"y":695,"width":822,"height":11}},{"id":"08b2ae6c-72fd-46ca-93c7-d05bc32cd8fe","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":67,"box":{"x":69,"y":710,"width":366,"height":11}},{"id":"9c57ba48-3a57-4f7b-8b9d-e9de77fe90cd","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":67,"box":{"x":101,"y":732,"width":743,"height":12}},{"id":"79a919f6-aca7-4478-9777-e5ba59cf34f7","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":67,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"2ea8b64a-28e7-4db3-bef7-9d8d3da391b9","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":67,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"fa2fa38c-e476-4a51-9024-e99946b965d0","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":67,"box":{"x":69,"y":778,"width":827,"height":11}},{"id":"9fa786bf-d06c-4efb-b19a-c10aee31e523","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":67,"box":{"x":69,"y":793,"width":812,"height":11}},{"id":"ed230504-d862-4610-b809-d0112b3ac45c","block_type":"box","text":"OTC markets.","page_number":67,"box":{"x":69,"y":808,"width":95,"height":9}},{"id":"f3ea3959-a1f9-42b8-94b7-509322495c3d","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":67,"box":{"x":101,"y":831,"width":806,"height":11}},{"id":"6c75de28-845c-4e4c-b746-7d52ec041038","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":67,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"76383cbd-bf0c-4762-8d3a-c707108740eb","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":67,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"b968ea27-6ead-46ac-ad47-9dcedd9bb449","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":67,"box":{"x":70,"y":876,"width":831,"height":11}},{"id":"8af7020b-efff-4568-95da-456490679eec","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":67,"box":{"x":68,"y":891,"width":833,"height":12}},{"id":"eb086cd2-2c9e-4896-a41d-a15ffdb99965","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":67,"box":{"x":69,"y":907,"width":769,"height":11}},{"id":"70e21753-55c1-442e-bc0b-5a33a260cb3b","block_type":"box","text":"II-20","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"19713cf4-d686-4c3f-bdcc-d71a7bbd7d89","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc98f898-3892-493e-8af1-a483c1005e41","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":68,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"ac54fb76-0ade-4506-b530-8452d174a5c7","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":68,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"673bdc51-306b-4b9c-a53d-5aa5755938bc","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":68,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"3913ee4d-c994-4a7d-ba33-79fde3c369dc","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":68,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"38838652-3099-4c00-98a9-f9a178f50f0d","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":68,"box":{"x":68,"y":105,"width":822,"height":11}},{"id":"20328dea-c529-415a-8540-0493d224e3c8","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":68,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"be00de14-845f-4c7b-b9e4-bc210ede03d7","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":68,"box":{"x":69,"y":135,"width":836,"height":12}},{"id":"7614a1dd-333f-4289-a5b8-8a71d2f8b249","block_type":"box","text":"terms.","page_number":68,"box":{"x":68,"y":151,"width":45,"height":8}},{"id":"84308f68-b271-4251-a883-e680503633cc","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":68,"box":{"x":102,"y":173,"width":801,"height":11}},{"id":"2b3fa154-e46b-4a99-9825-f718bfb9226e","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":68,"box":{"x":69,"y":188,"width":826,"height":12}},{"id":"5780ad6d-9b8a-44c1-87bb-f571f59027f4","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":68,"box":{"x":69,"y":203,"width":823,"height":12}},{"id":"996b9d1d-c78d-40fb-b85d-88d3055d5df3","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":68,"box":{"x":69,"y":218,"width":762,"height":12}},{"id":"ee52b4d3-a905-472f-9c2d-20e478855efe","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":68,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"92e0e89b-c2a8-4228-9517-51ecc06ad890","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":68,"box":{"x":69,"y":249,"width":837,"height":11}},{"id":"9c5dcbd5-3a6a-491c-a810-0245fa1838c2","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":68,"box":{"x":69,"y":264,"width":491,"height":11}},{"id":"6c063795-e53e-440b-9dce-08ea0efd466a","block_type":"box","text":"Call Options.","page_number":68,"box":{"x":102,"y":287,"width":89,"height":10}},{"id":"9edd38ce-86e6-481f-906a-32851b96eff8","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":68,"box":{"x":197,"y":286,"width":694,"height":12}},{"id":"6c6529de-5ec0-415d-a8ef-292b13e225f3","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":68,"box":{"x":70,"y":302,"width":838,"height":11}},{"id":"47cdd2c8-5139-416f-913c-37c31c4a5312","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":68,"box":{"x":68,"y":317,"width":813,"height":11}},{"id":"31b9510e-af80-49d8-97a6-ff04ea3d8569","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":68,"box":{"x":70,"y":332,"width":795,"height":11}},{"id":"708a2fba-fd15-4750-afda-5cdd82928529","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":68,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"65e60d74-e856-4392-95ef-91e48e522f5c","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":68,"box":{"x":69,"y":362,"width":830,"height":11}},{"id":"f8134914-3943-4541-bbe2-a8b1233570a3","block_type":"box","text":"of the option.","page_number":68,"box":{"x":69,"y":377,"width":93,"height":11}},{"id":"6a5099c0-9eeb-4ac7-a107-073734732d78","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":68,"box":{"x":101,"y":400,"width":794,"height":11}},{"id":"904d0606-4448-4b13-8bde-1f9dc69e0d24","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":68,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"e09bb50a-8ce0-4c08-8cc3-fcf4068dc05e","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":68,"box":{"x":69,"y":430,"width":839,"height":11}},{"id":"b66a7318-3163-4ac9-93bb-6a120265bd00","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":68,"box":{"x":70,"y":445,"width":778,"height":12}},{"id":"d2175c57-ee73-40e5-ba7a-3dd8d1654e14","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":68,"box":{"x":70,"y":460,"width":711,"height":12}},{"id":"9ae423b3-cfab-4f0e-9dc0-3a9634fb62cc","block_type":"box","text":"A Fund may write (i.e., sell) covered call options on the securities or instruments in which it may invest and to","page_number":68,"box":{"x":101,"y":483,"width":782,"height":11}},{"id":"ca3d68f3-eedb-4a08-b83f-a96bb25c792a","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":68,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"1e12c387-d93e-4f89-84e0-8d8cc4af9f4c","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":68,"box":{"x":68,"y":513,"width":827,"height":12}},{"id":"3e4203b8-aee5-4054-88ef-46c1d4fbdc32","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":68,"box":{"x":69,"y":528,"width":797,"height":12}},{"id":"c100cc45-3901-4cb9-9344-ddf489ec33e0","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":68,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"1f8ef959-9773-4e0e-b1c5-1e7636580e15","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":68,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"f4cbc28c-2c06-4fe5-85d5-4490455f8233","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":68,"box":{"x":70,"y":574,"width":825,"height":11}},{"id":"e2b27636-651a-4512-835e-d7a66385485a","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":68,"box":{"x":69,"y":589,"width":800,"height":11}},{"id":"397f1da7-8f0b-421b-81b8-69e7f45f5945","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":68,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"83ec87b4-2770-4b74-aa31-a9171acc68f2","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":68,"box":{"x":70,"y":619,"width":826,"height":11}},{"id":"72c6b87c-56f9-43f7-92b6-e254fff33243","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":68,"box":{"x":69,"y":634,"width":760,"height":12}},{"id":"a9d7fe2c-370d-41e9-b82c-eca31303eed9","block_type":"box","text":"A Fund may write (i.e., sell) uncovered call options on securities or instruments in which it may invest but that","page_number":68,"box":{"x":101,"y":657,"width":783,"height":11}},{"id":"676e5189-ded9-4e09-915b-e0870236b29d","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":68,"box":{"x":69,"y":672,"width":834,"height":11}},{"id":"49db41b3-577e-4d52-b230-872180330a26","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":68,"box":{"x":69,"y":687,"width":830,"height":11}},{"id":"7f762b42-9cf8-44b1-b155-cb93ade8d73b","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":68,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"ba315108-9507-4cf7-839e-0a2d6a1381e6","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":68,"box":{"x":69,"y":717,"width":818,"height":12}},{"id":"715b6bc0-510c-4ec5-9225-6ace4bc82b81","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":68,"box":{"x":70,"y":732,"width":806,"height":12}},{"id":"7f2dc664-8f07-44f4-853f-0b1b730dba4a","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":68,"box":{"x":69,"y":748,"width":839,"height":11}},{"id":"fa8b9c35-92f9-4d56-b1d5-ff3210343d1a","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":68,"box":{"x":68,"y":763,"width":793,"height":11}},{"id":"07873d28-37f8-4882-875c-fc68387270ab","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":68,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"bbca6950-e776-4b87-a85e-2038bea45d20","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":68,"box":{"x":68,"y":793,"width":818,"height":11}},{"id":"3eae24d2-daa5-4020-9e70-275a6b9a60a7","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":68,"box":{"x":68,"y":808,"width":825,"height":11}},{"id":"04311ce8-f9e9-4737-8444-92c8a41c2e58","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":68,"box":{"x":69,"y":823,"width":326,"height":11}},{"id":"184f3d5b-c105-419d-955a-92fec7b0236c","block_type":"box","text":"Put Options.","page_number":68,"box":{"x":102,"y":846,"width":85,"height":11}},{"id":"454debc6-96ed-4ee1-ab7c-7cdbb8399f4c","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":68,"box":{"x":194,"y":846,"width":712,"height":11}},{"id":"597d9ea7-6abb-47c9-bbf4-d41e14cb9095","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":68,"box":{"x":68,"y":861,"width":828,"height":11}},{"id":"1be3ad38-bac7-4acf-a6c1-c18ece48c2fe","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":68,"box":{"x":69,"y":876,"width":816,"height":11}},{"id":"606019c7-4a80-42cc-b57b-83756a7fc3b8","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":68,"box":{"x":70,"y":891,"width":820,"height":12}},{"id":"731230d3-dd74-43a9-808c-ce5cf4a74a7f","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":68,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"d3ac763b-7bd1-41b5-8bda-5ecebbc290c6","block_type":"box","text":"II-21","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"add38bef-0c43-45e2-b197-02439b651bd0","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a7854eca-264a-4c12-8494-83548c5167e8","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":69,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"a0947b0a-3f4c-4e67-b507-acb5f6f5817e","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":69,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"5af96598-c8cc-4941-a164-0f03430c564f","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":69,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"6d74f279-da0d-4b45-aeb6-8fbb15d60043","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":69,"box":{"x":69,"y":90,"width":785,"height":11}},{"id":"b414e766-bd95-4bfb-be1a-5d3214f6c6ab","block_type":"box","text":"purchase uncovered put options.","page_number":69,"box":{"x":70,"y":105,"width":231,"height":11}},{"id":"b6b7b275-b647-49c5-99e3-88eb81bbecef","block_type":"box","text":"A Fund also may write (i.e., sell) put options on the types of securities or instruments that may be held by the","page_number":69,"box":{"x":101,"y":128,"width":781,"height":11}},{"id":"b285a38e-38b9-4feb-b059-b9476a3d737f","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":69,"box":{"x":70,"y":143,"width":675,"height":11}},{"id":"1b7a8c28-406d-4d41-a7c0-e6e9086506c6","block_type":"box","text":"A Fund also may write (i.e., sell) uncovered put options on securities or instruments in which it may invest but","page_number":69,"box":{"x":101,"y":166,"width":783,"height":11}},{"id":"830c7a34-d040-486c-aa04-67dc66ab6566","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":69,"box":{"x":68,"y":181,"width":789,"height":11}},{"id":"f64b0305-0061-4646-a43c-0a6a65557e34","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":69,"box":{"x":69,"y":196,"width":773,"height":11}},{"id":"cdc63725-1665-4b0f-a1ba-efb14e118609","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":69,"box":{"x":69,"y":211,"width":807,"height":11}},{"id":"80ba990d-25ca-4f1c-86fe-7093386b78e6","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":69,"box":{"x":69,"y":226,"width":835,"height":11}},{"id":"322f63dd-e60f-42db-b0a9-bae73e3b85cb","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":69,"box":{"x":68,"y":241,"width":818,"height":11}},{"id":"639c3a74-79f6-44fe-b51f-b1d92e4d7946","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":69,"box":{"x":68,"y":256,"width":800,"height":12}},{"id":"2d953b15-f15d-42bd-a114-521fb86402f4","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":69,"box":{"x":69,"y":272,"width":814,"height":10}},{"id":"1e9433af-d042-4347-a572-6be25df89110","block_type":"box","text":"the exercise price.","page_number":69,"box":{"x":68,"y":287,"width":130,"height":10}},{"id":"9010da51-db8f-432b-bd67-faf2e7c67d80","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":69,"box":{"x":102,"y":309,"width":556,"height":11}},{"id":"c58c6d01-3db0-41f1-bbab-cc4f471fb6d2","block_type":"box","text":"The following information relates","page_number":69,"box":{"x":664,"y":309,"width":232,"height":11}},{"id":"1ecdd2d8-7458-4391-a421-5bd48ac2bc49","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":69,"box":{"x":68,"y":324,"width":784,"height":12}},{"id":"f0e8311c-a257-4567-98d7-0525ad47680f","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":69,"box":{"x":69,"y":339,"width":840,"height":12}},{"id":"2923484e-5ad5-4e0a-8bf8-dcad1cea30a5","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":69,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"b376a27f-dc17-4312-8c8b-e9360e006dea","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":69,"box":{"x":70,"y":370,"width":781,"height":11}},{"id":"bc36ebdb-8d40-43fd-a6ef-a34a21aa31ab","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":69,"box":{"x":70,"y":385,"width":803,"height":11}},{"id":"9178cf46-58e1-4567-b282-764aa8de3a58","block_type":"box","text":"market in order to maintain its “cover.”","page_number":69,"box":{"x":69,"y":400,"width":277,"height":9}},{"id":"b7f63a7e-7cb8-4323-9bc2-ec35029f88df","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":69,"box":{"x":101,"y":423,"width":807,"height":11}},{"id":"f19becd3-370c-4592-ab91-733fb370b475","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":69,"box":{"x":68,"y":438,"width":835,"height":11}},{"id":"58f1d60e-35aa-4648-8ae9-2123a7c6197f","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":69,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"52b1f983-8eef-4728-ad99-3a76cfb0415b","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":69,"box":{"x":68,"y":468,"width":784,"height":11}},{"id":"35464623-7c45-48d1-b4e4-365317f0f407","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":69,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"a9bd3c9b-9ea4-49e6-8a78-bff02fda0796","block_type":"box","text":"and incur transaction costs.","page_number":69,"box":{"x":69,"y":498,"width":197,"height":9}},{"id":"f2105d01-a839-46ce-8734-1dab44430b16","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":69,"box":{"x":102,"y":521,"width":235,"height":11}},{"id":"e1a8bbb8-7540-42f0-82b0-e847ceb8a1bc","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":69,"box":{"x":343,"y":521,"width":563,"height":11}},{"id":"a6aec329-8e69-47b7-830c-bae2104ef2cb","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":69,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"ce7b5ec6-5814-4c9b-873e-304fb0208a81","block_type":"box","text":"designated future time on specified terms. A Fund may write (i.e., sell) and purchase put and call swaptions.","page_number":69,"box":{"x":69,"y":551,"width":773,"height":11}},{"id":"413ee496-439c-4ad9-9694-2515c5fab357","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":69,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"c2929dbc-ec4c-465c-9517-cc0b3323bb3a","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":69,"box":{"x":70,"y":582,"width":793,"height":10}},{"id":"7d454220-6c66-4041-a3f2-d1d76d2e61d0","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":69,"box":{"x":70,"y":596,"width":802,"height":12}},{"id":"9dd69edc-a5cf-4d6c-9d4d-4ce32b1b59db","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":69,"box":{"x":68,"y":612,"width":836,"height":11}},{"id":"83a4fc87-57c9-4382-88d9-f80ae617229d","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":69,"box":{"x":68,"y":627,"width":832,"height":11}},{"id":"aed67230-8d6c-436f-b513-4f8ee5f5ba39","block_type":"box","text":"required, to be cleared.","page_number":69,"box":{"x":69,"y":642,"width":165,"height":11}},{"id":"cb20bdf6-af27-477e-bc8f-bf3e0fe3462d","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":69,"box":{"x":101,"y":665,"width":760,"height":11}},{"id":"5f564b8e-ddd9-4711-91e1-5411aba4f40c","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":69,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"1d9b0377-1858-4ba9-a3c2-3cc533ca1c6e","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":69,"box":{"x":69,"y":695,"width":706,"height":11}},{"id":"b0c398fe-7545-4842-a44e-f60ebe127840","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":69,"box":{"x":102,"y":718,"width":805,"height":11}},{"id":"c4110737-c8a7-4257-989a-fbfd47e2d7e3","block_type":"box","text":"Derivatives” above.","page_number":69,"box":{"x":70,"y":733,"width":135,"height":9}},{"id":"6e6cb9bc-5865-4e18-81cd-9eac7380059f","block_type":"box","text":"FLEX Options.","page_number":69,"box":{"x":102,"y":755,"width":96,"height":11}},{"id":"5c100a47-95f9-4d46-bc9e-fd3e1dbfadb8","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":69,"box":{"x":206,"y":755,"width":702,"height":11}},{"id":"6403d789-74f1-471b-846f-e9774cd9eac9","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":69,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"f02dd43e-0c89-4f2e-af25-8a5928420af9","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":69,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"0e982320-4ba0-499c-97cd-5e0b82c9dccb","block_type":"box","text":"exercise prices, exercise styles (i.e., American-style, exercisable any time prior to the expiration date, or European","page_number":69,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"a720ec20-274a-4868-aa1a-7360aef6acb0","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":69,"box":{"x":69,"y":816,"width":768,"height":11}},{"id":"282dd164-b904-40a9-a171-0b3a82d212a5","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":69,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"10e37473-fc0b-48f5-8aef-4ef19ebee978","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":69,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"073f7d4d-2767-4b12-9474-eb7bb5da84de","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":69,"box":{"x":69,"y":861,"width":792,"height":11}},{"id":"3d9d19e2-51a0-4c56-9ed6-0cf16498ed3e","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":69,"box":{"x":70,"y":876,"width":802,"height":11}},{"id":"9e3bcfd4-ab53-47eb-8211-8091b79e9697","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":69,"box":{"x":69,"y":891,"width":806,"height":11}},{"id":"3a6769fe-d72b-467e-9a9c-f4095da1d524","block_type":"box","text":"FLEX Option’s expiration date.","page_number":69,"box":{"x":70,"y":906,"width":211,"height":11}},{"id":"f20f137a-3e69-4d15-a52b-bbedeb391d3d","block_type":"box","text":"II-22","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c2f73614-2cb8-4841-981b-e29f8607cb6b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"be3edb49-4317-4dbb-ac60-e625d6f69b7c","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":70,"box":{"x":101,"y":45,"width":783,"height":11}},{"id":"ca95fd36-b3b9-4c1f-b7cb-618f4bdccb63","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":70,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"cd3fcc0d-eade-4388-b6db-fc831a9c3107","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":70,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"abf50da5-2e4d-4581-b30e-8a1e9e100bb9","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":70,"box":{"x":69,"y":90,"width":814,"height":11}},{"id":"2d6c4a43-81eb-4ded-99dd-f87849743fca","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":70,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"47723fd1-0fdc-42fe-8bcb-242864461c75","block_type":"box","text":"FLEX Options contracts.","page_number":70,"box":{"x":70,"y":120,"width":166,"height":11}},{"id":"99477b58-d9df-404f-8c5b-46cf6ae4dadd","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":70,"box":{"x":102,"y":143,"width":748,"height":11}},{"id":"0471d708-8433-4650-930b-e53f3bf4288e","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":70,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"f1a7773f-0514-46a4-80fd-2428257d3963","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":70,"box":{"x":69,"y":173,"width":759,"height":11}},{"id":"133477cf-da2c-4e49-9acc-c91b2e92d6ac","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":70,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"8d89af29-dbee-4612-be0b-4208e3eb0598","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":70,"box":{"x":70,"y":203,"width":829,"height":12}},{"id":"f5a3405c-5ba3-4a6f-9a1f-554ffe1bdc71","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":70,"box":{"x":69,"y":218,"width":821,"height":12}},{"id":"b13840bb-d7ae-44e8-a2c4-56b45a638c9c","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":70,"box":{"x":68,"y":234,"width":835,"height":11}},{"id":"b863db81-99a0-47b4-88ff-ecfb17c10257","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":70,"box":{"x":68,"y":249,"width":829,"height":11}},{"id":"0f593665-6a8e-4127-af63-f60c731aa472","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":70,"box":{"x":68,"y":264,"width":753,"height":11}},{"id":"223605ce-233e-4cf6-a092-e0606e4ac3b7","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":70,"box":{"x":70,"y":279,"width":806,"height":11}},{"id":"a7f10896-8585-4da5-876a-4212231952ea","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":70,"box":{"x":69,"y":294,"width":593,"height":11}},{"id":"59a073a0-b823-4d61-87df-6b329e3e3c08","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":70,"box":{"x":135,"y":317,"width":298,"height":11}},{"id":"1d1af814-3539-46e2-8d0c-8811d0aca02c","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":70,"box":{"x":435,"y":317,"width":461,"height":11}},{"id":"e84ee49d-9704-4823-8240-c8a56155d022","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":70,"box":{"x":102,"y":332,"width":768,"height":11}},{"id":"5ad24209-e2b5-4ec8-808e-ba98167f80ae","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":70,"box":{"x":102,"y":347,"width":775,"height":11}},{"id":"ed84defc-cf8e-4c9e-baea-4f5aab3f68b3","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":70,"box":{"x":102,"y":362,"width":777,"height":11}},{"id":"d700d45b-0828-4ed7-84b2-f9d3a12b3125","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":70,"box":{"x":102,"y":377,"width":799,"height":12}},{"id":"3b361f81-0031-4240-9755-5fd78f038f48","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":70,"box":{"x":102,"y":392,"width":777,"height":12}},{"id":"1a2b1056-12c7-4f4b-a95a-241d54c3f6c1","block_type":"box","text":"expire unexercised have no value.","page_number":70,"box":{"x":101,"y":408,"width":240,"height":10}},{"id":"9ec267f7-af41-4f12-94cc-84787d2c606f","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":70,"box":{"x":134,"y":430,"width":747,"height":11}},{"id":"1c9328f4-b755-4493-b5d4-17be4064ef7c","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":70,"box":{"x":101,"y":445,"width":792,"height":11}},{"id":"cd609bf8-212b-4902-b800-7d01729f1c3b","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":70,"box":{"x":101,"y":460,"width":786,"height":12}},{"id":"a4098adf-4381-476f-a157-a93840c3a70d","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":70,"box":{"x":101,"y":475,"width":798,"height":12}},{"id":"daa3315a-cbfe-4ea1-912f-ef4406b8069e","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":70,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"9994a2fc-c898-4a3b-b95b-9b6241421fa1","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":70,"box":{"x":102,"y":506,"width":800,"height":11}},{"id":"ac55e9db-c53b-47b5-8b71-956724dbec0b","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":70,"box":{"x":102,"y":521,"width":774,"height":11}},{"id":"9fb0c03b-4872-4e69-a336-c2ef08c7bc26","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":70,"box":{"x":102,"y":536,"width":793,"height":11}},{"id":"a9e92d5d-35e7-4381-80ad-3d04731e78dd","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":70,"box":{"x":102,"y":551,"width":764,"height":11}},{"id":"4e1d5368-f6f7-48c1-a50a-80c16ad2f053","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":70,"box":{"x":102,"y":566,"width":430,"height":11}},{"id":"25a811e9-29df-4008-bf6b-ae1cce158fba","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":70,"box":{"x":134,"y":589,"width":740,"height":11}},{"id":"9961c6f8-478f-4035-a98d-c4b62df8d923","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":70,"box":{"x":102,"y":604,"width":787,"height":11}},{"id":"a8c133be-bca5-4f58-a37f-c6020d1155c4","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":70,"box":{"x":102,"y":619,"width":790,"height":11}},{"id":"64abebb2-7928-40e8-9b69-3a1b6c66472e","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":70,"box":{"x":102,"y":634,"width":793,"height":12}},{"id":"68707580-bcf5-4bbe-9533-ad9c5ff55234","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":70,"box":{"x":102,"y":649,"width":802,"height":12}},{"id":"e9f38fa7-dd34-4d49-b754-04922febdb91","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":70,"box":{"x":102,"y":664,"width":635,"height":12}},{"id":"39d3019c-450d-4794-a08b-f0dd7d9aecc9","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":70,"box":{"x":135,"y":687,"width":297,"height":11}},{"id":"1b5dcd09-7ecd-4a7d-97d6-129bca8f2c63","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":70,"box":{"x":433,"y":687,"width":448,"height":11}},{"id":"048824ba-a912-4321-9dd6-8392613a4c38","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":70,"box":{"x":101,"y":702,"width":777,"height":12}},{"id":"30df47b1-fe6f-43c3-a676-e41702b89f27","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":70,"box":{"x":101,"y":717,"width":753,"height":12}},{"id":"d8d5282b-0106-45dc-b23d-6e98a6026f86","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":70,"box":{"x":102,"y":732,"width":780,"height":12}},{"id":"69b07651-c115-4f31-ad89-878ab651a958","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":70,"box":{"x":102,"y":748,"width":387,"height":11}},{"id":"2065a403-2b10-4804-983f-26a13d162495","block_type":"box","text":"Foreign Exchange Transactions.","page_number":70,"box":{"x":102,"y":771,"width":222,"height":11}},{"id":"5d1143b1-ee27-4844-be4b-507aa63577bd","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":70,"box":{"x":101,"y":793,"width":807,"height":11}},{"id":"fdfc7d38-0f2c-4397-8344-eef32aafeadf","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":70,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"617e097c-ae64-444a-b374-422b81ddcff5","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":70,"box":{"x":70,"y":823,"width":821,"height":12}},{"id":"a408bdc4-2d01-4a0d-9c79-b47cf77e9416","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":70,"box":{"x":69,"y":838,"width":792,"height":12}},{"id":"8b8bbb33-b460-45e3-9a06-37bdcc99fadf","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":70,"box":{"x":102,"y":861,"width":790,"height":11}},{"id":"18916e77-cd51-4d01-9e52-5fca7053223d","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":70,"box":{"x":70,"y":876,"width":830,"height":11}},{"id":"4e3aa4ab-6dc3-41e3-970a-1620500d3573","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":70,"box":{"x":69,"y":891,"width":808,"height":12}},{"id":"4bcdcbf2-767e-4980-b828-0e214e0065af","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":70,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"4a8f9bdb-77c8-4ae9-8ce1-fad91ac71bb5","block_type":"box","text":"II-23","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f21deb5-97fd-4fe0-a5b7-29d79ae414d1","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b07c4cd-fbe0-432b-a50f-5107046d983e","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":71,"box":{"x":68,"y":45,"width":823,"height":11}},{"id":"c5808da6-ef4d-4453-88de-34f1c0386e54","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":71,"box":{"x":68,"y":60,"width":821,"height":11}},{"id":"6f54ff59-1fa5-4be2-aa6b-270a8f1bd302","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":71,"box":{"x":70,"y":75,"width":813,"height":11}},{"id":"3434da07-cb89-4970-b3c6-f49a4aaec154","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":71,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"1e4b8225-15df-422d-865b-c8c7c34303c3","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":71,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"d8c33dba-3c35-46a2-9702-6d15b00f54f5","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":71,"box":{"x":68,"y":120,"width":836,"height":12}},{"id":"2f6f8ff1-dd71-4c54-ad7a-e7c81510a4e2","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":71,"box":{"x":68,"y":135,"width":794,"height":12}},{"id":"31211959-49d6-40b3-8437-445d52d22db3","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":71,"box":{"x":102,"y":158,"width":805,"height":11}},{"id":"9108aa1b-084d-49f1-b818-3122395cfaa8","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":71,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"c5517d8f-8454-4b16-8a1a-dd1d58d92c82","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":71,"box":{"x":69,"y":188,"width":819,"height":12}},{"id":"1c97cdde-c36d-495c-a19d-c50a9b5f6d1d","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":71,"box":{"x":70,"y":203,"width":773,"height":12}},{"id":"96291156-f945-4aa3-838e-8cab9130abb2","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":71,"box":{"x":69,"y":219,"width":814,"height":11}},{"id":"5e6160f3-7789-4dc5-adc7-5f011fdd632b","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":71,"box":{"x":69,"y":234,"width":796,"height":11}},{"id":"c5c2ff22-7ee9-463f-8c36-57583cc16b61","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":71,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"6145f2ef-edd1-4f06-9b0f-a2c1bd6748a2","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":71,"box":{"x":70,"y":264,"width":798,"height":11}},{"id":"d4ce2860-e707-47c0-92ad-5c4b9906eff2","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":71,"box":{"x":69,"y":279,"width":493,"height":11}},{"id":"24fa7f37-a60f-4240-b882-99126c9e7633","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":71,"box":{"x":102,"y":302,"width":738,"height":11}},{"id":"55096717-8358-4652-84f3-a1d73cbac768","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":71,"box":{"x":69,"y":317,"width":814,"height":11}},{"id":"a8dd02a9-7dd7-43e5-bd5b-845704421c5a","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":71,"box":{"x":70,"y":332,"width":819,"height":11}},{"id":"3b2cf5e7-ad2b-443f-9485-e62a8d614db9","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":71,"box":{"x":69,"y":347,"width":834,"height":11}},{"id":"7007243c-3c6e-4035-ba0a-7310cbef40a4","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":71,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"ec8bedb8-c67b-47fd-871a-f80416230f0b","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":71,"box":{"x":69,"y":377,"width":794,"height":11}},{"id":"3ec7fe68-a6b2-497c-aa42-2e31ad8737ad","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":71,"box":{"x":69,"y":392,"width":841,"height":12}},{"id":"14661fc6-cb8d-4e50-8ff6-8e84bebac7b7","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":71,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"5aa87050-ea86-4846-a544-5ce69a5007ab","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":71,"box":{"x":68,"y":423,"width":805,"height":11}},{"id":"164d5dae-e1b4-4e19-bc8e-13b697bc56e0","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":71,"box":{"x":68,"y":438,"width":401,"height":11}},{"id":"0d801da3-1bd9-4d01-a558-9c595cd925da","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":71,"box":{"x":102,"y":460,"width":738,"height":12}},{"id":"bbcdb517-f1c6-4114-b515-fd92e8f724fa","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":71,"box":{"x":69,"y":476,"width":837,"height":11}},{"id":"e7f96d3a-766c-47d3-9f97-85fcd1fda499","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":71,"box":{"x":69,"y":491,"width":837,"height":11}},{"id":"334768f2-09c6-4441-b6b5-d86aa52f6504","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":71,"box":{"x":69,"y":506,"width":800,"height":11}},{"id":"e0624374-7afb-4425-b1ea-177f85ab874b","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":71,"box":{"x":68,"y":521,"width":829,"height":11}},{"id":"9661adea-c3de-4ea3-9f5a-e8c5d3ba48ef","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":71,"box":{"x":68,"y":536,"width":753,"height":11}},{"id":"8279ba38-b59a-469a-9ad0-1fb0a0a4290d","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":71,"box":{"x":68,"y":551,"width":811,"height":11}},{"id":"0d41b03e-c522-4b8e-93ed-82a98a9d993b","block_type":"box","text":"involved.","page_number":71,"box":{"x":70,"y":566,"width":59,"height":9}},{"id":"4c284d1d-7fda-49c5-8e8b-4479fd38592d","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":71,"box":{"x":101,"y":589,"width":803,"height":11}},{"id":"3b23be56-f300-468f-97e0-b16f4ab5cc3b","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":71,"box":{"x":69,"y":604,"width":785,"height":11}},{"id":"a71b36c9-e4ea-412e-bd68-8fc5dde6f12b","block_type":"box","text":"denominated in such currency.","page_number":71,"box":{"x":69,"y":619,"width":216,"height":11}},{"id":"d541917a-b39d-40d7-b242-0ca2ada0d1aa","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":71,"box":{"x":102,"y":642,"width":254,"height":11}},{"id":"a0a39a57-38a0-4de9-8861-e58e45447ea5","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":71,"box":{"x":364,"y":642,"width":527,"height":11}},{"id":"17b3899a-d7dc-46d1-827a-4552b8c85f92","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":71,"box":{"x":69,"y":657,"width":834,"height":11}},{"id":"60778b42-2065-4f23-98f4-54ade13b5370","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":71,"box":{"x":68,"y":672,"width":798,"height":11}},{"id":"1b846cf4-7022-477b-b533-1cb7384061d2","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":71,"box":{"x":68,"y":687,"width":817,"height":11}},{"id":"5f23afa1-4d2f-4a16-b83b-3559502196d2","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":71,"box":{"x":70,"y":702,"width":830,"height":11}},{"id":"c98eed5b-320b-42fe-94fc-e2770eed79d6","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":71,"box":{"x":69,"y":717,"width":774,"height":12}},{"id":"6a076aec-641c-49f0-b005-7a07c341d1c2","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":71,"box":{"x":70,"y":733,"width":828,"height":11}},{"id":"117c0b3a-510c-421a-a1f1-b5cd2ad8ff20","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":71,"box":{"x":69,"y":748,"width":830,"height":11}},{"id":"4cf8f31c-faa7-4faf-9dcd-f6473916b0e2","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":71,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"38b1a9b3-1a62-44a0-9d2f-86586da325e3","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":71,"box":{"x":69,"y":778,"width":819,"height":11}},{"id":"acd3c8cc-ec09-4724-8719-d2b21914d3b8","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":71,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"3a588337-7d26-4582-8246-808e01d54218","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":71,"box":{"x":68,"y":808,"width":819,"height":11}},{"id":"09365249-4702-4714-bff9-10d0078efcd0","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":71,"box":{"x":69,"y":823,"width":814,"height":12}},{"id":"a49ab542-676e-4dca-900b-fd2c0918a7e2","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":71,"box":{"x":69,"y":839,"width":745,"height":11}},{"id":"570bd90a-f802-4e36-a506-50cb811f1d72","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":71,"box":{"x":69,"y":853,"width":832,"height":12}},{"id":"b77d82c7-df8a-47e5-b3d0-4c83af42f21f","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":71,"box":{"x":69,"y":869,"width":428,"height":11}},{"id":"65075fc1-305c-4256-b525-3bca0522830c","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":71,"box":{"x":101,"y":891,"width":797,"height":12}},{"id":"977a66dd-d55a-49e0-bd9c-9b58cb7715ca","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":71,"box":{"x":69,"y":906,"width":829,"height":12}},{"id":"89d6b741-2924-452c-82be-5e8aa18baf6a","block_type":"box","text":"II-24","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2dcd8672-1e02-44fa-b67e-b599feaeb8ba","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2c5acce4-1762-41d4-834e-c2c6e3fd4179","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":72,"box":{"x":70,"y":45,"width":838,"height":11}},{"id":"17d27cf4-9a86-4379-ab6f-2b119d1c27a8","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":72,"box":{"x":69,"y":60,"width":823,"height":11}},{"id":"b3140690-c031-47bb-b4a7-2060101021ca","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":72,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"305b7d20-c25f-4d46-8554-30a132f337ec","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":72,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"93d56a35-03b7-4f24-962c-e9447d86d613","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":72,"box":{"x":68,"y":105,"width":798,"height":11}},{"id":"8926ceee-bf6e-4427-b802-1ec2f93aa807","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":72,"box":{"x":69,"y":120,"width":819,"height":12}},{"id":"7f3fa84f-6f99-4bd7-a887-0cf811229f7d","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":72,"box":{"x":69,"y":136,"width":691,"height":11}},{"id":"e30aae1f-34cc-4c64-afc3-e60bd9712d39","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":72,"box":{"x":101,"y":158,"width":785,"height":11}},{"id":"05cfa389-8900-43b6-96a2-23c95e7a0a82","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":72,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"651cb394-9753-4bde-ab48-ef0acad382e7","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":72,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"29452561-8040-47d8-9a91-42aa57e3c8ee","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":72,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"398b137f-9a88-432a-98c4-6589df6d7242","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":72,"box":{"x":70,"y":219,"width":823,"height":11}},{"id":"8f7934dc-834f-453d-99ea-a8e0ce30cfc9","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":72,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"baea96ce-1d08-4a9f-9302-a240e0c2bc0b","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":72,"box":{"x":68,"y":249,"width":372,"height":11}},{"id":"bae1561b-eede-4138-b507-37fc5c906012","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":72,"box":{"x":102,"y":271,"width":768,"height":12}},{"id":"2c9bc211-8eec-4183-b829-3a5ee78fa7a2","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":72,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"a7df3652-1cbe-4e6c-a8f0-6b72fddb452a","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":72,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"2dbd2da0-8483-449f-a712-cd2c872f4b33","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":72,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"060a783c-24a0-4f04-9418-80afcac0517f","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":72,"box":{"x":69,"y":332,"width":839,"height":11}},{"id":"0e2fba1e-ae38-4711-aa46-c1fb16e7d6df","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":72,"box":{"x":68,"y":347,"width":812,"height":11}},{"id":"fb3a1563-9091-4c71-804a-c4fa64d5df0d","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":72,"box":{"x":69,"y":362,"width":821,"height":11}},{"id":"8cf2d727-b26f-4ae0-a630-60822cd5bfb7","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":72,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"1edaec38-46fe-40ba-ada2-cae550f45e80","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":72,"box":{"x":68,"y":392,"width":802,"height":12}},{"id":"8cca82ff-891c-43f1-83f7-4307808e7d77","block_type":"box","text":"traded.","page_number":72,"box":{"x":68,"y":408,"width":49,"height":8}},{"id":"68d75a33-4333-4ab6-bf2d-918801ec45cd","block_type":"box","text":"Currency Futures.","page_number":72,"box":{"x":102,"y":430,"width":123,"height":11}},{"id":"b501e188-ff73-428f-9d2f-d77c107fd42f","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":72,"box":{"x":232,"y":430,"width":654,"height":11}},{"id":"a9931029-d4b2-4898-be8a-41af001591b0","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":72,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"3eec8b59-7209-4eb5-bbf0-0086d93a6dfa","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":72,"box":{"x":69,"y":460,"width":774,"height":12}},{"id":"5224366d-8c4e-4e49-a120-53d44b0ef806","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":72,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"2bd3ef5d-01bf-4062-af94-1ad680bbdbf2","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":72,"box":{"x":69,"y":491,"width":269,"height":9}},{"id":"e2f49995-1987-43fb-925e-30b2dffe4fad","block_type":"box","text":"Currency Options.","page_number":72,"box":{"x":102,"y":513,"width":125,"height":11}},{"id":"93789ad6-e63c-4612-aaeb-ce79676c9d32","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":72,"box":{"x":233,"y":513,"width":654,"height":12}},{"id":"aa9cfbdf-0228-43a1-be5b-6ac993bfc96b","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":72,"box":{"x":68,"y":528,"width":776,"height":12}},{"id":"6cd9d080-a8ac-4fd3-8532-6ad6736bc093","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":72,"box":{"x":70,"y":543,"width":825,"height":12}},{"id":"539d3930-eaf0-4f0a-8bfe-5330eba186f9","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":72,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"6251b5ac-ae1d-4d58-bfd5-8cbdea344bc4","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":72,"box":{"x":68,"y":574,"width":820,"height":11}},{"id":"542f936b-e049-451b-8f18-b2ab085df86a","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":72,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"579b3a4a-36b9-4e8b-97f0-9948e9da4c32","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":72,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"4756aa85-8d1c-4ffb-8232-07535b85f8f4","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":72,"box":{"x":69,"y":619,"width":813,"height":11}},{"id":"99948974-ab65-4e54-9d8b-e4ae0a4dce11","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":72,"box":{"x":69,"y":634,"width":826,"height":11}},{"id":"68002915-da29-4ebf-b6a1-e112c53a7363","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":72,"box":{"x":69,"y":649,"width":776,"height":12}},{"id":"dae80683-9e84-400b-a63a-4971f5154aaf","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":72,"box":{"x":69,"y":665,"width":483,"height":11}},{"id":"8b3106f7-cbf2-4b07-bb26-a305f8163a33","block_type":"box","text":"Currency Swaps.","page_number":72,"box":{"x":102,"y":687,"width":117,"height":11}},{"id":"ff26b2d7-1da9-442f-bc2d-b6b26796e327","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":72,"box":{"x":225,"y":687,"width":652,"height":11}},{"id":"1ac994a2-98c6-43bb-8a03-aa85dc04b38c","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":72,"box":{"x":69,"y":702,"width":799,"height":12}},{"id":"c8693ac9-8bc0-4ab9-b434-e929cc080ccb","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":72,"box":{"x":69,"y":717,"width":812,"height":12}},{"id":"edfa897b-ba12-4468-8ee2-582765dedf6f","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":72,"box":{"x":69,"y":732,"width":836,"height":12}},{"id":"8d28d210-53a7-4c1c-93ae-3906f854624c","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":72,"box":{"x":69,"y":748,"width":800,"height":11}},{"id":"9e1d771a-b0a1-4d2b-aa00-ef6d1189ca1e","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":72,"box":{"x":69,"y":763,"width":810,"height":11}},{"id":"6b581098-cc25-4fe9-a950-a0c8dcc868e0","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":72,"box":{"x":69,"y":778,"width":393,"height":11}},{"id":"5c92e348-fd6a-4b38-a72c-91cef8e1bd1a","block_type":"box","text":"Digital Asset Exposure.","page_number":72,"box":{"x":102,"y":801,"width":170,"height":11}},{"id":"602e2674-9406-4c32-93b7-9e1c19c6308b","block_type":"box","text":"Digital assets, such as bitcoin and ether, are created and transmitted through the","page_number":72,"box":{"x":279,"y":801,"width":582,"height":11}},{"id":"e51ca148-ffff-459a-a5ee-85c452b04953","block_type":"box","text":"operations of peer-to-peer networks of computers, known as nodes, that operate on cryptographic computer-code","page_number":72,"box":{"x":69,"y":816,"width":806,"height":11}},{"id":"d9c03214-7c63-4216-bc90-943c2cdd8f80","block_type":"box","text":"based logic, called a protocol. Digital assets are par t of a new and rapidly changing industry, and the fur ther","page_number":72,"box":{"x":69,"y":831,"width":773,"height":11}},{"id":"dbde1508-9f03-46c1-893a-f7b7e2fe44eb","block_type":"box","text":"development of digital asset networks is subject to a variety of factors that are difficult to evaluate. Digital assets are","page_number":72,"box":{"x":69,"y":846,"width":839,"height":11}},{"id":"5816634d-35db-4b28-8f52-2154e95bb8ac","block_type":"box","text":"relatively new assets with limited histories.","page_number":72,"box":{"x":69,"y":861,"width":305,"height":11}},{"id":"5ff2b23c-2292-4914-8909-de812d5c5c92","block_type":"box","text":"Risks Related to Digital Assets.","page_number":72,"box":{"x":102,"y":884,"width":223,"height":11}},{"id":"4cd80d61-a884-4042-bdae-4180c1da6049","block_type":"box","text":"Digital assets were only introduced within the past 15 years, and the value of","page_number":72,"box":{"x":332,"y":884,"width":552,"height":11}},{"id":"6e70dcfb-b58d-4bdc-b0f2-147a98b69e1a","block_type":"box","text":"such digital assets is subject to a number of factors relating to the capabilities and development of blockchain","page_number":72,"box":{"x":69,"y":899,"width":788,"height":11}},{"id":"fd497ed9-fe51-4397-a055-7e2fa0fac38e","block_type":"box","text":"II-25","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cef9e0a7-5b50-4124-b2c9-6cdc04a3ecd8","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6501adc0-e7f6-49dc-92df-ff86d0d8c5c5","block_type":"box","text":"technologies, such as the recentness of their development, their dependence on the internet and other technologies,","page_number":73,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"6542cc83-4405-482d-b6f7-6da96518fade","block_type":"box","text":"their dependence on the role played by users, developers, miners and validators and the potential for malicious","page_number":73,"box":{"x":68,"y":60,"width":795,"height":11}},{"id":"2bc0f5d2-d62c-4d86-b156-9772a6bf0c3b","block_type":"box","text":"activity. Given the recentness of the development of digital asset networks, digital assets may not function as","page_number":73,"box":{"x":69,"y":75,"width":782,"height":11}},{"id":"8e0331c4-9b24-4965-8dd4-371214124463","block_type":"box","text":"intended and par ties may be unwilling to use digital assets, which would dampen the growth, if any, of digital asset","page_number":73,"box":{"x":70,"y":90,"width":820,"height":11}},{"id":"7388e153-c89f-4230-af1f-1f5c8c576c28","block_type":"box","text":"networks.","page_number":73,"box":{"x":69,"y":105,"width":67,"height":9}},{"id":"0a4a0310-6c03-48c6-bd4b-9f360f348eae","block_type":"box","text":"The trading prices of many digital assets, including bitcoin and ether, have experienced extreme volatility in","page_number":73,"box":{"x":101,"y":128,"width":762,"height":11}},{"id":"0b76c081-bb6a-42c6-b971-fb744735c11a","block_type":"box","text":"recent periods and may continue to do so. Extreme volatility in the future, including fur ther declines in the trading","page_number":73,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"08666c07-7861-49de-bcc2-03ade89d3c54","block_type":"box","text":"prices of bitcoin and ether, could have a material adverse effect on the value of such digital asset investments. The","page_number":73,"box":{"x":70,"y":158,"width":824,"height":11}},{"id":"1b2487b0-03bc-49b0-a341-bdb92f427198","block_type":"box","text":"value of digital assets is subject to a number of factors relating to the their fundamental investment characteristics,","page_number":73,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"bab3339f-2f25-4bd4-93b7-fb764c80c44a","block_type":"box","text":"including the fact that digital assets are bearer instruments and loss, theft, destruction, or compromise of the","page_number":73,"box":{"x":70,"y":188,"width":784,"height":12}},{"id":"dc0aae57-3a61-4709-9f88-7a5ec7ca7805","block_type":"box","text":"associated private keys could result in permanent loss of the asset, and the capabilities and development of","page_number":73,"box":{"x":69,"y":203,"width":777,"height":12}},{"id":"93dd9f19-4e0b-4939-8575-9f6a819201f1","block_type":"box","text":"blockchain technologies such as the Bitcoin or Ethereum blockchain.","page_number":73,"box":{"x":69,"y":219,"width":488,"height":11}},{"id":"eebf929e-8ec2-405a-8ea4-a29df1cf816c","block_type":"box","text":"The opaque nature of the digital asset market poses asset verification challenges for market par ticipants,","page_number":73,"box":{"x":101,"y":241,"width":755,"height":11}},{"id":"a38e0748-1a07-456c-bed1-0ba3ce6428cb","block_type":"box","text":"regulators and auditors and gives rise to an increased risk of manipulation and fraud, including the potential for Ponzi","page_number":73,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"2d90ce32-8d3d-4a0e-891e-6a673d5e92e5","block_type":"box","text":"schemes, bucket shops and pump and dump schemes. Digital assets have in the past been used to facilitate illicit","page_number":73,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"26e81919-dad2-497c-830f-23601d2832b2","block_type":"box","text":"activities. If a digital asset was used to facilitate illicit activities, businesses that facilitate transactions in such digital","page_number":73,"box":{"x":69,"y":286,"width":838,"height":12}},{"id":"ae423f99-6051-4a31-8f2e-b90c56454a15","block_type":"box","text":"assets could be at increased risk of potential criminal or civil liability or lawsuits, or of having banking or other","page_number":73,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"6da5256f-95fe-4753-8edf-37d515269fc3","block_type":"box","text":"services cut off, and such digital asset could be removed from digital asset platforms. Any of the aforementioned","page_number":73,"box":{"x":69,"y":317,"width":809,"height":11}},{"id":"0c722bfe-88c7-427b-b004-620c058a530d","block_type":"box","text":"occurrences could adversely affect the price of the relevant digital asset, the attractiveness of the respective","page_number":73,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"b2827ad0-d7f0-4140-af20-89fd2eac5eda","block_type":"box","text":"blockchain network and investments in digital assets.","page_number":73,"box":{"x":69,"y":347,"width":381,"height":11}},{"id":"2c6184bc-71e3-4c6a-9063-fea813d41992","block_type":"box","text":"If a malicious actor or botnet (a volunteer or hacked collection of computers controlled by networked software","page_number":73,"box":{"x":102,"y":370,"width":780,"height":11}},{"id":"96b1fef4-6996-4b4f-81e5-86ce22f2dee7","block_type":"box","text":"coordinating the actions of the computers) obtains control of more than 50% of the processing power dedicated to","page_number":73,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"a3dccbac-df63-464a-ac05-2701218b5381","block_type":"box","text":"mining on the Bitcoin network, it may be able to alter the Bitcoin blockchain on which transactions in bitcoin rely by","page_number":73,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"6e7fad51-614c-45c5-87a9-2a5d656ed0ea","block_type":"box","text":"constructing fraudulent blocks or preventing cer tain transactions from completing in a timely manner, or at all. The","page_number":73,"box":{"x":69,"y":415,"width":816,"height":11}},{"id":"16146c87-7b0b-4420-b253-fd9021fe3014","block_type":"box","text":"malicious actor or botnet could also control, exclude or modify the ordering of transactions.","page_number":73,"box":{"x":69,"y":430,"width":649,"height":11}},{"id":"eb0271ae-ff28-42cd-8e81-ef434bc9f914","block_type":"box","text":"The Ethereum network is currently vulnerable to several types of attacks, including a:","page_number":73,"box":{"x":101,"y":453,"width":605,"height":11}},{"id":"c39713c6-b3dc-47ce-902a-8cbb5657c662","block_type":"box","text":"•","page_number":73,"box":{"x":69,"y":476,"width":6,"height":4}},{"id":"1d0a787d-4041-4cfc-95bc-ff5deae43d20","block_type":"box","text":"“>33% attack” where, if a validator or group of validators were to gain control of more than 33% of the total","page_number":73,"box":{"x":102,"y":473,"width":765,"height":11}},{"id":"78875d47-83ec-4b3e-a33c-6cbd47b0ff20","block_type":"box","text":"staked ether on the Ethereum network, a malicious actor could temporarily impede or delay block confirmation or","page_number":73,"box":{"x":102,"y":488,"width":805,"height":11}},{"id":"e927b2e3-3e00-415f-bfb3-2157a8e49b96","block_type":"box","text":"even cause a temporary fork in the blockchain. This is believed to be temporary, as the Ethereum network’s","page_number":73,"box":{"x":101,"y":503,"width":769,"height":11}},{"id":"aa02b936-ba4e-4638-b86e-c1384f32c341","block_type":"box","text":"inactivity leak would be expected to eventually penalize the attacker enough for the chain to finalize again (i.e.,","page_number":73,"box":{"x":102,"y":518,"width":786,"height":12}},{"id":"22baa91d-906c-4edd-be41-d6a2f6592fd7","block_type":"box","text":"the honest majority would be expected to reclaim 2/3rd stake as the attacker’s stake is penalized). However, it","page_number":73,"box":{"x":101,"y":534,"width":795,"height":11}},{"id":"1127a247-3680-4529-aef0-333cf4f102d9","block_type":"box","text":"is not believed that with 33% control, a malicious actor could engage in double-spending or fraudulent block","page_number":73,"box":{"x":102,"y":549,"width":767,"height":11}},{"id":"565147fd-7092-4c08-9299-bf2c33ad1d25","block_type":"box","text":"propagation.","page_number":73,"box":{"x":102,"y":564,"width":87,"height":11}},{"id":"05e133b7-90ae-4eb6-8026-6530b710fd47","block_type":"box","text":"•","page_number":73,"box":{"x":69,"y":587,"width":6,"height":4}},{"id":"f94d3603-1da1-4bcc-b802-901460f19f60","block_type":"box","text":"“>50% attack” where, if a validator or group of validators acting in concer t were to gain control of more than 50%","page_number":73,"box":{"x":102,"y":584,"width":807,"height":11}},{"id":"5508a348-92df-4926-a89c-df9f06ae5987","block_type":"box","text":"of the total staked ether on the Ethereum network, a malicious actor would be able to gain full control of the","page_number":73,"box":{"x":102,"y":599,"width":771,"height":11}},{"id":"8e089968-00e0-45a5-85df-cc688e22852c","block_type":"box","text":"Ethereum network and the ability to manipulate future transactions on the blockchain, including censoring","page_number":73,"box":{"x":102,"y":614,"width":753,"height":11}},{"id":"61930cf2-7751-451b-93d8-3e0e9c7ab850","block_type":"box","text":"transactions, double-spending and fraudulent block propagation, potentially for an extended period or even","page_number":73,"box":{"x":101,"y":629,"width":759,"height":11}},{"id":"e6a55f2f-c7f6-49d6-932e-fac3b11e31b5","block_type":"box","text":"permanently. In theory, the minority non-attackers might reach social consensus to reject blocks proposed by the","page_number":73,"box":{"x":102,"y":645,"width":804,"height":11}},{"id":"d567dc5e-eceb-449d-96b0-a44f26fa4dde","block_type":"box","text":"malicious majority attacker, reducing the attacker’s ability to engage in malicious activity, but there can be no","page_number":73,"box":{"x":102,"y":660,"width":778,"height":11}},{"id":"dcdf8474-76fc-458a-97be-d4c8a8d3cdb5","block_type":"box","text":"assurance this would happen or that non-attackers would be able to coordinate effectively.","page_number":73,"box":{"x":102,"y":675,"width":643,"height":11}},{"id":"cef40f20-2842-4399-a7ec-d66d44cf3d42","block_type":"box","text":"•","page_number":73,"box":{"x":69,"y":698,"width":6,"height":4}},{"id":"be7ed73c-5c22-4215-83fc-e73d2ca98ea4","block_type":"box","text":"“>66% attack” where, if a validator or group of validators acting in concer t were to gain control of more than 66%","page_number":73,"box":{"x":102,"y":695,"width":807,"height":11}},{"id":"37ac01eb-763d-4c54-9bfc-4390e17b1cd0","block_type":"box","text":"of the total staked ether on the Ethereum network, a malicious actor could permanently and irreversibly","page_number":73,"box":{"x":102,"y":710,"width":737,"height":11}},{"id":"5f445bed-7d00-49da-ad20-bb3a6b0f2353","block_type":"box","text":"manipulate the blockchain, including censorship, double-spending and fraudulent block propagation. The attacker","page_number":73,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"c9752f9e-716b-41b3-9a6c-e5471528e388","block_type":"box","text":"could finalize their preferred chain without any consideration for the votes of other stakers and could also rever t","page_number":73,"box":{"x":101,"y":740,"width":799,"height":11}},{"id":"b3e38579-0cec-4773-8f53-6615a0a037f3","block_type":"box","text":"finalized blocks.","page_number":73,"box":{"x":101,"y":755,"width":113,"height":9}},{"id":"ca0f7c34-e98d-4abd-b789-32129c7a37b4","block_type":"box","text":"The largest bitcoin and ether wallets are believed to hold, in aggregate, a significant percentage of the bitcoins","page_number":73,"box":{"x":101,"y":778,"width":790,"height":11}},{"id":"65d56016-fdd7-494a-9549-dfd6e4e04e42","block_type":"box","text":"and ether in circulation. Moreover, it is possible that other persons or entities control multiple wallets that collectively","page_number":73,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"ab108cf9-e86f-4181-8ab6-5416ce3dd88c","block_type":"box","text":"hold a significant number of bitcoins or ether, even if they individually only hold a small amount, and it is possible","page_number":73,"box":{"x":69,"y":808,"width":809,"height":11}},{"id":"25d9ead9-9677-4fb6-879c-c339ec8870d1","block_type":"box","text":"that some of these wallets are controlled by the same person or entity. As a result of this concentration of ownership,","page_number":73,"box":{"x":68,"y":823,"width":840,"height":11}},{"id":"ea56ffa4-6705-43a4-860b-21272698f28e","block_type":"box","text":"large sales or distributions by such holders could have an adverse effect on the market price of bitcoin or ether.","page_number":73,"box":{"x":70,"y":838,"width":796,"height":12}},{"id":"3d84e93f-8062-48d2-a5a8-5dd491bc7850","block_type":"box","text":"Risks Related to Digital Assets as a Means of Payment.","page_number":73,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"b2a6d55f-e86d-4e70-9636-57a7263f69a3","block_type":"box","text":"Digital assets such as bitcoin and ether have only","page_number":73,"box":{"x":506,"y":861,"width":354,"height":11}},{"id":"827a1cbc-f62e-4a90-8cbd-29f57f55439c","block_type":"box","text":"recently become selectively accepted as a means of payment by retail and commercial outlets, and use of bitcoins or","page_number":73,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"7661abc4-fc06-4160-9ae4-401cbc08cbfd","block_type":"box","text":"ether by consumers to pay such retail and commercial outlets remains limited. Banks and other established financial","page_number":73,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"b51d3901-b940-4655-b158-9bec435c3594","block_type":"box","text":"institutions may refuse to process funds for bitcoin or ether transactions; process wire transfers to or from digital","page_number":73,"box":{"x":70,"y":906,"width":807,"height":12}},{"id":"e16efe26-13c9-4ca4-bbf2-60b7c4d13d47","block_type":"box","text":"II-26","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f165631-1450-4115-97ae-523b3c3ff87d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca58b68f-ef50-49a2-885b-881d33f39830","block_type":"box","text":"asset platforms, bitcoin- or ether-related companies or service providers; or maintain accounts for persons or entities","page_number":74,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"e1bbb400-8b58-4f57-ad59-e14fcda9942d","block_type":"box","text":"transacting in bitcoin or ether. As a result, the prices of bitcoin or ether may be influenced to a significant extent by","page_number":74,"box":{"x":68,"y":60,"width":822,"height":11}},{"id":"b143d0f3-a1dc-4220-b4dc-b95a7ecf8ec3","block_type":"box","text":"speculators, and thus contributing to price volatility that makes retailers less likely to accept such digital assets as a","page_number":74,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"723bbc55-e32d-4274-a1e5-82d4d7c96660","block_type":"box","text":"form of payment in the future.","page_number":74,"box":{"x":68,"y":90,"width":213,"height":11}},{"id":"4fcaf49f-df82-4419-91e5-6f3cb892f216","block_type":"box","text":"In addition, as the speed of digital asset transactions and the number of transactions that can be processed","page_number":74,"box":{"x":102,"y":113,"width":775,"height":11}},{"id":"64bc9428-09ba-4d99-b942-6f0f982f6012","block_type":"box","text":"lags behind growth in the use of digital asset networks, average fees and settlement times may increase","page_number":74,"box":{"x":70,"y":128,"width":747,"height":11}},{"id":"96ed615f-fdf8-482a-b8aa-70e844936d68","block_type":"box","text":"considerably. For example, the Bitcoin network and Ethereum network have been, at times, at capacity, which has led","page_number":74,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"3de6989f-a9c4-4882-8c0e-85cdda6b80dc","block_type":"box","text":"to increased transaction fees. Increased fees and decreased settlement speeds could preclude cer tain uses for","page_number":74,"box":{"x":68,"y":158,"width":802,"height":11}},{"id":"21072de0-53c7-410d-a973-a034feb58628","block_type":"box","text":"bitcoin or ether (e.g., micropayments), and could reduce demand for, and the price of, bitcoin or ether. Bitcoin or","page_number":74,"box":{"x":69,"y":173,"width":801,"height":11}},{"id":"9e034993-4d9f-403c-93e7-c63fc1d10241","block_type":"box","text":"Ethereum transactions are typically not reversible without the consent and active par ticipation of the recipient of the","page_number":74,"box":{"x":70,"y":188,"width":827,"height":11}},{"id":"4a5df168-c227-4fd4-9c93-967f85f9a28e","block_type":"box","text":"transaction. Once a transaction has been verified and recorded in a block that is added to the Bitcoin or Ethereum","page_number":74,"box":{"x":68,"y":203,"width":815,"height":9}},{"id":"aea580fd-c8e6-4cba-ba3b-bf37490d7fbf","block_type":"box","text":"blockchain, an incorrect transfer or theft of bitcoin generally will not be reversible and a holder of bitcoin or ether,","page_number":74,"box":{"x":69,"y":218,"width":806,"height":12}},{"id":"751c31e3-ac7e-4412-a18b-3111903de20a","block_type":"box","text":"such as an ETP (as defined below), may not be capable of seeking compensation for any such transfer or theft.","page_number":74,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"5b4e1634-f05c-41ad-be1a-5c7d35ee1dc8","block_type":"box","text":"Risks Related to the Digital Asset Markets.","page_number":74,"box":{"x":102,"y":257,"width":305,"height":11}},{"id":"5dba0e83-c94a-488c-a814-4dd28615c562","block_type":"box","text":"Bitcoin and ether were among the first cryptographic digital assets to","page_number":74,"box":{"x":415,"y":256,"width":491,"height":12}},{"id":"dadfe5e5-d610-48e8-80dc-9c0d3a265ba1","block_type":"box","text":"gain global adoption and critical mass. In general, digital asset networks, including the Bitcoin network, the Ethereum","page_number":74,"box":{"x":68,"y":272,"width":837,"height":11}},{"id":"cfcb15e1-eb03-4b28-82d9-3ace58bf4909","block_type":"box","text":"network and other cryptographic and algorithmic protocols governing the issuance of digital assets represent a new","page_number":74,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"363c31aa-a428-4b70-b3ec-4ea2ff2e4dc2","block_type":"box","text":"and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate. In addition, many","page_number":74,"box":{"x":69,"y":302,"width":799,"height":11}},{"id":"5a2790b3-af58-4f49-b0d0-acce0989f45f","block_type":"box","text":"consor tiums and financial institutions are also researching and investing resources into private or permissioned","page_number":74,"box":{"x":69,"y":317,"width":799,"height":11}},{"id":"98923a8e-1755-4956-b37c-8a2670beafca","block_type":"box","text":"smar t contract platforms rather than open platforms like the Bitcoin network or the Ethereum network. Competition","page_number":74,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"f24edc54-c416-418c-bc95-015f21dfd422","block_type":"box","text":"from the emergence or growth of alternative digital assets and smar t contracts platforms, such as Solana,","page_number":74,"box":{"x":68,"y":347,"width":761,"height":11}},{"id":"c3dd0075-676d-48e9-a9e0-70cf5557be05","block_type":"box","text":"Avalanche, Polkadot, or Cardano, could have a negative impact on the demand for, and price of, bitcoin or ether and","page_number":74,"box":{"x":68,"y":362,"width":827,"height":11}},{"id":"583097ae-5de9-4fda-bc80-4804a576bedb","block_type":"box","text":"thereby adversely affect the value of the bitcoin- or ether-related investments.","page_number":74,"box":{"x":68,"y":377,"width":553,"height":11}},{"id":"9887d4f7-982e-4e0f-b741-3c8a78a9c3be","block_type":"box","text":"Moreover, in the past, bugs, defects and flaws in the source code for digital assets have been exposed and","page_number":74,"box":{"x":102,"y":400,"width":766,"height":11}},{"id":"f06f180e-1d94-4391-87b3-dab7987653e6","block_type":"box","text":"exploited, including flaws that disabled some functionality for users, exposed users’ personal information and/or","page_number":74,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"75f356bf-b934-4545-a6d2-ee8ba5bd967f","block_type":"box","text":"resulted in the theft of users’ digital assets. The cryptography underlying digital asset networks or digital assets","page_number":74,"box":{"x":69,"y":430,"width":798,"height":11}},{"id":"c939f093-0dde-4410-9291-51daf8e0e816","block_type":"box","text":"could prove to be flawed or ineffective, or developments in mathematics and/or technology, including advances in","page_number":74,"box":{"x":69,"y":445,"width":810,"height":12}},{"id":"ff8b2852-aa14-4bb6-b3bf-a79038956e4a","block_type":"box","text":"digital computing, algebraic geometry and quantum computing, could result in such cryptography becoming","page_number":74,"box":{"x":69,"y":461,"width":763,"height":11}},{"id":"a1ba9a9e-a36d-45be-8bcd-9626deff8de6","block_type":"box","text":"ineffective. In any of these circumstances, a malicious actor may be able to compromise the security of digital asset","page_number":74,"box":{"x":70,"y":475,"width":830,"height":12}},{"id":"c8929028-b071-4c8b-b6f4-8f1c9bbb1353","block_type":"box","text":"networks or take a holder’s digital assets. Moreover, normal operations and functionality of digital asset networks","page_number":74,"box":{"x":69,"y":491,"width":812,"height":11}},{"id":"fa4c05e6-b044-406b-9c7c-53cc103630fb","block_type":"box","text":"may be negatively affected such that it is no longer attractive to users or other stakeholders, thereby dampening","page_number":74,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"075af66b-9316-4952-a1be-1fd681c2c399","block_type":"box","text":"demand for such digital assets.","page_number":74,"box":{"x":69,"y":521,"width":223,"height":11}},{"id":"efbf4484-e146-4ba0-bdad-d6fd3d1f3799","block_type":"box","text":"Digital Asset ETPs.","page_number":74,"box":{"x":102,"y":544,"width":132,"height":11}},{"id":"05930dd1-8bb9-4136-8d06-4eb2c8270dd6","block_type":"box","text":"The Fund may acquire shares in exchange-traded products (“ETPs”) that seek to reflect","page_number":74,"box":{"x":240,"y":543,"width":621,"height":12}},{"id":"bdf47ce3-fdbd-481e-ab87-5202c7a6099d","block_type":"box","text":"generally the per formance of the price of bitcoin or ether by directly holding bitcoin (“Bitcoin ETPs”) or ether (“Ether","page_number":74,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"33cb0f14-5b97-4e36-92da-1a4ce416809c","block_type":"box","text":"ETPs”), including shares of a Bitcoin ETP or Ether ETP sponsored by an affiliate of BlackRock. The Fund will only","page_number":74,"box":{"x":70,"y":574,"width":796,"height":11}},{"id":"15e19159-c29e-4bcd-bb52-ea7b33e29f4b","block_type":"box","text":"invest in Bitcoin ETPs or Ether ETPs that are listed and traded on national securities exchanges. A Bitcoin ETP or an","page_number":74,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"f9effbee-9a40-4a2d-9f69-e799d7ea3ae8","block_type":"box","text":"Ether ETP is not an investment company registered under the Investment Company Act of 1940, as amended, and","page_number":74,"box":{"x":70,"y":604,"width":813,"height":11}},{"id":"f08767eb-94f7-4fef-8f5c-96dfa76b438e","block_type":"box","text":"therefore does not have the same investor protections as a registered investment company.","page_number":74,"box":{"x":68,"y":619,"width":656,"height":11}},{"id":"9512b8f4-2f10-461f-9591-43ec0c9c0868","block_type":"box","text":"Futures on Digital Assets.","page_number":74,"box":{"x":102,"y":642,"width":182,"height":11}},{"id":"43c84015-9f3e-46bf-a496-4e7874646144","block_type":"box","text":"The Fund may invest in futures on Bitcoin and futures on Ethereum. See","page_number":74,"box":{"x":290,"y":642,"width":514,"height":11}},{"id":"22f6a118-f780-495b-8e10-e182e3e39378","block_type":"box","text":"“Derivatives—General,” “Derivatives—Regulation of Derivatives” and “Derivatives—Risk Factors in Derivatives”","page_number":74,"box":{"x":70,"y":657,"width":792,"height":11}},{"id":"1610d246-0fe3-485f-ab4e-ec4a2465eab7","block_type":"box","text":"below.","page_number":74,"box":{"x":69,"y":672,"width":43,"height":9}},{"id":"aa85e594-d7ed-47f0-b42b-9bd7874e7ca7","block_type":"box","text":"Distressed Securities.","page_number":74,"box":{"x":102,"y":695,"width":159,"height":9}},{"id":"954d9afc-276a-4163-83c1-c6b4b4070b56","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":74,"box":{"x":267,"y":695,"width":633,"height":11}},{"id":"e8dc6a34-c496-4350-89fc-a2ad860748fa","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":74,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"d58251a0-9e95-40da-b165-c6e8becc0f6b","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":74,"box":{"x":70,"y":725,"width":827,"height":11}},{"id":"7ee6f62d-2eae-4f89-bb53-ba05fd1aa2c2","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":74,"box":{"x":69,"y":740,"width":835,"height":11}},{"id":"43fff751-72b1-4470-8512-ce6ac3667d52","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":74,"box":{"x":69,"y":755,"width":784,"height":11}},{"id":"b9cf7973-e652-4ba6-8f05-0750c6e4b51b","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":74,"box":{"x":70,"y":770,"width":569,"height":12}},{"id":"d6ae4161-ae9c-4f1d-a39d-11d727791761","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":74,"box":{"x":101,"y":793,"width":766,"height":11}},{"id":"76dae74a-393f-4b31-995e-c5d18bdde89e","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":74,"box":{"x":70,"y":808,"width":795,"height":11}},{"id":"8493d3b7-cc80-4355-ae64-6c95cae073ee","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":74,"box":{"x":70,"y":823,"width":826,"height":11}},{"id":"59f6c9db-24d8-487d-9c59-e9008cfdcd04","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":74,"box":{"x":69,"y":838,"width":794,"height":12}},{"id":"6ea0795e-16a5-40ee-bcdd-52534e51e756","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":74,"box":{"x":69,"y":853,"width":832,"height":12}},{"id":"9e09fe9b-956c-41d2-a2a2-6c09be2e9693","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":74,"box":{"x":69,"y":869,"width":824,"height":11}},{"id":"55277444-f04e-4353-b87d-345dedf6fe2f","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":74,"box":{"x":69,"y":884,"width":789,"height":11}},{"id":"d405fba6-ea6f-4cf2-9060-da4c63fabdb2","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":74,"box":{"x":69,"y":899,"width":810,"height":11}},{"id":"b23cc47a-f36f-45b6-8ee6-dd8bdf5005a4","block_type":"box","text":"II-27","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6dde066e-c68b-4f1f-93c1-c5bc43238704","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5870e21-4d62-4fe7-8613-9eab2ea85e20","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":75,"box":{"x":70,"y":45,"width":831,"height":11}},{"id":"5b757829-52c2-44e1-b556-be87be344504","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":75,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"7e7d29fc-846c-461f-9f5c-88ccdf898ba6","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":75,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"3706cc2a-77ee-44c7-9edb-ce80a5114353","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":75,"box":{"x":68,"y":90,"width":834,"height":11}},{"id":"69404daf-ec62-4d77-9bb9-cadc19b9d341","block_type":"box","text":"satisfied (e.g., through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":75,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"5ec57096-8933-4a29-bff8-df8b3a48b663","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":75,"box":{"x":69,"y":120,"width":807,"height":12}},{"id":"500ee335-36cb-47bc-be2d-daec4d8b8474","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":75,"box":{"x":69,"y":135,"width":797,"height":12}},{"id":"842002bf-64cd-498d-939f-b036f1e247e3","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":75,"box":{"x":69,"y":150,"width":816,"height":12}},{"id":"d74212b9-ebcf-494b-a5f3-e881aaae5c9b","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":75,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"ac87620d-7a8c-4358-b686-207f0502abfe","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":75,"box":{"x":68,"y":181,"width":827,"height":11}},{"id":"509e0869-5c5f-46a0-b91a-99c6f85d5826","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":75,"box":{"x":69,"y":196,"width":800,"height":11}},{"id":"88bdebab-2d8f-4af2-bd00-966783672b05","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":75,"box":{"x":69,"y":211,"width":770,"height":11}},{"id":"50bd0fb8-3e59-4472-b657-547e84255624","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":75,"box":{"x":69,"y":226,"width":809,"height":11}},{"id":"33190483-3906-4b64-a5ae-90bca8374190","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":75,"box":{"x":70,"y":241,"width":839,"height":11}},{"id":"6fdad53b-da60-40c5-a706-8ee45f592c8e","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":75,"box":{"x":70,"y":256,"width":787,"height":12}},{"id":"7cbff409-9b02-47c6-9344-61ce1a84328f","block_type":"box","text":"affairs.","page_number":75,"box":{"x":69,"y":271,"width":49,"height":9}},{"id":"e038f5b5-526d-495b-9dcf-bd9abfcad9f8","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":75,"box":{"x":102,"y":294,"width":428,"height":11}},{"id":"c243264d-1142-4e88-824e-464ec9b70429","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":75,"box":{"x":531,"y":294,"width":341,"height":11}},{"id":"aefab191-cf1f-4a0d-8cb8-744acdb67a0a","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":75,"box":{"x":69,"y":309,"width":785,"height":11}},{"id":"c654a558-cf07-465b-a4b8-bee8d1671e10","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":75,"box":{"x":69,"y":324,"width":838,"height":12}},{"id":"9ccd9398-f15a-41a6-a1c0-9af28738bf55","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":75,"box":{"x":70,"y":339,"width":827,"height":12}},{"id":"acfddace-1e78-4016-beb5-4c34a3ab3dd7","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":75,"box":{"x":69,"y":355,"width":806,"height":11}},{"id":"fc80ef52-6992-4d91-960f-a43470c67b57","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":75,"box":{"x":69,"y":370,"width":812,"height":11}},{"id":"943d5652-6f9c-4a47-a570-09936b3ca33e","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer.","page_number":75,"box":{"x":69,"y":385,"width":492,"height":11}},{"id":"e4568f76-2c34-4d46-80b6-9bbd079b1d3f","block_type":"box","text":"The ESG characteristics utilized in a Fund’s investment process are anticipated to evolve over time and one or","page_number":75,"box":{"x":101,"y":408,"width":787,"height":10}},{"id":"1d997d27-f515-4de3-b4e1-b367b1b9b195","block_type":"box","text":"more characteristics may not be relevant with respect to all issuers that are eligible for investment. Cer tain of these","page_number":75,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"c96e1601-babc-4677-a524-b77203b6832e","block_type":"box","text":"considerations may affect a Fund’s exposure to cer tain companies or industries.","page_number":75,"box":{"x":69,"y":438,"width":575,"height":11}},{"id":"473bd0a6-a585-4c12-a003-9205ae9e876c","block_type":"box","text":"While Fund management views ESG considerations as having the potential to contribute to a Fund’s long-term","page_number":75,"box":{"x":101,"y":460,"width":782,"height":12}},{"id":"8d6eba74-fdce-4880-8134-b4eac53f70a2","block_type":"box","text":"per formance, there is no guarantee that such results will be achieved.","page_number":75,"box":{"x":70,"y":475,"width":500,"height":12}},{"id":"b2160919-3470-4792-a66c-db719827dd6f","block_type":"box","text":"Equity Securities.","page_number":75,"box":{"x":102,"y":498,"width":127,"height":11}},{"id":"a227ce9f-997f-4d19-ab3f-19cb49df36c8","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":75,"box":{"x":235,"y":498,"width":648,"height":11}},{"id":"b8868ce5-a11c-403c-8fe1-775eb08c8d4e","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":75,"box":{"x":70,"y":513,"width":802,"height":12}},{"id":"0b8ec10f-57b0-4f10-9ecd-27e10d650b22","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":75,"box":{"x":70,"y":529,"width":817,"height":11}},{"id":"e11195ce-af8a-4f29-a1c7-503cc8912782","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":75,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"3a2f44da-35c5-4d8f-9ce4-1e0debc83d51","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":75,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"dd283832-365c-4e7b-ac39-75904c28e245","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":75,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"39bcf7a9-43ac-490c-bfec-14f733fffaaa","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":75,"box":{"x":68,"y":589,"width":775,"height":11}},{"id":"894e6dcb-2536-427e-b367-e6dbdea93d1f","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":75,"box":{"x":69,"y":604,"width":777,"height":11}},{"id":"bda7b076-e52f-4849-8db6-d2e260d874c4","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":75,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"7f310f6c-2b09-4986-aee5-601e8cfb40e6","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":75,"box":{"x":69,"y":634,"width":831,"height":12}},{"id":"6d067b21-cc08-43e4-b078-68a21690220d","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":75,"box":{"x":69,"y":649,"width":829,"height":12}},{"id":"f75396b1-0644-4961-9565-5f0c6d7b2966","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":75,"box":{"x":69,"y":665,"width":325,"height":11}},{"id":"dca6b7db-0cc0-4231-8bf4-e43c2568ed13","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":75,"box":{"x":102,"y":687,"width":745,"height":11}},{"id":"dc41a9ce-21af-4a7b-9c7f-fedd00edf5f0","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":75,"box":{"x":69,"y":702,"width":833,"height":12}},{"id":"f77e5694-0173-47fe-ae79-82d395fa9c1c","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":75,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"125d4e65-01b6-47e5-b97d-2dae093a18bf","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":75,"box":{"x":68,"y":732,"width":834,"height":12}},{"id":"5d3b7903-0e92-4550-946a-f38a0237a93f","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":75,"box":{"x":70,"y":748,"width":782,"height":11}},{"id":"52bca32b-5f07-4444-9f75-a835b0d34f5b","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":75,"box":{"x":69,"y":763,"width":790,"height":11}},{"id":"acbde4d2-def9-4ba7-b2c9-2620d074f862","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":75,"box":{"x":70,"y":778,"width":823,"height":11}},{"id":"b9b16aa0-0ba2-4312-b464-b7960f632d7a","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":75,"box":{"x":69,"y":793,"width":805,"height":11}},{"id":"85494d7b-b907-4650-b836-28f9a38e27ca","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":75,"box":{"x":70,"y":808,"width":836,"height":11}},{"id":"5e7ed5ee-66a8-4512-870a-f0cb6cacb42e","block_type":"box","text":"initial public offering.","page_number":75,"box":{"x":70,"y":823,"width":147,"height":12}},{"id":"d6b85fd5-a837-4eef-874f-2ff2d0323bcb","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":75,"box":{"x":101,"y":846,"width":777,"height":11}},{"id":"b57af248-97c4-406d-9865-b49ac1735df4","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":75,"box":{"x":69,"y":861,"width":838,"height":11}},{"id":"523ac1f5-c893-483b-b714-db5bc720a0a0","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":75,"box":{"x":69,"y":876,"width":815,"height":11}},{"id":"8e47ef83-655f-45f6-b165-36a777f9504c","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":75,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"c58a8170-d057-451e-8c7b-25beaca272ce","block_type":"box","text":"large investors and are followed by relatively few securities analysts. 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This may result in","page_number":76,"box":{"x":69,"y":45,"width":826,"height":11}},{"id":"b2221ec4-2477-4b86-8602-62b7d2dd2194","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":76,"box":{"x":68,"y":60,"width":810,"height":11}},{"id":"e2ba5a68-bddc-46a5-9240-afc057291acd","block_type":"box","text":"more established companies.","page_number":76,"box":{"x":69,"y":75,"width":209,"height":11}},{"id":"a6568bb2-42ef-473d-83a8-37d34061fc66","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":76,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"12414655-5669-49c5-9826-cb7c4fa54309","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. 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These risks","page_number":76,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"17c62afc-3784-43c7-b042-23cc0ce1cc95","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":76,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"bd18f9ca-5107-43aa-aeff-995b4e813dee","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":76,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"8d872dba-9f16-4abb-877a-21cf7e95d2ca","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":76,"box":{"x":69,"y":241,"width":795,"height":11}},{"id":"a80f2a7f-6f24-4c2d-b883-9a7d4cd05abc","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":76,"box":{"x":68,"y":257,"width":828,"height":11}},{"id":"1a303961-0cf2-47e2-a0f9-2ff8d49cae2a","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":76,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"91a3edc6-3659-493f-a5cd-986628a64001","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":76,"box":{"x":68,"y":286,"width":805,"height":12}},{"id":"ed284813-6931-4b9c-ad13-446da9100110","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":76,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"aa67e843-cef9-4905-b230-f305e99cca54","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":76,"box":{"x":69,"y":317,"width":838,"height":11}},{"id":"2206a4a5-b83b-496b-ab48-40d070cdaeaa","block_type":"box","text":"interest rates. 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The securities","page_number":76,"box":{"x":70,"y":483,"width":828,"height":11}},{"id":"f04f1aec-f424-4a8d-9a00-0d21e63956a3","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":76,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"d58cd639-61c9-4ede-8842-37fed3130c72","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":76,"box":{"x":69,"y":514,"width":804,"height":11}},{"id":"57995180-bd24-4378-9b4e-6cfe84cd3ab9","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":76,"box":{"x":69,"y":528,"width":647,"height":12}},{"id":"b6b1c442-056c-4923-906b-1f4f56de7c05","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":76,"box":{"x":102,"y":551,"width":773,"height":11}},{"id":"ff2102f0-ecff-4786-b425-67083e180d03","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":76,"box":{"x":69,"y":566,"width":597,"height":11}},{"id":"e65e4045-0293-436b-8238-1f1300887c8a","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":76,"box":{"x":102,"y":589,"width":797,"height":11}},{"id":"f1340bae-fc13-4068-b881-35134ea91fa8","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":76,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"e3ade22e-f840-418c-9ed5-ee3dcec1fdf7","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":76,"box":{"x":69,"y":619,"width":808,"height":11}},{"id":"5314bea8-4d73-4f34-9953-6e2c730c6582","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":76,"box":{"x":69,"y":634,"width":825,"height":12}},{"id":"5a381a88-bb3d-483d-b784-fdb4912195bc","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":76,"box":{"x":69,"y":650,"width":631,"height":11}},{"id":"a1e1f60b-3f69-4d44-b4b7-a04730365703","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":76,"box":{"x":101,"y":672,"width":758,"height":11}},{"id":"a134f4e9-5891-4cdb-a8f5-7459c64cbd59","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":76,"box":{"x":70,"y":687,"width":787,"height":11}},{"id":"cf519bbd-d6b5-4ddb-adc2-be1e544e46e2","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":76,"box":{"x":70,"y":702,"width":789,"height":12}},{"id":"914c7179-b41e-4f5d-a1b4-7b8cbe4b76b5","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":76,"box":{"x":68,"y":718,"width":442,"height":11}},{"id":"73f7bb13-0e6e-44c8-89f9-390da3057e48","block_type":"box","text":"Fund management believes that relatively small companies may to have the oppor tunity to develop into","page_number":76,"box":{"x":102,"y":740,"width":735,"height":11}},{"id":"521e01e7-8936-41c1-b2ab-1bdad304347c","block_type":"box","text":"significant business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of","page_number":76,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"3d6adce3-d374-4df2-bdab-fdf976b1837a","block_type":"box","text":"business development that have a new technology, a unique or proprietary product or service, or a favorable market","page_number":76,"box":{"x":69,"y":770,"width":827,"height":12}},{"id":"1a1241f4-ad00-4be8-97ef-b1b6e5b3ac7e","block_type":"box","text":"position.","page_number":76,"box":{"x":70,"y":786,"width":58,"height":10}},{"id":"3d2eb781-afdf-41de-9418-0c2f63f22c61","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":76,"box":{"x":102,"y":808,"width":729,"height":11}},{"id":"2411fe57-a6d5-425e-9d61-e6c86e9612c6","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":76,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"bbd097d0-3f84-4c40-86fa-90e66d2f176e","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":76,"box":{"x":69,"y":838,"width":794,"height":12}},{"id":"f0299927-76de-4d74-83d3-e4872a2114c6","block_type":"box","text":"cycles.","page_number":76,"box":{"x":69,"y":854,"width":46,"height":11}},{"id":"f1f29acc-7e33-4bff-a3db-1161c53d0d4b","block_type":"box","text":"Tracking Stocks","page_number":76,"box":{"x":103,"y":876,"width":110,"height":11}},{"id":"4c93c7f8-c552-4904-ae18-a8bba084bbd1","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":76,"box":{"x":214,"y":876,"width":640,"height":11}},{"id":"8ef8f114-e098-46ea-8fbf-4877df2e56ef","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":76,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"c7e38711-7024-468e-9227-300b55113a77","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":76,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"9e071ee2-45a8-442b-bfdc-a894e1cb2ebb","block_type":"box","text":"II-29","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"45ea2858-2b34-40a6-937a-ba61e0646e7d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12bbd467-0a2b-4f79-96d0-29318246bd14","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":77,"box":{"x":68,"y":45,"width":801,"height":11}},{"id":"45aa546e-d5ee-42bc-9f57-2f5740269cc8","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":77,"box":{"x":69,"y":60,"width":740,"height":11}},{"id":"333739bb-d8b6-4dcd-8b4e-6cb7dcb8be22","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":77,"box":{"x":102,"y":83,"width":245,"height":11}},{"id":"ecb35aaf-2cf1-4515-afd9-2970b84f09b4","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":77,"box":{"x":354,"y":83,"width":521,"height":11}},{"id":"aec07d6a-d49d-46a3-9602-49d61a01b153","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":77,"box":{"x":69,"y":98,"width":814,"height":11}},{"id":"26861688-279b-4a3f-b59b-1b7b10529f7e","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":77,"box":{"x":69,"y":113,"width":774,"height":11}},{"id":"b4bbaf45-cdef-44d7-9586-d161fb7c25d5","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":77,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"9438104f-f765-4811-b917-49007e7e1750","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 per formance","page_number":77,"box":{"x":70,"y":143,"width":831,"height":11}},{"id":"1922d06c-1517-412c-9826-3714d2e8137e","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":77,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"d089fe68-3bdb-4047-9821-12fce15fd870","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":77,"box":{"x":69,"y":173,"width":654,"height":11}},{"id":"2bc2dd78-a5a7-460e-aec9-7ff828de5b19","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":77,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"962c4092-32ea-40bc-8f74-d88000125a53","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":77,"box":{"x":68,"y":211,"width":748,"height":11}},{"id":"d058576d-9c54-4af2-9403-7866dd890c70","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":77,"box":{"x":70,"y":226,"width":789,"height":11}},{"id":"230e6dbd-ac71-47eb-ba81-098aba1b17f4","block_type":"box","text":"geographic events that affect the reference instrument. An ETN that is tied to a reference instrument may not","page_number":77,"box":{"x":68,"y":241,"width":783,"height":11}},{"id":"c41fcdaf-5ece-460e-a6d4-be35ce01107a","block_type":"box","text":"replicate the per formance of the reference instrument. ETNs also incur cer tain expenses not incurred by their","page_number":77,"box":{"x":69,"y":256,"width":783,"height":11}},{"id":"8718702d-7518-4abc-8d21-6d80dba51737","block_type":"box","text":"applicable reference instrument. Some ETNs that use leverage may, at times, be illiquid and may be difficult to","page_number":77,"box":{"x":69,"y":271,"width":791,"height":12}},{"id":"8d30e2ad-8405-4af9-b456-1ef96337615f","block_type":"box","text":"purchase or sell at a fair price. Levered ETNs are subject to the same risk as other instruments that use leverage in","page_number":77,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"d38b3d22-0094-46ff-a24e-c07a7c98c264","block_type":"box","text":"any form. While leverage allows for greater potential return, the potential for loss is also greater. Finally, additional","page_number":77,"box":{"x":69,"y":302,"width":814,"height":11}},{"id":"05828365-2a7d-48ab-b72e-eaaf6415e537","block_type":"box","text":"losses may be incurred if the investment loses value because, in addition to the money lost on the investment, the","page_number":77,"box":{"x":70,"y":317,"width":820,"height":11}},{"id":"cedb4122-223b-4c5b-9a2e-39ffd67dc3fb","block_type":"box","text":"loan still needs to be repaid.","page_number":77,"box":{"x":70,"y":332,"width":202,"height":11}},{"id":"8931e7a6-9dd4-4f15-8557-5bd3a6de741d","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":77,"box":{"x":102,"y":355,"width":774,"height":11}},{"id":"de5e205e-fe8c-4af8-8194-a1d360f696ab","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":77,"box":{"x":68,"y":370,"width":788,"height":11}},{"id":"40d5785d-0f65-450d-acac-5ad6035196fa","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":77,"box":{"x":69,"y":385,"width":810,"height":11}},{"id":"6bbd6884-ba7e-4f6b-8404-fbc8f4794f2a","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":77,"box":{"x":69,"y":400,"width":815,"height":11}},{"id":"002b4ec8-5071-472e-a9d7-abd6a91cdf78","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":77,"box":{"x":68,"y":415,"width":766,"height":11}},{"id":"23825646-75e2-4cca-9fec-6c30be47a5ec","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":77,"box":{"x":70,"y":430,"width":279,"height":9}},{"id":"04bf3f0e-38aa-44fa-b4ab-1f59be0b24a6","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":77,"box":{"x":101,"y":453,"width":791,"height":11}},{"id":"e9c3f0d9-73c0-43f3-9f35-5b515d7a2e31","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":77,"box":{"x":69,"y":468,"width":818,"height":11}},{"id":"453753ff-6bd3-4545-b488-92c81ee94436","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":77,"box":{"x":69,"y":483,"width":547,"height":9}},{"id":"02410a81-fb8d-46fb-8438-210bbe13383f","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":77,"box":{"x":102,"y":506,"width":807,"height":11}},{"id":"5a5bda39-b821-4127-aaaf-543d06c94596","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":77,"box":{"x":69,"y":521,"width":819,"height":11}},{"id":"6701daa7-3757-471d-b53e-c9f94684e4d5","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":77,"box":{"x":69,"y":536,"width":581,"height":11}},{"id":"88675801-f95e-42dd-94f1-b7dc238599a4","block_type":"box","text":"Foreign Investments.","page_number":77,"box":{"x":102,"y":559,"width":152,"height":11}},{"id":"ad3106bc-8ea8-4747-8416-ac23e0a53574","block_type":"box","text":"Foreign Investment Risks.","page_number":77,"box":{"x":102,"y":582,"width":182,"height":11}},{"id":"e9593cac-4976-4367-9aab-0b01a82815cd","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":77,"box":{"x":291,"y":581,"width":567,"height":12}},{"id":"f488ebc9-efc5-4fc0-8a6e-1cb875e143da","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":77,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"27999f15-f25d-41ef-b152-5b5dbab1136b","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":77,"box":{"x":70,"y":612,"width":774,"height":11}},{"id":"7d0b8822-7282-4d80-b7be-a78c4df824dc","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":77,"box":{"x":69,"y":627,"width":738,"height":11}},{"id":"9656f31f-d260-4c41-9be5-919274273089","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":77,"box":{"x":102,"y":649,"width":782,"height":12}},{"id":"21e7a9f1-25cd-411a-aba6-7b3af204b9f1","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":77,"box":{"x":69,"y":664,"width":824,"height":12}},{"id":"592967a9-30cb-40c8-9740-9a1ec02a2ae7","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":77,"box":{"x":70,"y":680,"width":771,"height":11}},{"id":"51faab36-fdd4-4744-a6a9-2376426082d0","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":77,"box":{"x":69,"y":695,"width":792,"height":11}},{"id":"c3dfe053-d892-47e5-958f-7c0e6cef05ba","block_type":"box","text":"benchmark index.","page_number":77,"box":{"x":69,"y":710,"width":124,"height":9}},{"id":"71244151-c8f9-4fe7-9d54-f7771b504500","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":77,"box":{"x":102,"y":732,"width":767,"height":12}},{"id":"999d4ecc-0676-4f62-a3dd-22b470d3fd50","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":77,"box":{"x":68,"y":748,"width":742,"height":11}},{"id":"297ec615-1f0b-473c-ac9d-85b475f34671","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":77,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"083d7e56-767a-4cea-8e98-e156c7341106","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":77,"box":{"x":69,"y":778,"width":780,"height":11}},{"id":"2f5164b7-fe82-4154-a7b2-5b3b12e820ee","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":77,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"7713395f-89c8-4197-9833-290d6671e2fd","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":77,"box":{"x":69,"y":808,"width":794,"height":11}},{"id":"c5a80df5-7eee-43e0-bcf0-48c8f839fbb2","block_type":"box","text":"securities and zero-coupon securities.","page_number":77,"box":{"x":69,"y":823,"width":268,"height":11}},{"id":"a7cecbbc-0ab8-421d-b2db-31c9be58d215","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":77,"box":{"x":102,"y":846,"width":785,"height":11}},{"id":"d25bdc06-9488-422a-a219-7e7f03f85360","block_type":"box","text":"taxes.","page_number":77,"box":{"x":68,"y":862,"width":42,"height":8}},{"id":"0efeb7df-3430-4a54-a106-eb8ccddb153c","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":77,"box":{"x":101,"y":884,"width":798,"height":11}},{"id":"9270ec6d-ebbf-4fbb-a503-65afe3b9e8d9","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":77,"box":{"x":68,"y":899,"width":815,"height":11}},{"id":"ad02b186-851e-4e09-8708-b3ec5165103a","block_type":"box","text":"II-30","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b160347a-46dc-4e8a-84f4-5cce587caffb","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72105d3a-430d-4d50-b8e5-9f0467626470","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":78,"box":{"x":70,"y":45,"width":792,"height":11}},{"id":"b8bade17-2916-456a-a6b4-2de642734a5a","block_type":"box","text":"underlying security (i.e., the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":78,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"d9b10ee6-6f71-44fe-abe4-6858f20926df","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":78,"box":{"x":70,"y":75,"width":809,"height":11}},{"id":"af849b23-b39f-4e14-a675-842a478d3272","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":78,"box":{"x":68,"y":90,"width":800,"height":11}},{"id":"9ae3fa38-e872-4311-bdaf-2643ddf65c42","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":78,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"4b3047d0-e667-48ce-845d-b163a61e5227","block_type":"box","text":"Foreign Market Risk.","page_number":78,"box":{"x":102,"y":128,"width":144,"height":11}},{"id":"6bfa8699-0fb1-45b9-9aca-150a49d52989","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":78,"box":{"x":254,"y":128,"width":652,"height":11}},{"id":"f655785d-9f81-4be5-9919-ccb3843eb7ab","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":78,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"c98bf4db-d924-4618-b881-7be4236a4356","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":78,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"ad201678-f795-48e2-92ca-26ebf41ff445","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":78,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"fbddbbe6-cd35-48a0-b35a-1b6e2a3164bd","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":78,"box":{"x":70,"y":188,"width":835,"height":12}},{"id":"0a0851d0-f21b-4ec3-a060-4e35158a7d18","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":78,"box":{"x":69,"y":203,"width":810,"height":12}},{"id":"34c3491f-863c-4667-8734-79287deba2e7","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":78,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"79a7b2d4-b029-4d84-a640-ba06ff0f5553","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":78,"box":{"x":68,"y":234,"width":826,"height":11}},{"id":"7ab56902-c4b2-44d6-9472-f43d31181f68","block_type":"box","text":"tarrifs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":78,"box":{"x":68,"y":249,"width":836,"height":11}},{"id":"2de28577-e9ef-41c4-8db5-cc9c103afe2e","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":78,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"b52859ea-a28c-46e8-9096-746681264db6","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":78,"box":{"x":70,"y":279,"width":807,"height":11}},{"id":"05464bd8-2828-447a-9121-e50807c62ca9","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":78,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"7beee2f8-a67c-4369-9fc7-b77373e4103d","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":78,"box":{"x":69,"y":309,"width":810,"height":11}},{"id":"d1dd91d6-5646-4662-abea-5fd47bfa405d","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":78,"box":{"x":69,"y":324,"width":813,"height":12}},{"id":"a9cb88da-74ee-47b1-87b9-555a51347602","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":78,"box":{"x":68,"y":339,"width":828,"height":12}},{"id":"95c9f443-7e60-4983-ad17-fd26f161e626","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":78,"box":{"x":68,"y":355,"width":782,"height":11}},{"id":"45d9cd14-b5c0-45b7-b9a1-6a15dd978ec8","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":78,"box":{"x":68,"y":370,"width":796,"height":11}},{"id":"93ea673a-b61a-48c8-bb5b-eac5e570653d","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":78,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"9cf99a12-ab5f-4c02-9f28-356b913f14fa","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":78,"box":{"x":70,"y":400,"width":768,"height":11}},{"id":"07e99d10-db5b-40f6-adfd-d2196043b654","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":78,"box":{"x":68,"y":415,"width":813,"height":11}},{"id":"6eefc2f9-80ac-47af-acd5-93ff1436819c","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":78,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"48dac9d6-6e7c-48c1-850d-0daf804fab10","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":78,"box":{"x":69,"y":445,"width":828,"height":12}},{"id":"1595c006-c5f1-4639-821a-c175307fbd8b","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":78,"box":{"x":68,"y":460,"width":782,"height":12}},{"id":"cb1e74ad-53ce-4608-91a4-fbe2b72fdc3c","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":78,"box":{"x":69,"y":476,"width":830,"height":11}},{"id":"c445dc5e-3bb7-4b15-a2fa-2247eb364ec1","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":78,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"77933dd9-a98c-428d-ac2d-bf7009f59705","block_type":"box","text":"Fund’s operations.","page_number":78,"box":{"x":70,"y":506,"width":130,"height":11}},{"id":"6a702cb0-f353-4bba-a8d6-9b9bf89491f8","block_type":"box","text":"Foreign Economy Risk.","page_number":78,"box":{"x":102,"y":529,"width":158,"height":11}},{"id":"2176bb6d-fae1-4d8c-9e3e-0da644c9ccf0","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":78,"box":{"x":267,"y":528,"width":636,"height":12}},{"id":"01bdcfcd-2818-446d-9b72-2cff478c22b7","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":78,"box":{"x":70,"y":543,"width":812,"height":12}},{"id":"a52a03a7-5457-4f00-bd8a-0c471bf9c352","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":78,"box":{"x":69,"y":559,"width":835,"height":11}},{"id":"cf484794-d49f-4558-9fc3-0c57191ed5c5","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":78,"box":{"x":69,"y":574,"width":795,"height":11}},{"id":"45bf9a9f-b924-49fe-9b2e-3f09f5719f54","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":78,"box":{"x":69,"y":589,"width":817,"height":11}},{"id":"c148b2a3-9289-48d6-8cd2-f74775bf13af","block_type":"box","text":"measures.","page_number":78,"box":{"x":69,"y":606,"width":74,"height":7}},{"id":"46e37ba3-0d87-41be-b2a6-310a2bdd230e","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":78,"box":{"x":102,"y":627,"width":240,"height":11}},{"id":"a71d0627-e98a-41a1-839c-49cd14fc6ee0","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":78,"box":{"x":349,"y":627,"width":534,"height":11}},{"id":"fc29580a-e93c-4c80-aa42-83d8b59ae4b9","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":78,"box":{"x":70,"y":642,"width":838,"height":11}},{"id":"84539902-497c-49c2-8b71-f808647221f4","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":78,"box":{"x":69,"y":657,"width":833,"height":11}},{"id":"6baf1e26-37b7-427a-94bc-1fe0eb14140b","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":78,"box":{"x":69,"y":672,"width":801,"height":11}},{"id":"85aeb000-8831-4a50-aa25-2105e34363c7","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":78,"box":{"x":69,"y":687,"width":808,"height":11}},{"id":"e84ae65d-ebe7-493f-9fde-308aef3516a3","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":78,"box":{"x":68,"y":702,"width":816,"height":12}},{"id":"03b03a8d-9348-4c77-82b6-fe14f83da474","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":78,"box":{"x":69,"y":717,"width":814,"height":12}},{"id":"bbef8a2f-236f-4638-86e3-0a9fe4512141","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":78,"box":{"x":68,"y":732,"width":771,"height":12}},{"id":"32ad9c14-95d7-4370-aa2d-fc6035c92dc5","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":78,"box":{"x":68,"y":748,"width":813,"height":11}},{"id":"5089c5f7-0244-40a2-81ea-f78eeb8b5aba","block_type":"box","text":"United States or abroad.","page_number":78,"box":{"x":70,"y":763,"width":172,"height":9}},{"id":"b98146bf-f7d9-4876-85a3-45c9fd323957","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":78,"box":{"x":102,"y":786,"width":466,"height":11}},{"id":"ee956efb-b687-4174-8aac-b9564b041664","block_type":"box","text":"Many foreign governments supervise and","page_number":78,"box":{"x":575,"y":785,"width":293,"height":12}},{"id":"24dc5d6b-d1d2-4048-8548-feaea29eff8a","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":78,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"227bf255-31b0-4461-9a66-33d083c44b5b","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":78,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"d00cebf4-3009-4ce0-a18b-63b43ec9a0da","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":78,"box":{"x":69,"y":831,"width":778,"height":11}},{"id":"d892f906-1929-4dac-8430-e76300422be3","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":78,"box":{"x":69,"y":846,"width":794,"height":11}},{"id":"50f8fd54-818c-4128-bc9f-0989729d4e64","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":78,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"dd603593-a0e2-4cca-9fd6-899a44fc96ba","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":78,"box":{"x":69,"y":876,"width":840,"height":11}},{"id":"a05bc235-6ef5-460d-b0ce-9c4b49aee516","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":78,"box":{"x":69,"y":891,"width":760,"height":11}},{"id":"100b15cf-3520-4845-b096-aa0ff1dcf265","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":78,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"53e72f38-6c85-479b-b355-7aa570eb1d9b","block_type":"box","text":"II-31","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"db6ff599-1289-4168-9350-cbafa0ae9b7f","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e354e98a-9359-4fd0-bc55-8361bb30797b","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":79,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"2f091e8f-caee-43b6-a284-45623053d9df","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":79,"box":{"x":69,"y":60,"width":793,"height":11}},{"id":"cfeb42f7-8d16-4106-90a4-c1e014497ef1","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":79,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"ab50018b-9a82-47cc-bcc5-29f0c87dd430","block_type":"box","text":"investments.","page_number":79,"box":{"x":70,"y":90,"width":89,"height":9}},{"id":"2f964702-e78e-4977-9a95-72667c046028","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":79,"box":{"x":102,"y":113,"width":458,"height":11}},{"id":"e2242a26-820d-47fa-8970-c6fd4db30fc4","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":79,"box":{"x":566,"y":113,"width":341,"height":11}},{"id":"fa0ca80b-c1a0-4fea-a01d-6e63d7b7cdd8","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":79,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"bf9ff060-f0cd-4aaa-a6dc-23b41622165b","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":79,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"497013b9-cf3c-4de2-9f26-6ca907527d3f","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":79,"box":{"x":68,"y":158,"width":838,"height":11}},{"id":"2a210d21-6559-494a-a079-8a578a46eb94","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":79,"box":{"x":69,"y":173,"width":835,"height":11}},{"id":"81d35c57-97a9-44b2-9e82-b66717e070b5","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":79,"box":{"x":68,"y":188,"width":777,"height":12}},{"id":"596faa08-0e48-4804-ad7a-ad27b887650c","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":79,"box":{"x":69,"y":203,"width":831,"height":12}},{"id":"4cb53aca-8ddc-43c5-8f07-f17e56e79f66","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":79,"box":{"x":70,"y":218,"width":828,"height":12}},{"id":"159f6024-d969-4907-a874-0eb2834a5619","block_type":"box","text":"States.","page_number":79,"box":{"x":69,"y":234,"width":49,"height":9}},{"id":"bdb37d3c-4119-49a9-8f22-87d3a4fe9f5a","block_type":"box","text":"Publicly Available Information.","page_number":79,"box":{"x":102,"y":256,"width":210,"height":11}},{"id":"2a025d32-4727-43b9-aad1-7e0333a1ca50","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":79,"box":{"x":319,"y":256,"width":558,"height":12}},{"id":"62d7d4ed-6656-4d64-be12-d60ded5d07e9","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":79,"box":{"x":68,"y":271,"width":779,"height":12}},{"id":"fb83cb89-84f0-42cb-8a69-9b356162e75b","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":79,"box":{"x":69,"y":286,"width":793,"height":12}},{"id":"9821539a-efb7-4f24-a26c-985d33d655d6","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":79,"box":{"x":68,"y":302,"width":834,"height":11}},{"id":"5c51b292-0282-40d1-9ea5-f85b9f312bd4","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":79,"box":{"x":68,"y":317,"width":841,"height":11}},{"id":"fa5abb37-0b00-4b7a-b2b1-29c292d855d2","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":79,"box":{"x":69,"y":332,"width":813,"height":11}},{"id":"ccff7f88-9faf-4a82-bf33-f1ce8a09fa0d","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":79,"box":{"x":68,"y":347,"width":827,"height":11}},{"id":"beebedb6-c54c-4d08-aa4d-7775fbaf1f13","block_type":"box","text":"United States.","page_number":79,"box":{"x":70,"y":362,"width":99,"height":9}},{"id":"1db93ddf-f61f-456a-9122-4c7b20d8893e","block_type":"box","text":"Settlement Risk.","page_number":79,"box":{"x":102,"y":385,"width":116,"height":9}},{"id":"fdfc7f49-3216-4ec5-91ed-8888c58094c8","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":79,"box":{"x":225,"y":385,"width":669,"height":11}},{"id":"7278a673-0e69-44a7-bd1f-1b14cfb3d503","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":79,"box":{"x":70,"y":400,"width":837,"height":11}},{"id":"1fce5f9b-5443-413b-b787-7b694c5bfa11","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":79,"box":{"x":70,"y":415,"width":808,"height":11}},{"id":"112d4f35-1e0f-478d-8f9b-f03f879b1108","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":79,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"d43c759c-0fc0-4982-a482-6a8d8afca160","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":79,"box":{"x":102,"y":453,"width":781,"height":11}},{"id":"926c6929-6bfd-4e2b-8263-cc1d2dd82c33","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":79,"box":{"x":69,"y":468,"width":771,"height":11}},{"id":"75cf0658-e032-403e-9cb5-dc57c746c588","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":79,"box":{"x":69,"y":483,"width":797,"height":11}},{"id":"a7bc7b3b-a207-4cd6-acdf-6eed304b7d7b","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":79,"box":{"x":68,"y":498,"width":802,"height":11}},{"id":"4a71734a-0269-4688-9d0d-0a25da8e8f0c","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":79,"box":{"x":69,"y":513,"width":812,"height":12}},{"id":"1ae4d34d-5687-494b-9a61-8a976ab6d320","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":79,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"8d4a01bd-a230-4397-a7c5-de526b22d643","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":79,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"efa2b879-7bd8-44fd-aedd-a76102c8238a","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":79,"box":{"x":69,"y":559,"width":539,"height":11}},{"id":"5905d3e1-cce1-4f88-984b-41c62e2fd867","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":79,"box":{"x":102,"y":581,"width":781,"height":12}},{"id":"ac3639a4-8bcf-4e25-8003-249edf76e473","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":79,"box":{"x":69,"y":596,"width":810,"height":12}},{"id":"f62a5c26-8f05-4f1f-9d1a-219ea17d83a8","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":79,"box":{"x":69,"y":612,"width":601,"height":11}},{"id":"57ca8f84-c206-48b6-a22c-64c8bff8ab96","block_type":"box","text":"Sovereign Debt.","page_number":79,"box":{"x":102,"y":634,"width":111,"height":12}},{"id":"1638cdaf-ff63-49ff-a0db-a2973896985b","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":79,"box":{"x":221,"y":634,"width":653,"height":12}},{"id":"0c1e4940-3fdf-4c53-a862-06310021ef51","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":79,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"3ef49918-ff6d-4f66-ad69-4c7a5ff2a521","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":79,"box":{"x":69,"y":664,"width":826,"height":12}},{"id":"afc35d08-d5d1-44c2-bd22-df69b1d02d37","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":79,"box":{"x":69,"y":680,"width":798,"height":11}},{"id":"2e67b7bb-27dc-4f2d-994c-3bdc551e8001","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":79,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"9358e248-1da0-42b5-9fd0-f4c5acb83432","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":79,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"ee60fa70-0280-4c87-9551-430196502e18","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":79,"box":{"x":69,"y":725,"width":790,"height":11}},{"id":"222d2d31-0327-4541-85b4-04c155df1f41","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":79,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"8a1d4766-4957-4ade-a940-bb04fd67e882","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":79,"box":{"x":70,"y":755,"width":805,"height":11}},{"id":"a73f7112-3359-45c5-a61c-aaa61dee9569","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":79,"box":{"x":69,"y":770,"width":772,"height":11}},{"id":"39e79b4d-2970-45aa-882d-ab3525ffa012","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":79,"box":{"x":69,"y":785,"width":789,"height":12}},{"id":"cd259ec0-b84d-465a-b71c-38171b82b59b","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":79,"box":{"x":69,"y":801,"width":839,"height":11}},{"id":"2817d024-b238-44bf-b18e-c93ae8bcdfe3","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":79,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"3c42bfc6-a980-4d02-aa35-619ea9ccd654","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":79,"box":{"x":69,"y":831,"width":821,"height":11}},{"id":"b55dd0fb-c9a1-4455-af1d-17471b19c811","block_type":"box","text":"debt.","page_number":79,"box":{"x":69,"y":846,"width":34,"height":9}},{"id":"5c807848-e087-4ae3-a535-bd941abc9312","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":79,"box":{"x":102,"y":869,"width":807,"height":11}},{"id":"34838abf-7617-482c-be8a-adaffe5ccf2b","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":79,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"1b204ab0-1226-4a96-99b8-9d09c6f03345","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":79,"box":{"x":70,"y":899,"width":300,"height":11}},{"id":"cd55d7f2-328e-4209-9699-b3c5de4965b4","block_type":"box","text":"II-32","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"416285dc-3458-43b0-86d0-37df91e6d578","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"587c87ea-51e9-4ca8-864f-d2eaa02aaa67","block_type":"box","text":"Withholding Tax Reclaims Risk.","page_number":80,"box":{"x":103,"y":45,"width":226,"height":11}},{"id":"519c8bc8-4639-43f6-a308-70793e62047d","block_type":"box","text":"k.","page_number":80,"box":{"x":328,"y":52,"width":3,"height":2}},{"id":"f03a4c5f-8eca-4d32-ad34-8852bdc0603f","block_type":"box","text":"A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":80,"box":{"x":337,"y":45,"width":534,"height":11}},{"id":"02016abd-354f-4da0-9cdb-2e2b1ae9ea8f","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":80,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"a6f03e2a-c2ce-4b0a-9ea4-5d4d44e275e7","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":80,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"35962e31-0475-4629-9f6a-83c532b75b9d","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":80,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"68dc821e-2e72-4eb7-b213-9179641fbfe7","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":80,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"715851a4-05e8-44c4-96fc-eda52c322937","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":80,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"a79cb80a-117b-4124-a441-827d349c16f1","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":80,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"84e79ede-01f8-43e9-8b43-3e512ed6edb1","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":80,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"82d24e76-89be-4d0e-a07d-a9cc7cd4dad5","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":80,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"d0aaf693-9e45-4bd7-82c0-b2a1029633ee","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":80,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"2b14691a-3e80-42da-9c06-d74c2aeb0901","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":80,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"7a68dc9c-bb7b-4679-93da-a1a6f76be72a","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":80,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"acb34085-0154-4591-ae91-25fabb518f1a","block_type":"box","text":"in the Fund’s net asset value.","page_number":80,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"c10c81ed-c013-4fbb-afa8-e2898bbbf5ca","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":80,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"40070e86-a55c-43ca-ba0a-2a66c32ac498","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":80,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"e28a48dd-56f0-45c8-9365-0acdb4d95004","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":80,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"96b79ea1-0e37-4a80-9584-b78fcb59c5f6","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":80,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"c1bf58bf-80e3-4732-8285-49dacd743788","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":80,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"86aa9c0e-c451-4922-8205-e247c9f8a049","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":80,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"b5c833d2-fc7d-46bd-a5da-08db64990265","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":80,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"4ba60860-b43f-4722-85fc-92fee48d0ea6","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":80,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"0b9b1f8a-c05a-4918-bb3f-e80912dbaca9","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":80,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"b718f42e-43bc-4942-9764-9372628442d8","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":80,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"1b5004bc-3db1-4c27-99c9-ecc2e36697aa","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":80,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"a833f1c7-d6db-4a57-bcdd-e9e2e480619f","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":80,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"9b0f56fc-cb3f-444d-8572-ebc3ffa6277f","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":80,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"d387fb80-f096-43bc-ae3c-e0c5f0e74215","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":80,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"b21a4e4a-1f72-4f16-96f5-cc4ca9b53124","block_type":"box","text":"Fund may invest.","page_number":80,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"e7f414f3-e0e6-4ba7-afe2-193c3321f37e","block_type":"box","text":"Funding Agreements.","page_number":80,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"3e26c856-269c-4ba8-a095-fb70bce3af45","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":80,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"6d8bcbf8-e134-4d65-8269-aff9d9052c54","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":80,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"0d4e899a-98d4-4b71-af37-45c29e5d2d43","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":80,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"7ffa52fe-b2f6-4da0-913c-6dbbefbad1b0","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":80,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"62c00437-a608-46f3-ae90-6cee12de4ab3","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":80,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"d81cfcc9-6f95-4c3f-880b-29b00ba7b88b","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":80,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"4ad06677-9f12-4db1-b1ea-0bb788bb8207","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":80,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"42af6d45-1490-46be-bccb-6900c056bbba","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":80,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"ca078455-9316-4cc1-ba1c-8af01f4250fe","block_type":"box","text":"Guarantees.","page_number":80,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"29362394-85d1-40fb-acd3-5ff30d32befb","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":80,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"5b562eaa-f158-45a7-9bb9-12a7f76104d4","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":80,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"cff4c120-3eaa-41f8-a039-cebc63fa785d","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":80,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"54da76f3-c279-4ee9-aced-9ca250bbba7a","block_type":"box","text":"Illiquid Investments.","page_number":80,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"549326a6-4d99-4c4a-9d86-e5c0a3975ac8","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":80,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"2f78273e-9211-44b7-9d56-3f4dfd47dbf0","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":80,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"7063ca57-b7e4-4e69-aabf-06390cad3467","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":80,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"855c6423-4fe0-4f8d-a5c9-49e13019d53f","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":80,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"59c299d1-b477-4504-a41b-8e7f17f67b16","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":80,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"d072d0cb-4b4c-4264-a108-39b0d19f8f91","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":80,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"212a9c5f-11db-4c06-a4b4-471bea50845b","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":80,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"94f234c0-6885-4f3a-8ba0-b9e0e81f9712","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":80,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"6513ba43-35c5-4dee-9f66-b3780166ff92","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":80,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"5b35e9fc-4717-4af5-a6f9-7fa79fd9fd22","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":80,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"d6fcceda-ee41-44f9-9603-c2b5ef228a63","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":80,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"f5a031db-4ebd-485a-aa7f-c805ec513945","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":80,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"873fd25c-57c2-47a0-9665-1f1fa089a863","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":80,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"3fb5c518-3908-41b8-9c45-66bb5bfcf3e3","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":80,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"f758982a-1a41-4198-aaf2-48b9f49fbd55","block_type":"box","text":"comparable liquid investments. 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The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":81,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"0198ff2a-78f0-4cc1-bfce-4d43f39ab3de","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":81,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"1d283ebc-d3b9-4e8a-8882-418fa5ff19ef","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":81,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"61536b37-1186-47e6-b31d-bf63f89cf41c","block_type":"box","text":"par ticular security as an investment.","page_number":81,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"a28bc25a-3129-46db-be14-4a0f7ad6c0b5","block_type":"box","text":"Tracking Error Risk","page_number":81,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"86ea9cd6-9b5a-443f-bf88-6f552a0f0010","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":81,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"ec5ad53a-9018-4320-b50b-c61c5ef0e663","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":81,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"97c5cf50-864b-4ca9-8f03-137626a38f6e","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":81,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"ffef929a-10cd-4d79-8ad2-88d5695b7f13","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":81,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"3217c630-c3ff-4f60-af62-ec1dee9ffb6f","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":81,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"16b462a2-969c-45ca-a5c7-29cb07dcc0d5","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":81,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"cc9db236-9b4d-43a4-a5e0-b08d7ff3a39b","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":81,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"a127cd09-6d3f-4cf4-b4d3-82726a0849a3","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":81,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"0d8dc60f-ac98-44dd-b3a4-cd86a1365b8e","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":81,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"aab89fcc-a5c7-45a6-b7fa-75ae24912a35","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":81,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"fd01c03d-562b-41e8-8d1d-1c15734048ba","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":81,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"75689498-0629-40da-9114-8958d2edae16","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":81,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"a09eef79-19c0-451d-8111-1140bcc93abf","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":81,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"f791d683-9847-4c01-8f89-77b613d08d91","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":81,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"a3c8524c-d17d-4ffc-a6af-f85d8f3db4d3","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":81,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"10620cbb-8e6f-42dc-838e-c3eb1b64227f","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":81,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"f835a220-67f5-429f-9f6e-01e8fbea6b7d","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":81,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"086ff311-3627-4b8b-a920-96a8ed729d4f","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":81,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"06d6f9a7-67a3-483b-b125-8cdf7c557da3","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":81,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"eeed184f-a9cb-4422-bd18-a2cd45c96fb3","block_type":"box","text":"exclude such securities from a Fund’s por tfolio and, if it does so, such Fund will be subject to increased tracking","page_number":81,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"a8dd8fb4-fd6c-42b0-ad9e-9a2f829a841b","block_type":"box","text":"error due to the divergence in the securities included in its por tfolio from its underlying index. The application of the","page_number":81,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"4bb4aeb2-f1b0-44f1-9ca8-06327e14ad54","block_type":"box","text":"abovementioned analysis and screening to a Fund and its Underlying Index is in the sole discretion of the Manager","page_number":81,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"d170666b-1623-4bfc-b56e-3b466e3a912c","block_type":"box","text":"and its affiliates (without any guarantees). 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No Fund is sponsored, endorsed, sold or promoted by S&P, a division","page_number":81,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"26e60a32-fa57-4066-8c76-57d4973e7976","block_type":"box","text":"of S&P Global Inc. S&P makes no representation regarding the advisability of investing in any Fund. S&P makes no","page_number":81,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"605dfb19-35c7-4c2d-b735-9b85ead4df27","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":81,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"23e1fd57-9abb-44cd-9fd8-bd0394f1cd91","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund par ticularly or the ability of the S&P 500 to","page_number":81,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"199e6bdb-7f83-4d0f-a90f-ae30e543fa3b","block_type":"box","text":"track general stock market per formance. 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To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":83,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"375901e0-6b4d-48ac-a271-af356a4e6a38","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":83,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"7791b63b-fbef-4ec3-b654-c6229cbea620","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":83,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"db5a2685-8e89-468c-a91c-0985ada39360","block_type":"box","text":"based on relative changes among par ticular indices. 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A","page_number":83,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"ae75abdf-d036-4d21-a32d-9c2f8c36f070","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":83,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"f4de9080-58ed-4b7a-9a17-84567305d1cf","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":83,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"91c0b9dc-6415-4fcc-b92a-00bbdd8b79ec","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":83,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"1cc754ba-2478-4713-b7db-0a94f26c4f85","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":83,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"03a7c136-7da4-4138-b4ab-cdc4172331f6","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":83,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"5b8a46c5-cdc5-432e-a205-0e1c66b1493c","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":83,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"ad854f8f-583e-44d0-b10e-5ba1d9afa7fd","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":83,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"d7f9a9d9-9679-4161-b1a8-3652ae0d0198","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":83,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"0bfaace7-3f5f-481b-9b67-0bd9309667b9","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":83,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"4b1b2dfa-b959-4af8-a668-8f523ab0b447","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":83,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"f03c5975-88e8-4f60-8a0f-f498514bc68b","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":83,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"97919ed0-f442-4574-994c-6643ec1dc709","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":83,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"9bd3bf67-70b8-4f6b-9fdd-83fddf5c84bf","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":83,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"49dc717c-c0ef-4b5e-9dca-199c8b97e9ad","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":83,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"068c7c56-c96c-4be3-85da-1081ecdc8332","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":83,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"eea6f524-a0b2-4a20-a27d-0c0a3e421aa0","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":83,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"6ae15f3d-c22a-43cf-a854-529418a427f8","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":83,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"0028f8ee-e905-4c70-8270-0f40d2338aea","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":83,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"cb52a23c-06b1-481e-a752-9630379876a8","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":83,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"4138fe3c-92e2-4716-8d43-6f75a0cbcc52","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":83,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"7e2c8970-08d6-4f49-98da-199ea9566c3c","block_type":"box","text":"Inflation Risk.","page_number":83,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"e45c00a7-b5e7-4535-95e9-757ba10fc444","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":83,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"a890cbeb-4ec7-44b1-becf-407d4c756f3e","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":83,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"b1f2fb5b-303a-4af6-8db4-c002d7d13855","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":83,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"bd518f0e-5714-4f60-8019-883f076b8a63","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":83,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"10b19163-b7ba-40c6-aeb0-4a2c6e9bc533","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":83,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"52cea555-7e96-455e-a61e-a5226140edfe","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":83,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"992e3d9c-df3b-4db7-89f3-05dfb0f48ffb","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":83,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"d3e34c95-25ea-4f58-a44d-3094d80ced82","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":83,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"9673bef9-889b-4af2-8018-ec5587a9e29e","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":83,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"5fa43178-ef23-40ab-abad-ba63041f76df","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":83,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"a575048e-c64f-46ea-9cc3-87762a26f80d","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":83,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"a357231a-5b78-4950-a659-e639ce24e4ef","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":83,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"5db15082-ba68-4956-97fa-1bff029e6a76","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":83,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"bf3b34f4-13ab-4a8a-8160-d3bb73326952","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":83,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"4be454e9-8c1e-4575-8706-87a871c8466f","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":83,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"ee85250f-16d1-4048-93de-8937d4314742","block_type":"box","text":"II-36","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"93501f77-d040-438f-bb37-611dfd3aaa4d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f259d2e5-2414-4488-b371-ece0aa7bac47","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":84,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"7e6c2f32-046a-4ac1-bea0-ab6e3ab8afe1","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":84,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"21e43616-240a-416c-899c-6e7e1de47e28","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":84,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"7381ab44-6bb3-4fd7-8060-18c709a0a000","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":84,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"0d8f923d-1f98-4356-a68d-2eba0ac9f47b","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":84,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"81f20ca4-4753-4927-b6e8-e13a6dc2e637","block_type":"box","text":"be available for very limited periods.","page_number":84,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"52b8443f-04bd-44bd-a8c4-64bd23da5841","block_type":"box","text":"Investment in Emerging Markets.","page_number":84,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"09fa65a9-e1a6-4dcb-9afa-fdef3dead428","block_type":"box","text":"General.","page_number":84,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"9d68f1d2-86f3-49fa-a233-5b77d826634c","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":84,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"fccc656e-01e3-4f8a-a3aa-724b3c258c8b","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":84,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"acd5adbc-ffce-45f8-8b68-0fcf0989d379","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":84,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"ba1ef7b3-0f74-4f8c-8c15-26ee67349d56","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":84,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"d85f54d1-a30b-4707-9de1-331b5526a567","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":84,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"30028a69-4ee2-4749-9539-a0d64c0f3472","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":84,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"5baf7545-2cf9-4d79-8b1d-5dcc3e5d6f40","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":84,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"e1ff77b6-99d8-4c5e-97c6-30e7066418e0","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":84,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"32ae0ee3-d311-4112-92e8-e5522673dd3a","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":84,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"4979e33f-f937-4e49-a324-eb1f72a027d0","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":84,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"18a9289b-f36c-4bb6-9ecd-1f0ce16d24a9","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":84,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"4c6d371f-a36b-450d-be90-5621f2b21a68","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":84,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"86ce6a5a-d90c-4a8b-af5b-f6f3a0a23e25","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":84,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"e534679b-c824-49b7-bc38-4a065ece761f","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":84,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"d20f61fd-afb2-490a-a7ee-ffc1df8acf04","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":84,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"32896f60-677e-48ab-b621-c4569a5bd7af","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":84,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"98002c04-6fcd-4e6e-9c0a-c4d716fc70ef","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":84,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"dd05ab36-ed66-4ffd-98b2-5103bb4232c3","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":84,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"81e355a8-e78e-4d8c-b5c3-830a1e3fd995","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":84,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"76ae0517-8c59-4314-9c1a-c012dd26b217","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":84,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"39c7206d-31e3-45b4-a69a-a36728f42e95","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":84,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"b3af3260-c492-4d51-8a3f-624493effcab","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":84,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"f86b254b-c58f-41f7-af86-e162e3372d8f","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":84,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"f461dcdc-34b1-4c2d-baf1-6b2bcd8dd907","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":84,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"616e38e3-b21c-46c8-9871-ae9c52501879","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":84,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"458ef72a-815a-4686-9536-c1197b9d97a2","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":84,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"7d3023fb-2185-49e0-a165-362dbde23cd8","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":84,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"3b3d0f61-7799-457d-a8fa-11d1ec120a6f","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":84,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"eed117e1-5a75-4e59-998b-cb3ca4f0375c","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":84,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"1a5002e4-a637-407c-8e24-b646e90eedba","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":84,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"2776e33f-a7c7-4581-a4d1-f0f9b7c9bdab","block_type":"box","text":"volatile than investments in more established markets.","page_number":84,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"5223e188-d0a5-4485-8f57-0438f4437f32","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":84,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"841f053a-2a18-45b9-a674-1cd3323cc490","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":84,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"f801db3e-3d19-4cfa-bd9e-9714c8fd29eb","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":84,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"53743730-028b-4970-9b93-e104b62a5968","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":84,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"d1b4d1c2-3528-4af4-9462-147a903fccaa","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":84,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"801145fb-d03d-491e-b65e-554f003d854c","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":84,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"a365a245-8d02-4e38-9195-1cd077c334d1","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":84,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"c19f4b34-8211-4d57-95bf-43b03fbb1485","block_type":"box","text":"acquisition or disposal of securities.","page_number":84,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"68023bcb-e529-489c-9bd8-df6fe7cf1b0f","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":84,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"aa13dfc6-2c67-48d6-a3f4-60af25906802","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":84,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"4c43f722-0d6b-4eab-9070-c2fe01e785a7","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":84,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"f8ca9285-5f56-46ed-a1e2-1ffec93db0ef","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":84,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"af9d2f9b-e7f2-4daf-9944-9d05f28e53e9","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":84,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"b350e945-4247-4e0b-9b0a-845c99df6c45","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":84,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"b1844072-449d-4880-bcb0-d2ab21416ce4","block_type":"box","text":"II-37","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c251ec35-ac45-4153-8e74-35773107df12","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e835ddf4-53aa-4723-8ed4-b41c25818c26","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":85,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"47c70fae-79a9-4dcf-9139-c7d9fb5d18b7","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":85,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"364e09aa-afcf-4c4c-b792-1f1bdd8b5883","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":85,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"c1cd0705-c2dd-406a-86a0-1b3f01bf28cd","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":85,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"574fb65f-10a0-44f4-ae59-833029fb2abd","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":85,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"48d1fc9d-2d3c-41e4-8050-c79192db3a03","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":85,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"e9876864-0783-4648-aa0b-7b047aac851b","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":85,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"11bb7075-9358-472c-bd66-071a6ef820c8","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":85,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"80cd6e80-f756-4af7-9539-78fe1406dee1","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":85,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"79b0b972-83f8-4623-81e7-801917b689f1","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":85,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"23772f69-b8e6-430d-bc0c-6fe2fb88c25d","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":85,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"748c6515-a6a9-4414-9032-e6d4653433c7","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":85,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"f6426d10-6b34-4728-b8d8-52a0a521ea8a","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":85,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"c13768ff-0e96-4ac7-808d-ed5287b104cc","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":85,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"61cc46ba-bde3-4586-b5b1-957c41b09baa","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":85,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"a4a53614-484e-4ecd-9109-753277a8746d","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":85,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"d4cbb4df-d508-4d86-8562-cf37f33a3ba6","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":85,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"e78b0eda-6f38-4d0c-9222-20ff7d5bf97e","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":85,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"9ee2a059-1fd5-47df-b2f7-fd72ddd4e04e","block_type":"box","text":"per formance of the Fund.","page_number":85,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"3b650af5-6247-4b41-b1ae-1e1a92bcc18d","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":85,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"c37466ef-4339-47c1-be09-1d3fe1e0a2f1","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":85,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"e06438de-f01c-4595-8b55-e43f15501f12","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":85,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"47c13a30-3cf0-4f18-abab-1f888b2e883b","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":85,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"e8c42b85-0afc-4a36-9e8f-e632865e6365","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":85,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"31b841ef-b8fc-4520-bed6-0f4dead8008b","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":85,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"4eee2c9d-fac0-4fa3-8465-7b047eba4c71","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":85,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"fb28fbf6-fec4-405a-90cb-e46066a8aa82","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":85,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"ac95e834-c66d-4a49-838e-e39b9144a92e","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":85,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"1afbe3cf-07a7-429b-b875-2eea4ba508fb","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":85,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"02015052-1954-495a-b7fe-568197e50a1c","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":85,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"7b1b4a6c-9481-4761-9544-1b05b2377236","block_type":"box","text":"affected by a variety of factors.","page_number":85,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"c053717d-afe0-433f-ba68-e2b20ec667ef","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":85,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"1b3bfbc8-4d3f-41b5-bfd6-d2e1865f6be5","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":85,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"819dc0c0-a2dc-42c4-978a-8423299ab414","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":85,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"8241bbf7-f12a-43fd-a024-5d2423a83a4b","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":85,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"d9a82c6a-05ca-41da-87f9-b96928fc977c","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":85,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"8c9bc7c6-0778-4748-9e32-7a85a3c08700","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":85,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"1515dc52-f6f2-4335-b9a0-853353cef0c6","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":85,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"9f047fc9-e77a-45bd-8ec3-5068423d540f","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":85,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"bab77c73-c217-4e04-9c87-b1161a6e2318","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":85,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"f91c8384-6451-4bfd-953c-8d0a6e58822c","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":85,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"9dea8e6c-acc6-4940-83e3-de4363858a1b","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":85,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"79343735-60df-4489-85dc-77e50d9b7b36","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":85,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"590f7657-438b-473c-ad16-f392efe13fae","block_type":"box","text":"nations.","page_number":85,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"9ba8f87d-e75e-42a8-a844-4fe67458eb39","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":85,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"c0f1fa7a-b454-400a-b77e-a4ea1e8e5ec5","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":85,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"b3c6322a-6d2d-4d48-8625-26c9170e5f3c","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":85,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"f5fcb6d3-ecba-4ac5-9606-e51097a58d07","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":85,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"14fe5648-d67f-4406-9351-13081e5f7191","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":85,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"716a5cb8-8652-43c6-b9e5-dcecb6badb4b","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":85,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"0c54d885-136f-481f-b283-33fe160df5a7","block_type":"box","text":"market Asia-Pacific companies.","page_number":85,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"9e016f05-ba51-4b0e-82e7-7d75be9a647d","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":85,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"2000ccc7-74f2-4ad8-81e0-b9d3d1b8f21a","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":85,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"c3befdb4-175b-442c-9d70-963ddc8ad16a","block_type":"box","text":"services for such securities outside such countries.","page_number":85,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"16ef8764-5806-4510-9424-98f7ad579ebb","block_type":"box","text":"II-38","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a91d1f1-096f-4a03-a634-a24bd7335cea","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"675bcdb5-d56e-45ca-82fb-c2e2eac71328","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":86,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"aae7519e-9d1e-4296-b256-4d909047a02e","block_type":"box","text":"to commercial banks and foreign governments.","page_number":86,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"76f716d7-2feb-47c3-af22-71507abba7d7","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":86,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"e9ed5618-9d33-48f8-b9a1-905b9d80f968","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":86,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"7787d4dc-0ad4-4b1f-a4b7-b26f96fb9400","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":86,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"9cb405e2-f970-47b9-90ef-63d97e8c0282","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":86,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"05728bf3-baf0-40ab-83a6-7cb54a61fd9d","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":86,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"e3fe958f-0ac7-4334-89df-d848d272029b","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":86,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"474d50ed-49fc-463e-b986-3257fa990bc7","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":86,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"8dbd2dcb-32a5-42a8-9d7b-f2c9e73c5b4b","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":86,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"39311d35-3d2f-4747-8e5f-b6558ea5c556","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":86,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"bc2fe3ac-ae31-4d50-af2a-0562f88b451b","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":86,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"bc0d59a8-0cad-4c61-9671-555c2f019a3f","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":86,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"9b2bb656-3730-4dfd-aa46-deb29727f374","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":86,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"1174ccf7-0db5-4084-88af-938fd8d32953","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":86,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"5404f269-721a-4f85-9c71-7eb3b2ee59e1","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":86,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"ed1d2203-7434-4815-96f4-72ad5bcbe865","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":86,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"6aa84ce3-af33-4268-ab85-4b4d6f7ab3b0","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":86,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"cca73cab-81b0-4643-8a5b-14e400ad2f73","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":86,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"bd119b55-8dd1-4f2c-9c84-e7ee78e7b9be","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":86,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"5312972d-fd58-49a8-88a3-47d9a8bdfe64","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":86,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"ee3d6171-f197-436f-aff7-fbe08d0cb3e3","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":86,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"273c4814-4ff4-4675-b939-79438ada774f","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":86,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"97c894ad-db20-4b0e-94a8-863c56f9b466","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":86,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"7088b62b-0ea0-4d4b-b0d9-546f3d4cc3ee","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":86,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"02b127d3-41ff-46fe-bb97-e59388287320","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":86,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"d32cf446-959d-4dd5-a02d-a4a93e72a676","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":86,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"977f7ccf-2e89-43c5-9de4-a546acfc14ca","block_type":"box","text":"investment at that time.","page_number":86,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"406edbc4-509d-41ca-af7d-ac3fa3984954","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":86,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"815b90ad-cb24-4dac-a6b9-d1ec11d140ce","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":86,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"8db16d0a-b2c1-4328-9873-5e45aab7eec6","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":86,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"d5bec1a3-7fe5-4008-b48a-519e27a1f279","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":86,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"3935206b-536b-4f07-87b0-ca3be387058a","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":86,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"a29ea060-9f03-410d-9c03-44afdf61ba49","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":86,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"33c83c6e-5c51-4a9a-b194-0210d080fd17","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":86,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"3febd845-3680-4ecf-9a02-797848085707","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":86,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"5373fe52-05ca-491f-a334-2ed17d998cb3","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":86,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"119122e9-9ad1-47f6-b195-71a122d0b11e","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":86,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"a0bcb95d-f753-4185-9d32-54451ba86460","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":86,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"e9652d38-19a6-40a6-8c21-5e41c5deb553","block_type":"box","text":"government).","page_number":86,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"c2c3f4f8-b4cb-4e95-91e5-a52919122eec","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":86,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"23ef66a3-9407-458e-a68c-45f97806b583","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":86,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"547bddd4-25e6-4f07-919b-1d5e3e025ad1","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":86,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"bbed97fc-7cb0-4709-950f-d10eccf3db6b","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":86,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"77013979-946f-4837-9992-6cb4409c516e","block_type":"box","text":"foreign banks and other financial institutions.","page_number":86,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"5e6d1e66-6e7a-44cc-bfb7-202c69333ee0","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":86,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"045ab542-adf5-4d7c-93be-051068f4ddeb","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":86,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"23d7f4f5-ded5-4685-9366-3209f7458208","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":86,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"926016b1-1303-461c-9606-e253606ef64d","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":86,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"f6219e48-a3c7-46ea-8740-38fbbd6c58c4","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":86,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"b20ffcbf-38da-45fe-8c53-0f79e39054b9","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":86,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"20bd8b9f-f452-447f-9b85-94fc3959c79a","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":86,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"1bcc197d-311c-4b80-97e7-0c48bbbde68f","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":86,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"d05e1b8c-8ec7-42b5-8569-41beb1b60d1b","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":86,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"53269f39-9ae0-427e-8009-f770aa7fc61b","block_type":"box","text":"II-39","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc5a3def-2619-4d25-9cde-d7f1cba9d187","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02ec41b9-2a20-4f4d-98d8-55dadfb5257b","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":87,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"f0723483-2318-4856-b5db-78f6971c43cc","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":87,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"e8b25c75-7e95-420d-84b3-6f966b9e5a41","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":87,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"f36c1670-5d66-4da9-82eb-326dd71c1aa9","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":87,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"79244751-9b2f-46b0-a080-7ddccf041fcf","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":87,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"44752079-693c-4fe6-a481-238b8bd6bdf2","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":87,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"23866cb4-b0fa-49be-96f1-0625e81439d6","block_type":"box","text":"foreign securities.","page_number":87,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"ec22e275-56cd-462e-a59e-1f4ce5928f68","block_type":"box","text":"Risks of Investments in Russia.","page_number":87,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"ee8af3fd-b040-46ba-b6fb-11e8e20dfe88","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":87,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"64406b38-8d19-424b-877f-190cfd28c91c","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":87,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"b9bb679e-b71e-4d58-b14d-77f7a7916339","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":87,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"92c7a073-175b-446a-8d0a-5193fe5f02ca","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":87,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"51704d3f-a21b-48b6-87be-19d7f417f9e4","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":87,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"641a8ff4-677a-49f9-999d-46289c401faf","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":87,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"6422a6b9-e93a-40ef-a212-5642198d95c5","block_type":"box","text":"developed markets.","page_number":87,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"4aaa13e6-9c3e-4e74-99c5-7b18043a2dc4","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":87,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"4c676440-6566-4d9e-82c8-78928feee50d","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":87,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"07267776-a6b5-4660-b9e0-4185848bbe56","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":87,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"ba71b329-3d62-40be-9610-b409c6726260","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":87,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"5d139cca-df58-4832-abed-3e49229053b0","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":87,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"cbf4551c-1477-46b5-bdcd-740053e61fe4","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":87,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"83255a6c-9b23-4aea-bd5e-5c58e4989d39","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":87,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"60919612-f0f3-40cb-8a89-f018f729700a","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities; market loss still","page_number":87,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"d5115e1a-c2e4-4c68-8602-101386b24e3f","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":87,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"433556ca-7e3c-459e-8dc7-c97b33db7e49","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":87,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"c2218999-25dd-4059-8d2e-d0cd141ec8a9","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":87,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"b19c6413-7e7a-4073-8ac6-6614b95a9945","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":87,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"06dd03bb-007e-4aab-9a31-4ce14eb75dbe","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":87,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"b69995b6-f763-486d-b0a0-b79efa196543","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":87,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"da64115a-3f02-4abf-8356-9b70f0940dd0","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":87,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"17e339b5-062e-49a4-979f-a7c39c935cc8","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":87,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"bcc42d42-6da6-4cec-b8b6-238e39ca055e","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":87,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"a395da78-6f33-43f1-9184-7e3f71d6176f","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":87,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"c90802cb-8df6-41b6-989f-4752afff6b09","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":87,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"a0f2e608-9646-41f9-a2cc-68ff073d442c","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":87,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"b3bd6ebb-d0ea-4312-b365-8fbba1504eb2","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":87,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"11e06b26-8741-473f-82c4-f5f1e2e3e6ed","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":87,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"43bf3fac-e256-44c1-b98e-c0fc9991cc8e","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":87,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"ba9388bb-4a20-46fa-ab73-f677fe26737b","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":87,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"b10f8ec7-eca5-417c-8bad-3973168ef111","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":87,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"efcce8ce-1971-4ac5-b33e-ffe29174ee4c","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":87,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"6a970ed1-77ac-440d-807d-2edb6b230caf","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":87,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"22c87270-00e6-4eb9-8bd9-baee0daf4074","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":87,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"7bf02b98-a1a1-4a81-ac7a-600906209011","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":87,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"d7f11693-fc22-4b15-8d04-82d8da0647ca","block_type":"box","text":"sectors globally.","page_number":87,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"1b2af206-174e-4ec2-a536-d60bdf843360","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":87,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"6d8c7823-5e0b-4917-b347-62eafe30f905","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":87,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"557d8c9a-46b7-4ac6-96cf-a673046781be","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":87,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"6c07fa0d-42a1-4de7-a435-dd1508e8bc5d","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":87,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"5fb0381f-2166-451e-af01-baf9140c35db","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":87,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"2070a98f-8597-4ae0-abee-77c667a5a186","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":87,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"79af2366-0583-48c2-b482-7df439466c55","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":87,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"57764229-2bee-4b7b-b679-a83f333c1c26","block_type":"box","text":"These sanctions have resulted and may continue result in the immediate freeze of Russian securities and/or funds","page_number":87,"box":{"x":68,"y":853,"width":822,"height":12}},{"id":"94685d3d-6edd-4a9a-a3c0-ed0a0262cc6d","block_type":"box","text":"invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities and/or","page_number":87,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"ada02b74-c2b1-4479-95d9-b4b9967818e5","block_type":"box","text":"assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may fur ther impair","page_number":87,"box":{"x":69,"y":884,"width":839,"height":11}},{"id":"0508a275-5532-4547-b54c-101c3fe03000","block_type":"box","text":"the value and liquidity of Russian securities.","page_number":87,"box":{"x":68,"y":899,"width":314,"height":11}},{"id":"3c770fdb-6ebe-41fd-a674-f1c0743fc5bc","block_type":"box","text":"II-40","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f526cde2-b3ce-4f8d-bd82-c035d0c8fa1c","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c38bc41e-8583-4099-bea4-4975cf1df3d6","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":88,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"868b3db4-fc6a-48e2-98b1-75e62b79a2f8","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":88,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"cea5375b-3abd-4e9b-8cf3-f559b3c85001","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":88,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"11787299-6ac2-45f6-8f1c-e45657dfe5c8","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":88,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"aab8003e-92d0-4987-bc45-634828f2ab8d","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":88,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"32685bea-4392-498e-87d9-2ff74ac0db52","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":88,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"1713fbdd-c7f4-4aa5-91a3-e0f571e846f4","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":88,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"b11f7bd9-ab82-478d-88e5-681c5bf42006","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":88,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"fdf79018-b8a1-46b2-a294-be8d870e1405","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":88,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"ea398ac7-b2a3-4612-aa76-d91a661ecdfd","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":88,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"75b4cd2b-7a53-4709-93d9-0f4e18af0671","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":88,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"b6829818-fb6b-40ae-b38b-fd92abae10f5","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":88,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"fb5f9600-83ee-4d66-a24d-e8c6c2f0d24e","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":88,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"3b3b0907-e4c3-464f-b079-3f201b24cc2d","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":88,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"a60e6aa1-168f-42e0-a5c5-f8ee9f3c542c","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":88,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"0dbfa943-2b70-4ca2-8124-ee3753b263fe","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":88,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"2b671781-516c-4be6-839f-0128b6c3a27e","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":88,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"73a3e47e-f7cc-4cb3-b7b9-2ab5563057d3","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":88,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"2c4469d0-6857-45ba-9514-0dcd4b4b4a37","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":88,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"62750f1a-d7a3-462b-809c-754750699cac","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":88,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"dc62cb9b-1b13-4f04-ab4f-3fbae934eee3","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":88,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"16202b25-ed0d-4250-909e-b60bd8c372da","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":88,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"3c0bd5fb-37fa-4695-b44e-2c82a93f0ca2","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":88,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"c73eaf71-a17b-4320-b1ad-a45af2d00f5b","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":88,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"9d3669b4-ba0d-4c4b-8ee1-01de53058a86","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":88,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"edd696a8-bfe0-4874-8976-323f9ee8ec05","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":88,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"45005630-701c-4b6a-9f61-24681f1022b9","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":88,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"cd211087-6266-44b7-a98e-37ddb64b2aa7","block_type":"box","text":"impacted.","page_number":88,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"3de62e05-568e-4743-a516-4c036b0d66a9","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":88,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"79594af3-88a7-4cf5-8f6c-7b2811dbde20","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":88,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"8c24716e-171d-40ff-8791-b76ddf8224d2","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":88,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"1c770d6a-3c44-4b82-aea2-27dd1e930298","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":88,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"3512a9b2-9c3d-4244-be52-23612b6e1971","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":88,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"000cb136-8fc1-4081-9678-d12a720d5a9d","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":88,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"a80473f4-c384-428c-9559-f8ea79ccaa4a","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":88,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"68b0aba6-e9eb-4413-873c-072774aab23b","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":88,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"83545e4c-fd5e-4e62-bf05-3be5a08de192","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":88,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"ba4c193f-2f60-4b67-b99f-e7cc2da8c4d3","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":88,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"4f344129-28f6-4f78-971a-b97d113cdf1d","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":88,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"393385cb-40d2-454b-9acd-baf9b4c8f078","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":88,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"7f2cd641-fcaf-4574-af9c-cdcc7c96194b","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":88,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"4363c44d-1c65-47cd-8b85-d7f87e4e03db","block_type":"box","text":"economy.","page_number":88,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"3d2dd90c-04a1-40f4-939a-cd5b0e7fa5cb","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":88,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"683e1cc8-1380-4f34-a390-ee30dc8180b5","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":88,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"d5a253f6-b06d-4b03-a63b-9bf0a816d238","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":88,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"d1785a32-63a4-429a-bbcc-6a97a1aac160","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":88,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"3b2cbdaa-343b-42bc-be85-b4e487158793","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":88,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"addf2874-a2af-481c-b3b9-ede8cd555c1b","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":88,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"ca3771e6-73ff-45a3-8f71-fc503a931309","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":88,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"14fcfc2c-dedb-46f7-bd4d-c6160b465575","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":88,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"b80459a0-dc0c-4db7-8539-ecfeedcd6ec2","block_type":"box","text":"typically the case for investment managers.","page_number":88,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"e98eb000-ec8b-4981-806d-3dd52dcde35d","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":88,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"3b1b3b5b-b45d-42ae-bacd-65a932765e80","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":88,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"a773e542-9d3b-47de-8eab-5f8027e3dcf9","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":88,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"df448ac2-7dd8-4ff4-8546-096fd4760c2f","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":88,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"dfb56b62-fe51-4e6d-bcbb-8e1e545485a5","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":88,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"467c87a9-03b2-4415-8b74-ca5b85b690be","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":88,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"f90d3ed8-dfa3-4eac-870d-e4d19f9893cb","block_type":"box","text":"II-41","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9e6441d7-21c6-4cf7-9bcf-bc872d2fe493","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b3758cb8-79c5-49c4-bb57-46b89898f66c","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":89,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"0c25936c-2cd4-406b-9c2d-0965d713f4c4","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":89,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"dc8288ec-2017-438c-b125-afddc1ef9007","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":89,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"d776cddd-4488-4fe8-beff-63515a88f189","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":89,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"085eb636-12bd-44b8-a538-472a03f98383","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":89,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"82957cb6-8e04-4ab6-b201-cad62925a180","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":89,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"9c3ecef9-4abe-46ea-b5cf-89825f825d36","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":89,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"8a6ae440-ed66-4228-bc79-0b034544e685","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":89,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"8dd51ac4-0e85-4f97-b83f-94eeee903160","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":89,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"d4ebf23d-9d34-4295-9eea-b06f1fbc202d","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":89,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"70d7a4bd-d1d4-4016-889a-afe4f3825ebf","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":89,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"93a60367-4179-4921-bb82-eeb28361c1d0","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":89,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"9421af7f-5d67-495a-932d-2d98ccc380e2","block_type":"box","text":"will be indirectly subject to those risks.","page_number":89,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"deb5f597-09b5-483d-8bf0-9d0114a34b54","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":89,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"389b40bf-9f23-462d-8f62-98c140ae0c6b","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":89,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"512bee81-bba9-4597-a424-1cf22a2e2455","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":89,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"53a5e4ae-f624-4acb-ae3c-2bb929b19a22","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas and its economy is heavily dependent","page_number":89,"box":{"x":70,"y":287,"width":832,"height":11}},{"id":"443fcb3d-a019-48f6-936d-ed7c002aaea3","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":89,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"5cf86380-3f8d-4851-8ae6-97aad98cd98a","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":89,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"47fe8901-92ea-4cc6-bdd8-3523b21c39ec","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":89,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"1053f571-3e8b-497d-bef0-e71a0bfbbc0f","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":89,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"dc2a539c-aac6-475c-bcd6-a3d90b64ed99","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":89,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"37be9d6b-9e15-46ea-ab8f-6956119cd458","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":89,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"7a319847-cada-44e1-80bc-06ed86c0b82a","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":89,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"fa0bed8b-f91d-472c-8d00-e245b21c982e","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":89,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"31136352-a5fd-4ac4-a961-920c78d1a7c3","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":89,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"7d31a6c1-8416-4651-9987-15e98178e3d5","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":89,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"bfa39adb-cdcf-4970-b23a-8820bdaf69b4","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":89,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"0ccd672f-4047-4c77-ab24-23b3f216f764","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":89,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"02488154-9354-4527-b57e-6a22d6bcfc4d","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":89,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"df7d0449-86fc-422b-83a8-7e95369726ea","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":89,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"94279f31-edd6-4280-9a32-b4ed1e7c8247","block_type":"box","text":"impact on a Fund’s investments.","page_number":89,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"e07952e7-2ba6-48a5-a54c-98c219965702","block_type":"box","text":"Brady Bonds.","page_number":89,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"58bf9344-5094-4957-80cb-614b0c0e3a1b","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":89,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"0a8aac52-52d4-434e-aa7a-9466c8893c68","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":89,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"70f9ac38-b661-4b8a-b27c-fc6908d46d77","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":89,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"450e92db-90f2-4ae4-8ac8-6927b5aac31a","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":89,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"2c160c77-e99f-44fe-bad7-73698184808f","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":89,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"b1d2c5ed-a782-465e-a520-8956bf239d41","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":89,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"2ec3ad3b-f5fa-404e-b1e3-5eb360616e63","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":89,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"f93c5c6e-77d8-4198-bdac-08e2ccb9f854","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines,.","page_number":89,"box":{"x":69,"y":642,"width":787,"height":11}},{"id":"1c550d64-1e7c-4198-8a26-37a745cc509c","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":89,"box":{"x":102,"y":665,"width":798,"height":11}},{"id":"b99ae5bb-8ef2-43be-bbe4-5d3ae3538ad2","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":89,"box":{"x":69,"y":680,"width":780,"height":11}},{"id":"236d1bdc-5317-4d73-9bb2-2348111fcd3b","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":89,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"8874f673-680d-4fd4-a65f-938a5a276d71","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":89,"box":{"x":69,"y":710,"width":796,"height":11}},{"id":"2e01d439-5898-4f71-ad67-598cf2c2fac2","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":89,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"fd705360-6c84-43e9-af89-4afd044e2bba","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":89,"box":{"x":68,"y":740,"width":823,"height":11}},{"id":"1e3f8f44-49e0-4938-b713-20da46e6d647","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":89,"box":{"x":68,"y":755,"width":833,"height":11}},{"id":"8c2fe10d-f487-4cc7-91e2-dfcadfc28e95","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":89,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"fbfe07b4-afb2-4dbf-802c-74251fcc2917","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":89,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"db2f5fd4-4c09-480a-a0a9-60591b6e9416","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":89,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"fb267e8c-8d6a-411c-bf00-d90ad230941b","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":89,"box":{"x":68,"y":816,"width":832,"height":11}},{"id":"6f30ca50-0844-4427-b7c4-ecb7c5e5c308","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":89,"box":{"x":70,"y":831,"width":828,"height":11}},{"id":"688c5391-8208-4d9d-abaf-00b257334e0e","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":89,"box":{"x":69,"y":846,"width":430,"height":11}},{"id":"18d59194-695e-46dc-af75-00d435615756","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":89,"box":{"x":102,"y":869,"width":807,"height":11}},{"id":"1cbf11a7-b47f-4a37-850c-15330293d765","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":89,"box":{"x":68,"y":884,"width":838,"height":11}},{"id":"fce8b72e-3567-4044-a7ac-89acb813259e","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":89,"box":{"x":70,"y":899,"width":819,"height":11}},{"id":"8c5dba73-d1ea-492e-a2f4-b03265b97cbb","block_type":"box","text":"II-42","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3b033968-f8f9-49ec-ad6c-22767a65ea77","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a16881e-2140-43bc-aea2-fb81df075bff","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":90,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"c0fc2b68-6f11-4d52-87f3-06d7c3c85387","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":90,"box":{"x":68,"y":60,"width":841,"height":11}},{"id":"4477e557-545d-47a5-95f8-a8c0f9dbb4a0","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":90,"box":{"x":70,"y":75,"width":351,"height":11}},{"id":"c8a26e52-58f1-46a7-b7fc-c331d5d15fc9","block_type":"box","text":"China Investments Risk.","page_number":90,"box":{"x":102,"y":98,"width":171,"height":9}},{"id":"4a500f23-d64e-4672-acd0-180e0ab9f1e6","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":90,"box":{"x":102,"y":120,"width":763,"height":11}},{"id":"4b0b4ce5-30aa-4cc0-b68e-a01e8ee9930e","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":90,"box":{"x":70,"y":135,"width":830,"height":12}},{"id":"26a41dd3-3869-4b3f-9ae4-f83df06e58ff","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":90,"box":{"x":69,"y":151,"width":821,"height":11}},{"id":"b8fa20aa-5c91-4e81-8407-0cf49318c4dc","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":90,"box":{"x":69,"y":166,"width":809,"height":11}},{"id":"5f8ae0f3-8ffc-4843-a6c9-fb011488c2b6","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":90,"box":{"x":69,"y":181,"width":713,"height":11}},{"id":"aaf744f3-3659-40e5-abf3-05ba9f443ac7","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":90,"box":{"x":102,"y":203,"width":762,"height":12}},{"id":"69e0b28c-36e2-44e7-8b87-528c3c4e4445","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":90,"box":{"x":69,"y":219,"width":800,"height":11}},{"id":"b6563992-bfd8-4f50-a69d-9fb481cd0f22","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":90,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"e56cdbc7-7a43-491e-a38a-59e035ea06bb","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":90,"box":{"x":68,"y":249,"width":777,"height":11}},{"id":"ac84f55e-b752-406a-8253-8963076ad255","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":90,"box":{"x":69,"y":264,"width":809,"height":11}},{"id":"d3c21e54-3850-4891-a609-146e0b4fad33","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":90,"box":{"x":69,"y":279,"width":805,"height":11}},{"id":"79fc7ef5-0def-4498-b437-562667d1a60d","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":90,"box":{"x":70,"y":294,"width":770,"height":11}},{"id":"5a4c3a21-89d1-4740-8028-40cd92794e69","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":90,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"7719aaf5-3181-41b1-be0e-11a7750e80dd","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":90,"box":{"x":69,"y":324,"width":831,"height":12}},{"id":"4cd04b16-9a8a-4076-8f34-4d2d1169a478","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 cer tain","page_number":90,"box":{"x":68,"y":339,"width":812,"height":12}},{"id":"e8f07003-270d-4da4-876f-556b797e523c","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":90,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"4e6d7ac3-8885-4af0-9474-fa835464d631","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":90,"box":{"x":69,"y":370,"width":769,"height":11}},{"id":"05cba26f-7f24-4938-9b73-e9d94ecf6d31","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":90,"box":{"x":70,"y":385,"width":836,"height":11}},{"id":"3bf18628-8de7-4e3f-ab30-eadbea25c078","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":90,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"9de03d6c-5003-4988-91da-8469d4319b80","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":90,"box":{"x":70,"y":415,"width":813,"height":11}},{"id":"e002c57a-8464-489a-86fe-538999b66447","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":90,"box":{"x":69,"y":430,"width":811,"height":11}},{"id":"127dd0f3-0806-4e89-b677-9d2fee30b0a3","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":90,"box":{"x":69,"y":445,"width":804,"height":12}},{"id":"50300c4a-44cc-46da-9e04-a06e15e435e6","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":90,"box":{"x":69,"y":460,"width":829,"height":12}},{"id":"315d97b0-f281-4946-b709-544a4bf54d75","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":90,"box":{"x":69,"y":475,"width":825,"height":12}},{"id":"575d844f-f989-4bed-b92b-91caa2a0324d","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":90,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"5957dc72-bca2-4efa-8f10-ddb5c914f708","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":90,"box":{"x":69,"y":506,"width":776,"height":11}},{"id":"e8eb0e2e-e54f-4a40-96a4-6c0cd0799dc4","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":90,"box":{"x":101,"y":528,"width":792,"height":12}},{"id":"20776ee7-dd19-44fb-9467-50847cbeb43c","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":90,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"24233aef-97cb-4b11-bd94-57f35dc3b5a9","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":90,"box":{"x":68,"y":559,"width":835,"height":11}},{"id":"5c197daa-a7e7-4324-a7f7-e7c80eb2336f","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":90,"box":{"x":69,"y":574,"width":802,"height":11}},{"id":"9d70caa2-b704-46a6-9ce8-125e54fb40e5","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":90,"box":{"x":70,"y":589,"width":763,"height":11}},{"id":"33ff693f-43c2-44a4-bbff-88e276dae38a","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policy making and","page_number":90,"box":{"x":69,"y":604,"width":834,"height":11}},{"id":"421e6f80-9961-4f60-afc0-4760ca1717d8","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":90,"box":{"x":70,"y":619,"width":813,"height":11}},{"id":"e2e72353-8573-4a64-8041-7e0cfc662da6","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":90,"box":{"x":68,"y":634,"width":653,"height":12}},{"id":"708fda74-639a-4b14-b8e0-ab492071c4ce","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":90,"box":{"x":101,"y":657,"width":783,"height":11}},{"id":"cb484dbb-dd81-43e2-bb74-ac9c980bdc42","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":90,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"86e4c871-0267-4fbc-87bc-da7d81140787","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":90,"box":{"x":69,"y":687,"width":827,"height":11}},{"id":"93aa333f-446c-4ac8-9fbe-10a6fb058a81","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":90,"box":{"x":70,"y":703,"width":821,"height":11}},{"id":"d5a0b1e4-1c16-4db2-818d-873e31cca3bb","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":90,"box":{"x":69,"y":717,"width":683,"height":11}},{"id":"676e6147-42d3-4cd2-b057-2aa18a705f3c","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":90,"box":{"x":102,"y":740,"width":797,"height":11}},{"id":"c3f45800-62a2-4c32-accb-a3fac567ef29","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":90,"box":{"x":69,"y":755,"width":779,"height":11}},{"id":"a03cf64a-97d2-444d-bbb4-738c1bdf0060","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":90,"box":{"x":69,"y":770,"width":822,"height":12}},{"id":"b0516e66-a7ec-4b3d-b1ba-f4e57de0cebf","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":90,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"07a2141d-9f6e-4ff5-8cfe-e092e0d4de99","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":90,"box":{"x":69,"y":801,"width":778,"height":11}},{"id":"720a50fb-a460-492d-9210-c477ca605292","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":90,"box":{"x":70,"y":816,"width":803,"height":11}},{"id":"cfecaa82-6235-4fd8-99ea-795a97a0d1b8","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":90,"box":{"x":68,"y":831,"width":816,"height":11}},{"id":"e0651576-002f-450a-b6b7-37ab4a7667df","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":90,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"733edb0f-99bc-43c2-87ee-9e859105fe46","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":90,"box":{"x":69,"y":861,"width":798,"height":11}},{"id":"8bca726c-9872-42ef-a0ca-bee03d91dab9","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":90,"box":{"x":68,"y":876,"width":826,"height":11}},{"id":"f626731f-d386-4612-815f-6b35ab297b3c","block_type":"box","text":"sub-custodian.","page_number":90,"box":{"x":69,"y":891,"width":102,"height":9}},{"id":"ff5ba73f-7c0b-44db-b1a6-57614bd25e7f","block_type":"box","text":"II-43","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9d54fb41-4f6d-4c29-ae79-81ae2972db8c","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3bac861-6da9-4471-998e-fc78e20ce4dd","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":91,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"de003206-1739-400a-8814-458933fd8784","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":91,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"ea587e1c-1fb9-4b2b-a733-f1c9d1a72e1f","block_type":"box","text":"on investor protection considerations.","page_number":91,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"51367dee-12d4-45a2-9a73-130293f8fd8c","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":91,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"eaa86727-567d-4b71-890f-1e01956b2da1","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":91,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"6ff94eca-bbe2-4186-9f43-8cd804f5b1e8","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":91,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"8a7f698a-34e3-4d87-ba99-ac1a5f2cb727","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":91,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"20f1f1b6-f37c-47be-a7b3-ea7b5bd5a85e","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":91,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"5af8bb89-8c10-4b15-ba61-1659b97ef312","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":91,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"f8346502-72c8-4a15-876b-03150f722217","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":91,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"26132db6-df34-415f-96e7-9f9077ff5ae1","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":91,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"dea27a1e-ee1b-4d11-9c57-3e986f94e4ac","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":91,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"c549ff66-a664-4f7f-9d62-c5a5b641a8f7","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":91,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"7e8b4fb0-05c8-4199-92e8-74d59cc14ea0","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":91,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"4435ff4d-7f62-4821-99c3-6dcd6e7756b3","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":91,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"684f5db1-151d-491b-bfe4-faaeced69aa7","block_type":"box","text":"accounting firm.","page_number":91,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"db71f553-e7e9-4505-b2c6-4117df270650","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":91,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"dc2073d4-5003-4a64-a1a9-6da2af73d4b2","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":91,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"55626cdf-77cb-4d68-9c81-ec49a0f95e8f","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":91,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"cf6f7ad3-2b3d-4571-a0f9-1d9352b9233f","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":91,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"e022aaec-46e1-4223-98a8-3bedb021d4c7","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":91,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"2d751923-7981-41a2-aa89-0a1e8f9a6af2","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":91,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"15955152-1c40-4b8b-bbcd-30f5ee96d290","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":91,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"e9115d01-0479-410a-9fcd-c0716a4769c0","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":91,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"3170a9f3-ab87-4cd1-b2f6-8c41de452f38","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":91,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"1b50c033-a56a-40f2-8d39-59ba7050e0da","block_type":"box","text":"RMB (“CNH”).","page_number":91,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"61977444-2c29-43ec-8ef7-37dc0cea679a","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":91,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"1f25af72-53a5-4c18-ad23-2bc873021010","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":91,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"90f75300-723f-43e2-932c-a1902d676ba4","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":91,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"a3b22e70-5794-462b-bade-f8376ae93897","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":91,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"235692a0-23ad-4550-96ee-4191442acddf","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":91,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"bf89da31-593c-45c8-a39f-04f0bf5a0e5e","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":91,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"86c8f6df-1460-4444-a65b-e607682f05e7","block_type":"box","text":"represent equity ownership in the operating company.","page_number":91,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"d34e85a0-cb3d-4d8e-adb9-a9eb47aacd16","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":91,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"bca2a513-f5c1-43c9-a24c-bdec8c64a691","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":91,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"8fe0171e-00a4-4415-8756-b4f9c0c79a88","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":91,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"07e002c5-dd2b-4a01-a563-9dda0fe31903","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":91,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"37cfd864-7b5f-47fa-9d73-3cba2a988cf5","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":91,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"a4c1ce62-7f48-4a56-8f93-abc8ba1ee649","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":91,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"85bd6f0a-930a-4875-ac71-f1dcf9bf7399","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":91,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"ced61747-55f2-42e1-a142-74c54d486e18","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":91,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"580f66a4-34b6-43f1-bba5-df8fddbf4ddf","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":91,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"9c541420-de55-4cc9-ab30-7fb58d082fa6","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":91,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"c4d21070-088d-40e5-89e9-c998630c4fa4","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":91,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"50d3d2f9-4f01-4f21-bdf6-3f810bf5150a","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":91,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"6faff98b-5225-4120-a1a6-2c2a631a83cf","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":91,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"409dc551-e316-401d-ab31-1ebada51b47e","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":91,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"14d32646-e44a-45d5-bdac-59b1cf9ec9b1","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":91,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"802eb48a-8dc9-4ae0-90ee-07990a57e83e","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":91,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"6d0dc709-75f3-4e6e-b237-0b43cb3897b2","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":91,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"e271afc9-32be-4a6a-a26d-adf33571c05f","block_type":"box","text":"losses to a Fund.","page_number":91,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"5540af71-507b-42f0-8b34-0134ee2d047d","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":91,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"6503ee69-393b-4ff6-ba37-0863a5f86f55","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":91,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"2b8adf7e-853d-4fbb-84ba-29ee14ca875a","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":91,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"1d8a9b5c-ceae-4e82-a1c5-25221ade6a51","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":91,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"559e0e79-c91e-4eb5-942f-bd842ca3a645","block_type":"box","text":"II-44","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd8874d9-5cf9-4bf6-ba52-9dd02c159fb4","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95c7c364-3836-4734-9e7f-2328d3928e9b","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":92,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"319c1f6f-98fc-4be1-81f9-9550858954b5","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":92,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"87d7512e-1fd2-4dcc-99d4-3df19ead50c9","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":92,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"5b4c8ec7-5a4e-4a8b-9582-7c33ab2a3f19","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":92,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"394d8f92-8975-4622-88b6-4a3175942736","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":92,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"c28019f6-61a1-4cd3-953d-389469702a9f","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":92,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"965ae0ee-54d0-415b-8fbb-ba1335609c6b","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":92,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"b17c017c-b5a9-4f79-a4d8-0090a712ef58","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":92,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"c3262361-a4e7-4469-a11c-cd1eaad0cde4","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":92,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"4b848bd2-ee06-4e51-9f9e-1fbfcea6252a","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":92,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"ce96a716-dd21-457c-9776-055ab125df07","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":92,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"0934cf84-f7fb-4fd7-a256-6e55bad93b6e","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":92,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"a5f23f9c-ebcf-44fe-b173-ce2747953eff","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":92,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"617ed659-2f23-48a3-811d-91e1c4415032","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":92,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"755b0ac1-6eab-4eec-9c9e-d669845eca8f","block_type":"box","text":"such companies.","page_number":92,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"541023e4-ad84-4cb5-9eef-d61b191f9c02","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":92,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"056ef08d-2e9c-43c7-8104-231be9f9801e","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":92,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"b2576616-4980-47fa-8454-8e52dae3a063","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":92,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"12ab0c1c-9b7e-4fbf-a42e-d4330177b32d","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":92,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"4a24b189-1e71-4390-98a3-d2037e6460d7","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":92,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"62b94a6f-ad13-40d2-999a-222dc3d0b95c","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":92,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"d322f329-178d-4f64-8ebe-6b45016857dc","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":92,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"4086a61a-fafc-4f2e-b3af-e7c964360e4d","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":92,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"0c4b334b-9e38-4580-8ad5-1d911fe9889e","block_type":"box","text":"standards.","page_number":92,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"1bfbb5b7-0194-4ed9-9706-53770f8ecbc8","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":92,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"ab32c024-2c47-4bd2-af75-b0eefcdb4046","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":92,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"6b28c720-7d95-4799-942f-1ecc1299b9bf","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":92,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"55539447-d55c-40d1-bf85-b0f372462ec7","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":92,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"d08c269d-7daf-49cf-b827-08b38447672d","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":92,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"42644436-65ee-450d-b37f-27df7dc7f695","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":92,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"480fd462-173e-4808-8a22-36258e5df1b0","block_type":"box","text":"General.","page_number":92,"box":{"x":102,"y":529,"width":58,"height":8}},{"id":"fe7da4c0-7d27-4ada-ac4c-7e07dfeedc65","block_type":"box","text":"China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":92,"box":{"x":166,"y":528,"width":696,"height":12}},{"id":"02fbfb0b-1f2d-495a-9e60-cc381e92a83c","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":92,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"3bf19be4-e1fb-439c-b66c-a8ea5af5186a","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":92,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"c41432d1-cb87-43b6-a88e-afaad7740507","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":92,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"0bc2c348-29f9-4793-9252-c2236652c873","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":92,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"0f8381ed-d569-41bc-aff7-b3f2ef981daf","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":92,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"49a12388-c39d-40ff-bc50-47cd6f30139f","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":92,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"89d753b9-ebb3-4096-ab90-68e35aa6ac92","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":92,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"6de817eb-8a51-428a-9181-7f0692bed343","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":92,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"08808b86-f5ec-4ff3-a79f-06a6662f2cd8","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":92,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"78ed5d57-fbe4-4244-ba40-a055cd3da557","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":92,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"d3b4a1ad-119e-4774-b3f8-82b414167e65","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":92,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"59b86334-6d36-4dd5-aaf6-e2c0b5c02fc3","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":92,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"8733fbbf-c927-4c08-a361-6216d6e2fa6b","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":92,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"e51eb88c-5496-4e16-ada7-d767f00930a0","block_type":"box","text":"company established by SEHK.","page_number":92,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"9f3e8a71-f43d-4845-b00a-e3c108cac75f","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":92,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"15804e78-5e8d-41a3-abab-1b7b8d2d14f1","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":92,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"8b919e72-115e-49b5-b1f2-946645e519d8","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":92,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"3ac2d8fd-1356-48ca-bed0-6f2315acb727","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":92,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"745fb568-ad69-4105-9c74-9c85b82b1ae5","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":92,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"d8dd91d9-afc6-4dc9-9425-0a3ed3e75c00","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":92,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"fd7c0b78-fd63-46a3-af5d-86e2347de494","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":92,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"8a790b83-5c1c-41dc-85cf-07aea9e96407","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":92,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"78917809-29ba-4151-baad-fdc43c29abac","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":92,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"bf44281b-94c4-4489-bbb2-f2dce3852a5d","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":92,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"32e15eb8-9c85-4b89-a125-bee853cac157","block_type":"box","text":"II-45","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"687f6d35-7c73-4f95-8be8-c2d9f8dd07bb","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a28605aa-c729-446d-8cee-c2c913e759d9","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":93,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"441fdbfb-9fe8-4c8c-bd56-6086e9da64ed","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":93,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"9655d1c8-c7d5-45e5-bfe8-e4405407766b","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":93,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"b988253e-480d-4a6e-9334-e2ec0a948423","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (i.e., stock brokers) to ensure that this requirement is satisfied. While shares","page_number":93,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"86d67404-478a-4b13-aafe-81364bc97e7e","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":93,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"f6ec5565-137a-4e07-9bc8-e925b42fc101","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":93,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"6339627a-0ea8-4aee-9892-dffc1863fc5a","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":93,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"96469f01-61c7-491d-a133-cf5245565398","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":93,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"2ba555d9-8baf-49ce-b40c-3c19532d6205","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":93,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"5509e120-1e19-4bb4-a332-05a6669752c5","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":93,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"52a85ac2-ed70-4399-a4bd-bcdf9a266699","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":93,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"8991f392-c3b1-4894-b22f-fdec67e61d60","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":93,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"38cfd1a5-c39f-4c36-856e-8e295c23294f","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":93,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"dffcfb33-f54a-4850-8a64-a13bed86a8f0","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":93,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"c0cdf94a-c739-4001-9a78-fe69b50c3274","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":93,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"37f9fcae-933b-42e3-b59b-c11d1e0c121e","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":93,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"0e0d9404-723e-43b2-a470-1f37cc66288c","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":93,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"105039b7-d33b-432d-9314-9a1e0de4a9ca","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":93,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"6ab4e98f-d6b0-4744-870c-3acb55714603","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":93,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"58be9670-f7e6-496d-9e58-e922e6e2e151","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":93,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"78458b6b-cd6a-4ec6-b6ab-08df34916f64","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":93,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"3bac03e8-d3aa-44c2-828f-3cfd421df043","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":93,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"6471a66e-03c9-4d82-bdd2-dad22b7deac5","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":93,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"6fdd4ba7-9bef-4964-9a39-fc3033afb74c","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":93,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"7d2aee8a-4107-41ce-8a9c-629e20b62a87","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":93,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"76b2e418-89b3-4f44-b420-26b289bbdd18","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":93,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"848d7b45-d737-4a8e-96ef-420eca3a5452","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":93,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"8a7c0e21-2242-416d-8c88-e57d2b9cc597","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":93,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"b9fbf214-04db-47f7-b101-87d8419583c8","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":93,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"0b31d15e-3bd8-41f4-a7b3-124df6924e97","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":93,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"bcdf2d95-d2fa-43e5-8493-98305a81f0cb","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":93,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"7d283010-885a-4ad9-a14d-638e33c9ef9d","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":93,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"721891e0-c6c7-4d0c-9864-757a4b031627","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":93,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"40b246a7-2f06-4f28-95d5-6fd959bc445f","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":93,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"b3b99915-7210-4a90-ba68-fde25142ff75","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":93,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"3e15fe4c-9a46-4506-8c5d-3b34576efcaa","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":93,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"14b2e96f-9f70-4ec6-a710-5c0b967cefee","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":93,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"13c44ec0-4bb0-4eac-8583-8bddeb4cd4d5","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":93,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"117a1cfa-1d80-4b4f-88a7-d23b95ba742a","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":93,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"4609a8d6-6bac-46ad-b1b6-78ec4a2e87fd","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":93,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"068ed5fa-1504-49bd-bbff-5781ebae55d7","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":93,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"755e1c1b-705b-4b3f-88ba-f3b5a8f3bf20","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":93,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"21953b5a-975a-4b31-b257-7fcb084aa1f1","block_type":"box","text":"PRC.","page_number":93,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"32bb5c4e-9ffe-465a-8bbc-e74b1f7aa38c","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":93,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"6e0e2ba6-237d-464a-a82b-8585e7413f62","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":93,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"a79d5292-7e1b-4949-9dac-3a2fdf8da8c1","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":93,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"4c91ef67-d095-440d-b666-1ef72c52f5dd","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":93,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"6a4c6dcd-4185-45f5-b4f7-131504c9a667","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":93,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"65233acf-49b7-4c9c-a962-2a45c2f77d8a","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":93,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"9f6799c1-fd54-4cd9-a418-360b7ff14d12","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":93,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"e1af6a1c-7252-4e14-9584-cf14754d8647","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":93,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"646989f3-5f43-4fb4-bdfa-2c9808bc9123","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":93,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"ef945127-694d-4f1b-8c94-1837bb8a45b8","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":93,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"e38be467-21e0-4366-96f4-4518145b0911","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":93,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"ca8d09b8-7fd8-495d-9459-3fe250ae5cec","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":93,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"5c33788b-511c-44bb-abc6-e609d84aaeb5","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":93,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"1490626a-aa0b-4b3a-93ad-0e92a48ce9d9","block_type":"box","text":"II-46","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f20f1396-396f-493d-95cd-5bcf83959d9c","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf821ca7-51cc-4d52-8f6e-78fd141ca19a","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":94,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"993b37be-d320-4e9d-bb44-17d29163bb44","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":94,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"e8435938-1027-4be7-b9c2-1ed19e84b359","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":94,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"7b65346b-46ef-42a9-99af-9bb2ee1376ae","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":94,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"c4a306e5-c1d9-4ade-83e6-43b5a7cbcc13","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":94,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"5aaaa3e2-eb96-40ad-84be-7f2b781f8473","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":94,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"223f6b1f-179c-4163-803f-6dc7f6615080","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":94,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"61166682-03b9-4025-8742-45d73e588b20","block_type":"box","text":"Suspension Risk.","page_number":94,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"63566fa1-b1ac-44d3-9acf-73c06345a285","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":94,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"1c3b0af9-4830-4eb6-b59f-26b2c2a3910a","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":94,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"7a6a5208-3e22-458e-a57d-ee53cc596877","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":94,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"5f5e2308-197f-4d6d-9fdc-9b4540ee95fe","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":94,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"e81dadec-f30c-4cd4-bde0-1b24871d94ef","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":94,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"f96e1cb0-1eaf-4761-8f8e-30f0e64f4c90","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":94,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"51a12276-b378-41e5-8b38-127628980bcd","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":94,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"8d19bbed-7248-4a7a-8684-84eb41e09fd4","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":94,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"7b5c2d43-f80f-440f-a4e6-87f6fecbb447","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":94,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"946295e8-2e1d-4fbc-8ae2-04810fac5aa1","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":94,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"989b6ef6-c9ae-46fd-aa12-d54ba2e09954","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":94,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"ac8e2875-fb19-4046-8d76-41e30610c797","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":94,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"a95f02c5-19d4-40c0-8dbc-5837cf997473","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":94,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"2c527e8c-474c-43d8-85fd-3ec8c927e2bd","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":94,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"35762330-31e1-46a7-aa33-c93931e2bf3b","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":94,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"516a6652-947a-4f1b-ba45-61ea8306d3e4","block_type":"box","text":"A Fund may invest directly in the","page_number":94,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"9194f08b-86a2-4bf1-b4e1-0964120b7273","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":94,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"8e11f213-57b2-4885-a0fe-0a916ee7e3f8","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":94,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"c5606e61-2faa-449e-a661-11e76052b92e","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":94,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"2b0979a0-a21e-4a1e-996e-1caaf67ea5e9","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":94,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"663afc51-f265-4524-9768-5cf7eb77f673","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":94,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"e4d611f9-6b02-42cc-96aa-6dde8329b754","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":94,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"dbf64858-3fa2-4192-8ffa-8563788d4a09","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":94,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"7b6b6582-6407-4639-8036-dccd66f330cf","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":94,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"80a9ed48-8317-4736-8a04-1f19ef608c82","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":94,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"d44545a7-13a4-4d0f-be0b-b86cbcf3ef7d","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":94,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"5f9abce5-f5f2-4a02-8168-02b82a42e4a4","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":94,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"be8565d7-e840-421e-b67d-df9a19b69b05","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":94,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"0745333a-ad8b-4816-9dcf-558e44af1f3b","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":94,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"d144e740-d548-45e3-a371-bab829cfd39f","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":94,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"dc653586-06fe-4eed-9567-f3bac1b1bc69","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":94,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"c32060ff-a715-41b5-9789-e66acfb771b1","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":94,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"526fec26-518f-4257-ab68-9811f4ea4b6f","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":94,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"27eaaa3b-36b3-4856-97bd-08e41593c233","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":94,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"ddce9b67-bc32-410e-8fef-44f0687d96cb","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":94,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"b7376e87-2566-499d-a932-550b74caf554","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":94,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"521de3ee-dba5-47c6-a56a-f09dabbf5bba","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":94,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"3088c285-8413-4000-ab88-58ed47f9ca22","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":94,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"81313063-1333-4873-bf60-d3d325cfca52","block_type":"box","text":"i.e.","page_number":94,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"4e4ca3e3-4e1e-47b7-985c-db1e78a77d9c","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":94,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"91541d1e-e423-4393-b5a4-7b5c84a29d75","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":94,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"f0eda2b7-97c5-4651-9cee-dada07ca0e04","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":94,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"9bc77817-7f24-4175-b126-ccba78e6b489","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":94,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"ba245823-50dc-4082-be16-dbfcc5ccba0a","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":94,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"cae67c5d-d37e-45bf-82c7-8dedf4f0058d","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":94,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"59a0d560-41bb-44c5-b044-d5fc27228dee","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":94,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"1d359cde-5212-4d1e-9333-8fc0b1481f18","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":94,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"dc710d31-4446-4dd1-9245-0e3c98e714db","block_type":"box","text":"par ties.","page_number":94,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"32464027-b87f-4983-b8d3-4123cee2e680","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":94,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"cbad2c9e-96fc-48e4-81e2-f8529b388a83","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":94,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"9c116590-7f51-426d-b194-00dd2cb1b683","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":94,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"9dae36a1-20ba-4ed0-80b2-eb4f355e56e6","block_type":"box","text":"II-47","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"487bca45-01ce-47d6-b012-57736a403a9d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c70e009-c951-4a9f-940b-e98f08140d34","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":95,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"f682fdd0-d174-48f5-b523-55ea15903571","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":95,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"28f49600-4de0-43cc-8866-4094edb1530a","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":95,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"28a539c4-c05b-4dd7-b935-813f0b3ab57f","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":95,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"a36ce995-1663-4e6d-a09c-1dd83c444840","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":95,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"a3fb2163-2b6e-4c9b-a6cf-4f5e7237b361","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":95,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"1961b26d-cd65-41b8-81d0-3997b65e8e0c","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":95,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"fb6c34aa-b198-49cf-90e4-f8c24ab0ad4b","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":95,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"b38430df-e2e9-41da-9421-f43e8b32e34d","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":95,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"8646fe84-ef72-430b-b1a0-88eeae2b75fa","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":95,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"74c6067b-887c-4901-9495-14b3899fa0b4","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":95,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"041ed7b0-6359-4b06-94f7-f07696c9533f","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":95,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"418b8f02-732d-42ac-acfe-4b527c55a3fb","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":95,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"42e598c9-f64c-4638-8493-849960fa5f7d","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":95,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"3ed2bdf3-65ea-4736-8e29-80e94773c112","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":95,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"6e1c8c94-f1e6-4fb0-9dc6-ad999578f04a","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":95,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"59c0dbd0-6772-495d-9b18-02daebaffbd4","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":95,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"ccff379f-e90a-468b-8607-768d8996709b","block_type":"box","text":"per formance.","page_number":95,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"082d5918-be3f-45bb-8dd7-28eea5478f32","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":95,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"d8ac565f-21e5-4975-ad5c-f0ec1668faef","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":95,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"f83be0ff-7861-4872-ba90-7a58fb466680","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":95,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"8bd6b190-f722-463c-ae0b-24352b5a3096","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":95,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"9c24b58f-3197-4f11-ba2f-21485347b42d","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":95,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"e49137b3-1085-464e-9ead-edf0f3d7bd16","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":95,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"1bd2e0e8-c856-4f25-bede-ac8bd6611c1c","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":95,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"26a9e863-2979-4a69-a7c8-a6608c0972b1","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":95,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"3a9a522a-6e1d-4e94-9094-4b8177ada178","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":95,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"ad747157-d7d7-4ddd-a24d-d1d2b4029fe8","block_type":"box","text":"Tax Risk - Withholding Income Tax Risk.","page_number":95,"box":{"x":103,"y":491,"width":276,"height":11}},{"id":"86f88146-3bae-4acd-a506-0680a00cec3d","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":95,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"cd22bdf3-6a36-4b94-b366-59cad2b99d38","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":95,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"2ea754d8-298d-4ceb-b2a9-23b5cc7ad3d3","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":95,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"081c1c30-4d82-4654-b0e6-31aba9202db0","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":95,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"e6972ee7-22af-4fdc-a347-2515f3f6dc53","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":95,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"2abe5446-0214-41f2-adb5-72d9564b9c36","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":95,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"de92917d-53f5-4f20-8bae-eb2455d7cf97","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":95,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"18bd5b67-0388-4d86-aed5-ed5971359967","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":95,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"ee2e7fe9-f2ec-429f-bb73-3a8c647c3b3e","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":95,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"a520275d-4b33-4944-a430-f08150b62bd2","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":95,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"885dd270-bdb4-4dd9-8e2f-a91219aec095","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":95,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"ac3b9592-aa88-4ace-a2df-7a59a94f49f0","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":95,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"2084241e-7dc2-40bc-bd18-35fc43b7a26b","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":95,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"06132af5-b073-46a2-bad8-ddb1329323d8","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":95,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"71c5d5ec-23ba-4ad0-8d52-4afc83d41ec3","block_type":"box","text":"without notice.","page_number":95,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"a2927b97-02bc-47ba-8d2c-a42bbf84d561","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":95,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"80f6d176-35e6-4fde-8369-c251144e5e32","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":95,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"30c44835-cdaf-487a-9572-78a6e0c647a6","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":95,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"c9848ccc-ad91-4076-bed8-ff337dfe8cce","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":95,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"b54dcb64-a41c-47b8-86aa-f8404b2c8fb9","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":95,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"689a8e5a-ef35-4bf1-a4bc-b5e0e1b64df9","block_type":"box","text":"December 31, 2027.","page_number":95,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"58e6c141-daaa-4721-bed2-1da6b2f13cd0","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":95,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"5ba5543d-4796-417a-8a66-a3a58eedf65b","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":95,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"12ae1768-a232-4318-aa68-e9ac26c58f3b","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":95,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"1f414bca-8b82-41d6-9702-2b1e0754a0f0","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":95,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"a134394e-26b9-4817-b1f2-f3ac84eb457e","block_type":"box","text":"II-48","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a776eea6-5f82-404f-ba4c-fd2740e958e0","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5cbaffdf-3ce2-4e38-be4e-7e758ea61023","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":96,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"a743faef-cc99-43b6-a91f-8c3ed386b1bb","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":96,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"6aefff64-bb4c-44ea-b0b7-2b0374a4575e","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":96,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"7fdf71be-ff61-452a-b124-af5b5891442f","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":96,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"da315d6c-8fd9-42b4-a2df-08fb7ad39beb","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":96,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"5220aa67-eda0-433d-89c9-6a3aece3fcd8","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":96,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"e38ccd13-9cfb-409a-b5bf-44727a600e32","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":96,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"e80b23b4-204f-4c5e-84d4-a2d80ee0fc6d","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":96,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"5c3c1901-adf0-4cb5-9b77-d602c407bdda","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":96,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"e93c09b0-3fe0-420e-8181-37540644b48e","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":96,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"04b5e308-3dbf-4fd2-ba25-08c232b3b3b4","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":96,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"0999e4f7-d8cc-4312-b735-ca00e6f71bd7","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":96,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"a3f738b5-de8c-404e-bf48-7d0ba20c744b","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":96,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"2b534634-d522-4b5a-85cd-3e31d3a3c8bb","block_type":"box","text":"PCR sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":96,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"8c714896-59a6-4503-ac21-9ce29cbd7da5","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":96,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"51fe35dd-949d-4f70-a516-dcdf50337986","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":96,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"bb45294d-0ddd-46cf-9a51-20cdf1404d74","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":96,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"c7e30ca5-5157-4d79-b558-5e1a7faf6dd0","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":96,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"557fa39f-c48f-44ad-b87d-b399c263ba69","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":96,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"e7d30539-d8cf-4436-8735-017a4c6035aa","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":96,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"b97ea1e4-148a-4ef1-bf9a-c56050fb3c21","block_type":"box","text":"the PRC in notifications.","page_number":96,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"5d54ad20-f000-48da-94cf-016b2b255dfb","block_type":"box","text":"Investment in Other Investment Companies.","page_number":96,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"8065b502-53a5-4491-b1d2-f20140b63bf2","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":96,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"1eb256c9-d6a4-4802-b9d1-297c4d36c35a","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":96,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"a86e18e2-88c2-4b0d-baa4-9888d18e7d3f","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":96,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"a08c772e-16cd-4037-9c8b-43c44655e7db","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":96,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"83269cc0-0e32-4c8d-aaf0-83b54a083939","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":96,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"6117e438-c614-4b4e-8802-4060c65a9075","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":96,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"16ef1ec6-b345-4699-b5f2-d9aa16670bf5","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":96,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"530c8879-8fc7-4cec-ac35-ce4cdbc45281","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":96,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"89d416cc-7310-49ad-af29-98b4f6081ccc","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":96,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"a00c4bf3-9985-45e2-b9f0-4a7698cfc78e","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":96,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"c85b36f4-bb57-42e9-8689-2a7d2e05500d","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":96,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"7a3d5aae-ada7-468b-b239-176a5b3bddf1","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":96,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"cdf94ba0-41bd-4d7d-b4f7-4c899bf0d5a5","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":96,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"2fb3817d-f0ce-4d93-bc97-ce12df0da221","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":96,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"af38d901-dc48-465b-af0d-72f504e4b407","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":96,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"855582d6-4632-472d-9aff-d47de807a2d6","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":96,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"4182dba5-35e3-4a98-b72c-1c843a961b03","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":96,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"78283ad8-9602-42f4-8f2e-a63f5ed648ca","block_type":"box","text":"subject to cer tain conditions.","page_number":96,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"6bc857f1-89e8-446f-a887-51a6c1a85a65","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":96,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"7e1ba255-1782-4ed1-a30c-1e494a07163d","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":96,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"e93687ee-f733-464c-9908-611573750e9c","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":96,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"32f0b6ee-93ca-42a5-a1b9-de19ed3edb18","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":96,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"2ee33554-fb41-4687-8a44-9b98f72e5d07","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":96,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"04d82f92-969a-460f-bcb5-4320ff04f977","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":96,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"6ca12dde-fc6c-44b0-8c45-64035b84007f","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":96,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"f27ed828-fb5b-422d-9421-434629458fa3","block_type":"box","text":"loss.","page_number":96,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"9ff131d7-5bfb-42f8-a517-d04d31633781","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":96,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"d76f28ee-cfc9-4678-a713-bb732612a5f9","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":96,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"497ca66a-bded-4ba7-8fb0-b4adcc9ccff1","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":96,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"df98d0dc-d206-402b-afc9-a7748f03f8c7","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":96,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"7f18500c-4534-44c4-a5f6-6aef80f683d2","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":96,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"c0550b8e-041c-4ccd-85f8-7ec409c1d605","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":96,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"16a596c9-455d-4503-8eaa-4b5f9e8867be","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":96,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"f0f2c8de-37d0-4cf5-8c1e-6be68a9ba38c","block_type":"box","text":"II-49","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ee5d9378-431c-4b18-875f-9ac433ec5453","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"650a5ced-2b7a-4b0c-b4f3-892786aeae1e","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":97,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"0f4e770a-e885-40ac-95c7-3632b9602dec","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":97,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"233854f3-0aa0-4cd9-bc60-b8c4e4b88e0d","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":97,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"b3746963-4b74-47ed-96a4-1ee490468c41","block_type":"box","text":"assets.","page_number":97,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"54de1e8b-d4b1-424c-b501-35ff0aaec3b0","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":97,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"c32d87aa-f8d7-4444-b9cd-66f2a084faa6","block_type":"box","text":"may be limited. In addition, a fund-of-funds (e.g., an investment company that seeks to meet its investment objective","page_number":97,"box":{"x":69,"y":128,"width":833,"height":11}},{"id":"3ce8cfe3-bc17-4e25-8b30-165af3caed5e","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":97,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"d388fc05-f91f-4154-a74f-ec22458da3df","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":97,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"db37f758-ee90-4755-a67b-d68a3e24bd7e","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":97,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"fdb2f16b-8882-48a0-ab10-6955ca17f432","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":97,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"8820e67e-522b-402e-b2c8-b73383cd6857","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":97,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"1fd968e0-c8d8-4f5d-887e-0a12880e1bdc","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":97,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"5322bae9-6bb5-46c1-ae5c-880c71489614","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":97,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"9e6ab6f0-940b-4679-a2d9-0b3c2796da96","block_type":"box","text":"countries.","page_number":97,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"a486f62e-b19b-49f4-8070-5617be6c0e16","block_type":"box","text":"Issuer Insolvency Risk.","page_number":97,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"692768b0-4c27-4b50-b60b-475391749aad","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":97,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"85742c61-f392-4b0c-a456-a089f352a98e","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":97,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"286e4a83-05c6-458f-ac07-2bb7bcf86203","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":97,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"7dc703c4-37f6-48ca-8606-45f2bac7b0ba","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":97,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"3e35a897-da84-465b-af92-44fb3466dba0","block_type":"box","text":"issuer uncer tain.","page_number":97,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"81372b0d-724f-4955-a18a-a9c18a4ce6af","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":97,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"c20f056e-89d9-4ce9-81b2-edfe8c8a2525","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":97,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"706591d0-da04-4370-bf68-362b0ccf3690","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":97,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"b960972e-62ab-4919-8ce8-ef4414d95323","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":97,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"c0c8c2a1-5adc-4188-a2aa-6240df8e0583","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":97,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"30e220d7-c4ee-4b63-a0fc-ffb481399d02","block_type":"box","text":"eventually be satisfied.","page_number":97,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"a1763745-b042-4d26-9a87-8dab6286a97f","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":97,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"d6e7398a-c2ac-4513-a67d-1703e0f67748","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":97,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"f55fe07e-8472-425a-a44f-0e7845d25b53","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":97,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"cd879304-5fac-4813-9897-bf555c30b07f","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":97,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"466ae703-ca22-47d9-a5db-f131547a8621","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":97,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"318ad82e-0f21-42af-99c2-464c59294b1d","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":97,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"1dba5713-8f18-4b94-bbe8-963a8f422467","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":97,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"474822d9-43a3-4644-aafb-74b35e33a5f6","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":97,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"2c6c46c4-004b-4609-8ef3-397b6e6adeca","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":97,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"ad9e0407-8d8e-4e9e-bbb7-140f4e90160a","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":97,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"358e44d2-20ad-48ad-8074-9fa705e0d670","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":97,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"3d7d8d04-2063-4982-8582-d0f204a5319c","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":97,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"d48cbe6f-5967-4320-b7b6-86327d8c3eda","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":97,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"a0605224-a798-430a-85df-ce82cba3c988","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":97,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"d30dd5fb-3e03-4867-bc8d-926388d8c06e","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":97,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"499e6eab-9a0a-461f-9288-4ecba1148949","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":97,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"a8c36aaa-e3ee-4a23-8bf6-38e6a9e169d7","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":97,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"09195322-632a-4e65-9aac-6535ebc11188","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":97,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"88a6ac83-845a-4f2e-99b1-09c3ab307aa2","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 par t of a","page_number":97,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"79f58af2-b205-4de7-a202-3e9b4b6f98e5","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":97,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"21f584dc-f5ca-4ddb-bc36-125800be754f","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":97,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"db694955-bbad-4780-98b6-99af79c7b51f","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":97,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"a12a8fec-cfa1-4951-b79f-22b6b4944222","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":97,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"14625fdc-4d3a-49a9-9e41-6713ea62096a","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":97,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"bb81e34e-3051-42de-a1ee-45556a055ece","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":97,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"f80335cd-7b91-4e1c-958f-53a888478732","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":97,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"08e77b2c-8289-4f92-ad6c-06851d63c8c6","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":97,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"802659ee-3685-4c7f-a4eb-56088b1fcc80","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":97,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"db12886c-1967-4595-86db-8030e0c83006","block_type":"box","text":"that assumed generally by an investor.","page_number":97,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"cfe05771-5d13-44c6-9d79-06d9fbbafbb4","block_type":"box","text":"II-50","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3e880f39-e2fb-4050-8d11-ec43c46d869b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a13c0557-3092-48ac-9ed5-cf29e983437b","block_type":"box","text":"Lease Obligations.","page_number":98,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"dda6aa43-d06d-479f-be5e-cc508a8c6aa8","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":98,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"9a9ff15b-2340-4548-b5f2-4db235bd3085","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":98,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"f1502489-1fc0-44d7-b1b6-87841b7267de","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":98,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"e1743998-be48-4263-b8f2-a6607a6eae2c","block_type":"box","text":"Life Settlement Investments.","page_number":98,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"37f556b2-cbd5-4783-9dbc-a6962aeab4d9","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":98,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"fc017d7b-5fca-41db-97aa-70dfc238c62c","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":98,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"1e05257d-7a32-4c0c-b7b7-6830ba59347c","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":98,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"c6a3682c-cc91-478e-994e-324cc8ff97c5","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":98,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"41d0761e-e282-4eb8-aec1-238b6c31a21e","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":98,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"3339ddba-3d78-480b-bb2e-489ea3438094","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":98,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"c3bf42f0-031d-4cf3-b61d-0092e50d672f","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":98,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"3ccfea9f-5c9f-4614-82dd-9367052ca9c5","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":98,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"25a4eec5-c551-46cf-b33d-3aa13e527bf3","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":98,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"635fcead-5c01-430a-9269-7f8e29a2ca7e","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":98,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"baa5226c-d26b-4f84-99cc-f34a5d856466","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":98,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"6a0c1fc9-3d64-434b-b61b-46a0defade89","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":98,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"5ccdf39b-499e-4d53-8de0-b21baef08eef","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":98,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"6ae5b874-6a1c-436a-9b09-8066b8e06851","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":98,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"b094dd0c-37ad-4c2c-83bd-b5a2ca61580f","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":98,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"682e8138-6bdb-4d69-b137-cecc5b6877cb","block_type":"box","text":"Liquidity Risk Management.","page_number":98,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"4a61fab2-7156-44df-b1d5-e8114c508b80","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":98,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"c3816f57-95fc-4262-85ac-814d948fdd3e","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":98,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"c0bc07b4-24eb-40ba-a35c-f96329509a31","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":98,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"976424a3-833e-46eb-b2bb-c8b112e6ff9f","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":98,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"7da80e74-733f-418e-8e2a-fdb867aa60a1","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":98,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"d8076853-58ed-4c6f-b977-22c163f8bba4","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":98,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"77946b3a-5c49-4e2f-b35e-6a4d62a37da8","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":98,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"a3ba1759-49ee-405e-9670-657c126ada1b","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":98,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"1abf410c-de46-4144-8e81-a5a470c0b56c","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":98,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"e2b5f5be-6138-4717-b337-a1106506c3ac","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":98,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"a127c238-9a06-4d36-a359-efad7adf1d67","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":98,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"cd1caf4d-58d2-4fe7-9564-db9986a05484","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":98,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"ca77ba5f-6fd0-4f1f-9ba5-36afbc54f730","block_type":"box","text":"Master Limited Partnerships.","page_number":98,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"ba67222d-cf69-498b-8cad-99c5f1af07c5","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":98,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"e13c1a2e-c6a1-49a6-9efb-0f4c89145fdc","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":98,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"1023fdcc-c288-47f1-88fb-b1f2bb7c7477","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":98,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"bc16480a-2453-4405-a8c8-c8dd9e358991","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":98,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"3476af4b-ca1c-4c7d-b692-e8440bfb2ec3","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":98,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"facc5fc9-093f-4359-aaf0-cfcb5f199254","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":98,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"7baefe16-0658-4672-9da9-50572b2a3216","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":98,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"7f853b82-2abd-4686-8fba-61a48bc3dce2","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":98,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"e038a6c0-f480-41ee-8b8f-fc7af8235b77","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":98,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"b9bae5c8-c33e-4a62-b722-752951735274","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":98,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"e3b95e62-1779-4901-88ed-e18edfefdeee","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":98,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"1c0a65d4-bbeb-498f-97c2-2f8f5664df1b","block_type":"box","text":"in the par tnership’s operations and management.","page_number":98,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"0e4bc9ed-762e-4d0c-b427-fabed08f7fae","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":98,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"87e36bc6-503c-4452-b0f6-b78fd6431e46","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":98,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"4a2236ae-3a4d-47e7-b27c-254347f05634","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":98,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"a03cff53-17c5-4826-9417-5e337de24a21","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":98,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"914c0cc9-e79d-4aaf-8f28-25f96d9c95e2","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":98,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"7c80a1e8-2d26-4c06-9801-8b6f1240a2a9","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":98,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"432ca8b3-cd7d-48ce-aa9c-202c59801a33","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":98,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"4819f2a6-f5b6-4d2f-a417-1a6201b282c6","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":98,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"d8dd079b-3cd0-4385-8b2d-d452369ad0de","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":98,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"82c7542c-97d3-40eb-a536-6f4ecfd58a4a","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":98,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"87c7c5c1-f180-4359-ab69-bb4708f2fd20","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":98,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"26cd3f50-3d10-46f8-b5d7-4f073cbf6f9e","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":98,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"859497a6-ffb6-40e7-9cb7-8bc2f09ab2fa","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":98,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c043d99d-6904-4078-ae94-f0cdcbbe5561","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":98,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"d79d609f-5251-4a18-bb1a-f1838b23d465","block_type":"box","text":"II-51","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"922dde8d-bc56-4ed1-b0fc-510fbde56af6","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"18530ce3-435a-485e-8c14-8c9b6edaa2f9","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":99,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"afe981cc-9a1d-4ce2-9f99-b98f2608bc79","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":99,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"ed60ca5e-1d2b-4dcf-aa04-d9086f7b7d09","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":99,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"32ecf469-71c8-444d-ac0a-0c2fd2dfdfba","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":99,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"d117b63d-aab2-4877-875a-c5b31cda8d1f","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":99,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"b142a194-cfb7-4f0d-adc6-4ad2d76f489e","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":99,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"882b543f-23b4-44ec-8d2c-19b1b52ce4e1","block_type":"box","text":"Merger Transaction Risk.","page_number":99,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"7a292a29-d31f-4e02-b8eb-5ac66c7fdcd6","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":99,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"fdb85531-d5e9-4772-a0a7-6dc0e7553b34","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":99,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"76e6aed8-58ed-4430-a0ba-e55ef37ffb17","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":99,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"32dec803-0bd6-4cd2-86b3-8af28365914f","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":99,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"b067e700-05e5-45ce-b96a-1293cdfa6091","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":99,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"19b196bf-ff91-458f-a771-6eb74701e9e9","block_type":"box","text":"the Fund and may lose significant value.","page_number":99,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"d3fb01e3-c343-4727-aff2-bffc5ff37773","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":99,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"cfd917b6-7728-4ff8-8ab5-10564b95814f","block_type":"box","text":"Cer tain","page_number":99,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"ff6a6022-225f-4940-a63e-87ea2a6cc084","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":99,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"7e96fef1-02ba-47a0-ac11-c68acea0c1c0","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":99,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"fa17aad0-2fd1-41c3-b2c1-18e314cf410a","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":99,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"84f22eb2-2f23-4756-a05d-1b6187f1de19","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":99,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"3ddbe5b4-3944-4274-a910-e4503d9dc6a6","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":99,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"c920d02e-083b-42e4-8802-ce346a2de17c","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":99,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"7aa7e93c-7a58-4ed2-8b4c-474769a9d039","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":99,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"fdfd347b-10de-43c4-926e-470681749d63","block_type":"box","text":"branches of domestic banks.","page_number":99,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"bdac6957-66f6-4691-82f6-20ee47e40a80","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":99,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"72d9669e-9e80-4205-85a8-507a38913b3a","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":99,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"fe9339f8-fa1e-4ec1-8519-ba3a8b3a64e9","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":99,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"c3ce6f05-8100-4ac6-9508-8cdf49149c7c","block_type":"box","text":"paper of a foreign issuer.","page_number":99,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"ac9607a8-8f21-4c2d-8268-e36fd6c49672","block_type":"box","text":"Money Market Securities.","page_number":99,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"eae881aa-c3c8-4e4d-98c0-373fcdb8d437","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":99,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"ba311a62-94b6-46eb-ba4f-4eba9ffeb68d","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":99,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"b16b37d1-dfea-4f77-a2f2-3a601cc8ccfe","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":99,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"dd8271b1-0835-4bac-80cd-def1f1d54250","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":99,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"9be896d4-7205-432b-87a7-2ba8a4a0bdd3","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":99,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"47d8af68-fafa-443b-9db3-425e6fece1e3","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":99,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"31277133-2111-410d-ad7c-84a0ce8e494b","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":99,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"2d7cb2c7-01ae-4772-ad8d-c3785e5ed099","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":99,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"97bade58-c901-497d-9b7b-5421d986d059","block_type":"box","text":"agencies;","page_number":99,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"c7018aaf-7a38-4bd0-ae58-6edf5fa1c541","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":99,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"af4c6f25-c4fc-43dc-ae24-1693febf3e54","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":99,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"37aed525-7586-4d1d-a73b-5e40b0f78d79","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":99,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"6d1b6906-9b9f-445e-bac3-08a12b179366","block_type":"box","text":"obligations and credit card receivables);","page_number":99,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"37e585e7-fe23-477d-9d4c-fa6d1ad16519","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":99,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"fb09a9f2-0030-40ad-a613-0b0ff2b5b917","block_type":"box","text":"authorities and related custodial receipts;","page_number":99,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"e08d4321-d5d4-4791-8ebc-9a86a04e9846","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":99,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"b3825d4b-8a2b-4f22-a497-fe67d347f7e9","block_type":"box","text":"agencies or authorities;","page_number":99,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"95b5ff0e-1520-4930-9096-eb630c2b6766","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":99,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"c5bf435a-ebb9-47f3-918a-9379e8f359aa","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":99,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"6700a1d9-dec1-49c3-9b3c-857a4ad31dcb","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":99,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"cf13bc23-eeea-4dd5-97e5-0f3ed2746b12","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":99,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"5f43951c-2627-4545-9254-1b1ec55da20d","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":99,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"bceca336-6e7c-4ac4-a649-9c27d61a57dc","block_type":"box","text":"States;","page_number":99,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"c8006036-4b55-4c48-b6ad-7272b9b6ef58","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":99,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"d270981d-ede1-4170-bb71-861bd0e46722","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":99,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"73b6287b-ce7d-487c-89fc-c955caddeb8c","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":99,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"945adadf-e7e9-4994-99e9-f77b5d61185f","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":99,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"1a12806b-1f50-41ae-a620-e89b08bde09c","block_type":"box","text":"II-52","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"efad8748-55d1-405b-954c-67de18b758c7","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b7ca58e8-cc75-40cd-bf84-430cc29ba8cc","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":100,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"2ca0950f-ae97-4cce-a6b4-23e34e28d782","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":100,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"f05e0953-0667-4e9a-acd2-1a9b74cb4ca3","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":100,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"7182a503-5c4e-4916-b8d5-0f9e49ae7dff","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":100,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"a99c1d84-fbd3-4b76-b8b5-8140a17a879c","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":100,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"d88975f3-2ad1-43e8-b368-b74db731d86f","block_type":"box","text":"States.","page_number":100,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"6a5f4757-2e75-4691-8693-49e30d5130e3","block_type":"box","text":"Mortgage-Related Securities.","page_number":100,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"3bac3c74-9dc7-47ba-8a06-e391384ec632","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":100,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"36798c10-7d0b-4b80-a963-c85595a0e743","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":100,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"f324fc44-f94f-46ce-be5b-b46e59c2e845","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":100,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"37055855-75c2-4845-b155-df2761f9cabe","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":100,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"c28c5185-4d9f-4a62-b0af-6c2f194e4aee","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":100,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"59e7ae92-45f1-4151-900c-a80ac1cd0930","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":100,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"ccf49849-899b-48ca-b927-f43b096530c0","block_type":"box","text":"maturity or specified call dates.","page_number":100,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"2bf4f0c8-f3e1-4063-ad1a-5f8197df9986","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":100,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"aec76605-8a07-4284-87c5-2d1842c98972","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":100,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"05192adb-eaf0-4914-83b6-270dc34a9780","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":100,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"5ca4a0d3-db9a-459d-bff7-74f16abe77d6","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":100,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"39939f2a-1dd3-4480-a24e-7651377cbbf5","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":100,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"32db8874-c5ed-4f55-b537-9d77d66dc068","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":100,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"d346c22f-e125-4f8a-a73c-489879f7e982","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":100,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"e8e052f0-f1be-43ed-9ddf-f8c2b35e6779","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":100,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"e2ef0b37-f291-49b6-980b-cdaab33a3294","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":100,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"b94cb245-8bf2-43ec-8357-74cb1cae2bec","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":100,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"2c7c62f0-e7d9-4b82-a45d-a8087a3dede9","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":100,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"dff7f207-ccac-40ef-9b83-13669d83981d","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":100,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"366f340e-940d-4849-bb27-654bbf1de830","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":100,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"e4ee6685-5ed0-42bc-a1ea-f452ddea87ef","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":100,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"ab8f15d5-884b-42cf-a56a-aed3cfbd0559","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":100,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"6c80c3bb-4a4a-4f13-a966-4e3794a45ce1","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":100,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"c662504f-eb43-4f7d-ab2f-7f1410e4a419","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":100,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"6b1afeca-77a4-4d1f-ac62-6ee059b0671c","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":100,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"dac27e47-afed-487e-8bf4-e7482b1fe164","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":100,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"11df76f6-952d-4da8-8750-6e56795552f6","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":100,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"6da613a8-2c01-4547-8007-1e4e25a0712c","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":100,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"9db7721e-ff64-4699-ada6-d33af25e2a6b","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":100,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"c95b43de-45e2-40ca-b29c-81eb31eb582a","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":100,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"d814fc9a-443d-4cf8-adb3-4baee42d8f60","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":100,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"7d6c5769-3678-4cbb-877b-8aa9b9231450","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":100,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"ac9185f6-d7df-41df-b239-56fcc2eef451","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":100,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"93960757-f0a1-41bf-8552-fb6f172d53e6","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":100,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"f2efb134-74e5-4b73-82db-8b2112fad0ea","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":100,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"0156c0a6-60a4-4cf3-8224-f1ffaaa4979c","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":100,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"b1a6e3a7-73a2-4bd7-beed-819c29750a1e","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":100,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"bc391636-293a-4bcd-8876-897c023626c4","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":100,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"ad39310e-5764-43f4-82d5-c6ffcf155346","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":100,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"8376c52f-160c-4088-9355-d71d295845de","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":100,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"094a775f-1865-4e6b-b46d-e3667e361c7e","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":100,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"0006f92b-0a27-4315-ae73-42dc845aaba9","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":100,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"9bf0eb3d-3b5a-4523-af2c-cec5ad642b53","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":100,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"394169b8-c6ce-4be3-86cc-124ea040dbba","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":100,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"3ed3489f-8c88-47db-be82-8a5144c5492b","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":100,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"b8794fa4-76db-4ee1-999f-cf0796753c8d","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":100,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"7e986d94-1f03-4774-911d-f0f0a694933c","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":100,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"8bbbcf79-a508-41f0-a19c-d3a6742c56bf","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":100,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"b7365900-9f84-4868-8eac-4a46be71d1da","block_type":"box","text":"II-53","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f07e3ed5-c94e-4577-97ed-9c913de5a328","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31affe2c-07a2-4ad2-8a76-290a5cffce03","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":101,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"df0da7a5-1e8a-40e3-b021-9bbc1fefacdb","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":101,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"9e324cff-808a-447f-a2e5-bff7fca40649","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":101,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"a9c2b6ad-4210-421f-a1f5-74ff1ed50227","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":101,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"429e0a1d-c8a0-4895-ad69-df5fba16fc4c","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":101,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"5bde932d-4be6-468c-b833-7d4c02f4d925","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":101,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"761aa13e-a244-4ca1-8f95-d1e4244a9006","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":101,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"08704643-535b-4ba5-8344-ef332d1a56ea","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":101,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"6f9da52f-4924-4693-a041-046f7123fd39","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":101,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"3c4d9310-4f03-4f29-9f31-00905943142a","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":101,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"4b563ef8-2d84-4302-9105-dd563c8a2316","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":101,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"d0443caf-7238-4c55-bac2-090605775809","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":101,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"7f4d0a59-78e7-433c-9899-e33e27cd29b7","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":101,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"3660ad81-91e9-4792-94f7-385cda01698e","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":101,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"b2fb6983-01bd-4b14-9324-b14626f86a3d","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":101,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"6af21a96-d7e1-427b-b0b2-21c61e440bd0","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":101,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"cecd6b7a-4d77-4024-a79b-177e689146c1","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":101,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"b84684cb-d47f-45c1-8474-4277aec9642a","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":101,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"658e624c-0bf7-4a68-9033-ffefe5e5e99e","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":101,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"6221e99e-a8d2-47b6-9134-d555ad71ba94","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":101,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"ff3a9fa7-ac7b-4596-a441-cc9a8ed0654c","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":101,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"8905d29c-1aa6-4272-b0bf-8da88891fdd9","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":101,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"6d125255-0ec7-4a35-a23b-793015eeca8b","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":101,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"91b95030-7c6a-4200-80da-5fb3ea770b0f","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":101,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"493ed48a-326d-4f25-950a-c2da6fb3a0dc","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":101,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"14f4bbca-fcc3-4842-bc58-76ca1d951615","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":101,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"c2911886-40b6-4de4-9987-1b0197f6855b","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":101,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"f3aceeb7-6964-4a3b-8377-8bdbc86f36ef","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":101,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"4c72850e-8c44-4329-93d0-cfd5491f88f6","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":101,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"49cbef1c-81c5-4350-b903-fe1f62032c2c","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":101,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"03a9c0df-5181-438b-8a47-9c1fc4b46907","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":101,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"24764ba6-13bc-4749-b986-5bc532ca54e2","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":101,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"0b16ba2e-d27a-484a-85e1-5566886950a1","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":101,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"aeee214c-7a31-48bf-9a50-6a5a6803dd73","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":101,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"9d30a16a-d86c-4543-90fc-9f86b7ae74e9","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":101,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"0286c61a-5b4a-4ced-83f6-9a279472929b","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":101,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"4cb87145-0991-487e-b72d-dab7ce062190","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":101,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"5a5b1a06-ccb6-4691-b606-8a6cddbf973e","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":101,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"caa6d7f9-33a5-45a3-a2a6-cca949916688","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":101,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"ebf29f86-9ffd-4dd7-aea7-276e2fd56fa8","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":101,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"72b46205-44f4-4065-bad1-0e4541576449","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":101,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"906e4d26-aff0-4d52-95cf-3a3b5c9ff72f","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":101,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"5c94f209-2971-47a0-96f3-3c2e3cf1c4bb","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":101,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"b832c75e-e6c4-4c49-8325-cac28b04382b","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":101,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"9aee767f-ece2-4095-a40b-722b9c0760d8","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":101,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"7ac27776-02b1-44c0-bf3a-f22fc1889979","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":101,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"495e852c-9f93-4dd2-b827-429e5d5b62eb","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":101,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"02a102f5-07a8-449f-a487-bd0aa78c6877","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":101,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"32a08051-5b42-47a6-b37f-8ffc4e12422c","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":101,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"2f49f3c3-6234-41e2-a4e2-8ce9516bf9c5","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":101,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"976f5150-e43d-4600-8e46-d1d90803bea7","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":101,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"cd92eed4-676d-42ad-bf93-65c3a968f7f2","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":101,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"c3aadd58-4b6d-479a-8e32-d2b3d42cccd8","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":101,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"3177cf8c-a59a-4204-901d-a822a7292178","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":101,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"cb84b58f-f846-43b8-bb7e-33d5cbbe9812","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":101,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"322b464d-1dfd-4808-9f09-cb26e686a1cf","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":101,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"a12899bf-d65e-4287-81ab-69e1591a566c","block_type":"box","text":"II-54","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"855223c7-dc62-48fa-b411-daa036ff3734","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ecf97581-082c-4896-84a1-f1331440d94e","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":102,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"efdf2ab9-5fd1-4065-97a3-6f20075e0922","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":102,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"4308dc7a-3390-46c2-ac8a-f993be0a7dc6","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":102,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"aff324b8-8010-4175-aa71-62c5789945f6","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":102,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"cab1189d-ac2f-4599-bf6f-e19d82c4fa7b","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":102,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"b48c9b9c-9047-4d27-8ac0-057c8210e571","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":102,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"21a35363-4f9d-452a-9b99-6ab440bdb13c","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":102,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"b2c84ec2-b925-421d-a550-670853594c9e","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":102,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"9eff5ef1-48dd-40a9-8d4b-2380e2583934","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":102,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"5e76a75e-1ac1-4f1a-9046-379d4c868c24","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":102,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"82ee0cc1-bd9b-45cc-b179-a0d6059d386f","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":102,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"64d249b3-56d0-44c9-af2e-e041ee67f244","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":102,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"6bf11c60-c9dc-4065-a378-63dd8e1c1889","block_type":"box","text":"of principal because of the sequential payments.","page_number":102,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"8349f938-8516-4368-bfc9-af0d2700a674","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":102,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"0a2610b6-c4a5-4a7e-af0f-f2f4e49a57bf","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":102,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"59307317-ee53-4d62-a5de-c72ef3e20dbf","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":102,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"439e0222-d3c7-4cbb-9329-f1d34cf21e37","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":102,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"1f114023-0b88-4ed3-bbfb-692d33766746","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":102,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"8d390773-e360-41a9-8806-6a2a3c03601f","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":102,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"b1ae0d10-81e7-4c71-b3a8-aa8e76b6f195","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":102,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"90bb76f3-0096-4057-97db-2885d4c74221","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":102,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"bd539474-79dd-4545-bb3a-1e282b48f718","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":102,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"4f6f35f6-8560-4053-acfb-0be706768c77","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":102,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"30cbc791-032b-4aa2-80d3-98c7c23ed62a","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":102,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"4f8e7de5-c220-4667-b660-78f0a702575e","block_type":"box","text":"securities of any single such entity.","page_number":102,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"0bd4693d-2ea7-402b-b6f8-61d716fa7c60","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":102,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"4af708da-9004-4adf-acb3-7654a8b317f8","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":102,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"96a961cc-601e-4241-8f18-36c4cf1f6d8d","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":102,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"befc0ab1-4c41-4b76-9108-ead52b3c0e8d","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":102,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"c0423ac2-1f51-4357-ad8c-e68313dd69f3","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":102,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"d315eb99-c0f0-4955-ba26-2622db9ea88b","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":102,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"6cdff44e-64d6-443c-a7d0-1596580bf993","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":102,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"92f3320c-113b-4c2c-820e-e85fb115c7a5","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":102,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"5d25aeed-269a-48b6-90dd-10c90f71f7ef","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":102,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"f22e4632-cabc-4e00-87b0-14c5240c4b61","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":102,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"6bee742b-a7f4-46b3-8976-39f17a2a327a","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":102,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"ae3ac0bc-6451-49a5-8ca8-7570189702f4","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":102,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"b02afa97-685d-469e-be48-04b91c73a35d","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":102,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"e4093bec-65a2-43a9-aa2c-6acaf17a74d3","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":102,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"fd40ec31-79b6-42b4-a320-e1998ed15540","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":102,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"f1eb474f-b76b-448f-8ebc-f76737892647","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":102,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"777931a1-8c23-4cfe-b353-277ed24bb401","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":102,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"79f67832-4675-491c-9d7d-432f0e971fa3","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":102,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"88a44b5b-8282-43f6-8d4f-383bc7f896f2","block_type":"box","text":"classes.","page_number":102,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"7a39c9f5-2fab-41d8-91d1-05aa46a48a77","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":102,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"7d413c0d-6544-4107-8699-b0ac023cf554","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":102,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"8165ea75-a0d4-46e4-bf76-edcb9a75e56d","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":102,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"c0fc5b89-504b-4a47-a541-b0d76b1a3e0d","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":102,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"ba30b574-5f9f-48c7-9231-bc0456ea563d","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":102,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"709bbdc1-d9ae-4ef5-a16f-d595654ae92f","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":102,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"d6cde86d-b260-43ca-b6b8-537b556dc503","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":102,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"9c26c078-d4c5-427a-ab2f-1172b94afa83","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":102,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"ef3fbfaf-ca58-47bf-b78f-153ee5874df2","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":102,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"7cf98930-72d4-4d3f-bc59-c0c73aabbe18","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":102,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"5a02a02c-a6a7-4f5f-b4b2-12256b4d09bc","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":102,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"86867e7a-001c-4bd9-9bee-f5257c82fc56","block_type":"box","text":"to a designated benchmark index.","page_number":102,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"7181076d-388d-4a55-802d-f08d6cbb309b","block_type":"box","text":"II-55","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cb38d21f-c937-4b5c-ae88-9dccc088544d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6690624-e749-4d5f-8cc7-0d6a14fc4851","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":103,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"8c081c60-82b4-4398-82b9-d0a7b83b636d","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":103,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"688b9915-3ac7-4284-95d7-0852aa83010a","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":103,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"5457844a-82ec-4bd1-9e86-298648d4bc1d","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":103,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"50e8b3fc-6e57-4ca5-9e59-a8bc8fb06210","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":103,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"733803db-d5d3-41e4-9a9c-cfdb8fc59230","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":103,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"303d81aa-5ea9-467c-af3a-a406840bba10","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":103,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"67136830-53dd-4d33-911b-659c99b8b871","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":103,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"d4ea5e21-7819-41c4-838f-6c8e37e6777c","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":103,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"e5e61b40-2c6e-4189-b45a-763d2b39b570","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":103,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"bf8be72b-5afa-4eca-8e9e-92b777df0f90","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":103,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"131b1173-91f8-4fa9-88b2-b5de49572c12","block_type":"box","text":"CMO Residuals.","page_number":103,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"7aadac7b-9ae0-4ee7-879c-4b7d1611816f","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":103,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"a83f7d89-f6ca-4adb-a6b4-18df21e54c04","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":103,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"a6e783da-0bac-48c5-a8b2-90e07c4d8ade","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":103,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"bc4b7eac-23b2-4d04-8904-d3355abef488","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":103,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"c0cd060c-37d4-4e4a-be75-b3893e76c91e","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses of","page_number":103,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"ba51d868-21bf-43b1-9ef3-b861f5255401","block_type":"box","text":"the issuer. The residual in a CMO structure generally represents the interest in any excess cash flow remaining after","page_number":103,"box":{"x":68,"y":302,"width":832,"height":11}},{"id":"36f4ea87-844c-4cd0-90f2-3f427eae16fb","block_type":"box","text":"making the foregoing payments. Each payment of such excess cash flow to a holder of the related CMO residual","page_number":103,"box":{"x":69,"y":317,"width":799,"height":11}},{"id":"430a6368-ba62-4732-a008-2309ac02cc03","block_type":"box","text":"represents income and/or a return of capital. The amount of residual cash flow resulting from a CMO will depend on,","page_number":103,"box":{"x":69,"y":332,"width":833,"height":11}},{"id":"ee726922-efac-4406-8bc2-58916314343c","block_type":"box","text":"among other things, the characteristics of the mor tgage assets, the coupon rate of each class of CMO, prevailing","page_number":103,"box":{"x":69,"y":347,"width":809,"height":11}},{"id":"c1ca73a8-65fa-4184-8686-2eac2b6ce97d","block_type":"box","text":"interest rates, the amount of administrative expenses and the prepayment experience on the mor tgage assets. In","page_number":103,"box":{"x":70,"y":362,"width":810,"height":11}},{"id":"28293089-bdf1-44ac-aa84-ba273847870f","block_type":"box","text":"par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the related underlying","page_number":103,"box":{"x":70,"y":377,"width":795,"height":12}},{"id":"e4255eda-64c4-440b-b964-440c05d777ba","block_type":"box","text":"mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related securities. In addition, if","page_number":103,"box":{"x":69,"y":392,"width":838,"height":12}},{"id":"6df6383c-b74b-439c-aca9-a5320f0dc8ca","block_type":"box","text":"a series of a CMO includes a class that bears interest at an adjustable rate, the yield to maturity on the related CMO","page_number":103,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"019a4bb0-972f-42d9-a86e-6d69c0811753","block_type":"box","text":"residual will also be extremely sensitive to changes in the level of the index upon which interest rate adjustments are","page_number":103,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"f8b98638-9780-413b-9fef-85ba52ca58cf","block_type":"box","text":"based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in a CMO residual.","page_number":103,"box":{"x":69,"y":438,"width":738,"height":11}},{"id":"3ce025b8-6995-4fb8-a5d6-2185ca73c2bb","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":103,"box":{"x":102,"y":460,"width":758,"height":12}},{"id":"57f4cacb-946a-4e07-8f4c-6d9e4df3d12a","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":103,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"6436285f-21f0-449d-8c6c-109a060490ff","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":103,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"775f0ed0-a652-4dc1-a1a4-44f4a7505d95","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":103,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"cba3254b-6a11-47f0-8886-4f8fe72d745b","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":103,"box":{"x":68,"y":521,"width":820,"height":11}},{"id":"c5d49d49-7f6d-4faf-9d45-3bdb835b3ecc","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":103,"box":{"x":69,"y":536,"width":650,"height":11}},{"id":"ede5fdcd-3e8c-447a-96cc-ff621e93c308","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":103,"box":{"x":102,"y":559,"width":267,"height":11}},{"id":"1c443964-33cf-4cec-bd14-089a83b89ff1","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":103,"box":{"x":375,"y":559,"width":493,"height":11}},{"id":"34c0853e-d616-4e2c-9d09-98c230112d4d","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":103,"box":{"x":70,"y":574,"width":798,"height":11}},{"id":"0e2a1ddf-2a31-42e0-bc87-8d35db922902","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":103,"box":{"x":69,"y":589,"width":826,"height":11}},{"id":"eb2758cf-5be1-4ac4-bbd5-1a0a23bd1d74","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":103,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"5714677b-9e0b-4d27-adc7-1cb5d40668bb","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":103,"box":{"x":70,"y":619,"width":821,"height":11}},{"id":"d6631ed5-a7f1-431b-91d5-c84338e72f63","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":103,"box":{"x":68,"y":634,"width":826,"height":11}},{"id":"5390f7db-8d2e-45a7-8079-f6dc0caf7396","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":103,"box":{"x":69,"y":649,"width":822,"height":11}},{"id":"4afc7915-eff2-4dd9-bdc9-5b59e97abc1e","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":103,"box":{"x":70,"y":664,"width":834,"height":12}},{"id":"e9cedf60-ff43-4d53-86c4-4eebc3da08d1","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":103,"box":{"x":68,"y":680,"width":800,"height":11}},{"id":"164c75bf-6aa9-4d3f-ab17-32daa2aeaef2","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":103,"box":{"x":69,"y":695,"width":786,"height":11}},{"id":"9ad339f5-08e0-4b9c-9954-0cb5056cd22e","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":103,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"2651bffe-3fe1-463f-96e5-d8e00ddb7c64","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":103,"box":{"x":69,"y":725,"width":832,"height":11}},{"id":"6695070f-c284-4255-ab56-c8eb60d599b1","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":103,"box":{"x":70,"y":740,"width":824,"height":11}},{"id":"2dd7c9b7-417f-46f5-97c3-be7123cfe143","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":103,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"9c146f6a-90be-4d34-9446-d14bcbdc2625","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":103,"box":{"x":69,"y":770,"width":818,"height":11}},{"id":"923da09a-868a-4583-b64a-4753b56ee335","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":103,"box":{"x":68,"y":785,"width":840,"height":12}},{"id":"1f44094c-5a39-4925-a40d-033b112853da","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":103,"box":{"x":68,"y":801,"width":802,"height":11}},{"id":"8199277a-c74e-4af1-9482-0cd190d98d8f","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":103,"box":{"x":69,"y":816,"width":805,"height":11}},{"id":"168f6d17-528b-4894-b68b-86902369b37a","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":103,"box":{"x":69,"y":831,"width":814,"height":11}},{"id":"eed71a7a-5cc0-4158-8c4d-f496acea117b","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":103,"box":{"x":68,"y":846,"width":683,"height":11}},{"id":"669487b9-87be-42cc-b65f-2cf6e56a5e07","block_type":"box","text":"Tiered Index Bonds.","page_number":103,"box":{"x":103,"y":869,"width":138,"height":9}},{"id":"465a6a7d-dec7-4ad6-b10a-67bee32a6500","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":103,"box":{"x":247,"y":869,"width":638,"height":11}},{"id":"a216daac-3b73-4cc5-96c3-25029297ade7","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":103,"box":{"x":70,"y":884,"width":825,"height":11}},{"id":"bae5a438-e05e-4299-a80b-5a625d40fbda","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":103,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"a096d2b4-c081-444c-9022-c2dbe376ae38","block_type":"box","text":"II-56","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a340beef-8506-4b87-abf3-f0aa919de8d0","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32ca913f-7171-4cbe-8440-568846f6d095","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":104,"box":{"x":69,"y":45,"width":738,"height":10}},{"id":"9b0d403e-3c12-4d7f-a4be-d3131cbd81c4","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":104,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"8cdc5588-d419-496f-b05b-b57fe28fdddf","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":104,"box":{"x":70,"y":75,"width":836,"height":11}},{"id":"ef4054e6-2e1f-4e62-94cb-47f8c011b7d6","block_type":"box","text":"that of a fixed-rate bond.","page_number":104,"box":{"x":68,"y":90,"width":174,"height":9}},{"id":"3c71de00-b3ca-4310-8047-5441ffd121f0","block_type":"box","text":"TBA Commitments.","page_number":104,"box":{"x":103,"y":113,"width":133,"height":9}},{"id":"b489c548-0eff-499d-8eef-072cdf8cef73","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":104,"box":{"x":243,"y":113,"width":653,"height":11}},{"id":"126c0bcb-85f6-4422-bc98-ddbdb58529f8","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":104,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"3f5a122b-48df-45a1-8cac-347cc39d29c4","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":104,"box":{"x":68,"y":143,"width":825,"height":11}},{"id":"2f5a0210-484a-4ead-a0f5-c3b2183514af","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":104,"box":{"x":70,"y":158,"width":793,"height":11}},{"id":"633f9fe8-97d6-4443-9032-ca66e453c515","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":104,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"6ab903b7-88fd-45e5-b5b8-89fee5d9be4d","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":104,"box":{"x":70,"y":188,"width":804,"height":12}},{"id":"a9849f21-ea80-410b-b029-012d976bf9c2","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":104,"box":{"x":69,"y":203,"width":779,"height":12}},{"id":"b0d65a1a-c00e-42dd-ad29-8b84ceb2e0fa","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":104,"box":{"x":69,"y":219,"width":810,"height":11}},{"id":"d692b07c-4947-4895-a5b7-4592fd77fb58","block_type":"box","text":"below.","page_number":104,"box":{"x":69,"y":234,"width":43,"height":9}},{"id":"1f175071-52f3-456b-b8bb-683252b27824","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":104,"box":{"x":102,"y":257,"width":157,"height":11}},{"id":"ce501905-f23f-468e-b466-2d1db6ceb939","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":104,"box":{"x":266,"y":256,"width":634,"height":12}},{"id":"56618aa0-fd6c-4ac1-abbd-957f4a21a5d6","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":104,"box":{"x":70,"y":271,"width":825,"height":12}},{"id":"949ab3f0-e6a3-4d06-bff8-0ff87f2c9abf","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":104,"box":{"x":69,"y":286,"width":805,"height":12}},{"id":"e086073c-f417-4c4a-89b1-84161b7f2e11","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":104,"box":{"x":70,"y":302,"width":817,"height":11}},{"id":"314ba20e-a688-47e2-89a6-ed957cb9a5c6","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":104,"box":{"x":69,"y":317,"width":820,"height":11}},{"id":"62e5f3c1-46d7-42da-9b6a-929c3b74b67d","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":104,"box":{"x":69,"y":332,"width":827,"height":11}},{"id":"b3eb6512-3edc-46c8-ad58-76f9c36d7a5c","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":104,"box":{"x":69,"y":347,"width":806,"height":11}},{"id":"363caad7-33a2-4d0e-b989-33f8a99a647f","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":104,"box":{"x":69,"y":362,"width":833,"height":11}},{"id":"21d24ad9-d6a5-4baa-924c-3fc99a45e338","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":104,"box":{"x":69,"y":377,"width":836,"height":11}},{"id":"f814230c-4d74-401d-9480-eb5a9e30190b","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":104,"box":{"x":69,"y":392,"width":607,"height":11}},{"id":"92dae91d-fb00-42e2-ac78-5f538891c29a","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":104,"box":{"x":102,"y":415,"width":744,"height":11}},{"id":"dddb9740-b6a5-4ce8-9dfc-28f73c93ff92","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":104,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"b9766531-0377-42ec-841d-47ab0ff955fd","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":104,"box":{"x":69,"y":445,"width":433,"height":12}},{"id":"2793e0df-a9c1-43c1-88b6-cd72dc8f071f","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":104,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"648fb61f-f129-4035-bf08-e4d30a5db7fa","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":104,"box":{"x":70,"y":483,"width":824,"height":11}},{"id":"f0214a8f-e62e-4ab7-b737-720cd9718c43","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":104,"box":{"x":69,"y":498,"width":774,"height":11}},{"id":"ce9585db-07ef-4dd1-b050-4325a291ce6a","block_type":"box","text":"securities in the forward transaction.","page_number":104,"box":{"x":69,"y":513,"width":261,"height":9}},{"id":"a3bc1ff8-1afc-4fd6-8001-2000bea7977c","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":104,"box":{"x":101,"y":536,"width":785,"height":11}},{"id":"c0b67cfb-7a1c-4905-9646-c7626f218f04","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":104,"box":{"x":69,"y":551,"width":812,"height":11}},{"id":"a0375486-2972-4207-a237-1d28c4c0cd03","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":104,"box":{"x":68,"y":566,"width":824,"height":11}},{"id":"937a6325-f3ae-4319-8f65-230854041fdc","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":104,"box":{"x":69,"y":581,"width":824,"height":11}},{"id":"9195a16d-384d-4643-9648-43494af6d631","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":104,"box":{"x":69,"y":596,"width":828,"height":12}},{"id":"8b94cf38-795b-4353-9921-7928c11858be","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":104,"box":{"x":69,"y":612,"width":430,"height":11}},{"id":"ecf46285-ffce-4a81-b983-0c8123dae519","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":104,"box":{"x":102,"y":634,"width":759,"height":12}},{"id":"6a90580c-ff71-4f1e-b5e4-8603372a58fa","block_type":"box","text":"securities (e.g., dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":104,"box":{"x":69,"y":649,"width":788,"height":12}},{"id":"5a4d9bc4-cb62-4bc7-bc4e-7ac18d0384b6","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":104,"box":{"x":69,"y":664,"width":813,"height":12}},{"id":"a195d568-00f6-4590-a1a3-5b6f8f51775f","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":104,"box":{"x":70,"y":680,"width":783,"height":11}},{"id":"48dae048-679c-49f0-ba1c-5f295ae8be79","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":104,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"06e0a20e-4cab-406d-b06a-d64f93f60ceb","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":104,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"badfb480-e9b0-4508-be78-a28d4567b32c","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":104,"box":{"x":69,"y":725,"width":788,"height":11}},{"id":"90f8a7e6-74a7-4bbc-b5b9-ece78c4b9a2f","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":104,"box":{"x":70,"y":740,"width":489,"height":11}},{"id":"8e8c6f7c-847b-487b-b27e-807217f1ea92","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":104,"box":{"x":102,"y":763,"width":260,"height":11}},{"id":"b78cb496-d28d-4b2e-aba1-f0b3c41fb66b","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":104,"box":{"x":368,"y":763,"width":473,"height":11}},{"id":"11977e05-b5fa-4010-b236-994313657b03","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":104,"box":{"x":69,"y":778,"width":768,"height":11}},{"id":"1e6bbe21-650f-4ad8-af86-1ecb8c6ac77e","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":104,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"6f3b0e09-1f36-4a7b-a95a-c9dd514ddc13","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":104,"box":{"x":70,"y":808,"width":760,"height":11}},{"id":"98d57cc3-4f62-4036-96d5-0b455c6f6cfd","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":104,"box":{"x":69,"y":823,"width":832,"height":12}},{"id":"cfff1b07-4bab-4d59-8358-dac5b94550e0","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":104,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"1169591b-a3dc-4359-99b0-67aec079b030","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":104,"box":{"x":69,"y":854,"width":764,"height":11}},{"id":"9e899cbc-fbe5-42e6-be85-a86db8266bdc","block_type":"box","text":"Municipal Investments.","page_number":104,"box":{"x":102,"y":876,"width":169,"height":11}},{"id":"15858bfe-e055-47b9-b3df-d39d638d3088","block_type":"box","text":"II-57","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"531e1640-3c95-41bb-a405-485229e33c1f","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"740e26a2-429c-483b-a87e-7231b9d1df9f","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":105,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"dd3bdb2e-3e21-4a81-9cfa-3d1b4061b593","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":105,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"43315b4f-b226-40fb-9046-0323d39cf9de","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":105,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"ed35db95-2c8d-45d4-862f-ec77433f4a43","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":105,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"fa6e0728-3767-4996-b490-72f604a068ac","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":105,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"e6c9d5ae-84b7-4bbf-aa29-ef3a24dc4975","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":105,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"b6e0d568-c784-4e07-b3f6-25479dcabecc","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":105,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"e5492e6d-ded2-481c-9d1f-e0fae4370b32","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":105,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"ed9f399a-b079-4f69-b2e3-1d9d1418c7fe","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":105,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"5a54dcf6-b2dd-4f4e-9989-553d12962c00","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":105,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"aff26351-9fb9-4eb2-9014-e682f0e2c2f8","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":105,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"0c07ccfb-2552-4c55-ab5f-b2017e014922","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":105,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"d86b0f87-8b2d-4498-bd66-5e4225596ee9","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":105,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"ce22deb7-d1ae-48f8-9a84-f144335dc9d4","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":105,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"6852dcdc-9778-4785-8eb8-f58c41aafceb","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":105,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"f967526d-e050-481a-b15d-8ece67862919","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":105,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"28f11fa7-ca26-4b14-b76b-3564e32372e0","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":105,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"6227c3f2-eeab-47a7-ae89-3946f5b3f3ba","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":105,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"59e693ba-e724-43fd-8f7d-f4558ce53b97","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":105,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"a576f984-39e3-4d89-b3de-c6d680f79f7d","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":105,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"8b6ce89f-5ee7-470d-b1c4-e634cdb3f853","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":105,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"6f546718-ee61-4d76-9559-aca660971b89","block_type":"box","text":"The risks and special considerations","page_number":105,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"77e32cdb-5d79-4912-a230-8eea2e0d84f0","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":105,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"134a1414-dd39-4285-ae46-d3c3ed2b825f","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":105,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"2138c3a3-eff5-42f4-a795-1910989e5ebb","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":105,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"878de29d-3f9c-43d7-a775-2dd3cd7fa92b","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":105,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"bf96a245-c496-4c08-9dc7-5e55041f2ed8","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":105,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"994e27f6-b6db-4522-9687-394ff93037a1","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":105,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3ebfe341-f0fe-449b-a8e0-95f9523d91c4","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":105,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"9ce39597-afff-4cdf-874e-375f127c796a","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":105,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"733ddb16-1ee2-401e-ba98-abb5441102f9","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":105,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"f4b00496-fa57-4565-8c76-4d248be8bd90","block_type":"box","text":"Description of Municipal Bonds.","page_number":105,"box":{"x":102,"y":521,"width":225,"height":11}},{"id":"24fb8eed-96c4-4f4b-9ef7-e5b7e543c5de","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":105,"box":{"x":102,"y":543,"width":754,"height":12}},{"id":"42d39dc1-b585-40ab-a80b-0311ef09d6b4","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":105,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"e39ccaa9-644b-45b7-9c3c-c3d706f7763b","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":105,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"9b844f08-220e-4a98-ae1b-3661472a8b1d","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":105,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"57a8a25c-cb9f-481e-957d-d8473ce54adc","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":105,"box":{"x":68,"y":604,"width":822,"height":11}},{"id":"d245f506-d787-4097-a585-8a86c99c59e9","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":105,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"a52fd6cb-ed05-4f88-9a8d-4e4d3a9d1be0","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":105,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"b490f90f-4548-4498-b037-9b8f879a0a58","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":105,"box":{"x":68,"y":649,"width":812,"height":12}},{"id":"4989d528-8d21-493f-a22b-2bb5b2a51b11","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":105,"box":{"x":70,"y":664,"width":792,"height":12}},{"id":"e91ead0c-2b72-42ad-a471-22b83466b347","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":105,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"6c5f08fc-e7a6-4e5f-88d2-7750eb894768","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":105,"box":{"x":68,"y":695,"width":840,"height":11}},{"id":"62fb47ab-77cf-4ea8-bdce-2d1a426b779f","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":105,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"41cab1d5-379d-4c1c-b9b0-224c0e09d35f","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":105,"box":{"x":69,"y":725,"width":401,"height":11}},{"id":"80a57ee5-2082-4fe1-9b63-32788cc6b3f9","block_type":"box","text":"General Obligation Bonds.","page_number":105,"box":{"x":102,"y":748,"width":184,"height":11}},{"id":"435491db-84dd-4b49-a686-b454dacf1978","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":105,"box":{"x":292,"y":748,"width":613,"height":11}},{"id":"875dff8e-200c-4d3e-a8f8-c212e95d7dcb","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":105,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"a4c0fcf7-ea81-4dc3-8a96-f08c501f8d6e","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":105,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"ca1d484f-e0c9-4d7c-a480-87d1d9ff9b94","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":105,"box":{"x":70,"y":793,"width":786,"height":11}},{"id":"8ab17a2f-8480-492b-a6cd-81dc7f981d9f","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":105,"box":{"x":70,"y":808,"width":835,"height":11}},{"id":"8513c3a6-350d-461f-819f-c86a135c1d95","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":105,"box":{"x":69,"y":823,"width":840,"height":12}},{"id":"824240de-7458-439b-94e6-816cc1ee3d9c","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":105,"box":{"x":69,"y":838,"width":782,"height":11}},{"id":"c2ccc9d3-0d94-428a-8c0e-56a20f95f7e4","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":105,"box":{"x":68,"y":853,"width":791,"height":12}},{"id":"fa830d20-229e-4b1f-9143-5a89cef4ee7e","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":105,"box":{"x":69,"y":869,"width":630,"height":11}},{"id":"6305ea4c-c234-4fd4-88c6-5c59ddc82a7f","block_type":"box","text":"Revenue Bonds.","page_number":105,"box":{"x":102,"y":891,"width":114,"height":9}},{"id":"f218c2c0-fa2f-4e66-ad8d-56395b4222da","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":105,"box":{"x":223,"y":891,"width":676,"height":11}},{"id":"78a23b19-2f96-4e47-8b7d-edb603b9e394","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":105,"box":{"x":68,"y":906,"width":791,"height":11}},{"id":"9e82b29e-1b91-4e16-82cd-3afdd9b868bf","block_type":"box","text":"II-58","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b72f3b6e-4221-4c82-b843-4f7df8fa7a22","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e1c11ca-d1f6-4043-9bf8-f97d307bdad9","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":106,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"47603be2-3f7a-4e23-b579-6bacc1345e21","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":106,"box":{"x":69,"y":60,"width":798,"height":11}},{"id":"a29a1631-6a55-4bd3-b0be-7c9dcb15289e","block_type":"box","text":"viability of such facility or such revenue source.","page_number":106,"box":{"x":68,"y":75,"width":336,"height":11}},{"id":"c43ec9fb-a8f2-404f-be05-901a24e4ad0b","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":106,"box":{"x":102,"y":98,"width":801,"height":11}},{"id":"2852f15a-6ea5-4ca8-89af-92d7393adf0e","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":106,"box":{"x":70,"y":113,"width":800,"height":11}},{"id":"0c06ddda-8068-4a3e-aabe-af2c88ef0019","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":106,"box":{"x":70,"y":128,"width":810,"height":11}},{"id":"515b3668-c223-49b1-af88-fc68ab0bd58e","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":106,"box":{"x":69,"y":143,"width":830,"height":11}},{"id":"ca056a28-6b3a-44e1-9c71-da14073c5f7d","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":106,"box":{"x":70,"y":158,"width":828,"height":11}},{"id":"ea7cedf5-e085-444a-9d15-6ee15bc6efa8","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":106,"box":{"x":69,"y":173,"width":804,"height":11}},{"id":"e4915981-fdd6-4a18-8787-95f67481c44b","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":106,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"ef87b525-5086-430e-bcc1-b7ddaf2a33f2","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":106,"box":{"x":68,"y":203,"width":457,"height":12}},{"id":"b5564b20-2a2b-465e-aa81-06c82772c464","block_type":"box","text":"PABs.","page_number":106,"box":{"x":102,"y":226,"width":38,"height":9}},{"id":"8f6784e7-c68a-4b46-8d85-374f39bb0c1c","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":106,"box":{"x":147,"y":226,"width":730,"height":11}},{"id":"2ea283c2-b26f-428d-a7bb-b3fd7d3ad40f","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":106,"box":{"x":70,"y":241,"width":755,"height":11}},{"id":"70e13442-0613-4a3b-afb0-c6c66097b624","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":106,"box":{"x":69,"y":256,"width":797,"height":11}},{"id":"a42a8034-9f95-4213-9721-6f5b356ef1ef","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":106,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"03d79121-f228-4708-8065-3f551082a5d4","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":106,"box":{"x":70,"y":286,"width":840,"height":12}},{"id":"e3b6baee-9185-4c93-93b8-bc72fef7dcc1","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":106,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"9787b5be-f574-47a3-9715-3e76aa74c28b","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":106,"box":{"x":69,"y":317,"width":832,"height":11}},{"id":"997159c4-4224-4b77-8019-6ca4b441cdc8","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":106,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"e4e6f9c9-aaf0-4efb-92d8-39ab01a04f83","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":106,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"c01d27a6-e562-4e70-87d4-eb0efe31ee46","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":106,"box":{"x":68,"y":362,"width":816,"height":11}},{"id":"fee8714a-ad32-461f-a200-3ebe8b0d7340","block_type":"box","text":"the par ticular facility being financed.","page_number":106,"box":{"x":68,"y":377,"width":258,"height":12}},{"id":"e90cdfb6-6a02-459e-b823-226a7ac98cc8","block_type":"box","text":"Moral Obligation Bonds.","page_number":106,"box":{"x":102,"y":400,"width":169,"height":11}},{"id":"cd56d419-8794-4b2b-b126-558cf920eacf","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":106,"box":{"x":278,"y":400,"width":628,"height":11}},{"id":"54a0bde2-886e-4088-8fdb-633e6fc64ed3","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":106,"box":{"x":70,"y":415,"width":809,"height":11}},{"id":"17a0489a-abbb-468b-a96b-ba40e47c1a2d","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":106,"box":{"x":69,"y":430,"width":816,"height":11}},{"id":"aa69ea5c-8af8-41f2-a5e9-5e3995c83f46","block_type":"box","text":"that issued the bonds.","page_number":106,"box":{"x":68,"y":446,"width":160,"height":8}},{"id":"da0e8031-c8ed-405d-82f0-b6cc13ccb6ae","block_type":"box","text":"Municipal Notes.","page_number":106,"box":{"x":102,"y":468,"width":118,"height":11}},{"id":"056fea09-b18d-4bf3-bba8-1437cc436909","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":106,"box":{"x":227,"y":468,"width":683,"height":11}},{"id":"9ca1e5ef-c63a-43d3-89df-bf3f79c52035","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":106,"box":{"x":70,"y":483,"width":807,"height":11}},{"id":"75173506-3844-46a2-81cf-f78c23c8058f","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":106,"box":{"x":69,"y":498,"width":739,"height":11}},{"id":"9bed635c-329e-48a3-bd9b-5ca9aedc355a","block_type":"box","text":"Municipal Commercial Paper.","page_number":106,"box":{"x":102,"y":521,"width":205,"height":11}},{"id":"dafa1c10-4a8c-46d0-8cb8-f0d372d917ef","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":106,"box":{"x":314,"y":521,"width":586,"height":11}},{"id":"83eac8e3-4acc-4db6-955e-6d8ea8e590bd","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":106,"box":{"x":68,"y":536,"width":767,"height":11}},{"id":"d930a60c-f976-46a3-9b82-47b4103fac95","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":106,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"7940dce8-89f8-4ebc-b373-ecf288b62795","block_type":"box","text":"Municipal Lease Obligations.","page_number":106,"box":{"x":102,"y":574,"width":203,"height":11}},{"id":"2028f789-2838-4337-87ee-3b8b2a46543d","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":106,"box":{"x":311,"y":574,"width":566,"height":11}},{"id":"212abe17-c7dd-4777-9edb-09db856b0a03","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":106,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"921f5904-3a92-4699-bc64-402371091c27","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":106,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"b6ffec59-bc84-4f22-8f60-81d05a27902b","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":106,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"da7a720c-7fbc-447d-92e0-91112764735f","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":106,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"2b23bbd8-5e89-47a5-b0d6-bbebef9131c5","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":106,"box":{"x":70,"y":649,"width":820,"height":12}},{"id":"70513f80-80d7-42fd-ba7d-f6489b320979","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":106,"box":{"x":70,"y":664,"width":808,"height":12}},{"id":"14a89e77-b30f-4aec-8b05-daccc8ae6272","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":106,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"ff10ddcb-aef5-4934-991b-dc4fbf9f1c64","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":106,"box":{"x":68,"y":695,"width":795,"height":11}},{"id":"a6513b80-a68c-459e-80da-d272ff31c343","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":106,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"5b593c43-ccf8-4600-9c9f-ef5b185fcd20","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":106,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"debc5d52-ae55-473f-9a80-20e93bd3a971","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":106,"box":{"x":69,"y":740,"width":817,"height":11}},{"id":"fcdbff71-8c23-46a7-8da6-70488182e374","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":106,"box":{"x":69,"y":755,"width":572,"height":11}},{"id":"a505e9cc-d45f-41bf-80e0-53dc92f55482","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":106,"box":{"x":101,"y":778,"width":791,"height":11}},{"id":"2664a074-419c-4b02-9623-9ca43f135263","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":106,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"9955c421-0f8c-41a0-8d28-93a2e7e1860a","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","page_number":106,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"cac51eb2-8a6b-48e8-9e59-7bb3c8339d1a","block_type":"box","text":"a reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":106,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"496ab848-fe9f-43e9-a68f-ae38b1a57ecc","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":106,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"4701ab3c-4df8-4597-9166-a7d70e630b33","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":106,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"3d590e44-7fff-491d-8f5a-40979b186451","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":106,"box":{"x":69,"y":869,"width":807,"height":11}},{"id":"87a7428b-1e32-49be-ac4d-ef3bbcabf371","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":106,"box":{"x":68,"y":884,"width":835,"height":11}},{"id":"d64bc86a-34e0-4d5c-a0a2-9d0fc90acf6d","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":106,"box":{"x":69,"y":899,"width":828,"height":11}},{"id":"ad037997-412d-4453-b7b3-e0114b5ad2dd","block_type":"box","text":"II-59","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2808a917-1173-466a-8242-c811384d808b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3c254ea7-3271-485e-88e3-4a48c8d8687b","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":107,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"f704215a-2763-4c15-b7a7-261c5b5096e0","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":107,"box":{"x":68,"y":60,"width":793,"height":11}},{"id":"5d195371-7ee7-4288-bfaa-50452afe263d","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":107,"box":{"x":70,"y":75,"width":810,"height":11}},{"id":"ffc74532-44d5-43dc-9283-d48fee2fabee","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":107,"box":{"x":70,"y":90,"width":820,"height":11}},{"id":"3e026039-2519-466c-9ff3-d9cbd37b3569","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":107,"box":{"x":69,"y":105,"width":790,"height":11}},{"id":"03ba0463-8c68-4c88-bec3-881a79f22ef5","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":107,"box":{"x":69,"y":120,"width":574,"height":11}},{"id":"0ed14775-e138-408e-8746-029945e058af","block_type":"box","text":"Tender Option Bonds.","page_number":107,"box":{"x":103,"y":143,"width":150,"height":11}},{"id":"888da18a-5e36-42fa-915d-fbb3a1097e0b","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":107,"box":{"x":260,"y":143,"width":613,"height":11}},{"id":"ad5ee39d-0ce1-4414-a149-266ff91b64af","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":107,"box":{"x":69,"y":158,"width":796,"height":11}},{"id":"af7e3084-4aa8-4170-88e6-cb3c686bdd33","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":107,"box":{"x":70,"y":173,"width":834,"height":11}},{"id":"765c4c21-b3df-4b2b-b4e4-5fa519cbdff5","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":107,"box":{"x":68,"y":188,"width":807,"height":11}},{"id":"bdc59b54-57e1-4932-aa39-39f04be0f86f","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":107,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"b537d24f-7143-4e25-b6f0-bc62aadf1c06","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":107,"box":{"x":68,"y":218,"width":814,"height":12}},{"id":"d092f2ff-267f-4d88-a2d5-6cb65f4a9423","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":107,"box":{"x":68,"y":234,"width":598,"height":11}},{"id":"8fbf035e-8de5-4224-b911-fc1358611177","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":107,"box":{"x":101,"y":256,"width":751,"height":12}},{"id":"473fa835-d277-4a69-8d97-3af0753be439","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":107,"box":{"x":70,"y":271,"width":786,"height":12}},{"id":"a0b4d636-0161-472c-8857-bb2ec857acbb","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":107,"box":{"x":69,"y":286,"width":813,"height":12}},{"id":"6e1677e0-e57a-4fc7-9e95-8b911caeb5e6","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":107,"box":{"x":68,"y":302,"width":799,"height":11}},{"id":"c2e08728-9218-42ae-b520-a1873835ef1e","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":107,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"ac4d912d-1390-4ca7-89e7-1fdee4c217f1","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":107,"box":{"x":68,"y":332,"width":828,"height":11}},{"id":"c6f824fc-e506-467f-ae38-e3b8093b55ca","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":107,"box":{"x":70,"y":347,"width":826,"height":11}},{"id":"b6cb8dbc-5119-4333-a61b-dd4d04a32d0c","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":107,"box":{"x":69,"y":362,"width":768,"height":11}},{"id":"d7aa79ac-55b2-4e19-ab0d-901d0e14b0b2","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":107,"box":{"x":70,"y":377,"width":825,"height":11}},{"id":"0f800d7e-903c-49ee-8335-71f1185f8055","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":107,"box":{"x":69,"y":393,"width":764,"height":11}},{"id":"89809f71-d01c-4585-8a7b-946b692b3512","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":107,"box":{"x":70,"y":407,"width":838,"height":12}},{"id":"1aef6de3-c98a-4243-8f6d-31cf773fd5aa","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":107,"box":{"x":68,"y":423,"width":810,"height":11}},{"id":"dc90c171-794e-4302-bf5b-bc5354df1e0f","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":107,"box":{"x":68,"y":438,"width":704,"height":11}},{"id":"d4702aee-bf86-4794-8105-7917750e7efa","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":107,"box":{"x":102,"y":460,"width":804,"height":12}},{"id":"7e74aae4-947b-42e6-99dd-db75ec04964d","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":107,"box":{"x":70,"y":475,"width":805,"height":12}},{"id":"b75dfd54-97f4-4766-9d59-b5316b405ce1","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":107,"box":{"x":69,"y":491,"width":752,"height":11}},{"id":"c3667088-e7e8-4e86-9ddd-67a63e9d16ad","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":107,"box":{"x":70,"y":506,"width":211,"height":11}},{"id":"898baa68-be9b-4c7c-9b03-c42e88f12f6b","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":107,"box":{"x":101,"y":528,"width":802,"height":12}},{"id":"718aad99-6980-4bcc-b7b7-ad841381fe2a","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":107,"box":{"x":70,"y":543,"width":753,"height":12}},{"id":"da2650a8-a260-48ae-97a4-2e832ffaf6aa","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":107,"box":{"x":69,"y":559,"width":829,"height":11}},{"id":"b8a36763-e638-48e3-93df-25c88ee73e86","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":107,"box":{"x":69,"y":574,"width":819,"height":11}},{"id":"608ba276-8c92-4aca-b067-d31a69a43204","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":107,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"e9f65dad-988b-4027-9fab-850205e8cc92","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":107,"box":{"x":70,"y":604,"width":357,"height":11}},{"id":"baff7b1c-6e6a-48b3-9611-ca77f2f7c23d","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":107,"box":{"x":101,"y":627,"width":807,"height":11}},{"id":"1b0bc546-c6dd-4d15-b7bc-fd3d6098602d","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":107,"box":{"x":69,"y":642,"width":810,"height":11}},{"id":"1513ce39-5978-4faa-afce-becdb1dbd728","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":107,"box":{"x":69,"y":657,"width":825,"height":11}},{"id":"fe624493-80d7-4205-8b8f-852d3ecff76a","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":107,"box":{"x":69,"y":672,"width":834,"height":11}},{"id":"1032ab1c-9fbe-403c-a315-7c4a78de9b28","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":107,"box":{"x":70,"y":687,"width":797,"height":11}},{"id":"68165aae-a73e-42bb-8c26-a47f92a9f9bc","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":107,"box":{"x":70,"y":702,"width":809,"height":12}},{"id":"54ffa2e2-f452-4ec8-a6fd-a6f031f4a783","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":107,"box":{"x":69,"y":717,"width":820,"height":11}},{"id":"48a68019-8e35-4d44-9d51-e8e90576e12f","block_type":"box","text":"issues.","page_number":107,"box":{"x":70,"y":733,"width":49,"height":9}},{"id":"4fd0b183-f1d7-47cc-ad5c-c20527cbb33a","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":107,"box":{"x":101,"y":755,"width":795,"height":11}},{"id":"6d67c256-ade2-40ed-9585-0e23424437ce","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":107,"box":{"x":68,"y":770,"width":833,"height":11}},{"id":"a7a28083-8b9d-47d3-831b-1b0f9dba12bf","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":107,"box":{"x":70,"y":786,"width":293,"height":11}},{"id":"2f9afe56-48eb-4fe9-b636-9cdfc4a99984","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":107,"box":{"x":101,"y":808,"width":802,"height":11}},{"id":"a1742692-6df1-4376-aed7-cfd6e4cf0ce4","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":107,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"4fd5db61-29bf-4e6f-80f6-f24803924c9f","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":107,"box":{"x":70,"y":838,"width":836,"height":12}},{"id":"a52e687e-d062-4e19-b7aa-ab29cbf417ff","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":107,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"9c50e997-4612-4b4e-8ece-75cb14af8691","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":107,"box":{"x":70,"y":869,"width":833,"height":11}},{"id":"e74a36ae-4e35-498c-9535-e8488770c36a","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":107,"box":{"x":68,"y":884,"width":834,"height":11}},{"id":"54f510eb-6f70-425a-8554-8d7258fefef9","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":107,"box":{"x":70,"y":899,"width":838,"height":11}},{"id":"416f5f2e-92f5-4bda-8043-5009c0aa2664","block_type":"box","text":"II-60","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4790e036-2ef1-41c5-ba4f-cb312322c7ec","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a748e4d4-269b-4ea3-9ca6-88e8055f3411","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":108,"box":{"x":68,"y":45,"width":831,"height":11}},{"id":"aa7b42c9-5f24-48a2-b7b9-4e0deae7f39e","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":108,"box":{"x":70,"y":60,"width":823,"height":11}},{"id":"f693866c-3055-4784-9a1b-cc55d859ff3d","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":108,"box":{"x":69,"y":75,"width":839,"height":11}},{"id":"52453cb1-5d63-4daa-a251-945ef46fb49c","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (i.e., the Fund). In contrast, in the","page_number":108,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"60b44642-f422-420c-aad6-2e8a5dfd1871","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":108,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"2dcf7fce-4af8-449b-8ec9-602fa79b4f51","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":108,"box":{"x":69,"y":120,"width":479,"height":11}},{"id":"052a0695-49a0-4edd-8e14-d9d0c073ff97","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":108,"box":{"x":101,"y":143,"width":797,"height":11}},{"id":"6ff5d790-2621-4c21-8cf5-a218d305bc8a","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":108,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"e8065168-af1c-463a-b9a6-407fc483a286","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":108,"box":{"x":68,"y":173,"width":828,"height":11}},{"id":"e0206823-86c9-450c-9190-958351b9e530","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":108,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"ab518d60-3c1c-4777-a816-62ba7709df67","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":108,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"0c2b5348-0266-4fb0-83a5-2ad366d6f6ad","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":108,"box":{"x":68,"y":219,"width":434,"height":11}},{"id":"5e80c07a-781b-4d46-a590-39fab74e0df9","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":108,"box":{"x":101,"y":241,"width":772,"height":11}},{"id":"0f93356c-b032-42cd-a66f-89bd981cc39f","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":108,"box":{"x":70,"y":256,"width":831,"height":11}},{"id":"011c29ef-c07e-431e-8b97-a4a28757a212","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":108,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"b4e27e59-f749-4dba-ac02-64ae79a22ac1","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":108,"box":{"x":70,"y":286,"width":831,"height":12}},{"id":"b2079559-4a58-4fc4-8f50-e94911b74065","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":108,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"1e28f82f-69af-4d99-95e1-327c359b4dc5","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":108,"box":{"x":68,"y":317,"width":836,"height":11}},{"id":"6c68c89e-1792-4f30-a1e6-6ce2b33c409e","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":108,"box":{"x":68,"y":332,"width":788,"height":11}},{"id":"df5349ab-220a-4560-ac78-e5d0df9ed6c8","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":108,"box":{"x":70,"y":347,"width":823,"height":11}},{"id":"98a01080-0290-4b11-b8aa-0785fb9531b0","block_type":"box","text":"Trust.","page_number":108,"box":{"x":68,"y":362,"width":39,"height":9}},{"id":"e8096ca0-6db3-49a1-8864-256bf04d8374","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":108,"box":{"x":102,"y":385,"width":784,"height":11}},{"id":"c5755d4d-1472-4330-88de-32520e463278","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":108,"box":{"x":70,"y":400,"width":830,"height":11}},{"id":"e44301af-db47-4c68-8399-4ba0d46a66e7","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":108,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"2dfbe10e-bd0f-4f7b-9bf5-c5b9e700d0b1","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":108,"box":{"x":70,"y":430,"width":831,"height":11}},{"id":"33fa0a64-ab3d-43fd-97e1-60799b4bc4b3","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":108,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"7dc1b213-9ac9-41a2-94e7-c648d311d070","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":108,"box":{"x":69,"y":460,"width":832,"height":12}},{"id":"95cbc60a-10eb-4fa3-83a0-86446ed03641","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":108,"box":{"x":70,"y":475,"width":728,"height":9}},{"id":"3d22045c-c828-4a30-a552-b419146c522f","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":108,"box":{"x":102,"y":498,"width":776,"height":11}},{"id":"7fc3be3e-e78a-45e8-b42d-25c32f622889","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":108,"box":{"x":68,"y":513,"width":837,"height":12}},{"id":"f52272ad-90bc-445e-9b98-d914939becda","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":108,"box":{"x":69,"y":528,"width":836,"height":12}},{"id":"ce913c46-60ab-4eae-bcfc-9469d70a59a7","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":108,"box":{"x":70,"y":543,"width":809,"height":12}},{"id":"e4cc40c2-238d-4a35-8e72-66e1edf53724","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":108,"box":{"x":68,"y":559,"width":836,"height":11}},{"id":"dd7b4a5e-6b1e-48b5-9dea-a7fb4956e5d3","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":108,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"18a04658-3e47-49e2-a000-fd828e1766f4","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":108,"box":{"x":68,"y":589,"width":827,"height":11}},{"id":"2d953642-2884-4d22-b313-2a564cf33996","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":108,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"a1ccdc86-01c4-425e-999f-6c62345f7dde","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":108,"box":{"x":70,"y":619,"width":599,"height":11}},{"id":"bc74548f-29b3-4978-933c-defd443685ab","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":108,"box":{"x":102,"y":642,"width":762,"height":11}},{"id":"43437161-9e0b-4f45-801d-2e0caf166a2b","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":108,"box":{"x":69,"y":657,"width":818,"height":11}},{"id":"a231cefe-31ca-4d14-9498-17b516fdaeef","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":108,"box":{"x":68,"y":672,"width":778,"height":11}},{"id":"766f2b80-a88b-4c53-8611-c0671e60286a","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":108,"box":{"x":69,"y":687,"width":811,"height":11}},{"id":"3e311aeb-c435-4196-8c50-c673898c44a1","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":108,"box":{"x":69,"y":702,"width":786,"height":12}},{"id":"a96561dd-e82f-430d-a43f-6f1740382e49","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":108,"box":{"x":70,"y":717,"width":588,"height":12}},{"id":"0985a40f-8081-47d5-85f6-db76cfde8f37","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":108,"box":{"x":102,"y":740,"width":279,"height":11}},{"id":"9b25a2fb-5976-4970-9168-0f328872cf26","block_type":"box","text":"In response to the restrictions imposed by the section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":108,"box":{"x":102,"y":763,"width":799,"height":11}},{"id":"052268aa-2e0d-4d59-bed0-a365b32a065d","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":108,"box":{"x":69,"y":778,"width":786,"height":11}},{"id":"ec9fc1c1-b63d-42b0-93ce-a33ad35069b4","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":108,"box":{"x":69,"y":793,"width":816,"height":11}},{"id":"b792582b-a150-4a75-8559-dc05b31af689","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":108,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"dab5a5a4-b9ef-423e-a426-a86c93535845","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":108,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"4371637f-ca2d-4be7-9ab7-3e7e0958fd92","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":108,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"b1fe0e8a-f758-4634-9fa6-4293a0c2726a","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":108,"box":{"x":69,"y":853,"width":810,"height":12}},{"id":"e777d9f8-23d8-4913-854f-f91430016e6c","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":108,"box":{"x":68,"y":869,"width":803,"height":11}},{"id":"87da40b1-acea-4054-86db-5af8a6a4e027","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":108,"box":{"x":69,"y":884,"width":665,"height":11}},{"id":"cae7e86b-e1b5-4e5d-97f6-4eaad5ce8277","block_type":"box","text":"II-61","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bd3cc62d-1aec-427b-9374-e7d128b47489","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"42dc74ea-6f67-40a4-a77a-25e4a1b2913e","block_type":"box","text":"Under the new structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees,","page_number":109,"box":{"x":102,"y":45,"width":791,"height":11}},{"id":"3d83ffbb-75f5-489e-b14b-2d86a4714758","block_type":"box","text":"and remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":109,"box":{"x":69,"y":60,"width":815,"height":11}},{"id":"a7619ee1-e0fb-45cf-aad4-413afce5aed9","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":109,"box":{"x":68,"y":75,"width":808,"height":11}},{"id":"3d5a73ce-55d4-4289-8d70-a82c2ff0af06","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":109,"box":{"x":70,"y":90,"width":830,"height":11}},{"id":"8449e6f3-a904-45ce-a1ce-ea7783a6e7c9","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (i.e., the Fund). Tendered TOB Floaters continue to be","page_number":109,"box":{"x":68,"y":105,"width":819,"height":11}},{"id":"9b468ca2-d53b-4fb5-a621-2048ae941599","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":109,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"222937dc-8280-4a73-8fb6-749f5e64f417","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":109,"box":{"x":68,"y":135,"width":816,"height":12}},{"id":"78b11e7b-49a4-4099-b622-4ab9e13a6124","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":109,"box":{"x":68,"y":150,"width":835,"height":11}},{"id":"15a7d195-0dff-4ef7-9cd7-8f5efe36f943","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":109,"box":{"x":69,"y":166,"width":822,"height":11}},{"id":"d99bd59c-5f76-4a97-9b4d-bef195332b05","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":109,"box":{"x":69,"y":181,"width":777,"height":11}},{"id":"090ef1ff-f193-4883-8072-ccbe1ea4166e","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":109,"box":{"x":69,"y":196,"width":800,"height":11}},{"id":"4a134d61-589f-4e3b-995e-d74194cbc519","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":109,"box":{"x":69,"y":211,"width":696,"height":11}},{"id":"21b4aef9-28d8-45d0-b4ff-936c476f5967","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":109,"box":{"x":102,"y":234,"width":745,"height":11}},{"id":"ee4e39c5-907c-4c6b-a586-1153610fbf1b","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":109,"box":{"x":69,"y":249,"width":797,"height":11}},{"id":"5e56dfa3-8a9b-4dc6-8e88-16c8e4c71cdd","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":109,"box":{"x":69,"y":264,"width":803,"height":10}},{"id":"e9a50541-26b5-4a6c-8528-7e60d2136664","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":109,"box":{"x":69,"y":279,"width":838,"height":11}},{"id":"d45e3361-fb33-4621-ac36-5bec23a6c767","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":109,"box":{"x":101,"y":302,"width":801,"height":11}},{"id":"5eb92440-1a97-4b10-b282-61d34514518f","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":109,"box":{"x":69,"y":317,"width":838,"height":11}},{"id":"8dc17b07-5d3c-49a5-91b8-51a7cff9daaf","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":109,"box":{"x":68,"y":332,"width":787,"height":11}},{"id":"92c5d4d3-166a-4264-857c-7c87d43519f0","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":109,"box":{"x":70,"y":347,"width":791,"height":11}},{"id":"b24f5ec5-1df8-43a8-ba44-1891ef44a0e4","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":109,"box":{"x":70,"y":362,"width":466,"height":9}},{"id":"d3eb6f41-d48b-4350-9815-914808dba8d7","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":109,"box":{"x":101,"y":385,"width":726,"height":11}},{"id":"5f3f33e9-e57f-4dfc-ac1f-21a49bd0b8c3","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":109,"box":{"x":70,"y":400,"width":816,"height":11}},{"id":"82881c0c-5641-4b07-a283-067d4df5f330","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":109,"box":{"x":68,"y":415,"width":799,"height":11}},{"id":"0c915f0d-03ca-4a53-8fcb-4eeba7156526","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":109,"box":{"x":69,"y":430,"width":807,"height":11}},{"id":"ac637537-c19e-40ed-989e-74b52c627c3c","block_type":"box","text":"market is not yet cer tain.","page_number":109,"box":{"x":69,"y":446,"width":178,"height":10}},{"id":"971203b5-bcf4-4696-9293-bf2318791ed3","block_type":"box","text":"Yields.","page_number":109,"box":{"x":103,"y":468,"width":45,"height":9}},{"id":"d4e260e4-5ec4-402d-9c5e-6fe9155cafc2","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":109,"box":{"x":154,"y":468,"width":730,"height":11}},{"id":"f03cb94d-58b5-4d2b-bb01-6b352e4667a4","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":109,"box":{"x":69,"y":483,"width":788,"height":11}},{"id":"e1ca5b90-5bc6-48f3-ac3d-ca63d4a83a78","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":109,"box":{"x":70,"y":498,"width":787,"height":11}},{"id":"60f543e4-65aa-4c90-84ec-895a7f7751d2","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":109,"box":{"x":69,"y":513,"width":838,"height":12}},{"id":"7e46d4f1-264f-48ec-b738-b597ce60e23f","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":109,"box":{"x":68,"y":528,"width":794,"height":12}},{"id":"46b6d008-a732-4b33-8c9f-77d0bd6451d0","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":109,"box":{"x":69,"y":543,"width":831,"height":12}},{"id":"fec5c70e-4c2a-4681-9b2c-286f0f4e9755","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":109,"box":{"x":68,"y":559,"width":806,"height":11}},{"id":"b99323eb-86bc-4465-9b96-ebab3c8bd849","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":109,"box":{"x":70,"y":574,"width":823,"height":11}},{"id":"88bd9d0e-e4a7-4e60-a141-6950899eec84","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":109,"box":{"x":69,"y":589,"width":790,"height":11}},{"id":"0aa9293a-a715-4639-bdeb-9ed1f079caae","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":109,"box":{"x":103,"y":612,"width":323,"height":11}},{"id":"413c310a-d7e8-400d-acf2-448367c598fb","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":109,"box":{"x":432,"y":612,"width":422,"height":11}},{"id":"eea3a887-3545-4b28-b2e0-774c374e00d9","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":109,"box":{"x":68,"y":627,"width":830,"height":11}},{"id":"5cad1842-3a85-4fd4-ab66-f8d8abdcfe79","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":109,"box":{"x":69,"y":642,"width":759,"height":11}},{"id":"cb9248f7-0e21-475b-a865-584aa980e914","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":109,"box":{"x":101,"y":664,"width":798,"height":12}},{"id":"1e346ff5-12da-46bf-8696-acc8f28869d5","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":109,"box":{"x":68,"y":680,"width":815,"height":11}},{"id":"df6f68f8-9610-4cd6-b1d1-9b04eded7576","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":109,"box":{"x":69,"y":695,"width":826,"height":11}},{"id":"f04bd26f-d43c-4de7-9bd8-578fa0569779","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":109,"box":{"x":68,"y":710,"width":791,"height":11}},{"id":"7819bbeb-a0f7-4c3d-b08d-73d34d642046","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":109,"box":{"x":70,"y":725,"width":264,"height":11}},{"id":"951790a5-7e7f-48d0-af6b-627aaaf6a0f0","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":109,"box":{"x":102,"y":748,"width":791,"height":11}},{"id":"247908c2-2405-4e74-8ea6-77228ef7fe47","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":109,"box":{"x":70,"y":763,"width":833,"height":11}},{"id":"e95c764b-4c85-46e8-98b3-18c89dfa2967","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":109,"box":{"x":69,"y":778,"width":808,"height":11}},{"id":"ebcaa236-84df-46e0-9ceb-f2eb87eacca2","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":109,"box":{"x":70,"y":793,"width":608,"height":11}},{"id":"8fc338ad-f97a-4f38-bdb1-93bc9e55bfa2","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":109,"box":{"x":103,"y":816,"width":465,"height":11}},{"id":"89d1156c-74ee-4211-a9b0-37a30bd62099","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":109,"box":{"x":574,"y":816,"width":318,"height":11}},{"id":"1f298073-5ad2-4546-92a3-22848ee20f8e","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":109,"box":{"x":69,"y":831,"width":803,"height":11}},{"id":"91fd61cb-4118-49af-9010-656458db3c62","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":109,"box":{"x":68,"y":846,"width":825,"height":11}},{"id":"23d1258b-6567-40b2-bbb7-5a545776a7fe","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":109,"box":{"x":68,"y":861,"width":840,"height":11}},{"id":"dec18ae6-fe82-46ab-8617-0810dec80ab4","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":109,"box":{"x":70,"y":876,"width":815,"height":11}},{"id":"b72f9fe9-72d6-4480-ae45-a47401ea9870","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":109,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"34f61578-6db0-4b55-840f-085779fa59db","block_type":"box","text":"II-62","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2fbcd495-bbc3-4655-8eec-491134e89483","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ed689789-cf80-489d-bb19-6186b711f800","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":110,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"a834cb7a-ff7d-42db-b029-b8e35ed3d798","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":110,"box":{"x":68,"y":60,"width":816,"height":11}},{"id":"f718277f-4a0e-480d-8f2b-67144aebabad","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":110,"box":{"x":101,"y":82,"width":756,"height":12}},{"id":"ecda6653-834a-440b-a46d-ea8a34431c3e","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":110,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"aa1c7f04-d7a2-4ebe-9bca-adf29f269adc","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":110,"box":{"x":69,"y":113,"width":808,"height":11}},{"id":"b8d32b13-3bb6-458c-b909-24e48d7b2db6","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":110,"box":{"x":101,"y":135,"width":753,"height":12}},{"id":"f6ca7c23-a61d-4427-977d-40a0897c9d6f","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":110,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"b83e6eb6-e758-48dc-b106-37a70b89bc07","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":110,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"dfc5c87f-2831-404b-8b6d-645be6c6d7bc","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":110,"box":{"x":69,"y":181,"width":774,"height":11}},{"id":"586d52c1-7b3a-4ec8-a862-da9462ee0a92","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":110,"box":{"x":69,"y":196,"width":801,"height":11}},{"id":"17c3c0b1-1cbc-4dd1-942d-04bdaf327c4b","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":110,"box":{"x":69,"y":211,"width":788,"height":11}},{"id":"780d4577-1a5c-4df5-b454-cd76d4395433","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":110,"box":{"x":69,"y":226,"width":812,"height":11}},{"id":"65923b41-1b87-40df-b4e6-bc7b78a42aa8","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":110,"box":{"x":69,"y":241,"width":799,"height":11}},{"id":"018d0fda-6c60-4219-a0e3-bf6cc54e4a73","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":110,"box":{"x":69,"y":256,"width":772,"height":11}},{"id":"def3c2c8-86ed-4611-8a0c-420e4dbc40d6","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":110,"box":{"x":69,"y":272,"width":782,"height":11}},{"id":"2dd27d84-f78d-433d-9970-964049db9893","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":110,"box":{"x":69,"y":286,"width":806,"height":12}},{"id":"a5363c57-b7ac-4974-b808-9e0860da784c","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":110,"box":{"x":69,"y":302,"width":823,"height":11}},{"id":"5bc1df72-c4ce-4c9a-85ff-4c7efc307e05","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":110,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"ce829f83-18c5-466e-91e7-8248cf83b248","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":110,"box":{"x":70,"y":332,"width":839,"height":11}},{"id":"e191ad8c-96f5-48c5-be6f-06d4c3777273","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":110,"box":{"x":68,"y":347,"width":693,"height":11}},{"id":"563c5266-a5b1-460d-9a90-05aa00615fe5","block_type":"box","text":"Call Rights.","page_number":110,"box":{"x":102,"y":370,"width":79,"height":11}},{"id":"4c8fa512-4ee5-4c38-91b3-2bc54231eb52","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":110,"box":{"x":187,"y":370,"width":708,"height":11}},{"id":"a86895ee-fd59-49c0-a894-a14c55503668","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":110,"box":{"x":68,"y":385,"width":790,"height":11}},{"id":"5b14ae0d-c06f-48f2-8449-2483237fbab0","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":110,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"9646e468-360c-4674-980f-8abbd0dfde30","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":110,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"61cc6b7e-705c-4495-8cbe-0c51230c3722","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":110,"box":{"x":69,"y":430,"width":833,"height":11}},{"id":"d20fb1e1-61e5-4a74-8eba-a47034eb99a6","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":110,"box":{"x":69,"y":445,"width":393,"height":12}},{"id":"dc0894cd-c6e6-4927-8283-e348eef53748","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":110,"box":{"x":102,"y":468,"width":307,"height":11}},{"id":"6c5a976b-d219-4916-bd9a-94f25d4d520b","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":110,"box":{"x":417,"y":468,"width":411,"height":11}},{"id":"bc1a4b20-cc61-499d-b3ed-504885877c3e","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":110,"box":{"x":68,"y":483,"width":835,"height":11}},{"id":"e3c716a6-c630-4d30-b493-035ebd29e628","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":110,"box":{"x":70,"y":498,"width":781,"height":11}},{"id":"f96a36e4-f874-4fdd-88d9-1ab2237d7438","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":110,"box":{"x":70,"y":513,"width":808,"height":11}},{"id":"392dde48-1b45-4168-9c6c-1acebe73c4cf","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":110,"box":{"x":69,"y":528,"width":814,"height":12}},{"id":"617ef344-7bfc-4153-a0ec-6f556ad477c0","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":110,"box":{"x":70,"y":543,"width":832,"height":12}},{"id":"cc3d66c9-c82a-429f-b589-e28144f47119","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":110,"box":{"x":68,"y":559,"width":817,"height":11}},{"id":"1bb7c6f8-0bc6-473a-b884-0aadd88295de","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":110,"box":{"x":70,"y":574,"width":797,"height":11}},{"id":"2b9d42b7-b294-4908-b760-a0e50df96dc8","block_type":"box","text":"during periods of steep interest rate yield curves (i.e., wide differences between shor t-term and long-term interest","page_number":110,"box":{"x":69,"y":589,"width":813,"height":11}},{"id":"ddf3e5ee-c469-4cfe-9fcf-5a5df701a36b","block_type":"box","text":"rates).","page_number":110,"box":{"x":69,"y":604,"width":44,"height":11}},{"id":"893cf2b0-ec5e-42e0-95de-5c3a2f22eca4","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":110,"box":{"x":101,"y":627,"width":807,"height":11}},{"id":"e665d9fd-8c7d-4ed0-a43d-652b82c5accb","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (e.g., an exchange of fixed rate payments for","page_number":110,"box":{"x":69,"y":642,"width":818,"height":11}},{"id":"7c9ea680-31bc-4411-ae60-830b2d809595","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":110,"box":{"x":68,"y":657,"width":798,"height":11}},{"id":"b36ef504-56e2-4d10-a32c-b14e89680b8f","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":110,"box":{"x":70,"y":672,"width":778,"height":11}},{"id":"7a0117e2-fc1e-44e7-9980-ba87ea3a2d47","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":110,"box":{"x":69,"y":687,"width":833,"height":11}},{"id":"a87ddc2d-f7f3-4fe4-aacb-4106e25d3fc5","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":110,"box":{"x":69,"y":702,"width":823,"height":11}},{"id":"4f1e1b96-53ae-4f5c-9a32-a8d4f7508724","block_type":"box","text":"with the same attributes as the swap (e.g., coupon, maturity, call feature).","page_number":110,"box":{"x":68,"y":717,"width":528,"height":12}},{"id":"f76e6dea-e6c4-4e21-8939-e654fcc45e13","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":110,"box":{"x":101,"y":740,"width":797,"height":11}},{"id":"7230595b-2360-421c-b541-215189a6973b","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":110,"box":{"x":68,"y":755,"width":770,"height":11}},{"id":"b9cb8032-91ab-4806-8ffd-d91dd44d54ce","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":110,"box":{"x":70,"y":770,"width":832,"height":12}},{"id":"fbcac6af-de79-4475-a54f-6ddc84ebf3dd","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":110,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"0ca52f3a-a7ed-49a4-839c-73bb0f05bd62","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":110,"box":{"x":69,"y":801,"width":808,"height":11}},{"id":"36071371-2d9e-4331-9ffd-ed654ec99384","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":110,"box":{"x":69,"y":816,"width":832,"height":11}},{"id":"6752bb07-4708-4f9e-9940-942994a02377","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":110,"box":{"x":69,"y":831,"width":804,"height":11}},{"id":"75bd7d8a-df36-4a97-955f-ba011b64f711","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":110,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"612af99c-e8e5-4ce4-8914-0dcce3fe2a33","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":110,"box":{"x":70,"y":861,"width":763,"height":11}},{"id":"8b4e5cb9-05db-4e50-9651-00e339a7de2c","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":110,"box":{"x":69,"y":876,"width":797,"height":11}},{"id":"b5da9cd2-9916-44ed-b471-cadb16c0acc1","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":110,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"aabfbd7b-43ad-43c6-b7a8-2d96fccd8098","block_type":"box","text":"II-63","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"72322990-5819-4cbe-8818-8766199a0b34","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0b81ef6c-e7d7-4995-8d6e-93fca672e6d3","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":111,"box":{"x":68,"y":45,"width":816,"height":11}},{"id":"70916d6d-db42-4f2b-b057-8f9d4dd6f831","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":111,"box":{"x":69,"y":60,"width":537,"height":11}},{"id":"ab50cff7-24e4-4f9c-96a3-edf2d7c2db57","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":111,"box":{"x":102,"y":83,"width":788,"height":11}},{"id":"f5e8d6c2-6c9c-4f78-aa10-a3537e36ebfd","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":111,"box":{"x":69,"y":98,"width":821,"height":11}},{"id":"ad003370-bccd-4582-86fd-3f8063399d75","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":111,"box":{"x":68,"y":113,"width":482,"height":11}},{"id":"4ba88eeb-08f2-4558-bb5a-2a5f5c4ea43c","block_type":"box","text":"Insured Municipal Bonds.","page_number":111,"box":{"x":102,"y":136,"width":179,"height":10}},{"id":"11136257-8bba-4e1e-8ca8-3f58bbca2ba0","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":111,"box":{"x":288,"y":136,"width":619,"height":11}},{"id":"f64f6dda-d7fc-49e7-a7ce-19b26ee8514f","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":111,"box":{"x":70,"y":151,"width":835,"height":11}},{"id":"85e6de93-3199-4068-bc0d-d1d3d7144d25","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":111,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"e0c965f8-d50f-47bd-bc29-b378216d4e3f","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":111,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"dbe65501-8bbb-40df-855c-8b967ed73fc0","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":111,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"2f01e074-7954-4764-a6cb-bb9efddbda0b","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":111,"box":{"x":70,"y":211,"width":827,"height":11}},{"id":"9e6d8c4b-6e98-4783-9347-d24983aff9c2","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":111,"box":{"x":70,"y":226,"width":815,"height":11}},{"id":"8bf9613c-b84b-4450-8f55-d8d74688f1b6","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":111,"box":{"x":69,"y":241,"width":829,"height":11}},{"id":"584397e6-5caf-476e-99ae-115cbd7ca5be","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":111,"box":{"x":68,"y":257,"width":767,"height":11}},{"id":"cffe2d9f-683b-44e0-9d69-254dd2f45981","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":111,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"da3dbf88-d2c2-483b-9d7d-66ad634d579c","block_type":"box","text":"bond could drop.","page_number":111,"box":{"x":69,"y":287,"width":118,"height":10}},{"id":"5e9b4cc9-08a1-4c6e-b5f5-658d6023788f","block_type":"box","text":"Build America Bonds.","page_number":111,"box":{"x":102,"y":309,"width":150,"height":9}},{"id":"6b9a1629-8bca-4e37-b09f-a02fe2e606c0","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":111,"box":{"x":259,"y":309,"width":616,"height":11}},{"id":"7340ed9c-07d5-4586-83e9-e34c4389f8b9","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":111,"box":{"x":70,"y":324,"width":825,"height":11}},{"id":"6cfa50c0-8f85-42f4-a187-c5ef4b0fef00","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":111,"box":{"x":68,"y":339,"width":824,"height":12}},{"id":"af559a23-192f-40c2-a2dd-6140a2f7f7b8","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":111,"box":{"x":70,"y":355,"width":833,"height":11}},{"id":"89ba6d84-c7fb-4df0-84bc-ab8534703cbe","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":111,"box":{"x":69,"y":370,"width":815,"height":11}},{"id":"b18d48e8-11ec-4831-9ce9-ce6e3ef6ce3a","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":111,"box":{"x":69,"y":385,"width":788,"height":11}},{"id":"97d415fe-03cc-43c3-a89b-bb1bd2c4115b","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":111,"box":{"x":69,"y":400,"width":823,"height":11}},{"id":"9feedf5f-c085-41c7-820b-8f8635646ac0","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":111,"box":{"x":70,"y":415,"width":825,"height":11}},{"id":"1105e36a-c599-46b3-ad81-307fc8bea83f","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":111,"box":{"x":69,"y":430,"width":837,"height":11}},{"id":"e1dcc5d1-62b8-419e-b527-e8c335c602b3","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":111,"box":{"x":69,"y":445,"width":802,"height":11}},{"id":"8a0c0407-45e8-4f55-a605-b3a9098dea12","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":111,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"59305e0d-cf76-4779-bd6c-f6d3c786d9c3","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":111,"box":{"x":68,"y":476,"width":760,"height":10}},{"id":"bd40d7b3-e1d2-4af8-9ca3-2aa8bf48e7a3","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":111,"box":{"x":70,"y":491,"width":782,"height":11}},{"id":"fe4e2dca-4da0-4a23-a6b0-024250a7d85c","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":111,"box":{"x":69,"y":506,"width":563,"height":11}},{"id":"06f83056-eb40-430f-8af0-a7f9eb7950fd","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":111,"box":{"x":103,"y":529,"width":246,"height":10}},{"id":"9a6c9604-5d18-4cf9-a1cb-7c8c507eb99f","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":111,"box":{"x":355,"y":529,"width":534,"height":11}},{"id":"0dee5a06-841e-4fa6-bd8e-875f9778f384","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":111,"box":{"x":68,"y":543,"width":798,"height":12}},{"id":"ff1844c4-e533-470d-ada0-d38d2f07d098","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":111,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"20de6a7e-fc61-4d2a-a43e-24112e92ae55","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":111,"box":{"x":69,"y":574,"width":830,"height":11}},{"id":"b6fd8f27-9afc-4312-a652-9d6ec557b5a6","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":111,"box":{"x":68,"y":589,"width":832,"height":11}},{"id":"938d9c00-16b5-4245-a236-5d0ac94c315b","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":111,"box":{"x":70,"y":604,"width":819,"height":11}},{"id":"648763b1-3c18-4f42-91b4-542a85408400","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":111,"box":{"x":69,"y":619,"width":752,"height":11}},{"id":"5f32adbe-c9d0-4b69-a35a-fafb650005b5","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":111,"box":{"x":102,"y":642,"width":770,"height":11}},{"id":"5854ea71-76a7-4f4e-9304-8f683a812eeb","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":111,"box":{"x":69,"y":657,"width":806,"height":11}},{"id":"46db5f28-9fa0-46eb-82ed-e6eac7d4ad5c","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":111,"box":{"x":70,"y":672,"width":809,"height":11}},{"id":"ee65072d-deb2-4fed-a432-c83381602c44","block_type":"box","text":"their face value to the sponsor (e.g., a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":111,"box":{"x":68,"y":687,"width":814,"height":11}},{"id":"f799f0a3-c2c7-4bb7-b150-5990028f263f","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":111,"box":{"x":70,"y":702,"width":803,"height":11}},{"id":"fd9a7bec-1b45-407b-b91d-2b12bfa52953","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":111,"box":{"x":69,"y":717,"width":648,"height":12}},{"id":"20382d98-ae7a-429f-9f27-8ce2926f6c06","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":111,"box":{"x":101,"y":740,"width":775,"height":11}},{"id":"263ff587-0377-40b2-9f4f-013ecf9dc3b2","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":111,"box":{"x":70,"y":755,"width":785,"height":11}},{"id":"a8abe63b-c54a-453a-8928-d24b1ed64ef7","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":111,"box":{"x":68,"y":770,"width":821,"height":11}},{"id":"8e67aa19-cfc0-455b-9411-5ffd282e378c","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":111,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"9b20e4ec-8ffb-4b1e-8707-4038cf667c4f","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":111,"box":{"x":70,"y":801,"width":351,"height":11}},{"id":"550238c8-0a3e-4de7-bc7e-569ee8cd8883","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":111,"box":{"x":101,"y":823,"width":797,"height":12}},{"id":"52a0d634-d830-411f-89ee-7b0c2ea36b47","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":111,"box":{"x":68,"y":838,"width":836,"height":12}},{"id":"7b588f1e-497d-49ea-bc5d-bbab331808a3","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":111,"box":{"x":69,"y":853,"width":831,"height":11}},{"id":"fb2c6d6a-86ed-4e79-b8fc-4bc8f933fd3a","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":111,"box":{"x":69,"y":869,"width":809,"height":11}},{"id":"2c8eb992-4bf9-4780-a666-4e5d8d53ceef","block_type":"box","text":"II-64","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"61c9701f-7bb8-4796-8f44-4fdbb2fffdc5","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbb7b04c-079c-44fa-8c4b-8230e9cfc8a4","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":112,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"5df72f5b-cf16-436b-a0b6-46859d4da61d","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":112,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"f3fc2b3f-cb7f-4830-96c2-884d98716d67","block_type":"box","text":"such opinions.","page_number":112,"box":{"x":69,"y":75,"width":102,"height":11}},{"id":"089c363d-881e-4eda-9089-732b678e02fd","block_type":"box","text":"Operational and Technology Risks","page_number":112,"box":{"x":102,"y":98,"width":247,"height":11}},{"id":"140905f9-8076-408b-81ad-734b536995f3","block_type":"box","text":"— The Fund and the entities with which it interacts directly or indirectly are","page_number":112,"box":{"x":353,"y":98,"width":533,"height":11}},{"id":"986a6233-741f-4b31-b62a-b4905f51a5cc","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":112,"box":{"x":69,"y":113,"width":766,"height":11}},{"id":"11a811af-bd67-496f-ae95-df0903dcfb8d","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":112,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"159868f0-54a6-40e2-ad0d-ecbaa93a268a","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":112,"box":{"x":70,"y":143,"width":820,"height":11}},{"id":"326fefca-5366-41dc-aef1-1a61ef403b90","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":112,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"cbde3e5e-4f51-426d-80b2-f2463d120a3b","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":112,"box":{"x":70,"y":173,"width":741,"height":11}},{"id":"b01fd67f-8c12-4dc0-a5c3-3ee9651c5080","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":112,"box":{"x":69,"y":188,"width":802,"height":12}},{"id":"fbae4444-05b1-494d-97d4-dd931bc01afb","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":112,"box":{"x":68,"y":203,"width":818,"height":12}},{"id":"960a5bac-363f-4619-b51a-1a78e1ce25bb","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":112,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"2d6b3547-67ff-4b8b-976a-590e6d5b77d0","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":112,"box":{"x":70,"y":234,"width":803,"height":11}},{"id":"4e79a397-9c5b-4b4e-a8c7-5051622ebd48","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":112,"box":{"x":102,"y":256,"width":796,"height":12}},{"id":"69f5b5e1-f070-4a6f-854a-51f90ccf5968","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":112,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"ff71ce42-37b5-4eab-b44b-c2d0b66320f1","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":112,"box":{"x":69,"y":286,"width":800,"height":12}},{"id":"bf0f3202-768e-4e6e-864d-4d93a4dc945d","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":112,"box":{"x":69,"y":302,"width":768,"height":11}},{"id":"98d4bb8c-d9ea-4a70-b681-5f74f6c61883","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":112,"box":{"x":70,"y":317,"width":827,"height":11}},{"id":"95cc5a12-f99d-4764-92c3-9c1e137737fe","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":112,"box":{"x":69,"y":332,"width":760,"height":11}},{"id":"17a3656b-88a9-4897-b339-c252b91ff52e","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":112,"box":{"x":69,"y":347,"width":763,"height":11}},{"id":"5fe2c3f5-e919-4416-ae75-e90ec10235e0","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":112,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"e2d5b759-7cca-4d20-bf09-3ff2adbc4e71","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":112,"box":{"x":69,"y":377,"width":766,"height":12}},{"id":"13452c77-0d8c-454a-819f-3fa44d0982b0","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":112,"box":{"x":69,"y":393,"width":804,"height":11}},{"id":"92858f02-3992-4fd3-9983-d698d56d30ea","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":112,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"0d21d793-17a1-4a88-901a-9e29201aed7f","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":112,"box":{"x":69,"y":423,"width":800,"height":11}},{"id":"a19ec382-afda-4d1e-b9ac-a008e8e1004c","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":112,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"6dc4cbea-c7d7-489f-87e0-ccb9f76278c9","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":112,"box":{"x":69,"y":453,"width":777,"height":11}},{"id":"5bd92ec2-0b5c-4943-91fc-9360a8525ca0","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":112,"box":{"x":69,"y":468,"width":824,"height":11}},{"id":"93d2a7d0-2901-4203-96b5-71fb6951bb62","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":112,"box":{"x":68,"y":483,"width":836,"height":11}},{"id":"cb2273c2-41f9-4c9b-aa89-dc27570aec12","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":112,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"34009bf5-d6ab-4a6a-a8d0-2e279dc62bfa","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":112,"box":{"x":68,"y":513,"width":793,"height":12}},{"id":"f65b18c2-7174-48e2-9df6-834a10d011b9","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":112,"box":{"x":69,"y":528,"width":822,"height":11}},{"id":"f511754a-d2a2-4592-a202-1a60b6790da7","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":112,"box":{"x":68,"y":543,"width":787,"height":12}},{"id":"92411b63-0c6c-4df4-9e92-9989c622d0d2","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":112,"box":{"x":69,"y":559,"width":742,"height":11}},{"id":"bda5b205-c7e9-48e4-bf81-2b45171d990c","block_type":"box","text":"infrastructure assets.","page_number":112,"box":{"x":70,"y":574,"width":151,"height":9}},{"id":"100b7479-c7b1-4387-a8ce-92a31e753739","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":112,"box":{"x":101,"y":596,"width":755,"height":12}},{"id":"3cb7efd0-3246-4f7e-b1e7-bdec270c6acf","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":112,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"6858c3af-0762-47d3-b902-18a069470db7","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-par ty products","page_number":112,"box":{"x":68,"y":627,"width":833,"height":11}},{"id":"d7b423c9-9086-41a5-829c-47ad18f90a30","block_type":"box","text":"or services.","page_number":112,"box":{"x":69,"y":642,"width":82,"height":9}},{"id":"33d8a7ce-6c1f-4dd2-bd52-229994c9e072","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":112,"box":{"x":102,"y":664,"width":781,"height":12}},{"id":"15f393f1-e3f0-4e76-8be8-e22330d63d27","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":112,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"235c1d6e-3eba-420e-b2f7-1f37caa0eb4e","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":112,"box":{"x":69,"y":695,"width":383,"height":11}},{"id":"71e8029d-de71-4e22-bb49-72d5f470806c","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":112,"box":{"x":102,"y":717,"width":795,"height":12}},{"id":"033f9733-a8bb-4340-b2bd-18a349cb9a24","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":112,"box":{"x":69,"y":732,"width":813,"height":12}},{"id":"3c30326b-8262-4003-95a2-6cad1f586c4b","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":112,"box":{"x":69,"y":748,"width":785,"height":11}},{"id":"5dad54e6-bcbf-4959-aa9f-108a85fe488c","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":112,"box":{"x":69,"y":763,"width":782,"height":11}},{"id":"1cb5beb2-2ea0-40c0-8c3f-eebbaedc73df","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":112,"box":{"x":69,"y":778,"width":787,"height":11}},{"id":"e79ac503-9966-41f2-ab3d-10016b4f9d9e","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":112,"box":{"x":70,"y":793,"width":809,"height":11}},{"id":"23760c2c-1104-468b-a3e0-25b06fc8c89c","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":112,"box":{"x":69,"y":808,"width":805,"height":11}},{"id":"05122e3b-f942-4839-8196-6127d1692f48","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":112,"box":{"x":70,"y":823,"width":822,"height":11}},{"id":"30117b68-2577-4a85-b1e1-d1b39bdd9027","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":112,"box":{"x":68,"y":839,"width":789,"height":11}},{"id":"b3720243-676c-4362-8dcc-9bd5aded6d64","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":112,"box":{"x":102,"y":861,"width":786,"height":11}},{"id":"4541fd29-77cb-44b8-b525-5e680eb3b3db","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":112,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"a0b69cde-f271-4238-99b3-3d61cbc3761e","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":112,"box":{"x":70,"y":891,"width":796,"height":11}},{"id":"3416a228-b0ba-4406-9a6e-c3247edbc418","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":112,"box":{"x":69,"y":906,"width":788,"height":12}},{"id":"15b7b8c7-5349-459c-a2fb-715d8e513586","block_type":"box","text":"II-65","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fe6d35d6-dbfb-4326-8c12-bf312fe1364c","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59a8e50f-3048-4777-bf71-8e90cb6c5056","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":113,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"711b95a5-7cc7-4855-86c2-4def1bae4aaa","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":113,"box":{"x":68,"y":60,"width":773,"height":11}},{"id":"12279a74-2c29-4dcf-bf94-174441f2e53d","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":113,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"f4136d4f-abb7-4c56-8475-70f633dbed49","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":113,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"6cee1001-f1a3-44f1-908a-04f460d2e52f","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":113,"box":{"x":69,"y":105,"width":412,"height":11}},{"id":"7691a874-8e18-4b5f-bf6a-f72faf3b3cfb","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":113,"box":{"x":101,"y":128,"width":797,"height":11}},{"id":"e46bc5ab-0f47-4f7b-a968-c537abc0cc5b","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":113,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"a7d84846-a319-4832-8796-5476162ef1cc","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":113,"box":{"x":68,"y":158,"width":824,"height":11}},{"id":"af1172fc-8831-46fc-8676-9161b13a2d97","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":113,"box":{"x":69,"y":173,"width":561,"height":11}},{"id":"af4b80f4-c9e0-49af-9f26-0afb58a3a177","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":113,"box":{"x":101,"y":196,"width":747,"height":11}},{"id":"38a097e6-fae9-4e1b-9296-e7109fb3e987","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":113,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"d2693eae-88e5-4741-81d8-f2c1a15cabed","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":113,"box":{"x":68,"y":226,"width":823,"height":11}},{"id":"436d3afd-961c-4067-9348-8053f3935440","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":113,"box":{"x":68,"y":241,"width":755,"height":11}},{"id":"d943977b-2913-47ce-bd30-54e4c7dd5b31","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":113,"box":{"x":69,"y":257,"width":838,"height":11}},{"id":"7e417070-20c7-4641-a3d5-c08396daf097","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":113,"box":{"x":70,"y":271,"width":812,"height":12}},{"id":"a8f10771-114e-4a7d-9478-c1d79124f29d","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":113,"box":{"x":69,"y":286,"width":828,"height":12}},{"id":"7f55871a-715b-4805-9ac5-ee10d193f083","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":113,"box":{"x":69,"y":302,"width":819,"height":11}},{"id":"59175ad9-6cb5-4202-9cbd-550e364709a4","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":113,"box":{"x":69,"y":317,"width":792,"height":11}},{"id":"176ce868-e9ce-4a56-bfbd-13c747fccab0","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":113,"box":{"x":69,"y":332,"width":775,"height":11}},{"id":"dce640d9-d63d-442e-b5b4-d697447cb816","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":113,"box":{"x":69,"y":347,"width":510,"height":11}},{"id":"8589d07c-82dd-4168-b51f-de5cc94e24b7","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":113,"box":{"x":102,"y":370,"width":771,"height":11}},{"id":"f5c9aa6e-a6a2-4c77-a106-c3ebdcb9f6e1","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":113,"box":{"x":69,"y":385,"width":816,"height":11}},{"id":"914829e5-129e-41a6-9f31-aea38dcaeb91","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":113,"box":{"x":69,"y":400,"width":778,"height":11}},{"id":"44551cd1-ca26-497f-b491-2f140c14650d","block_type":"box","text":"resources to monitor and implement required changes.","page_number":113,"box":{"x":69,"y":415,"width":391,"height":11}},{"id":"5cb5b658-0850-4476-88aa-3f627634c30b","block_type":"box","text":"Participation Notes.","page_number":113,"box":{"x":102,"y":438,"width":145,"height":11}},{"id":"30db1c56-dad5-4a25-b94e-0db9f813a4f7","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":113,"box":{"x":253,"y":438,"width":641,"height":11}},{"id":"4dcea20f-a4d0-40cf-9aea-0aa8561fbd43","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":113,"box":{"x":70,"y":453,"width":766,"height":11}},{"id":"1e072576-923c-4d59-83c8-a3ec2dfece1d","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":113,"box":{"x":69,"y":468,"width":772,"height":11}},{"id":"8240f74e-9c79-4c5d-b703-5b5eb89ba139","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":113,"box":{"x":69,"y":483,"width":475,"height":11}},{"id":"2a0d6d00-c5ce-40a1-a98b-d9c041bf9b2b","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":113,"box":{"x":101,"y":506,"width":782,"height":11}},{"id":"2343d822-a974-4c34-96a4-af52d02676ea","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":113,"box":{"x":68,"y":521,"width":831,"height":11}},{"id":"47ecac53-39c2-4442-b0ba-403c77b0a6ba","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":113,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"4763bed4-5da1-45a7-abba-355bda1c81ef","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":113,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"9cb6dc75-482b-4968-b126-179ef3079d28","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":113,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"be4e354b-f865-441f-af4f-88270290d8b7","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":113,"box":{"x":70,"y":581,"width":827,"height":12}},{"id":"11eb1ed6-bb31-4dab-abee-c7d89301c508","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":113,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"8725698d-bddc-44ef-9839-f90bc59b492c","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":113,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"451625b1-bc33-469b-ad11-2c57c07dc2c9","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":113,"box":{"x":69,"y":627,"width":801,"height":11}},{"id":"f0744fec-b72d-4894-8d78-5e7c2e578e50","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":113,"box":{"x":101,"y":649,"width":743,"height":12}},{"id":"ca0c4530-2bd9-4199-a46c-8368f94416ac","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":113,"box":{"x":69,"y":664,"width":826,"height":12}},{"id":"2d9c82fd-76f2-43ed-8369-d61af53bf89e","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":113,"box":{"x":70,"y":680,"width":799,"height":11}},{"id":"5d60149f-524e-4f70-a4cf-7893fe24048c","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":113,"box":{"x":70,"y":695,"width":776,"height":11}},{"id":"b4f85e70-d2af-4270-8add-767477b01e81","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":113,"box":{"x":68,"y":710,"width":834,"height":11}},{"id":"97a40b20-1599-408f-8a16-a07c65571b95","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":113,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"d51e9a57-4eee-4db0-8040-9db319f5d61d","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":113,"box":{"x":68,"y":740,"width":454,"height":11}},{"id":"ab879b2f-3a9c-4696-b40d-8275607acd20","block_type":"box","text":"Portfolio Turnover Rates.","page_number":113,"box":{"x":102,"y":763,"width":181,"height":9}},{"id":"3decd1ff-13aa-4e5b-8235-c850fbc0d32e","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":113,"box":{"x":289,"y":763,"width":558,"height":11}},{"id":"4412ebf3-22f5-42bd-8c1d-7650102dfa6f","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":113,"box":{"x":70,"y":778,"width":804,"height":11}},{"id":"209a2a6e-e049-485d-acc0-5a9dca652ac0","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":113,"box":{"x":70,"y":793,"width":806,"height":11}},{"id":"5a1a24d2-fc0b-4cd0-aa45-e974535f1d2d","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":113,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"f971946f-e9e9-49f5-bea9-0a1258d47b7f","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":113,"box":{"x":70,"y":823,"width":818,"height":12}},{"id":"1763aa6c-1f83-4bb0-900f-255b9d19e9aa","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":113,"box":{"x":68,"y":838,"width":800,"height":12}},{"id":"184c7dec-8a2c-4c68-8753-0b56acaf6406","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (i.e., 100% or more) may result in","page_number":113,"box":{"x":68,"y":853,"width":829,"height":12}},{"id":"40fd0cd2-c206-4389-871d-4a92b18d3b43","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":113,"box":{"x":70,"y":869,"width":797,"height":11}},{"id":"0b646511-cc7e-4402-b561-f4da7d83284c","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":113,"box":{"x":69,"y":884,"width":832,"height":11}},{"id":"e5c73a78-8e79-48e5-ba10-50be40b6d993","block_type":"box","text":"II-66","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a9fb6470-5481-4353-91d9-e7c357242d86","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a2ae3fc-0569-4df8-a8f1-5dc27858c98a","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":114,"box":{"x":68,"y":45,"width":831,"height":11}},{"id":"3f665aa1-0dde-4400-9306-80219efb7058","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":114,"box":{"x":68,"y":60,"width":795,"height":11}},{"id":"8408c002-970e-482b-8994-97b3ab361ac4","block_type":"box","text":"Preferred Stock.","page_number":114,"box":{"x":102,"y":82,"width":118,"height":9}},{"id":"3b47c669-1b97-4ffe-b342-a7202052c788","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":114,"box":{"x":226,"y":82,"width":665,"height":12}},{"id":"33fb629b-88a8-42cf-b9cd-745478847810","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":114,"box":{"x":69,"y":98,"width":808,"height":11}},{"id":"20b3be40-51ba-4eb3-9bb3-96db47bd5677","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":114,"box":{"x":69,"y":113,"width":834,"height":11}},{"id":"a9ec4ef5-a180-4913-b2c7-962d1f44881d","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":114,"box":{"x":68,"y":128,"width":808,"height":11}},{"id":"f5d856a7-76a5-464a-b1eb-e6e114c40a77","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":114,"box":{"x":68,"y":143,"width":813,"height":11}},{"id":"cb58522a-f747-40c1-9994-88aee088aff3","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":114,"box":{"x":69,"y":158,"width":831,"height":11}},{"id":"099c8691-c81b-4011-a86f-9408851f6f16","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":114,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"81fd973c-da96-4270-b861-59e863c684c9","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":114,"box":{"x":70,"y":188,"width":838,"height":11}},{"id":"95dae6f2-9f1c-4612-9b6f-ff4a44a65e65","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":114,"box":{"x":69,"y":203,"width":604,"height":12}},{"id":"e0959d73-4105-43f3-8f8d-ad91da587426","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":114,"box":{"x":103,"y":226,"width":207,"height":11}},{"id":"c6d8cc21-13e0-4708-87b5-1a632a3efc05","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":114,"box":{"x":316,"y":226,"width":588,"height":11}},{"id":"e370b6e9-101f-4150-ba33-f2245a6799f5","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":114,"box":{"x":69,"y":241,"width":806,"height":11}},{"id":"3c9ad3e8-0d8f-4a8c-9d7f-425b8f1f967a","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":114,"box":{"x":69,"y":256,"width":814,"height":12}},{"id":"dea73da1-0fca-4a2e-b02e-5eccc4ed7421","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":114,"box":{"x":69,"y":271,"width":780,"height":12}},{"id":"7b42d336-172c-44c0-866e-94cfa2675abd","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":114,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"060655ed-c6b6-4ba3-bd54-0eea7e2fe1e0","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":114,"box":{"x":69,"y":302,"width":772,"height":11}},{"id":"c26c1c9c-aa6e-4343-b514-150a9eb29c28","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":114,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"1b5a1733-7cc7-4c5d-b341-0ac46eaa942b","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":114,"box":{"x":69,"y":332,"width":834,"height":11}},{"id":"b6bbce59-d4b9-4056-8510-dba447c62665","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":114,"box":{"x":70,"y":347,"width":474,"height":11}},{"id":"ac9c236b-b626-4c48-b7ca-b2107fb9fc94","block_type":"box","text":"Trust Preferred Securities.","page_number":114,"box":{"x":103,"y":370,"width":184,"height":9}},{"id":"7cab3e7f-3cad-4849-a549-af9aac7de96f","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":114,"box":{"x":294,"y":370,"width":599,"height":11}},{"id":"f971f36b-1459-41cc-85fa-6493a300c89b","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":114,"box":{"x":68,"y":385,"width":737,"height":11}},{"id":"039c32dc-4cb8-4a2c-b1bd-8d78af30ab57","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":114,"box":{"x":69,"y":400,"width":796,"height":11}},{"id":"5a6b3847-532d-42cf-87b3-0e678362277a","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":114,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"8012dfed-e112-4705-9dd5-92c93dd9605b","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":114,"box":{"x":68,"y":430,"width":773,"height":11}},{"id":"10316588-3bb5-4359-9ed9-e31b69ae7c69","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":114,"box":{"x":101,"y":453,"width":770,"height":11}},{"id":"b389042f-a555-4af5-9768-2bd73d041df2","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":114,"box":{"x":68,"y":468,"width":801,"height":11}},{"id":"2e92fce1-a36a-48a6-8dc0-c60054a32a0e","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":114,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"dc8a48c8-913f-4e06-97ca-39903b0013ff","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":114,"box":{"x":69,"y":498,"width":822,"height":11}},{"id":"ece9ecb9-d310-4af2-bbc0-38cd8d0019cb","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":114,"box":{"x":68,"y":513,"width":777,"height":11}},{"id":"de4e57d3-4b5e-41b4-870c-81c5f71e3a3f","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":114,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"0bc20790-2f99-4146-b06e-5d6b99c12e3e","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":114,"box":{"x":68,"y":543,"width":757,"height":12}},{"id":"f2cc9f7e-98b7-47b2-95f4-4c0e6496803e","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":114,"box":{"x":69,"y":559,"width":548,"height":11}},{"id":"ee39abd0-9513-40be-899d-3b431dfc7deb","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":114,"box":{"x":101,"y":581,"width":715,"height":12}},{"id":"f1ffd831-3420-419b-b1b8-da016a78607c","block_type":"box","text":"®","page_number":114,"box":{"x":817,"y":582,"width":5,"height":4}},{"id":"a80378d9-76f1-4d89-8fdb-198d1c8362b3","block_type":"box","text":"”); monthly","page_number":114,"box":{"x":824,"y":582,"width":77,"height":10}},{"id":"1e20cfff-9d8f-4ff5-b229-7064555462eb","block_type":"box","text":"income preferred securities (“MIPS","page_number":114,"box":{"x":70,"y":596,"width":248,"height":11}},{"id":"28866b23-f017-4d75-9e59-662f47e7888c","block_type":"box","text":"®","page_number":114,"box":{"x":319,"y":597,"width":6,"height":4}},{"id":"7723caa6-e023-4c10-9826-9b2b339291b5","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":114,"box":{"x":326,"y":597,"width":317,"height":11}},{"id":"da28dd5b-bfaf-40b5-ae18-16e41c77af19","block_type":"box","text":"®","page_number":114,"box":{"x":644,"y":597,"width":6,"height":4}},{"id":"5d6f3050-1055-4a9a-8377-9be359e4c6ef","block_type":"box","text":"” ); quar terly income debt securities","page_number":114,"box":{"x":652,"y":597,"width":255,"height":11}},{"id":"682d687b-e3c2-47ee-ae03-051e483f8fee","block_type":"box","text":"(“QUIDS","page_number":114,"box":{"x":69,"y":612,"width":57,"height":11}},{"id":"5b4750f2-e1c9-49bb-bb22-5e89a985c407","block_type":"box","text":"®","page_number":114,"box":{"x":127,"y":612,"width":6,"height":4}},{"id":"be1f28f5-fafb-441f-ba6e-762573002cc0","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":114,"box":{"x":135,"y":612,"width":346,"height":11}},{"id":"013c6b83-cfb8-48d8-9276-efa00b57b56f","block_type":"box","text":"SM","page_number":114,"box":{"x":482,"y":612,"width":11,"height":4}},{"id":"f3c1ee3e-1f56-4a53-bdf2-20e7450309c6","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":114,"box":{"x":495,"y":612,"width":267,"height":11}},{"id":"4e7edaee-8ad4-4764-8475-e537a01fb599","block_type":"box","text":"®","page_number":114,"box":{"x":762,"y":612,"width":6,"height":4}},{"id":"6c81639a-3d0b-4a23-8f69-0415d912b54a","block_type":"box","text":"”); public income","page_number":114,"box":{"x":770,"y":612,"width":118,"height":11}},{"id":"8320b0e6-23a0-43f1-8266-9ab9a36647c5","block_type":"box","text":"notes (“PINES","page_number":114,"box":{"x":69,"y":627,"width":99,"height":11}},{"id":"096f2b31-7659-4dfa-9eb3-9a6d8fe1e19f","block_type":"box","text":"®","page_number":114,"box":{"x":169,"y":627,"width":6,"height":5}},{"id":"95703983-b243-44f6-8762-e78cf8317ca9","block_type":"box","text":"”); and other trust preferred securities.","page_number":114,"box":{"x":177,"y":627,"width":275,"height":11}},{"id":"03f373e4-c1b0-4758-856b-fb8ad1f8c29c","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":114,"box":{"x":101,"y":649,"width":790,"height":12}},{"id":"e9610fc8-1333-478b-8ca7-9f2d06b4481a","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":114,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"7a3c28db-75c1-4e5f-84fd-c65e295bf111","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":114,"box":{"x":68,"y":680,"width":827,"height":11}},{"id":"b84bd67b-9863-4ca9-9611-62ac7ac4a9e8","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":114,"box":{"x":70,"y":695,"width":808,"height":11}},{"id":"fee4f155-9ce6-4e74-bd54-f006cce8a673","block_type":"box","text":"regard to whether all payments have been paid.","page_number":114,"box":{"x":69,"y":710,"width":338,"height":11}},{"id":"7d59722f-a5ce-4d84-83dc-76cbfc1cb6ed","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":114,"box":{"x":102,"y":732,"width":784,"height":12}},{"id":"486f7603-733c-493c-b047-ecbd5242c424","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":114,"box":{"x":69,"y":748,"width":811,"height":11}},{"id":"f6503379-fa96-4181-8b9a-d7d18376a884","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":114,"box":{"x":69,"y":763,"width":817,"height":11}},{"id":"b2cc3905-bc63-4b93-a10a-3d2b00c40c97","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":114,"box":{"x":68,"y":778,"width":785,"height":11}},{"id":"26e6276c-7753-4f5e-a632-bd03e25698f0","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":114,"box":{"x":70,"y":793,"width":830,"height":11}},{"id":"bc962619-2459-4758-ad6a-9725d9efc379","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":114,"box":{"x":70,"y":808,"width":819,"height":11}},{"id":"4877f52a-af2f-4679-9879-ad68cb710ede","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":114,"box":{"x":68,"y":823,"width":827,"height":12}},{"id":"77b8d67e-e104-43be-b69c-7e065747e626","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":114,"box":{"x":68,"y":838,"width":824,"height":12}},{"id":"47667806-a00f-4d49-a4a9-fb93bde0479e","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":114,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"f9d2655e-f4a6-4d1e-9025-104d04c99904","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":114,"box":{"x":69,"y":869,"width":817,"height":11}},{"id":"ac59ac94-25fe-498a-84c3-cde7e46bd7fe","block_type":"box","text":"II-67","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a262fd87-41eb-431f-9806-605205c4d088","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95b119db-aa85-4a27-9dab-aaa8dc84d6aa","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":115,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"6591d680-92d8-4a20-a00d-64eb24a916c0","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":115,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"ae3e85ec-d65a-42ea-8ca5-1b20ba425acf","block_type":"box","text":"debt securities.","page_number":115,"box":{"x":69,"y":75,"width":109,"height":9}},{"id":"cc01e3be-859c-465b-8413-3b0738afda5e","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":115,"box":{"x":102,"y":98,"width":300,"height":11}},{"id":"b0194a67-f2bf-4619-b725-7c0b87ff9d82","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":115,"box":{"x":409,"y":98,"width":473,"height":11}},{"id":"4ace5059-4633-452f-b33e-839e7c6216e8","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":115,"box":{"x":70,"y":113,"width":814,"height":11}},{"id":"bfdaa9f9-769c-4146-88c8-d3401695d6d4","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":115,"box":{"x":68,"y":128,"width":814,"height":11}},{"id":"e3b21184-5090-40f8-ae64-a93098e22479","block_type":"box","text":"geographic areas or in specific proper ty types, i.e., hotels, shopping malls, residential complexes and office","page_number":115,"box":{"x":68,"y":143,"width":771,"height":11}},{"id":"320deb68-cd48-4109-b48b-d696f9a682ac","block_type":"box","text":"buildings.","page_number":115,"box":{"x":69,"y":158,"width":66,"height":11}},{"id":"30dd5904-c176-4dc6-8200-a8727bc33046","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":115,"box":{"x":102,"y":181,"width":768,"height":11}},{"id":"db6f019c-8547-403a-9e3a-cbf3619c557c","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":115,"box":{"x":70,"y":196,"width":824,"height":11}},{"id":"ff6b732d-c181-4e9a-958f-950b079a464e","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":115,"box":{"x":70,"y":211,"width":829,"height":11}},{"id":"23f2abd1-0e1e-4ada-8cb1-3877dffb9da6","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":115,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"a1a85f38-0498-4eab-9ad6-eaa7d022b760","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":115,"box":{"x":68,"y":241,"width":782,"height":11}},{"id":"e7a0029c-1ed7-4e94-877f-3c5c7e9636e5","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":115,"box":{"x":70,"y":257,"width":649,"height":11}},{"id":"d77be2f2-b8c7-4709-a4a1-4d387754d499","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":115,"box":{"x":102,"y":279,"width":776,"height":11}},{"id":"8bcdfbc9-f53f-4ed7-b1ac-59d41b211b93","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":115,"box":{"x":69,"y":294,"width":822,"height":11}},{"id":"caec7a10-6e6f-4491-ae8e-51626f1ab45d","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":115,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"49ad0a3e-f0e2-4a6f-bd56-ac0478ca7529","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":115,"box":{"x":69,"y":324,"width":822,"height":11}},{"id":"e2878c3b-82c9-4c53-ad31-d4689bb2f6e1","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":115,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"85b92b77-40a1-48e2-88ae-2534154c6b9c","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":115,"box":{"x":69,"y":355,"width":810,"height":11}},{"id":"2009fe56-0597-4506-93d2-f8192de511b5","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":115,"box":{"x":68,"y":370,"width":812,"height":11}},{"id":"b0c5ca37-dc45-44c4-8f6c-4e0c5a1277ea","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":115,"box":{"x":70,"y":385,"width":838,"height":11}},{"id":"a16b2fbe-e034-4542-ab5d-4b3a9caab918","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":115,"box":{"x":68,"y":400,"width":826,"height":11}},{"id":"4ab0a855-7cd4-482e-b8f3-8eaae21d780f","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":115,"box":{"x":69,"y":415,"width":817,"height":11}},{"id":"bef1721a-ac57-4860-b6ac-a3e205447594","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":115,"box":{"x":70,"y":430,"width":822,"height":11}},{"id":"ea004c30-3617-4ebf-860c-7ac4039e8e0c","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":115,"box":{"x":70,"y":445,"width":792,"height":12}},{"id":"4f63f79f-320c-4fdc-b5af-6779e7312b46","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":115,"box":{"x":69,"y":460,"width":834,"height":12}},{"id":"de09d958-4620-4ac4-816e-51f2624817c1","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":115,"box":{"x":69,"y":475,"width":798,"height":12}},{"id":"b19912c6-ee0c-48e4-8b7f-fbae5139f8b4","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":115,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"c1b74d5c-b91d-4365-9cb6-c603339233c6","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":115,"box":{"x":69,"y":506,"width":821,"height":11}},{"id":"c052e552-8ab4-4a6d-8eaa-218ee227ae65","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":115,"box":{"x":68,"y":521,"width":797,"height":11}},{"id":"9e105325-b3cc-4bb6-a94a-5459a1595344","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":115,"box":{"x":69,"y":536,"width":798,"height":11}},{"id":"72001bf7-e441-45a2-87b3-caf8207e2c66","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":115,"box":{"x":69,"y":551,"width":820,"height":11}},{"id":"66f618fb-a686-471e-8473-7629e25c73aa","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":115,"box":{"x":68,"y":566,"width":831,"height":11}},{"id":"9f061485-391a-40a6-811b-c8d8337d85c1","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":115,"box":{"x":69,"y":582,"width":801,"height":11}},{"id":"e52b8979-46e7-4e72-ae2d-cb7ae35e151d","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":115,"box":{"x":70,"y":596,"width":631,"height":12}},{"id":"22f081f6-f690-49b2-97ea-5443eb8e1b79","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":115,"box":{"x":102,"y":619,"width":772,"height":11}},{"id":"2df6bada-b8f8-4e8b-872e-33c49bd1e02b","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":115,"box":{"x":70,"y":634,"width":790,"height":12}},{"id":"5bdfe457-660a-4aa0-bc6d-a6ca6b2606b4","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":115,"box":{"x":69,"y":649,"width":834,"height":12}},{"id":"2407b242-4b90-40d6-aa2c-e6f9678c7a03","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":115,"box":{"x":69,"y":664,"width":837,"height":12}},{"id":"7aa07766-7953-43d1-a2df-1fd039fc9106","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":115,"box":{"x":69,"y":680,"width":812,"height":11}},{"id":"1c238900-8236-44ab-b0bd-d6da723ff8e6","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":115,"box":{"x":69,"y":695,"width":759,"height":11}},{"id":"029c8210-40db-4271-aa68-5517f0344611","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":115,"box":{"x":69,"y":710,"width":778,"height":11}},{"id":"f55bc460-cf7a-4426-a519-ecfe787e229f","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":115,"box":{"x":102,"y":732,"width":773,"height":12}},{"id":"4aefcc15-34e7-495b-9852-db6dcd488d28","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":115,"box":{"x":70,"y":748,"width":836,"height":11}},{"id":"b68412e4-fdd6-49f2-9af2-0a090cd9f864","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":115,"box":{"x":68,"y":763,"width":839,"height":11}},{"id":"465d19d2-8ceb-4a4e-a3ac-338f4abf990a","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":115,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"65820c68-073d-4f0b-8e61-abeacc77af19","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":115,"box":{"x":70,"y":793,"width":832,"height":11}},{"id":"3c50678d-48f1-4b46-9281-7e5eba41e39a","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":115,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"9cfaa099-dc63-4909-be3a-5d6542ccc377","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":115,"box":{"x":69,"y":823,"width":804,"height":12}},{"id":"2c11e6e4-8246-434a-9873-95462a5753e6","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":115,"box":{"x":68,"y":838,"width":761,"height":12}},{"id":"db465531-5ba7-48a4-9593-55e3298b7866","block_type":"box","text":"Market Risks/Recent Market Events","page_number":115,"box":{"x":102,"y":861,"width":272,"height":11}},{"id":"5aeecc6b-f257-4643-9302-8c77a812f0be","block_type":"box","text":". Securities may decline in value due to factors affecting securities","page_number":115,"box":{"x":374,"y":861,"width":475,"height":11}},{"id":"b98373b5-bb65-4b5e-a498-a43360c388f9","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":115,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"7fbd8a03-61e3-4f2c-ad83-db04d1434cff","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":115,"box":{"x":68,"y":891,"width":837,"height":12}},{"id":"0f194c4d-aa0e-4870-a8b9-6bbb291f62b6","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":115,"box":{"x":69,"y":906,"width":795,"height":12}},{"id":"69421aef-e18e-4006-8cc8-cfa50baaa601","block_type":"box","text":"II-68","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"57beea08-3ae6-4e42-8dd4-df5fe76c6478","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5bd4da16-3fce-44e5-bb7e-1bceb5131b28","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":116,"box":{"x":68,"y":45,"width":796,"height":11}},{"id":"679b5da5-cda4-485c-97e4-03ad8790af12","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":116,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"840440a6-5e24-4fe1-8c50-70f49283428b","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":116,"box":{"x":70,"y":75,"width":812,"height":11}},{"id":"26dd8933-e2e0-4f00-bd64-141a60aadd21","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":116,"box":{"x":68,"y":90,"width":807,"height":11}},{"id":"1b6b0f46-e76e-4d90-a5ae-54710646e384","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":116,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"4da449bf-434b-48a5-97c3-1eabcddfcd11","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":116,"box":{"x":69,"y":120,"width":828,"height":12}},{"id":"4938d4ee-ff21-484c-b913-0c40ee97ee6d","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":116,"box":{"x":69,"y":135,"width":804,"height":11}},{"id":"ab75be81-3e5b-4d65-9db0-2889b5f5ea00","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":116,"box":{"x":70,"y":150,"width":787,"height":12}},{"id":"e75636c7-936d-4ab4-948a-a7d137099e47","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":116,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"79604898-f7cc-456e-b657-6276e81cf0ec","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":116,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"4dd79c6d-76a8-447c-856d-b07a85bf8d7f","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":116,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"6d8e81be-aa36-4947-ab47-1f62610637b5","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":116,"box":{"x":69,"y":211,"width":831,"height":11}},{"id":"2b845a31-c6d3-407a-b9bd-f82fd162907f","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":116,"box":{"x":69,"y":226,"width":776,"height":11}},{"id":"299effbd-1ca4-49b4-8eb2-d647757f98dd","block_type":"box","text":"conditions. Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes","page_number":116,"box":{"x":69,"y":241,"width":814,"height":11}},{"id":"9dccf77a-c37c-4204-aba5-4b4ac3f3ec9b","block_type":"box","text":"limited to a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted","page_number":116,"box":{"x":70,"y":256,"width":817,"height":12}},{"id":"decedb7b-0622-417e-a0dc-50d92403a5be","block_type":"box","text":"and/or are considering the adoption of more protectionist trade policies, a move away from the tighter financial","page_number":116,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"e4430edf-2fc5-4f6e-ad19-afd3264c250c","block_type":"box","text":"industry regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The","page_number":116,"box":{"x":70,"y":286,"width":804,"height":12}},{"id":"26a6dbd4-b1e2-40f5-8385-d83fd2cfe026","block_type":"box","text":"exact shape of these policies is still being considered, but the equity and debt markets may react strongly to","page_number":116,"box":{"x":69,"y":302,"width":775,"height":11}},{"id":"f235a7df-242f-400f-9fd4-d471b1d9bc23","block_type":"box","text":"expectations of change, which could increase volatility, especially if the market’s expectations are not borne out. A","page_number":116,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"58739ba1-459b-4019-a0ae-b5b788c6d07d","block_type":"box","text":"rise in protectionist trade policies, and the possibility of changes to some international trade agreements, could","page_number":116,"box":{"x":69,"y":332,"width":797,"height":11}},{"id":"766b2a0b-30f2-40fc-a804-0255dca05a31","block_type":"box","text":"affect the economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition,","page_number":116,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"541d538f-437b-4991-bb73-bc3f129d8187","block_type":"box","text":"geopolitical and other risks, including environmental and public health, may add to instability in world economies and","page_number":116,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"6d51300e-f2b8-48b8-8c7d-8cc4303198ab","block_type":"box","text":"markets generally. Economies and financial markets throughout the world are increasingly interconnected. As a","page_number":116,"box":{"x":69,"y":377,"width":791,"height":12}},{"id":"6175e925-ed30-47ac-a070-3128022bc10c","block_type":"box","text":"result, whether or not a Fund invests in securities of issuers located in or with significant exposure to countries","page_number":116,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"7fe7be97-6b4b-4e3d-a9f2-efa6fdf9ab0e","block_type":"box","text":"experiencing economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be","page_number":116,"box":{"x":69,"y":407,"width":836,"height":12}},{"id":"518f070d-5863-4274-88fa-9b5a89ea11d5","block_type":"box","text":"negatively affected by such events.","page_number":116,"box":{"x":69,"y":423,"width":249,"height":11}},{"id":"44bf4389-0d99-4826-a188-5ff732907da2","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":116,"box":{"x":102,"y":445,"width":795,"height":12}},{"id":"fbaa02fa-fa93-4b8a-a3af-8c5e66bcfbaa","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":116,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"41e15ff8-a226-42ff-b1a3-f3e84e269c12","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":116,"box":{"x":69,"y":476,"width":796,"height":11}},{"id":"cd8b1730-9e02-457a-b0a4-d02731e60416","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":116,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"120024f0-75d4-4730-946d-7cf212049c14","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":116,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"24a1ea44-70f3-4841-a04f-e19b231dc74f","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets, and could adversely affect the","page_number":116,"box":{"x":68,"y":521,"width":763,"height":11}},{"id":"2cf81cab-d676-467f-896f-156426e9eb43","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":116,"box":{"x":70,"y":536,"width":819,"height":11}},{"id":"8371a3e2-a2d9-4da6-a48d-080cb726e15d","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":116,"box":{"x":68,"y":551,"width":821,"height":11}},{"id":"7dec8d92-6302-435f-97a0-bd93e549cbce","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":116,"box":{"x":68,"y":566,"width":837,"height":11}},{"id":"63be3245-f492-485e-a943-f012f4662179","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":116,"box":{"x":69,"y":581,"width":795,"height":12}},{"id":"ad5fcc32-d9c0-4dbb-9c2b-8d29987a79e4","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":116,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"b16b6321-333b-4afd-a862-2538394f6b08","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":116,"box":{"x":69,"y":612,"width":817,"height":11}},{"id":"adf9c301-30c3-4f4d-9795-77c6533938c3","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":116,"box":{"x":70,"y":627,"width":816,"height":11}},{"id":"b1181476-0991-493b-8624-516a174eb465","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":116,"box":{"x":70,"y":642,"width":813,"height":11}},{"id":"f1cf6284-8a04-4c33-b04b-a86efca9b806","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":116,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"aa40fa99-b4df-4d56-8e3f-744ce5697400","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":116,"box":{"x":69,"y":672,"width":836,"height":11}},{"id":"28166200-c985-4ef2-8546-c5af02f51a22","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":116,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"ac74ef74-e5f3-4f1e-9ff5-c7cef459aecf","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":116,"box":{"x":69,"y":702,"width":785,"height":12}},{"id":"610f6083-336c-46bc-bfc5-66ad44d9ce7e","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":116,"box":{"x":70,"y":717,"width":832,"height":12}},{"id":"9d945527-a7be-4afb-9028-ff247af8a942","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":116,"box":{"x":68,"y":732,"width":799,"height":12}},{"id":"dbecb29b-72a5-492d-bfdc-8ebb6900d9c3","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":116,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"e40478ad-cf6d-4e0b-b5c1-a82d8b7bbf9e","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":116,"box":{"x":69,"y":763,"width":746,"height":11}},{"id":"903fe507-85c1-4e62-8bf0-c2d513b0477f","block_type":"box","text":"investments.","page_number":116,"box":{"x":70,"y":778,"width":89,"height":9}},{"id":"ffa38037-426b-43d1-9c08-d8e2f7205d5e","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":116,"box":{"x":101,"y":801,"width":802,"height":11}},{"id":"1d9da9b9-ced8-4e83-910b-b2accfbecb60","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":116,"box":{"x":68,"y":816,"width":796,"height":11}},{"id":"e8763411-458f-40c5-bf88-b108913be30e","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":116,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"9651d27b-acd9-4565-8323-0e86b3bf51c1","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":116,"box":{"x":70,"y":846,"width":813,"height":11}},{"id":"096408f2-17e3-4e2e-9937-095675299c1e","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":116,"box":{"x":68,"y":861,"width":812,"height":11}},{"id":"a371e166-e6f2-4713-90bb-3f2e729e29cc","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":116,"box":{"x":69,"y":876,"width":771,"height":11}},{"id":"35e91ac2-e9f9-4cda-b7cf-78a03265c017","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":116,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"7abdf517-12e3-46d0-9b35-fcf8159d9608","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":116,"box":{"x":69,"y":907,"width":646,"height":11}},{"id":"b08e2855-975f-4a39-b319-d4eaec9009ae","block_type":"box","text":"II-69","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ea4ee3d2-ec8b-4b0b-bfd8-b0f908ebf8cd","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"356b33b3-17fb-46b1-9426-5ff4ddf3877d","block_type":"box","text":"Legal and Regulatory Risks.","page_number":117,"box":{"x":102,"y":45,"width":197,"height":11}},{"id":"b845b5d0-c8b9-4156-9810-fbaade02f0a4","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":117,"box":{"x":305,"y":45,"width":583,"height":11}},{"id":"8a5de60a-a9aa-4841-a539-7dbcb5dd39bf","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":117,"box":{"x":67,"y":60,"width":819,"height":11}},{"id":"245d38cf-68d3-45ef-9b24-e382898bfd64","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":117,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"4aa875e2-015f-4d0c-85bd-a4e2dd6d123c","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":117,"box":{"x":68,"y":90,"width":781,"height":11}},{"id":"4e030007-2a82-477b-ba1b-49da1afabf0e","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":117,"box":{"x":69,"y":105,"width":763,"height":11}},{"id":"b0c2a024-6ddf-4b36-8093-73504862038c","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":117,"box":{"x":70,"y":120,"width":838,"height":12}},{"id":"d42a0b08-c9e1-4960-a742-a5f1079c7a7f","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":117,"box":{"x":69,"y":135,"width":781,"height":12}},{"id":"1375366d-608c-40a5-8cfd-84d6aac6af28","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":117,"box":{"x":69,"y":151,"width":807,"height":11}},{"id":"5c18dde2-9597-4bc5-a315-707369e0b75c","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":117,"box":{"x":69,"y":166,"width":807,"height":11}},{"id":"753dd16e-6373-4a71-b283-b3d68f64910f","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":117,"box":{"x":69,"y":181,"width":666,"height":11}},{"id":"d87f6552-11ce-4508-8978-841ff1fa21f2","block_type":"box","text":"Tariff and Trade Policy Risks","page_number":117,"box":{"x":103,"y":203,"width":198,"height":12}},{"id":"ebfe692c-e3c0-4971-ae45-509f3cbf1b83","block_type":"box","text":".","page_number":117,"box":{"x":302,"y":210,"width":3,"height":2}},{"id":"e791c56f-38e0-4bd4-ab22-aa979c198ba3","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":117,"box":{"x":312,"y":203,"width":593,"height":12}},{"id":"b25b78c3-09c3-4037-9982-22c3eb499e76","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":117,"box":{"x":68,"y":218,"width":806,"height":12}},{"id":"5106e74d-9d8e-4218-8cc0-ccc76fa47269","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":117,"box":{"x":70,"y":234,"width":833,"height":11}},{"id":"01192239-8d83-44f9-ba81-42f8b1aa5e41","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":117,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"4504c9f0-e852-4029-9b0d-98904a82817b","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":117,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"590f5f9e-f3a1-449c-a219-59719590a8b7","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":117,"box":{"x":70,"y":279,"width":821,"height":11}},{"id":"0d2c5198-f32c-4a66-be35-0bc7ecae994e","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":117,"box":{"x":69,"y":294,"width":559,"height":11}},{"id":"aa7f830a-7a63-4c34-961a-49e35d99eda5","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":117,"box":{"x":102,"y":317,"width":796,"height":11}},{"id":"fb8c6e9f-d8ed-4950-8c4a-33858883dfa9","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":117,"box":{"x":68,"y":332,"width":809,"height":11}},{"id":"e3a5a2b3-e89d-42ac-9d5d-f3cc540cd99f","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":117,"box":{"x":70,"y":347,"width":799,"height":11}},{"id":"599fec00-23d1-4914-8e05-32b3c6862830","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":117,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"eb32ec01-27e8-40e0-abad-e214b8786c7e","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":117,"box":{"x":69,"y":377,"width":801,"height":12}},{"id":"e55d45a1-2961-4f20-a265-784aace0a8de","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":117,"box":{"x":69,"y":392,"width":783,"height":12}},{"id":"0994f728-5f5c-4471-bc2e-d7a5cde88497","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":117,"box":{"x":69,"y":407,"width":753,"height":11}},{"id":"eb78cbbb-ae7e-4a0c-b806-dfcbd411b46e","block_type":"box","text":"Geographic Risks","page_number":117,"box":{"x":102,"y":430,"width":123,"height":11}},{"id":"9f705462-6aea-45ae-b200-8bff0920b2d1","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":117,"box":{"x":226,"y":430,"width":671,"height":11}},{"id":"1d41a259-e5ea-47b5-9df1-ef5921983149","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":117,"box":{"x":68,"y":445,"width":835,"height":11}},{"id":"0e47fb9e-8447-4ce0-9650-6c69f018d452","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":117,"box":{"x":68,"y":460,"width":787,"height":12}},{"id":"19cf5cd9-c977-4bed-96b3-efcec1fad5d6","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":117,"box":{"x":69,"y":476,"width":814,"height":11}},{"id":"56e295b8-7647-4551-9378-2cd0915e0828","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":117,"box":{"x":68,"y":491,"width":840,"height":11}},{"id":"f25f58e9-c204-40c5-b399-85b68fdcebfa","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":117,"box":{"x":69,"y":506,"width":824,"height":11}},{"id":"dffae944-eafe-469c-b142-e1893431a85a","block_type":"box","text":"Fund.","page_number":117,"box":{"x":70,"y":521,"width":36,"height":9}},{"id":"6e9127f2-2776-4d88-9ee5-9fffcbd0af96","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":117,"box":{"x":102,"y":544,"width":255,"height":11}},{"id":"e805fa5c-af87-4124-9a80-0a54ea83232d","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically been used","page_number":117,"box":{"x":363,"y":543,"width":514,"height":12}},{"id":"3d7a0686-748a-457e-a1b8-50c110b20b05","block_type":"box","text":"extensively in the U.S. and globally as a “benchmark” or “reference rate” for various commercial and financial","page_number":117,"box":{"x":69,"y":559,"width":782,"height":11}},{"id":"352d759a-0396-418b-a3c7-2b31112ae2a1","block_type":"box","text":"contracts, including corporate and municipal bonds, bank loans, asset-backed and mor tgage-related securities,","page_number":117,"box":{"x":69,"y":574,"width":791,"height":11}},{"id":"4f7cd1ce-8a8f-4fe8-9696-8702f262bd03","block_type":"box","text":"interest rate swaps and other derivatives. Instruments in which a Fund may have historically paid interest at floating","page_number":117,"box":{"x":70,"y":589,"width":826,"height":11}},{"id":"ea54965b-0263-4ab8-9eb6-0b368ceb50b3","block_type":"box","text":"rates based on LIBOR or may have been subject to interest caps or floors based on LIBOR. The Funds and issuers of","page_number":117,"box":{"x":69,"y":604,"width":834,"height":11}},{"id":"1210de5b-cef6-42ee-aa65-d085fac2f900","block_type":"box","text":"instruments in which a Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":117,"box":{"x":70,"y":619,"width":837,"height":11}},{"id":"7ae3132f-70c6-414d-86eb-8403e173632b","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market par ticipants as a result of","page_number":117,"box":{"x":69,"y":634,"width":783,"height":12}},{"id":"fba78f03-eedb-4d4e-8f5d-4519adba682f","block_type":"box","text":"benchmark reforms, LIBOR was last published on a representative basis at the end of June 2023. Alternative","page_number":117,"box":{"x":69,"y":649,"width":779,"height":11}},{"id":"6389ca78-4dec-4bb5-9312-e1904c5f19b8","block_type":"box","text":"reference rates to LIBOR have been established in most major currencies and markets in these alternative rates are","page_number":117,"box":{"x":69,"y":664,"width":830,"height":12}},{"id":"20a2546f-0684-417c-af12-47da9d723ef3","block_type":"box","text":"continuing to develop (","page_number":117,"box":{"x":69,"y":680,"width":160,"height":11}},{"id":"62d258e3-4829-4b5b-95ad-26593a077e9b","block_type":"box","text":"e.g.","page_number":117,"box":{"x":231,"y":681,"width":25,"height":10}},{"id":"c2e71d98-3a26-4976-9077-37858a5305c8","block_type":"box","text":", the Secured Overnight Financing Rate (“SOFR”) for USD-LIBOR). While the transition from","page_number":117,"box":{"x":258,"y":680,"width":641,"height":11}},{"id":"0019bcc9-f2dc-42d9-8722-0747ab8f966f","block_type":"box","text":"LIBOR has gone relatively smoothly, residual risks associated with the transition may remain that may impact","page_number":117,"box":{"x":70,"y":695,"width":777,"height":11}},{"id":"02578a4c-9d51-49ec-bfe7-e039bdea49d7","block_type":"box","text":"markets or par ticular investments and, as such, the full impact of the transition on the Funds or the financial","page_number":117,"box":{"x":69,"y":710,"width":776,"height":11}},{"id":"1582bd9d-2e56-42ab-a47d-f241e0d74100","block_type":"box","text":"instruments in which the Funds invest cannot yet be fully determined.","page_number":117,"box":{"x":70,"y":725,"width":493,"height":11}},{"id":"e6c4ba5c-0128-465f-806f-494525011cec","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":117,"box":{"x":102,"y":748,"width":750,"height":11}},{"id":"401c653f-5725-49ec-946b-993114f4ec96","block_type":"box","text":"collateralized by U.S.. SOFR is calculated based on transaction-level repo data collected from various sources. For","page_number":117,"box":{"x":69,"y":763,"width":813,"height":11}},{"id":"e8321488-1461-4504-b2fa-e021f59da6e6","block_type":"box","text":"each trading day, SOFR is calculated as a volume-weighted median rate derived from such data. Because SOFR is a","page_number":117,"box":{"x":69,"y":778,"width":822,"height":11}},{"id":"b1d9efa5-3d63-486c-944e-72cabeecb04c","block_type":"box","text":"financing rate based on overnight secured funding transactions, it differs fundamentally from LIBOR. LIBOR is","page_number":117,"box":{"x":68,"y":793,"width":780,"height":11}},{"id":"1b8d66f5-422e-4242-bde7-470c6399efd4","block_type":"box","text":"intended to be an unsecured rate that represents interbank funding costs for different shor t-term maturities or","page_number":117,"box":{"x":70,"y":808,"width":788,"height":11}},{"id":"c9df6cdc-6f7a-436f-8999-19b8431549aa","block_type":"box","text":"tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable tenor. Thus,","page_number":117,"box":{"x":68,"y":823,"width":798,"height":12}},{"id":"2df3e029-05dc-4894-b7ad-64c264676db2","block_type":"box","text":"LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk. In contrast,","page_number":117,"box":{"x":70,"y":838,"width":820,"height":11}},{"id":"6cbc0570-3438-4491-99c6-edbd3d6788ab","block_type":"box","text":"SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is largely","page_number":117,"box":{"x":69,"y":853,"width":795,"height":12}},{"id":"ec985a5d-668e-44c1-9e0a-61ec31651310","block_type":"box","text":"insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate, and it","page_number":117,"box":{"x":70,"y":869,"width":833,"height":10}},{"id":"7e339a87-1abc-4f3a-9195-7e44524c4aee","block_type":"box","text":"has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain periods.","page_number":117,"box":{"x":69,"y":884,"width":813,"height":11}},{"id":"f4bb5c5b-83eb-4a82-9715-b1b48bfd23d9","block_type":"box","text":"For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form in the","page_number":117,"box":{"x":70,"y":899,"width":819,"height":11}},{"id":"0536d638-b5ba-4677-b224-2f51b617bb29","block_type":"box","text":"II-70","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ef20ca32-b9ac-4415-bcd0-3b5e9589177e","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"faa7efff-de70-4e32-b0f1-46b27b64c761","block_type":"box","text":"same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based rates","page_number":118,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"3e575e8a-3d51-490e-b256-30c3605dc94a","block_type":"box","text":"will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April 2018.","page_number":118,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"3ef7b750-d00d-4199-a0fe-0926f828357b","block_type":"box","text":"The future per formance of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s history or","page_number":118,"box":{"x":68,"y":75,"width":825,"height":11}},{"id":"c8fd828d-031e-4a21-84f4-bf0dfd7e8ef4","block_type":"box","text":"otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or other","page_number":118,"box":{"x":69,"y":90,"width":796,"height":11}},{"id":"51de8949-26bb-4e8e-a037-0ba3072a2bf0","block_type":"box","text":"rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner that","page_number":118,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"e54ff450-2f70-4679-bbb3-65a7ae1ca22f","block_type":"box","text":"is materially adverse to the interests of the Fund","page_number":118,"box":{"x":70,"y":120,"width":344,"height":11}},{"id":"872f3e0b-6dcc-4103-83c8-a7c3d511a4b8","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":118,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"60a7ad22-4beb-41f4-90ad-3459c46a78a7","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":118,"box":{"x":68,"y":158,"width":786,"height":11}},{"id":"3dbea553-81d1-472b-8e2f-80f9b616ed53","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":118,"box":{"x":69,"y":173,"width":746,"height":11}},{"id":"d8609bb9-587a-4e4e-934b-0165a484c506","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":118,"box":{"x":70,"y":188,"width":822,"height":12}},{"id":"a8bc7f8c-5875-4c53-ba9f-ddbe09a22b4e","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":118,"box":{"x":69,"y":203,"width":821,"height":12}},{"id":"caa5b127-bbf3-4b3b-a1dd-4ee1e4666862","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":118,"box":{"x":68,"y":219,"width":799,"height":11}},{"id":"f5303bbe-143f-475d-bf32-7b3a61a66a92","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":118,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"68558e1c-f80b-4da2-89a1-af152efa234d","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":118,"box":{"x":70,"y":249,"width":757,"height":11}},{"id":"9c153025-d75e-4ea1-b4bf-7093f072832b","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":118,"box":{"x":69,"y":264,"width":802,"height":11}},{"id":"b9260c94-4643-420c-a2ce-e0e1540af72f","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":118,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"e8740387-28a9-42b5-9df3-40303f61e54e","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":118,"box":{"x":70,"y":294,"width":782,"height":11}},{"id":"14e1fb81-b5fa-4e63-aab2-8de07abf67c7","block_type":"box","text":"consequences which cannot be predicted.","page_number":118,"box":{"x":69,"y":309,"width":298,"height":11}},{"id":"35da8c8d-89a1-4d2e-aab6-f30c19678cd8","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":118,"box":{"x":102,"y":332,"width":432,"height":11}},{"id":"8c5ed4f0-9502-4cbb-9335-09f6b54bca78","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":118,"box":{"x":541,"y":332,"width":347,"height":11}},{"id":"cf1749db-d512-45a1-8785-0474acb3d6e5","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":118,"box":{"x":69,"y":347,"width":821,"height":11}},{"id":"4a71a9d5-02c0-4a9a-be72-835329d91e2e","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":118,"box":{"x":68,"y":362,"width":815,"height":11}},{"id":"bfa2187d-54dd-458c-90e0-6f0e5c57a504","block_type":"box","text":"term of the agreement.","page_number":118,"box":{"x":68,"y":377,"width":164,"height":12}},{"id":"78c1a6ff-f458-4da9-a2b1-8f46034d2f9e","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":118,"box":{"x":101,"y":400,"width":788,"height":11}},{"id":"0a9d7b7f-02a7-4ebf-8d16-6ee45db43ffd","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":118,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"83506f3b-5c19-444f-b8a7-ddcd8e1292a6","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":118,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"5a9966f8-51d8-4ccc-886a-ebbdc9de2d74","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":118,"box":{"x":69,"y":445,"width":790,"height":12}},{"id":"d57b4c12-571f-498f-9d39-0877c7959ac9","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":118,"box":{"x":69,"y":461,"width":827,"height":11}},{"id":"1a37c967-16c3-48c0-8985-17518d0161c4","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":118,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"78f0a742-f411-451f-83fd-1991c060013e","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":118,"box":{"x":68,"y":491,"width":522,"height":11}},{"id":"f6426a2d-319d-49be-b28f-04b6bbe48d00","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":118,"box":{"x":102,"y":513,"width":792,"height":12}},{"id":"a04ab848-9637-4f32-a156-737ffa39a9b8","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":118,"box":{"x":70,"y":528,"width":784,"height":12}},{"id":"511a27d4-b750-4596-8ffd-ecc61647ca99","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":118,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"154e303c-ac44-4032-b247-370e2a8d99c2","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":118,"box":{"x":69,"y":559,"width":812,"height":11}},{"id":"91ee4160-f48c-405a-a9a8-cc47b8e57b9c","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":118,"box":{"x":68,"y":574,"width":770,"height":11}},{"id":"e8bb3486-ad83-43ed-a184-172d63e32648","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":118,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"56d7e28e-c00d-4b46-9eb9-bf1004b8dcb6","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":118,"box":{"x":70,"y":604,"width":430,"height":11}},{"id":"7a7d62f4-4191-4644-be76-7752d24b4416","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":118,"box":{"x":102,"y":627,"width":759,"height":11}},{"id":"c75046cd-085c-4c41-ac4f-807e70d4f4f4","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":118,"box":{"x":70,"y":642,"width":765,"height":11}},{"id":"3095b822-85ef-4bc1-b6a7-e6739adf9790","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":118,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"2f8a6006-fe74-4791-90b4-0f724e98c695","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":118,"box":{"x":69,"y":672,"width":799,"height":11}},{"id":"e928bb5c-c450-4a6f-8bf4-4c3bde0cde94","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":118,"box":{"x":69,"y":687,"width":801,"height":11}},{"id":"2cc28c0c-ac7b-406b-b470-e974cc7ff01a","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":118,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"710accc5-bbca-4a1e-a573-1cbcbab0b97d","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":118,"box":{"x":70,"y":717,"width":831,"height":12}},{"id":"aa89ffca-a5cd-4b20-9102-be1856c888fc","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":118,"box":{"x":69,"y":733,"width":810,"height":11}},{"id":"25407955-8c48-498e-a5be-7d735403f8d9","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":118,"box":{"x":69,"y":748,"width":829,"height":11}},{"id":"3cbfccb3-9b4f-47c9-803b-02ec64c49bdc","block_type":"box","text":"or by another authorized securities depository.","page_number":118,"box":{"x":69,"y":763,"width":329,"height":11}},{"id":"299c37fd-72fb-401b-94b0-f9ff34d6d823","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":118,"box":{"x":102,"y":785,"width":770,"height":12}},{"id":"7cd9385b-618c-41a8-be27-920181aa0d3e","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":118,"box":{"x":69,"y":801,"width":805,"height":11}},{"id":"cccac877-21e1-42f5-b8e0-59a8f90e6407","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":118,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"dfb7c366-a51e-4394-b3cd-6f26b67688e4","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":118,"box":{"x":69,"y":831,"width":778,"height":11}},{"id":"2e356d7b-ecac-4e99-899b-dc035138841b","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":118,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"561d30ba-acd3-424d-871c-3e9dada33660","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":118,"box":{"x":70,"y":861,"width":810,"height":11}},{"id":"73c348d3-6333-42a2-86d0-bd34d3fc5e48","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":118,"box":{"x":69,"y":876,"width":812,"height":11}},{"id":"d74ff304-d39f-4f29-8de3-9c232fd4c87b","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":118,"box":{"x":69,"y":891,"width":778,"height":12}},{"id":"ced2c775-ce97-43a2-91cc-103ff328f2ce","block_type":"box","text":"II-71","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5e7784cd-b323-49bc-bad7-599b7389417d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"714ba592-075c-41b9-8c34-028fe36f6e1c","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":119,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"579cbc89-51cb-4c6c-a561-704dbc18a9fe","block_type":"box","text":"the repurchase price.","page_number":119,"box":{"x":68,"y":60,"width":151,"height":11}},{"id":"bb49ad12-1c56-40a2-877f-e6bdc856f446","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":119,"box":{"x":102,"y":82,"width":805,"height":12}},{"id":"97f6c7f0-0ecf-4dde-8e4f-041b8922dc1b","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":119,"box":{"x":70,"y":98,"width":837,"height":11}},{"id":"76d5fce0-7d9a-4322-9aa4-7482ba8d97e4","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":119,"box":{"x":69,"y":113,"width":788,"height":11}},{"id":"6891948c-bb97-446d-acaf-c32c1157fcca","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":119,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"c27ed99f-1c5a-42ea-a2ae-35d27a5116e5","block_type":"box","text":"strategies without the repurchase obligation.","page_number":119,"box":{"x":69,"y":143,"width":317,"height":11}},{"id":"ff122c28-fa64-4211-a783-2790545e4c36","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":119,"box":{"x":101,"y":166,"width":782,"height":11}},{"id":"57bbab33-8345-4067-bdea-acd229b499b6","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":119,"box":{"x":69,"y":181,"width":776,"height":11}},{"id":"ac25906f-2aa1-4883-856a-f408dd8ef51b","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":119,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"fa90ac0b-e4bb-40ba-80d0-d1b65fe1806e","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":119,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"0b92f7bd-c6d0-4b5d-b354-25723e11eb4a","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":119,"box":{"x":68,"y":226,"width":825,"height":11}},{"id":"f92ea30c-0fd9-4efd-a13c-d1e305e251cc","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (i.e., the position the Fund would normally be in if it were to hold,","page_number":119,"box":{"x":69,"y":241,"width":833,"height":11}},{"id":"33656785-6a5f-40d6-bfd2-5268e84f5174","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":119,"box":{"x":70,"y":256,"width":813,"height":12}},{"id":"e7cd52f9-ca95-4c9f-9e4a-89039ac38bb5","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":119,"box":{"x":68,"y":271,"width":816,"height":12}},{"id":"286b0877-6cb4-4af2-8f32-74f2aa2c355b","block_type":"box","text":"and income involved in the transaction.","page_number":119,"box":{"x":69,"y":287,"width":278,"height":9}},{"id":"2e17cc71-aeb2-47b3-9b4e-ede7f19242cc","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":119,"box":{"x":102,"y":309,"width":800,"height":11}},{"id":"1816c6d4-cff4-47c8-80d7-cbaf1c7e8fc8","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":119,"box":{"x":68,"y":324,"width":840,"height":12}},{"id":"dca29be2-7edc-449c-b806-b66fd07fc048","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":119,"box":{"x":69,"y":339,"width":814,"height":12}},{"id":"90984e1c-66fb-4a1e-b6a9-c84de5b84a0d","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":119,"box":{"x":68,"y":355,"width":790,"height":11}},{"id":"f1af4525-801e-42cb-ac2c-6c1549bcc629","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":119,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"148b8080-f034-4e21-afdc-2b85e6cb4279","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":119,"box":{"x":68,"y":385,"width":783,"height":11}},{"id":"8056ab64-d920-40e8-9e7f-bb0f7b85dd20","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":119,"box":{"x":69,"y":400,"width":821,"height":11}},{"id":"276eb27c-8f95-47f0-9716-8318ecf3e245","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":119,"box":{"x":69,"y":415,"width":800,"height":11}},{"id":"c663c48d-3d20-4e2a-a4b0-d08b359321db","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":119,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"3f586701-168a-4039-9e3b-c6194ac69d7f","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":119,"box":{"x":69,"y":445,"width":834,"height":12}},{"id":"6dc35522-3009-4b85-a65b-1795c8a19bcb","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":119,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"fe61cd3b-5280-448f-a3ea-4bfbfae0296f","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":119,"box":{"x":69,"y":475,"width":279,"height":12}},{"id":"3c9998d9-88ff-48d0-9bca-8d0972e81837","block_type":"box","text":"Restricted Securities.","page_number":119,"box":{"x":102,"y":498,"width":158,"height":9}},{"id":"74250876-36b3-473d-96a3-263419d8fd45","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":119,"box":{"x":265,"y":498,"width":617,"height":11}},{"id":"5d8e7748-285b-498b-852f-d9b12375f1a7","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":119,"box":{"x":69,"y":513,"width":801,"height":11}},{"id":"ac05b0ed-75f7-47e3-bd04-b52a30bf72f2","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":119,"box":{"x":69,"y":529,"width":808,"height":11}},{"id":"4b029efe-1118-4aae-b5c0-d36bc3c58931","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":119,"box":{"x":70,"y":544,"width":802,"height":11}},{"id":"759c45d5-64a8-4c34-9e8f-ae08b7f56b86","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":119,"box":{"x":70,"y":559,"width":834,"height":11}},{"id":"d3f5a21c-99b4-40bc-86b6-f988c6af1d49","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":119,"box":{"x":68,"y":574,"width":825,"height":11}},{"id":"76afe723-4086-4323-9b6c-5350308a1e84","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":119,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"f7469239-267f-43bf-be52-21d1d83945ac","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":119,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"d378640c-ad67-4f85-b5e1-73bfa3922378","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":119,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"71c2fa38-7dac-499f-8a99-fc7ec1b97cc3","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":119,"box":{"x":70,"y":634,"width":824,"height":12}},{"id":"83b88fcb-4873-4706-913d-fb53d9747d93","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":119,"box":{"x":69,"y":649,"width":834,"height":12}},{"id":"2f17c925-01e0-41ef-bdfb-7d7c3d6c6ad8","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":119,"box":{"x":69,"y":664,"width":769,"height":12}},{"id":"bab92345-5ea7-45b5-a250-f5601236f89f","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":119,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"3cbb3839-7e30-40c6-8da3-be12a0466bf4","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":119,"box":{"x":68,"y":695,"width":805,"height":11}},{"id":"ab87e741-e455-41fc-a9e1-b511a235ec16","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":119,"box":{"x":68,"y":710,"width":840,"height":11}},{"id":"7de458b0-1455-45f4-be22-69186440b94f","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":119,"box":{"x":70,"y":725,"width":815,"height":11}},{"id":"f25c3356-17cf-4869-bc47-051a8456c717","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":119,"box":{"x":69,"y":740,"width":835,"height":11}},{"id":"c46bfc4b-309a-4f58-b0ba-d9a863c05327","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":119,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"d48ef7eb-2d03-49a5-bedc-e1ec2477a08e","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":119,"box":{"x":70,"y":770,"width":830,"height":11}},{"id":"c706d190-4801-4898-bf47-1405a208ecc0","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":119,"box":{"x":69,"y":785,"width":817,"height":12}},{"id":"2f9d928f-9899-4150-82d8-c361e45be0aa","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":119,"box":{"x":68,"y":801,"width":825,"height":11}},{"id":"1608b819-54aa-4029-bca1-430432e29fa9","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":119,"box":{"x":69,"y":816,"width":777,"height":11}},{"id":"aa1363aa-b2c1-4a38-9a41-d2ea2779ec93","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":119,"box":{"x":69,"y":831,"width":828,"height":11}},{"id":"a1466701-4562-41bd-afba-406f34bc46b9","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":119,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"637a103f-fa97-441d-9f3a-dd721146209a","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":119,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"1aed140e-0ea1-4d24-90ce-4b7572a3f844","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":119,"box":{"x":69,"y":876,"width":836,"height":11}},{"id":"c5a2891c-9e7d-45ef-8668-129d300a3f1b","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":119,"box":{"x":68,"y":891,"width":819,"height":12}},{"id":"15575b11-dac8-4613-8b13-7981a1f04613","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":119,"box":{"x":70,"y":907,"width":822,"height":11}},{"id":"e65f25f6-3ac6-4d32-a71c-dcdd69c2b7b6","block_type":"box","text":"II-72","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fc63b813-d1ce-44b6-adb9-88b3dec74be3","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eaef74b7-9ff5-40f3-9042-03c44d0bf05e","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":120,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"a066c513-477a-4f40-a173-03c3e399218e","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":120,"box":{"x":70,"y":60,"width":780,"height":11}},{"id":"5268a414-23bb-48b1-9f59-785dd3abf029","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":120,"box":{"x":70,"y":75,"width":773,"height":11}},{"id":"288e4e1d-f716-4a6d-826c-e5b994a273b4","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":120,"box":{"x":69,"y":90,"width":784,"height":11}},{"id":"8a7a52e4-2952-4eee-9456-2ef6a6612db4","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":120,"box":{"x":69,"y":105,"width":816,"height":11}},{"id":"2feeed0c-060a-4ada-b9db-d3515fb2e7f8","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":120,"box":{"x":69,"y":120,"width":828,"height":11}},{"id":"487767be-234a-4fcb-abc6-89b00038be14","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":120,"box":{"x":69,"y":135,"width":831,"height":12}},{"id":"a8f54bc7-c963-4321-91dc-feb3b0f68780","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":120,"box":{"x":68,"y":150,"width":804,"height":12}},{"id":"5bbae4f8-2b59-4503-95e9-2fd274cec600","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":120,"box":{"x":69,"y":166,"width":647,"height":11}},{"id":"e9d1469c-f45c-42d5-a2bb-4d0cb0aa4553","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":120,"box":{"x":102,"y":188,"width":714,"height":11}},{"id":"7c197eb9-d397-4024-b902-7d6d3a230ef8","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":120,"box":{"x":70,"y":204,"width":823,"height":11}},{"id":"f91218c2-9a2b-4649-88c4-a9251a15fa7c","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":120,"box":{"x":70,"y":218,"width":826,"height":12}},{"id":"374d11df-9b95-40d7-bf36-bcfd16040f78","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":120,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"7cda8fe1-5be1-4913-87d0-0abb920bd5e5","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":120,"box":{"x":69,"y":249,"width":812,"height":11}},{"id":"d57ce1e8-ba02-4820-b553-698c1fac1e40","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":120,"box":{"x":69,"y":264,"width":787,"height":11}},{"id":"a54c5096-27ad-4dc5-8d5b-a4cfbf070121","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":120,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"31ef6da0-bfbc-415b-bf34-42f22350a654","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":120,"box":{"x":69,"y":294,"width":759,"height":11}},{"id":"3a2b9998-a3bd-4284-a995-8c082dc0994f","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":120,"box":{"x":70,"y":309,"width":833,"height":11}},{"id":"88dcc48b-4720-4f2f-bf40-fb4d169803c1","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":120,"box":{"x":69,"y":324,"width":828,"height":11}},{"id":"91c8255f-8d40-4e55-8f78-449d02b54604","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":120,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"43c676f7-71fc-4a3d-8561-7471ee1d98e1","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":120,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"61607ad1-680d-4dcb-9d6a-eddf8c958e8d","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":120,"box":{"x":69,"y":370,"width":816,"height":11}},{"id":"a6bc90fc-374a-452a-be6f-c4e68acc4463","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":120,"box":{"x":70,"y":385,"width":835,"height":11}},{"id":"63d3eb29-4c23-45f5-ab4d-51d658402178","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":120,"box":{"x":69,"y":400,"width":768,"height":11}},{"id":"e317293e-6442-4ce7-881c-4137c2cc9c6d","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":120,"box":{"x":70,"y":415,"width":815,"height":11}},{"id":"616ef536-e05c-4a4d-afe4-4133d7af4249","block_type":"box","text":"especially as that Fund grows in size.","page_number":120,"box":{"x":69,"y":430,"width":264,"height":11}},{"id":"dff6c4b4-7efe-4531-9a6f-9f480f8192b0","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":120,"box":{"x":101,"y":453,"width":762,"height":11}},{"id":"2cdf50be-4fbc-4234-bf1b-be600aa897ae","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":120,"box":{"x":69,"y":468,"width":795,"height":11}},{"id":"895d5967-baaf-4841-8193-8c543e4b9efc","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":120,"box":{"x":69,"y":483,"width":751,"height":11}},{"id":"d24551a0-f1ea-48a6-ad7c-11bdb10a6589","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":120,"box":{"x":70,"y":498,"width":755,"height":11}},{"id":"623d8438-28a1-408f-8e9f-1b819fdaad03","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":120,"box":{"x":69,"y":513,"width":830,"height":12}},{"id":"394ec086-597d-4bc1-90cc-43c2a7161407","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":120,"box":{"x":70,"y":528,"width":835,"height":12}},{"id":"15fec296-6f57-4c96-b440-3d558ad153d6","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":120,"box":{"x":68,"y":543,"width":766,"height":12}},{"id":"d0bb7e2a-dae0-463a-bc59-eaedcea05ee4","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":120,"box":{"x":69,"y":559,"width":792,"height":11}},{"id":"cf3d6f72-8100-44d1-bc79-26610a9bca58","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":120,"box":{"x":70,"y":574,"width":821,"height":11}},{"id":"139f4583-260f-41c2-88cc-192ee91ccd4c","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":120,"box":{"x":70,"y":589,"width":771,"height":11}},{"id":"4354b042-3082-4217-a774-7e7478305ed9","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":120,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"1eb4ade8-6183-4c5b-bde4-1ad80c7055bc","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":120,"box":{"x":69,"y":619,"width":790,"height":11}},{"id":"b98bac50-a0e1-4307-9ae4-c3ed38528016","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":120,"box":{"x":69,"y":634,"width":828,"height":12}},{"id":"96e38301-d40a-48ce-91a7-2430adbac229","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":120,"box":{"x":69,"y":649,"width":810,"height":12}},{"id":"ec42124c-1934-4030-8667-3429f4d3eb90","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":120,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"90f94f65-08ba-4ffe-83ab-b930ecfa3023","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":120,"box":{"x":68,"y":680,"width":839,"height":11}},{"id":"5e730901-af36-456d-8acb-40ace8c1b8e6","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":120,"box":{"x":68,"y":695,"width":514,"height":11}},{"id":"48b52050-3a5f-46ea-ae0b-ea41e906627f","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":120,"box":{"x":102,"y":718,"width":385,"height":10}},{"id":"6ec5057d-9609-4cc3-8af0-d0be913fdf02","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":120,"box":{"x":102,"y":740,"width":246,"height":11}},{"id":"0ffc4dd3-1970-4b88-8c8b-1b15141dba0b","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":120,"box":{"x":354,"y":740,"width":548,"height":11}},{"id":"d17b2f72-dfe9-41e4-b6ad-42c12d98ff36","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":120,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"dbefa005-cfb1-47a9-9137-e0e85e7a8cec","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":120,"box":{"x":68,"y":771,"width":793,"height":11}},{"id":"45a91598-2a9d-4c0a-be40-2198e6db25a8","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":120,"box":{"x":69,"y":785,"width":784,"height":12}},{"id":"ee421e8f-11ce-4cba-a573-ebb4732cbb99","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":120,"box":{"x":70,"y":801,"width":591,"height":11}},{"id":"6b468323-4af5-418c-b68d-9185e66cb81f","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":120,"box":{"x":101,"y":823,"width":730,"height":12}},{"id":"741d9242-d97a-4564-ac0c-a43a85c56df6","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":120,"box":{"x":70,"y":839,"width":822,"height":11}},{"id":"62ffde85-0092-4f44-9db0-59231fbca61f","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":120,"box":{"x":69,"y":853,"width":821,"height":11}},{"id":"3405e634-e9ad-451b-b367-7d905697e3c7","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":120,"box":{"x":69,"y":869,"width":801,"height":11}},{"id":"c5efa2f1-b973-4e6f-a63a-def416c38405","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":120,"box":{"x":69,"y":884,"width":830,"height":11}},{"id":"e9d22de4-1d3b-49db-92ec-487c0c6f1973","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":120,"box":{"x":69,"y":899,"width":354,"height":11}},{"id":"09f282df-16fd-457e-9ef2-30d99e6cf03c","block_type":"box","text":"II-73","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4ee4e973-2a23-4ea6-be23-7a43ebef5f3e","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"346f7365-2c0d-4e62-ac67-59a793b735ed","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":121,"box":{"x":102,"y":45,"width":769,"height":11}},{"id":"e6edffcd-8fd8-4899-8833-232e9d1a1902","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":121,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"b899a362-7eee-4fa1-b291-4052256f697f","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":121,"box":{"x":70,"y":75,"width":782,"height":11}},{"id":"bf98f7f2-44d7-485b-b568-291376df5417","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":121,"box":{"x":69,"y":90,"width":449,"height":11}},{"id":"827fc655-e78f-4a5f-8953-9ae8110dd508","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":121,"box":{"x":102,"y":113,"width":794,"height":11}},{"id":"09fefdb8-8ee2-4128-9eb1-9c5a0ce56e2c","block_type":"box","text":"similar financing transactions (e.g., recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":121,"box":{"x":69,"y":128,"width":841,"height":11}},{"id":"ec133dd5-5b77-4bc7-9379-6cc270cc9fff","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":121,"box":{"x":68,"y":143,"width":813,"height":11}},{"id":"860187ab-79a5-4458-ad7a-b0a59e74634e","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":121,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"0521dc2c-7354-412a-b450-71741769a24a","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":121,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"81614206-7b47-4999-93b3-dfdbdac11b70","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":121,"box":{"x":70,"y":188,"width":824,"height":12}},{"id":"32fe056d-bac4-4d8f-a1dc-2d33cd9ffe84","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":121,"box":{"x":68,"y":203,"width":758,"height":12}},{"id":"c0f54d07-dcb8-475f-81ae-f8d966f850b7","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":121,"box":{"x":69,"y":218,"width":822,"height":12}},{"id":"84c446d6-eac9-4601-9c07-e046ad0ba276","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":121,"box":{"x":68,"y":234,"width":838,"height":11}},{"id":"8adb7c2e-51ab-49a6-9084-f8bde14e06db","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":121,"box":{"x":69,"y":249,"width":538,"height":11}},{"id":"d8ce1a4f-6387-4ccc-90c6-4a7dd7bd8f30","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":121,"box":{"x":101,"y":272,"width":780,"height":11}},{"id":"35fc6c10-5d6c-43b7-8872-f2e6e391b30e","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":121,"box":{"x":69,"y":286,"width":838,"height":12}},{"id":"7a2b3a3d-9f26-4bb3-90e7-18aa23941287","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":121,"box":{"x":68,"y":302,"width":775,"height":11}},{"id":"31072512-3736-43cf-b59d-8e665cde02ba","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":121,"box":{"x":68,"y":317,"width":754,"height":11}},{"id":"3279e674-8304-417d-b151-830f038e0b64","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":121,"box":{"x":69,"y":332,"width":818,"height":11}},{"id":"c74249be-e8f1-444d-98e5-6aadbe821e8f","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":121,"box":{"x":68,"y":347,"width":783,"height":11}},{"id":"6c17f451-942d-47bb-b197-59630ed72ca3","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":121,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"48cd7484-fdb6-49cb-9e8d-06fde0e2f888","block_type":"box","text":"amounts to be received under such agreements.","page_number":121,"box":{"x":69,"y":377,"width":345,"height":12}},{"id":"b89af367-8614-471b-9486-a6eaac37e37d","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":121,"box":{"x":102,"y":400,"width":316,"height":11}},{"id":"ae17f361-5d42-4d49-ad99-ba8cd62fc2b7","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":121,"box":{"x":424,"y":400,"width":481,"height":11}},{"id":"ab99e044-8902-466e-a4de-432875493313","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":121,"box":{"x":68,"y":415,"width":822,"height":11}},{"id":"2c6e8b45-ea5d-41b2-b56a-125ded1a14de","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":121,"box":{"x":69,"y":430,"width":776,"height":11}},{"id":"2f4fbd85-5c17-42d6-9cf0-7d0b360d29b0","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":121,"box":{"x":69,"y":445,"width":817,"height":12}},{"id":"ea49243a-df8a-469f-90e0-655993f356a9","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":121,"box":{"x":70,"y":460,"width":833,"height":12}},{"id":"aea456c7-0720-4026-b342-89b40ea2b950","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":121,"box":{"x":69,"y":475,"width":835,"height":12}},{"id":"a35ff2b7-2673-4c00-a7ef-0edad7b8eb3a","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":121,"box":{"x":70,"y":491,"width":821,"height":11}},{"id":"82178249-478f-4c18-bf92-e88cc5d33883","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":121,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"b2bea507-ae77-4de9-995e-284e1db9539d","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":121,"box":{"x":69,"y":521,"width":777,"height":11}},{"id":"d641eaf2-203c-4249-a60f-6e411afd8aa9","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":121,"box":{"x":69,"y":536,"width":839,"height":11}},{"id":"ad0d3b69-343f-45b4-8b2e-f0b80bee3837","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":121,"box":{"x":68,"y":551,"width":708,"height":11}},{"id":"858b0e43-a4f7-4993-8362-965d2e215993","block_type":"box","text":"Rule 144A Securities.","page_number":121,"box":{"x":102,"y":574,"width":159,"height":9}},{"id":"1ee24fde-9250-4687-accb-36f5e25279c6","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":121,"box":{"x":266,"y":574,"width":560,"height":11}},{"id":"7f4b32a8-3a86-4200-9a65-0211f676c334","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":121,"box":{"x":70,"y":589,"width":741,"height":11}},{"id":"69dc936d-bf53-41b3-ae81-973a5832f2f2","block_type":"box","text":"Securities Lending.","page_number":121,"box":{"x":101,"y":612,"width":139,"height":11}},{"id":"ef63007a-a478-4436-b4f0-9672b481045c","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":121,"box":{"x":247,"y":612,"width":645,"height":11}},{"id":"c506e816-baf3-490e-b16a-dba394179685","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":121,"box":{"x":69,"y":627,"width":825,"height":11}},{"id":"aeffd5b6-9121-445c-a75c-ec27d56f40f5","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":121,"box":{"x":69,"y":642,"width":817,"height":11}},{"id":"50a89242-ccd5-4749-ac7a-51461291aff2","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":121,"box":{"x":69,"y":657,"width":831,"height":11}},{"id":"f32d64c6-dfc3-44ea-afb6-fc28851845fa","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":121,"box":{"x":68,"y":672,"width":827,"height":11}},{"id":"95653b86-f160-4be3-9c23-d6adec4e8550","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":121,"box":{"x":69,"y":687,"width":829,"height":11}},{"id":"659522d4-45a8-45ad-88ea-f76d1a7a4cb7","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":121,"box":{"x":69,"y":702,"width":838,"height":11}},{"id":"9c45900e-6fb9-4f20-9e89-b1438ab7b2de","block_type":"box","text":"the securities were not on loan.","page_number":121,"box":{"x":68,"y":718,"width":225,"height":8}},{"id":"38a7a87e-936f-4c7e-a7ca-4418471f1004","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":121,"box":{"x":101,"y":740,"width":799,"height":11}},{"id":"4eaefed9-dd69-4739-8cb8-bad0691c6567","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":121,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"cf4e4f44-cc2e-46c5-9c97-957547b7c7e4","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":121,"box":{"x":69,"y":770,"width":824,"height":11}},{"id":"aa0599e2-cae5-4618-8c86-ed7c590b5d80","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":121,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"a7b3c10b-c566-46d0-913e-8976e4d09e95","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":121,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"3b6c8a40-ddfa-461f-98ef-4f98aeb7981b","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":121,"box":{"x":70,"y":816,"width":789,"height":11}},{"id":"2af0bbd1-75f7-43d4-85b2-f7806f04e553","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":121,"box":{"x":70,"y":831,"width":643,"height":11}},{"id":"ecdb3771-bdfe-44da-9385-b6ef46048fea","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (i.e., the risk of losses resulting","page_number":121,"box":{"x":102,"y":853,"width":791,"height":12}},{"id":"f21eadb7-2c0d-4cf9-b886-93b9b2fb355f","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (i.e., the risk of a mismatch between the return","page_number":121,"box":{"x":68,"y":869,"width":833,"height":11}},{"id":"c84dd1e7-a3b8-42a1-8147-73c439f5dc3d","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":121,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"0abd1ba4-78ef-40d8-8110-094cfe891ed2","block_type":"box","text":"i.e.","page_number":121,"box":{"x":865,"y":884,"width":20,"height":9}},{"id":"5646a33b-8fb2-4f1d-8e0b-81a5d381ba2e","block_type":"box","text":",","page_number":121,"box":{"x":888,"y":891,"width":2,"height":3}},{"id":"e2e0d2f8-985f-45ac-97b1-67196844d7f4","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":121,"box":{"x":68,"y":899,"width":788,"height":11}},{"id":"b4ab3c18-5567-4de8-80e6-b62f7ccd6f8b","block_type":"box","text":"II-74","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"822bd529-7702-4b52-ad3f-a31d6e7b223f","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e9413e0-67dd-4f0d-b0d1-c27551376a2d","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":122,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"77ee791d-0c48-44c6-ab1c-3a6d9cc30cb1","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":122,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"336a318a-29f0-4585-bb15-e1dabe74f1a7","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":122,"box":{"x":68,"y":75,"width":811,"height":11}},{"id":"dcdb1098-5823-430f-8233-edd9f25c1858","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":122,"box":{"x":70,"y":90,"width":820,"height":11}},{"id":"e64a6637-61f2-4053-b78d-c67779456e4c","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":122,"box":{"x":69,"y":105,"width":790,"height":11}},{"id":"d5ab5652-ddbe-4e59-aa16-463afdd419d4","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":122,"box":{"x":70,"y":120,"width":820,"height":12}},{"id":"57d33e67-93e8-4ce5-8c17-5cb2088de89b","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":122,"box":{"x":70,"y":135,"width":805,"height":12}},{"id":"e73db684-6e7e-4697-835f-d14ec0773a5b","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":122,"box":{"x":69,"y":150,"width":816,"height":12}},{"id":"8b806491-6c80-4a7a-a36b-a06d32957b44","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":122,"box":{"x":69,"y":166,"width":775,"height":11}},{"id":"a3eed5a3-0f76-4d42-b6d8-8bfd87a64445","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":122,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"b4c382e7-0d49-4863-8411-5571204f5c02","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":122,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"b5b069e7-353e-4597-bed5-51b826919446","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":122,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"676300e1-233c-43d2-9e1c-9ecbd7b432e5","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":122,"box":{"x":70,"y":226,"width":808,"height":11}},{"id":"f5809425-ee13-4ff7-b589-0572082cb070","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":122,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"8c68afd6-a547-45f1-8414-a04401992602","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":122,"box":{"x":70,"y":257,"width":832,"height":11}},{"id":"2ad7aa57-fa77-4c40-912f-0e6b984372a6","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":122,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"fabae78a-6ec7-4a4c-8a2c-46ea6c3c037b","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":122,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"565c4af0-f567-4a28-bd60-88b4c5b3aae2","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":122,"box":{"x":70,"y":302,"width":823,"height":11}},{"id":"8b32a0c6-d96f-4be9-bdc9-811252199978","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":122,"box":{"x":69,"y":317,"width":812,"height":11}},{"id":"35455d66-c7de-43ba-b0a9-e44c8107ab02","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":122,"box":{"x":70,"y":332,"width":814,"height":11}},{"id":"3c5d6a88-9826-48b4-bff6-4b8d94cbda71","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":122,"box":{"x":68,"y":347,"width":787,"height":11}},{"id":"1fc4add3-ff8a-446e-b714-11f69fa0f600","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":122,"box":{"x":69,"y":362,"width":828,"height":11}},{"id":"e14ac085-6a90-4629-802c-9f98187227f5","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":122,"box":{"x":70,"y":377,"width":809,"height":12}},{"id":"09e11cc8-2623-417e-83cd-b2668fa6fe48","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":122,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"68ad1250-8f8d-4fb9-a78f-190a08eb708c","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":122,"box":{"x":69,"y":407,"width":731,"height":12}},{"id":"4db677c5-9662-4e20-bad5-6a45bfd6a61d","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":122,"box":{"x":102,"y":430,"width":800,"height":11}},{"id":"ce382f1f-d32e-48fc-9cca-6d359bc1527d","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":122,"box":{"x":68,"y":445,"width":802,"height":12}},{"id":"cbf524ba-692c-414a-bdf6-527544c940f1","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":122,"box":{"x":69,"y":460,"width":783,"height":12}},{"id":"5996213d-7f1c-4f8a-b999-04f4cd2f7917","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":122,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"9606aab4-5c64-4648-9172-56cd930ad84c","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":122,"box":{"x":70,"y":491,"width":747,"height":11}},{"id":"949a1e8b-abc3-4801-b969-e3b8b8479496","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":122,"box":{"x":69,"y":506,"width":806,"height":11}},{"id":"76ba2ce0-8c83-4531-8a3f-3fc20fe758e1","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":122,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"45f6b3f9-7a97-4b23-92ca-5edf4d971d59","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":122,"box":{"x":69,"y":536,"width":839,"height":11}},{"id":"7cbdd693-4a6c-4832-b2d3-94973d981aff","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":122,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"a7fa46fd-6ff6-4393-8955-5f2deb4aec2f","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":122,"box":{"x":69,"y":566,"width":794,"height":11}},{"id":"abbfe1e2-18d3-4375-b487-7c4073f80764","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":122,"box":{"x":69,"y":581,"width":371,"height":12}},{"id":"c1d1097a-9421-4726-b6a6-7a217ee5e6e6","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":122,"box":{"x":101,"y":604,"width":753,"height":11}},{"id":"9524e037-93cd-4da9-bed1-92cad7f586c4","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":122,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"4a6c1925-78de-422a-a97a-72a0b6490f13","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":122,"box":{"x":69,"y":634,"width":784,"height":11}},{"id":"6d91025e-8e23-457c-9164-20c9acfa6ee9","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":122,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"e6d9f36b-3122-4cc3-a00d-1aca87e2692c","block_type":"box","text":"the current expected compliance date.","page_number":122,"box":{"x":68,"y":665,"width":273,"height":10}},{"id":"c8fcb9aa-9544-4fdd-b8c0-2ca5318b24a6","block_type":"box","text":"Short Sales.","page_number":122,"box":{"x":101,"y":687,"width":89,"height":9}},{"id":"d586c9a4-caf6-4b5a-a240-4f787a51c1c2","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":122,"box":{"x":196,"y":687,"width":696,"height":11}},{"id":"0475a70e-f35d-4235-82f6-c3c3338a4064","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":122,"box":{"x":68,"y":702,"width":821,"height":11}},{"id":"defc6cf5-8fad-48c5-9531-c7a22a49bd2d","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":122,"box":{"x":69,"y":717,"width":778,"height":12}},{"id":"48f89af3-8c8b-4e20-b0d1-ce5f206c1c28","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":122,"box":{"x":70,"y":732,"width":831,"height":12}},{"id":"b61bc30a-fc84-463c-be27-ee4366a7ee72","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":122,"box":{"x":69,"y":748,"width":837,"height":11}},{"id":"19abf797-2d12-444d-8a4c-d8c1daeb5a12","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":122,"box":{"x":68,"y":763,"width":828,"height":11}},{"id":"bdb3694a-61ac-492f-99cd-2969ad3ee395","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":122,"box":{"x":70,"y":778,"width":829,"height":11}},{"id":"c3e87935-56de-49fd-8ce1-22185630bff9","block_type":"box","text":"securities to the lender of the securities.","page_number":122,"box":{"x":69,"y":793,"width":289,"height":9}},{"id":"5a3d6012-c14a-4fe9-a46d-53baaacf9a8a","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":122,"box":{"x":101,"y":816,"width":772,"height":11}},{"id":"64f90fdf-a00e-41f3-9c59-0d797da76a73","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":122,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"7a002e84-da95-4fea-af99-0bda9c56b459","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":122,"box":{"x":69,"y":846,"width":801,"height":11}},{"id":"3800b39b-a19e-4dec-8dae-ee39bcbf957e","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":122,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"656d51a2-6dc5-41f6-8006-fb14081e08d3","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":122,"box":{"x":69,"y":876,"width":839,"height":11}},{"id":"57dfa743-9d7e-4789-8059-5147c277572e","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":122,"box":{"x":69,"y":891,"width":770,"height":12}},{"id":"fd78d246-2b37-4cf6-a0b9-cf83f0cfbabf","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":122,"box":{"x":70,"y":907,"width":568,"height":11}},{"id":"f8612b89-74cf-45d3-ac34-ba36fa8a1016","block_type":"box","text":"II-75","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"93f811fb-58c1-45c1-8706-fc490ed6b823","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f0f6aaa-1357-43d0-af67-c28a499d7bdf","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":123,"box":{"x":102,"y":45,"width":806,"height":11}},{"id":"5aac7ac6-9a1f-403a-ba3c-dc4141c7058d","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":123,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"4caa59c5-9f97-4bac-b760-45928efc9d6a","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":123,"box":{"x":68,"y":75,"width":819,"height":11}},{"id":"b0206e63-4da3-47d3-be30-64fda1ca531c","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":123,"box":{"x":69,"y":90,"width":758,"height":11}},{"id":"bebadb26-ddad-4e86-84de-c0ad69f26f85","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":123,"box":{"x":69,"y":105,"width":817,"height":11}},{"id":"0410bc6d-9012-471c-ae9b-bb7c4f7fd4ee","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":123,"box":{"x":69,"y":120,"width":800,"height":11}},{"id":"133d4196-f5bf-42f4-a4e2-4df422eb86d5","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":123,"box":{"x":69,"y":136,"width":818,"height":11}},{"id":"7b0655af-a8d5-4f82-b552-84c589aedef0","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":123,"box":{"x":68,"y":150,"width":821,"height":12}},{"id":"81cb81c0-8256-4b23-abaf-40cdb2f307ea","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":123,"box":{"x":69,"y":166,"width":640,"height":11}},{"id":"3cfc3116-69ad-476e-9160-b45ec31ce800","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":123,"box":{"x":101,"y":188,"width":673,"height":12}},{"id":"3ef8a9f9-63ad-4d70-8f71-a15862cbeb54","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":123,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"c44fe83b-564a-4c5f-8a64-aea002c0243a","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":123,"box":{"x":69,"y":226,"width":791,"height":11}},{"id":"72b9c254-0121-40f8-b479-10794a6ae4bc","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":123,"box":{"x":70,"y":241,"width":489,"height":11}},{"id":"bd91c87e-96d5-4781-a83f-bc0eecdf9338","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":123,"box":{"x":102,"y":264,"width":745,"height":11}},{"id":"0b1c7d2e-cbbb-4353-adad-558ced4831a5","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":123,"box":{"x":69,"y":279,"width":793,"height":11}},{"id":"310c7262-fb2c-41ce-a62a-dd6feea2d061","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":123,"box":{"x":69,"y":294,"width":796,"height":11}},{"id":"8529273d-2116-45dc-b307-3ebec16e9f77","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":123,"box":{"x":70,"y":309,"width":766,"height":11}},{"id":"94b5ee15-52fc-4d49-a87a-051e64522231","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":123,"box":{"x":70,"y":324,"width":754,"height":12}},{"id":"8d692953-09f5-4d57-a85f-3153b7ee5c7c","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":123,"box":{"x":67,"y":339,"width":800,"height":12}},{"id":"d498467c-7307-4d29-9442-3da58a493729","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":123,"box":{"x":69,"y":355,"width":823,"height":11}},{"id":"659c3353-05f4-4613-a00e-26167a1429e4","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":123,"box":{"x":69,"y":370,"width":782,"height":11}},{"id":"bb902ac8-4c08-4b4c-a62a-9b811f78b8fe","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":123,"box":{"x":69,"y":385,"width":460,"height":11}},{"id":"81fc0a00-1d6c-4156-8a91-7d98514a6b3f","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":123,"box":{"x":101,"y":408,"width":293,"height":10}},{"id":"2905244b-bb9d-4031-87e3-cef055d5d87f","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":123,"box":{"x":400,"y":408,"width":504,"height":11}},{"id":"19c08a2e-35b6-4914-99ba-153b9615487d","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":123,"box":{"x":69,"y":423,"width":791,"height":11}},{"id":"59eb6770-bf41-4b0c-a2d9-4eaaa9c70a35","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":123,"box":{"x":70,"y":438,"width":793,"height":11}},{"id":"cedcdadc-10fa-46c7-822a-4cc042e99dca","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":123,"box":{"x":70,"y":453,"width":824,"height":11}},{"id":"f5cee373-3973-4616-9aed-618d4ec7ca9c","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":123,"box":{"x":69,"y":468,"width":821,"height":11}},{"id":"52339571-7fa7-401e-97db-a60814bd9779","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":123,"box":{"x":69,"y":483,"width":768,"height":11}},{"id":"180a223e-a5ec-479b-b218-c42cf039439b","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":123,"box":{"x":70,"y":498,"width":826,"height":11}},{"id":"26c276d7-4832-4370-b7ff-38e301fe3eb6","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":123,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"40d364c4-d5c9-4429-bee1-019c4f511478","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":123,"box":{"x":70,"y":529,"width":797,"height":11}},{"id":"ada963a7-16d4-4ea9-9e1c-c853f4aea7b9","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":123,"box":{"x":69,"y":543,"width":795,"height":12}},{"id":"3eeee54b-ac7c-4c6a-80a2-591489a1dce8","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":123,"box":{"x":68,"y":559,"width":788,"height":11}},{"id":"f6e0399c-0bf4-4edd-960e-a8829d284834","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":123,"box":{"x":68,"y":574,"width":794,"height":11}},{"id":"cbc0f8ce-2c2f-4d72-a9db-c9d68e6aac0b","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":123,"box":{"x":69,"y":589,"width":820,"height":11}},{"id":"7a68b283-4e29-409c-bdd2-2c6fd816d3f5","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":123,"box":{"x":68,"y":604,"width":815,"height":11}},{"id":"02a189fe-140d-4f46-8fdd-178d2f8fa89f","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":123,"box":{"x":70,"y":619,"width":802,"height":11}},{"id":"3839a47b-17ca-4298-b3f4-fafad8510c8e","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":123,"box":{"x":68,"y":634,"width":812,"height":12}},{"id":"3e3a5ccd-23d4-4602-b101-ef08da094c65","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":123,"box":{"x":69,"y":649,"width":838,"height":12}},{"id":"e60e6c79-7624-4815-bec4-19587cfd70ec","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":123,"box":{"x":69,"y":664,"width":806,"height":12}},{"id":"8f5bc1af-4b2f-436b-a840-62a52f19033a","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":123,"box":{"x":69,"y":680,"width":828,"height":11}},{"id":"8e426e3f-6add-49dd-a460-781b286d2d1b","block_type":"box","text":"Standby Commitment Agreements.","page_number":123,"box":{"x":101,"y":702,"width":255,"height":11}},{"id":"0d934a71-6c08-4961-a292-964801cc0197","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":123,"box":{"x":362,"y":702,"width":511,"height":12}},{"id":"1cfc8c89-8389-4a0d-98b7-a8269af48751","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":123,"box":{"x":68,"y":717,"width":834,"height":12}},{"id":"6dab8bd2-5c91-4653-bf03-1bcbaaefc5e8","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":123,"box":{"x":68,"y":732,"width":834,"height":12}},{"id":"6cfb7d38-09f5-4859-a2df-00bb20a8f7dd","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":123,"box":{"x":70,"y":748,"width":802,"height":11}},{"id":"079cc87e-feb6-46bd-9d50-46013c3be98b","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":123,"box":{"x":69,"y":763,"width":793,"height":11}},{"id":"556d0d50-3404-4581-b2a9-83b01b09c846","block_type":"box","text":"advantageous to the Fund.","page_number":123,"box":{"x":69,"y":778,"width":188,"height":11}},{"id":"40430812-689f-4380-8a9e-690279382213","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":123,"box":{"x":101,"y":801,"width":800,"height":11}},{"id":"9d24d05f-4a8a-4e07-af04-51123bbec5fb","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":123,"box":{"x":68,"y":816,"width":816,"height":11}},{"id":"761dce93-26db-4bf4-aa19-cf68a295fed3","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":123,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"f58bcf66-98ad-4408-9dbb-b34363a63341","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":123,"box":{"x":69,"y":846,"width":828,"height":11}},{"id":"a0d932d7-e2eb-433f-88f1-dcd0d55082d9","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":123,"box":{"x":101,"y":869,"width":785,"height":11}},{"id":"0ff8b53c-34e2-45a9-8a27-5713539d3b04","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":123,"box":{"x":69,"y":884,"width":837,"height":11}},{"id":"c246ecac-2dfc-40d7-a7e6-7edb74edd5c0","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":123,"box":{"x":68,"y":899,"width":815,"height":11}},{"id":"d27b3548-8107-422f-bbc3-7c479cb3c488","block_type":"box","text":"II-76","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d774827-6d69-4070-8a23-1744a536744f","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5feec002-c5d0-4bab-bc00-783264a27bb2","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":124,"box":{"x":69,"y":45,"width":792,"height":11}},{"id":"3c525801-4b6c-4cb9-8878-5c240adcc6cd","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":124,"box":{"x":70,"y":60,"width":415,"height":11}},{"id":"8b5046e1-86dd-4cc8-b42a-70369f8d2df6","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":124,"box":{"x":102,"y":83,"width":789,"height":11}},{"id":"8a766e8f-cf9b-4a92-9f4b-fa20a5253a1f","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":124,"box":{"x":69,"y":98,"width":814,"height":11}},{"id":"a25c6737-c217-4e23-b1ec-95d4d9ecbf93","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":124,"box":{"x":70,"y":113,"width":827,"height":11}},{"id":"447520e2-1af7-41f9-b5f8-64e600729491","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":124,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"baaf6288-7b99-4708-beef-d36f0a167fac","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":124,"box":{"x":68,"y":143,"width":817,"height":11}},{"id":"0ebbba1e-186b-4ad2-acc2-233176dc7801","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":124,"box":{"x":69,"y":158,"width":578,"height":11}},{"id":"d86ae57b-d621-4182-86f7-de7f3d0c23bd","block_type":"box","text":"Stripped Securities.","page_number":124,"box":{"x":101,"y":181,"width":143,"height":11}},{"id":"b3ed00fc-a285-4080-aa75-18ef03500421","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":124,"box":{"x":251,"y":181,"width":596,"height":11}},{"id":"f25a0943-42b4-4b2d-b207-71eb6d9a0dc5","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":124,"box":{"x":69,"y":196,"width":839,"height":11}},{"id":"905a8071-aa2b-4736-8d0a-b336dbdb3a4c","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":124,"box":{"x":70,"y":211,"width":818,"height":11}},{"id":"46571299-ed03-4cc5-b90f-d09edaca0a2e","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":124,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"acf07c6b-fb8d-4e2b-a7b9-1b79bd8d8218","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":124,"box":{"x":70,"y":241,"width":777,"height":11}},{"id":"423b1bee-adc2-4f0f-9f68-f8db2fa29904","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":124,"box":{"x":70,"y":257,"width":802,"height":11}},{"id":"006b62b0-7537-4676-9326-22e115d67729","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":124,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"80cf4c68-83aa-4499-86ff-b287d17557ec","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":124,"box":{"x":70,"y":286,"width":837,"height":12}},{"id":"5ab01723-b01c-4119-ac85-293a411c8408","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":124,"box":{"x":68,"y":302,"width":823,"height":11}},{"id":"0448ba28-fa4e-450d-8017-5eded0e0a334","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":124,"box":{"x":69,"y":317,"width":494,"height":11}},{"id":"231767c2-5c2e-4638-83e1-61d3056645ba","block_type":"box","text":"Structured Notes.","page_number":124,"box":{"x":101,"y":340,"width":130,"height":8}},{"id":"94d6a9b4-f448-437b-90ab-b675189ab460","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":124,"box":{"x":237,"y":340,"width":650,"height":11}},{"id":"8bae5938-d3cd-459e-b4d1-284697f1d544","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":124,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"047583d1-3712-483f-b53f-d071c6bf6d5a","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":124,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"1c60c110-9405-4516-9aa1-072bdf3ff10e","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":124,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"b1bb020f-84e5-4e54-834c-e683b48bf855","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":124,"box":{"x":70,"y":400,"width":839,"height":11}},{"id":"46f28211-0ba9-4cc3-a8c6-cfa3ae4d7883","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":124,"box":{"x":69,"y":415,"width":801,"height":11}},{"id":"19b92688-da3d-4327-b84e-28d227d02530","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":124,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"430ddcd7-f2bd-47d7-bb18-e4888609631a","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":124,"box":{"x":68,"y":445,"width":673,"height":12}},{"id":"415b20ab-c95c-420b-83f8-2678f076299a","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":124,"box":{"x":102,"y":468,"width":768,"height":11}},{"id":"c4afe4b7-9aa7-4a8e-ae7b-6a73f47a1fdf","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":124,"box":{"x":70,"y":483,"width":821,"height":11}},{"id":"f1395de4-e7a1-410f-84f1-db9f73336c6f","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":124,"box":{"x":69,"y":498,"width":787,"height":11}},{"id":"9c0a310a-4fa1-4ed8-8b7b-7ef3e1da22bb","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":124,"box":{"x":69,"y":513,"width":827,"height":12}},{"id":"1a5f2d1a-2b25-44f1-8df9-e6f588bfee01","block_type":"box","text":"the risk of loss.","page_number":124,"box":{"x":68,"y":528,"width":110,"height":9}},{"id":"9a9f7918-6b50-4fa9-b345-b02a0bbac2a0","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":124,"box":{"x":101,"y":551,"width":759,"height":11}},{"id":"418edc33-d4da-44df-bb83-26071579a810","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":124,"box":{"x":69,"y":566,"width":795,"height":11}},{"id":"532a17ba-dba6-4019-9e57-06e02c9ad85a","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":124,"box":{"x":69,"y":581,"width":819,"height":11}},{"id":"f509582f-5f0f-4a45-9b39-cf8ad358a5b0","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":124,"box":{"x":70,"y":596,"width":821,"height":12}},{"id":"286766cb-9af8-46a2-b7f0-b833145a101e","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":124,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"b9b48b0c-24d9-4877-8c84-faf82462d334","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":124,"box":{"x":70,"y":627,"width":618,"height":11}},{"id":"1504ac39-9219-4e56-9a3d-0235a2a623f9","block_type":"box","text":"Taxability Risk.","page_number":124,"box":{"x":103,"y":649,"width":109,"height":11}},{"id":"c5cabdd5-fe4e-408a-b871-b2cd073198ab","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":124,"box":{"x":218,"y":649,"width":644,"height":12}},{"id":"fc67a0e9-1aa6-4779-b8dd-35c495bacd98","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":124,"box":{"x":70,"y":664,"width":817,"height":12}},{"id":"0683fa07-9f24-405c-8dbf-d6cac7e28498","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":124,"box":{"x":68,"y":680,"width":827,"height":11}},{"id":"b7ad57e7-e444-4887-a3b8-6511518675c9","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":124,"box":{"x":69,"y":695,"width":835,"height":11}},{"id":"e4afe969-4beb-434b-b3a2-45773def8edb","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":124,"box":{"x":68,"y":710,"width":809,"height":11}},{"id":"37176f12-1380-48f6-978b-9a666aa1c050","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":124,"box":{"x":69,"y":725,"width":832,"height":11}},{"id":"b842c66a-8d87-496d-94db-dc811f8b6ddc","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":124,"box":{"x":69,"y":740,"width":816,"height":11}},{"id":"fadaf71a-630a-4494-9069-8647283deced","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":124,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"0fbe133a-d78b-4c8f-885c-9fb0b2b1ab7c","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":124,"box":{"x":70,"y":770,"width":818,"height":11}},{"id":"9edeee64-2f2e-4c23-9f06-448cf9f16736","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":124,"box":{"x":70,"y":785,"width":771,"height":12}},{"id":"02df6ab0-2f73-4105-a885-863ad8b38f04","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":124,"box":{"x":70,"y":801,"width":765,"height":11}},{"id":"ddab24db-35f6-4ec8-91f4-08ec1f67a143","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":124,"box":{"x":69,"y":816,"width":834,"height":11}},{"id":"79e0929c-ae23-485e-b960-21486124087e","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":124,"box":{"x":68,"y":831,"width":807,"height":11}},{"id":"8e1f6c7f-63e4-4deb-ab07-15d586bc944d","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":124,"box":{"x":70,"y":846,"width":830,"height":11}},{"id":"0d0c62ec-1ae7-4087-94fe-89d611c6163d","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":124,"box":{"x":68,"y":861,"width":838,"height":11}},{"id":"2d937124-cc91-4d26-b30a-8866f54c0e78","block_type":"box","text":"the value of an investment in the Fund.","page_number":124,"box":{"x":68,"y":876,"width":278,"height":9}},{"id":"f1c60f5c-6b43-404a-b81c-888b7835c2b3","block_type":"box","text":"II-77","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aa35610a-7bc1-442d-932d-0cb31b368e5d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2e2fbd32-0598-4260-bbd7-e4075550ef06","block_type":"box","text":"Temporary Defensive Measures.","page_number":125,"box":{"x":103,"y":45,"width":230,"height":11}},{"id":"e0092671-5e5e-4b9b-8a8f-2b103eaa7a26","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":125,"box":{"x":339,"y":45,"width":542,"height":11}},{"id":"f22c6d5e-e425-455a-aead-0a864c8a181f","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":125,"box":{"x":69,"y":60,"width":811,"height":11}},{"id":"90d6357f-26f4-4f29-a273-17da98ec311d","block_type":"box","text":"without limitation in cash high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":125,"box":{"x":68,"y":75,"width":809,"height":11}},{"id":"8ea28ca4-1af3-4291-846a-458d05d40fc0","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":125,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"f716bf05-8d67-45dc-9719-39b9ebca30c1","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":125,"box":{"x":70,"y":105,"width":813,"height":11}},{"id":"86f83a9f-0426-4e4e-9352-8da1b5e5969a","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":125,"box":{"x":69,"y":120,"width":795,"height":12}},{"id":"423fb8af-e5b6-47e5-98a1-b0344d0dd339","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":125,"box":{"x":68,"y":135,"width":806,"height":12}},{"id":"68f7a859-87eb-45be-83b1-0687def1e8fb","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":125,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"43609693-fe43-4264-bac2-9ff84608cb0e","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":125,"box":{"x":68,"y":166,"width":820,"height":11}},{"id":"709cbd3a-3427-44e6-beb9-4c49fd5675cd","block_type":"box","text":"its investment objective.","page_number":125,"box":{"x":70,"y":181,"width":171,"height":11}},{"id":"65e7b72b-98a4-409e-94a2-ded2bffe1799","block_type":"box","text":"U.S. Government Obligations.","page_number":125,"box":{"x":102,"y":203,"width":213,"height":11}},{"id":"bcbc170b-4027-4885-ac43-62e67bbddfcc","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":125,"box":{"x":321,"y":203,"width":566,"height":12}},{"id":"c82be628-c157-4a50-9b97-d7774e9775ef","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":125,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"b5dc2954-8008-4fc8-9e8c-6fb7d39d0af7","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":125,"box":{"x":70,"y":234,"width":826,"height":11}},{"id":"6cee23d5-c8fc-4052-9b08-e281c0273c03","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":125,"box":{"x":68,"y":249,"width":779,"height":11}},{"id":"7575fced-8fb2-44ed-9fda-212fc4425438","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":125,"box":{"x":70,"y":264,"width":798,"height":11}},{"id":"d5748f3c-f73f-4893-a458-b01a839304f1","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":125,"box":{"x":69,"y":279,"width":822,"height":11}},{"id":"31b751f3-81f7-4815-be46-c1d531bdff54","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":125,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"a4ee831e-73e8-4ce9-985e-7d9fc07921d2","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":125,"box":{"x":69,"y":309,"width":805,"height":11}},{"id":"a8e0692a-f1b5-47fe-85a9-04909724e8bd","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":125,"box":{"x":69,"y":324,"width":807,"height":11}},{"id":"a1d70264-9939-42ba-94bc-2c439eb314d7","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":125,"box":{"x":70,"y":339,"width":832,"height":12}},{"id":"2201417c-86c0-4695-8e7e-bb7b20a8b1fb","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":125,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"fa537af5-dd50-4a83-a754-5249210d37be","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":125,"box":{"x":69,"y":370,"width":716,"height":11}},{"id":"89ba2ea8-9ecc-47c2-93c3-5badd4f6a821","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":125,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"49858f2c-b6ea-4aae-a269-236ee4395f0c","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":125,"box":{"x":68,"y":407,"width":785,"height":12}},{"id":"f077feb9-0999-4681-b780-fa2282883dbf","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":125,"box":{"x":68,"y":423,"width":813,"height":11}},{"id":"3ecf16ab-67c1-4419-9a00-678c92942b7f","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":125,"box":{"x":70,"y":438,"width":794,"height":11}},{"id":"110c071b-592c-454e-85da-50dcc9f00171","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":125,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"5d1288f6-f710-4bf6-b3c8-55d462c8662b","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":125,"box":{"x":69,"y":468,"width":818,"height":11}},{"id":"13ab58b8-796d-4095-ba74-ab926568af40","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":125,"box":{"x":70,"y":483,"width":777,"height":11}},{"id":"94f28607-b896-44d1-9832-488a0d8f62b2","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":125,"box":{"x":70,"y":498,"width":749,"height":11}},{"id":"43d198c0-d51d-4d27-b40b-0f954959cd8c","block_type":"box","text":"U.S. Treasury Obligations.","page_number":125,"box":{"x":103,"y":521,"width":183,"height":11}},{"id":"2a419c96-665b-488a-8fb5-bd65e2ba9f42","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":125,"box":{"x":292,"y":521,"width":593,"height":11}},{"id":"94270884-1ce1-4636-99b3-ad4f94b48a1c","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":125,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"a3926511-c672-4f06-bbc5-b5d5466eca0d","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":125,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"473f87cf-a221-4f34-bbaf-2262ae6eaf49","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":125,"box":{"x":68,"y":566,"width":823,"height":11}},{"id":"9670710f-8361-419d-8c26-f7e47dc33009","block_type":"box","text":"do so.","page_number":125,"box":{"x":69,"y":582,"width":42,"height":8}},{"id":"f0006112-b62f-4d72-893c-3ab8dabf852c","block_type":"box","text":"U.S. Treasury Rolls","page_number":125,"box":{"x":102,"y":604,"width":139,"height":11}},{"id":"4da27512-402d-41ee-bb7e-e75846845848","block_type":"box","text":".","page_number":125,"box":{"x":241,"y":611,"width":3,"height":2}},{"id":"0d18f96b-901e-4531-8412-b8c137f94484","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":125,"box":{"x":250,"y":604,"width":656,"height":11}},{"id":"d39258ee-517e-4190-9c45-3854caa48e5e","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":125,"box":{"x":69,"y":619,"width":804,"height":11}},{"id":"6d735d5a-b12f-4bce-9311-636586a81de2","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":125,"box":{"x":69,"y":634,"width":820,"height":12}},{"id":"1b412c81-490d-4b50-bf71-ca9e3ad529a0","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":125,"box":{"x":69,"y":649,"width":840,"height":12}},{"id":"9a049846-1065-4177-a133-8213deec0dc2","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":125,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"11885c95-f71f-49df-98e6-4caed873337e","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":125,"box":{"x":69,"y":680,"width":775,"height":11}},{"id":"f63ea33f-df3d-494e-87a0-ddc2bfcc92f2","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":125,"box":{"x":69,"y":695,"width":829,"height":11}},{"id":"a745d353-8317-4335-9f2e-2ccde44ac647","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":125,"box":{"x":68,"y":710,"width":657,"height":11}},{"id":"b8222847-6130-4e6a-b701-3fafcd6a6e9f","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":125,"box":{"x":101,"y":732,"width":756,"height":12}},{"id":"5323bd66-5e74-4ea0-abdf-c550f1ff5593","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":125,"box":{"x":70,"y":748,"width":800,"height":11}},{"id":"ed29b342-4940-4f9a-adf8-ef0fcbe6ad83","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":125,"box":{"x":70,"y":763,"width":617,"height":11}},{"id":"9e944229-65e1-4cb8-a014-342b59180512","block_type":"box","text":"Utility Industries.","page_number":125,"box":{"x":102,"y":786,"width":124,"height":11}},{"id":"25311192-d30e-406a-bf82-1d002065d189","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":125,"box":{"x":233,"y":785,"width":674,"height":12}},{"id":"e11674f2-17d4-43c6-ab0c-4efb33f6aa81","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":125,"box":{"x":69,"y":801,"width":812,"height":11}},{"id":"b377aef2-ec22-4099-b2c9-38d3ccbfffb1","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":125,"box":{"x":69,"y":816,"width":812,"height":11}},{"id":"afa075de-6dc1-4642-b470-99063fb16ca9","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":125,"box":{"x":69,"y":831,"width":821,"height":11}},{"id":"36930f89-6a2f-41a9-9990-8cdb13226f14","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":125,"box":{"x":68,"y":846,"width":815,"height":11}},{"id":"34d1e5b4-8704-4989-a5c7-760db5bd6282","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":125,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"68d20000-c55d-423a-bbb3-3a951c4df892","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":125,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"093ca46e-523a-4abd-a402-201298165835","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":125,"box":{"x":69,"y":891,"width":774,"height":12}},{"id":"68c83e81-b92a-44c7-90d1-4c1523efd899","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":125,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"16479ef5-00b1-4637-a1cf-760e52c2f51c","block_type":"box","text":"II-78","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7345f52b-429b-4710-a7f9-d64d9e1a03f3","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82cf8ff3-6ead-400f-8790-f3ea64713740","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":126,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"c1d8aa77-a716-4d3f-98ac-b5b4a2b48205","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":126,"box":{"x":68,"y":60,"width":827,"height":11}},{"id":"5bd55774-4418-4700-ba99-8159a447014a","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":126,"box":{"x":69,"y":75,"width":761,"height":11}},{"id":"05997d25-5ef2-4bb0-8b2e-04a4311adf9f","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":126,"box":{"x":69,"y":90,"width":821,"height":11}},{"id":"748b9017-e256-4b64-9d8b-966466867502","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":126,"box":{"x":69,"y":105,"width":777,"height":11}},{"id":"63dcf873-93b6-43e2-b9e9-4ec5d569aa32","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":126,"box":{"x":70,"y":120,"width":820,"height":12}},{"id":"02c7eba0-e1b7-4869-a86e-c73927affa7b","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":126,"box":{"x":69,"y":135,"width":835,"height":12}},{"id":"626aef08-3337-41cb-899d-dd496ef14290","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":126,"box":{"x":68,"y":151,"width":778,"height":11}},{"id":"153a3966-bdcc-476f-bd5e-d662d2a92a2e","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":126,"box":{"x":69,"y":166,"width":808,"height":11}},{"id":"3228aea7-6885-4f58-90b3-9b14c7227340","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":126,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"35833451-4f0f-4c9b-8549-0592f587e1a9","block_type":"box","text":"utility.","page_number":126,"box":{"x":69,"y":196,"width":39,"height":11}},{"id":"93bde60c-578a-452b-8b87-1d9e4ce4979d","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":126,"box":{"x":102,"y":218,"width":744,"height":12}},{"id":"c985d011-9eec-4761-87b4-4a8d3b44bd18","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":126,"box":{"x":70,"y":234,"width":828,"height":11}},{"id":"5206a33d-a8d4-4ff7-bb5b-53d8068728bd","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":126,"box":{"x":69,"y":249,"width":817,"height":11}},{"id":"d81d2ae5-a36c-448a-8c43-2bec70738f25","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":126,"box":{"x":70,"y":264,"width":464,"height":11}},{"id":"fcfc0c0a-020c-4b60-9969-28dbbb2a0b07","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":126,"box":{"x":102,"y":286,"width":789,"height":12}},{"id":"b380ed1a-61bf-429a-af68-9d0e0556143b","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":126,"box":{"x":69,"y":302,"width":790,"height":11}},{"id":"e038d1aa-63e2-4d84-be13-21d3d1d6f74d","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":126,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"fc51f24e-6e11-4636-b356-d04778a1595c","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":126,"box":{"x":69,"y":332,"width":824,"height":11}},{"id":"e07bf29a-bb0c-4997-9e29-30b870ad31af","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":126,"box":{"x":68,"y":347,"width":781,"height":11}},{"id":"5bf73510-f11f-4dd6-9de4-5190543356bd","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":126,"box":{"x":69,"y":362,"width":826,"height":11}},{"id":"4e968bad-e160-408d-aac8-4fe891b7812e","block_type":"box","text":"continue in the future.","page_number":126,"box":{"x":69,"y":377,"width":156,"height":9}},{"id":"b208a7d8-4217-4983-891d-8ff9ae8b717d","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":126,"box":{"x":101,"y":400,"width":763,"height":11}},{"id":"d1b6322e-fb6b-4456-bb5d-be14495e86b0","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":126,"box":{"x":69,"y":415,"width":820,"height":11}},{"id":"848a4b7a-41be-4bc3-a361-7e81cf0dcbfc","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":126,"box":{"x":70,"y":430,"width":834,"height":11}},{"id":"91830494-eec4-45c7-87e0-2b37b006a9a6","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":126,"box":{"x":69,"y":446,"width":784,"height":11}},{"id":"b28646cc-f73a-41c0-b49b-3d60261e51ec","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":126,"box":{"x":70,"y":460,"width":830,"height":12}},{"id":"7c57830f-d3f8-4d71-8cfb-be348c3156cb","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":126,"box":{"x":68,"y":475,"width":809,"height":12}},{"id":"e97a4e45-9e89-44e8-a3ec-70e7eeaea6f1","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":126,"box":{"x":69,"y":491,"width":834,"height":11}},{"id":"c24a1ad0-e5c1-44e2-9f38-cba4c1ecfc21","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":126,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"3dc24e23-4a39-467f-9824-dc226ca73441","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":126,"box":{"x":68,"y":521,"width":840,"height":11}},{"id":"0d73e673-0f14-4633-a8d0-83b88461fb50","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":126,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"cd54cdc6-d0bd-463d-9847-87120d1d083e","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":126,"box":{"x":69,"y":551,"width":790,"height":11}},{"id":"c63f12af-733b-4a28-9b66-b2fffe85c9db","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":126,"box":{"x":68,"y":566,"width":831,"height":11}},{"id":"53a0091a-1687-4f22-9913-5ca50cdd6c33","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":126,"box":{"x":69,"y":581,"width":812,"height":11}},{"id":"c95df8cc-83a0-4aab-a9d3-8f7db67b178d","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":126,"box":{"x":68,"y":596,"width":833,"height":12}},{"id":"130ea0ad-f343-499d-8490-fb50f8592986","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":126,"box":{"x":68,"y":612,"width":831,"height":11}},{"id":"d12ee621-4c4e-43c2-8ae7-ef003ccb1e29","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":126,"box":{"x":102,"y":634,"width":720,"height":12}},{"id":"325c87ab-604b-460e-92e3-1fcd0ba85af5","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":126,"box":{"x":69,"y":649,"width":838,"height":12}},{"id":"f56bb2a6-2663-417b-bb09-a82f3bae26f3","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":126,"box":{"x":68,"y":665,"width":762,"height":11}},{"id":"2bb403f3-a545-4212-be42-982e3f52ca19","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":126,"box":{"x":68,"y":680,"width":815,"height":11}},{"id":"96f57eaf-194e-43e4-a346-9741b88802a1","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":126,"box":{"x":68,"y":695,"width":801,"height":11}},{"id":"ae56d851-9315-4ee1-b562-18f28332f3e9","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":126,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"ca79fb56-40ed-4309-a092-f4526df591fc","block_type":"box","text":"ways different from regulation in the United States.","page_number":126,"box":{"x":68,"y":725,"width":365,"height":11}},{"id":"fe73dca6-3840-498d-bc90-a0b613329fe0","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":126,"box":{"x":101,"y":748,"width":745,"height":11}},{"id":"d66be995-0a39-4f19-8b89-89be456f0b46","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":126,"box":{"x":68,"y":763,"width":790,"height":11}},{"id":"a1b02649-eb3b-4e75-8997-66f091fa2311","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":126,"box":{"x":69,"y":778,"width":833,"height":11}},{"id":"59853000-85d7-4b1e-b96b-98183d77362d","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":126,"box":{"x":69,"y":793,"width":810,"height":11}},{"id":"e2c3137e-de3c-4863-b2e1-979c8818fdfe","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":126,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"a3908381-0607-4466-ab24-d065b0b439ac","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":126,"box":{"x":69,"y":823,"width":828,"height":12}},{"id":"74939027-2430-4856-82a5-c1e4ce7d179e","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":126,"box":{"x":69,"y":838,"width":832,"height":12}},{"id":"df06da6f-061b-4a08-acc1-ec71082207a8","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":126,"box":{"x":69,"y":853,"width":786,"height":12}},{"id":"ef885685-a72f-4999-89a6-1d1ce414ffd0","block_type":"box","text":"increase.","page_number":126,"box":{"x":70,"y":869,"width":63,"height":9}},{"id":"f9f72803-1bf9-48f3-b507-a812bb0cea6f","block_type":"box","text":"II-79","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c26b2953-6880-451f-9660-598cbf56e1f4","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d1d821d2-e2f1-4ca7-a942-d9ccbbe823af","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":127,"box":{"x":101,"y":45,"width":793,"height":11}},{"id":"888d46be-98b9-429d-90a4-3af50de7dd1c","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":127,"box":{"x":70,"y":60,"width":821,"height":11}},{"id":"83495a2e-e6fa-46ee-b2eb-16757028e615","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":127,"box":{"x":69,"y":75,"width":619,"height":11}},{"id":"50e911d7-8d87-4032-90fd-6aad2979ce70","block_type":"box","text":"Electric.","page_number":127,"box":{"x":102,"y":98,"width":54,"height":9}},{"id":"50ce861d-ef66-4eba-8ebc-892c473864d2","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":127,"box":{"x":163,"y":98,"width":684,"height":11}},{"id":"766d537a-0244-45b7-a49d-b6dd126d1d4e","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":127,"box":{"x":68,"y":113,"width":793,"height":11}},{"id":"f5672c7d-2b9c-46cf-80f8-64bc60edf50d","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":127,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"80f9506c-97b5-4a4c-91e4-14fbbd497510","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":127,"box":{"x":69,"y":143,"width":833,"height":11}},{"id":"feaf97c0-aacf-406b-831c-9796d137ee35","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":127,"box":{"x":69,"y":158,"width":821,"height":11}},{"id":"eb528d7d-7bcc-4d20-8f45-dfa23c8802ac","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":127,"box":{"x":69,"y":173,"width":823,"height":11}},{"id":"ad5e3802-b406-44ec-9f54-3f23abb30ab4","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":127,"box":{"x":68,"y":188,"width":803,"height":12}},{"id":"610adff8-9be5-4344-bf1a-d8ba90196c80","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":127,"box":{"x":70,"y":203,"width":778,"height":12}},{"id":"82ba0d3d-c348-424e-9916-358d90f76ea2","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":127,"box":{"x":70,"y":218,"width":836,"height":12}},{"id":"3cbc7302-f955-4daa-927e-4ca19632428d","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":127,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"58cee26e-d557-4d50-b53e-888a77914bc6","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":127,"box":{"x":69,"y":249,"width":786,"height":11}},{"id":"9e643692-10b9-4a5c-851d-93cd4df93f2a","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":127,"box":{"x":69,"y":264,"width":819,"height":11}},{"id":"e98091b8-bf03-425d-a153-c3d1e287c481","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":127,"box":{"x":69,"y":279,"width":775,"height":11}},{"id":"dd772dfd-d6b2-42f7-b0e2-4919c666b97b","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":127,"box":{"x":69,"y":294,"width":770,"height":11}},{"id":"294e5cce-e048-4bf5-a067-09ca1d5e86ea","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":127,"box":{"x":70,"y":309,"width":826,"height":11}},{"id":"3d30302e-79a0-4708-a250-b1b0f2917745","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":127,"box":{"x":69,"y":324,"width":800,"height":12}},{"id":"f82d8f0e-bc03-4105-9eb0-7bf5efbc3842","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":127,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"5e15fd3f-6a52-4434-b158-8d35b4623f31","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":127,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"049e6831-a4c9-4c9d-a801-00b7704e8976","block_type":"box","text":"and for decommissioning such plants.","page_number":127,"box":{"x":69,"y":370,"width":270,"height":11}},{"id":"55d6d39c-56d5-41c9-b391-e7df399337ed","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":127,"box":{"x":101,"y":392,"width":776,"height":12}},{"id":"b0e56efc-bbcd-4301-89f0-5926d0983b12","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":127,"box":{"x":70,"y":407,"width":802,"height":12}},{"id":"1f657e4c-3e1f-4f64-b2dc-908b9b18f305","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":127,"box":{"x":69,"y":423,"width":791,"height":11}},{"id":"5ba43813-befd-431b-9075-0aece36e0a1e","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":127,"box":{"x":69,"y":438,"width":839,"height":11}},{"id":"f31fc0c3-beaf-4c51-b7aa-0af5bf50eedf","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":127,"box":{"x":70,"y":453,"width":838,"height":11}},{"id":"8326f928-78cb-4570-9d7d-67989165a2dc","block_type":"box","text":"greater predictability of cash flow.","page_number":127,"box":{"x":68,"y":468,"width":239,"height":11}},{"id":"06c6cfe1-07a6-4a0b-959a-c691a753536e","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":127,"box":{"x":101,"y":491,"width":801,"height":11}},{"id":"3a9feab2-bb80-4264-88cf-d15d79c006a2","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":127,"box":{"x":68,"y":506,"width":821,"height":11}},{"id":"e4621469-c848-41b1-a38a-dc5d8bdf6791","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":127,"box":{"x":69,"y":521,"width":835,"height":11}},{"id":"1e267009-b36d-4cc8-ae34-a68761416698","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":127,"box":{"x":68,"y":536,"width":815,"height":11}},{"id":"ebb84303-09fc-430e-ac30-8e5bdd692856","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":127,"box":{"x":68,"y":551,"width":803,"height":11}},{"id":"741b5563-c3b0-48ea-be42-8f7b6f975c57","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":127,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"565f3355-8591-45df-bb39-c6b9e2026596","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":127,"box":{"x":69,"y":581,"width":819,"height":12}},{"id":"e7a36914-c97f-476b-8baf-c1d787fe59c2","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":127,"box":{"x":68,"y":597,"width":835,"height":11}},{"id":"f75970f7-7b01-4beb-9bcf-da1cfba16140","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":127,"box":{"x":69,"y":612,"width":700,"height":11}},{"id":"769eebd2-9a66-4eae-8350-0d49e3669a52","block_type":"box","text":"Telecommunications.","page_number":127,"box":{"x":103,"y":634,"width":147,"height":9}},{"id":"3fd9e01a-2958-4ba0-96ef-cbb44da37499","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":127,"box":{"x":256,"y":634,"width":652,"height":11}},{"id":"4099c45e-e3f9-4232-9263-f3a19e4b1cc8","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":127,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"4027d7c7-15ee-4c47-802e-8182512d265f","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":127,"box":{"x":70,"y":664,"width":782,"height":12}},{"id":"5356f873-b313-4994-b999-c800345d2208","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":127,"box":{"x":69,"y":680,"width":786,"height":11}},{"id":"a448e740-0304-459d-bda5-d720a045fd82","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":127,"box":{"x":69,"y":695,"width":784,"height":11}},{"id":"7dd24b8e-cec6-4f01-820e-80aa40980ed8","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":127,"box":{"x":69,"y":710,"width":830,"height":11}},{"id":"007d0cb9-4ed7-4a48-9a17-84ed57377703","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":127,"box":{"x":69,"y":725,"width":790,"height":11}},{"id":"242ee83b-0bce-47da-ad09-216ff75218e1","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":127,"box":{"x":70,"y":740,"width":788,"height":11}},{"id":"941ad12e-9d24-45b8-a12d-6740c491574e","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":127,"box":{"x":68,"y":755,"width":825,"height":11}},{"id":"6c16e00c-bde3-4827-a283-124989e1d58f","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":127,"box":{"x":69,"y":770,"width":823,"height":12}},{"id":"0f9705f7-5e7d-4370-82a3-b73cbde5f0f8","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":127,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"fe79b7d7-0585-487d-b569-eb99b41784f6","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":127,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"74497d71-7cb5-4fe7-876b-7ac071f0ae52","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":127,"box":{"x":70,"y":816,"width":821,"height":11}},{"id":"124677b9-0072-4289-8890-550409750365","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":127,"box":{"x":69,"y":831,"width":827,"height":11}},{"id":"9ba44c58-e1fa-42c6-8140-dfc850311451","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":127,"box":{"x":68,"y":846,"width":804,"height":11}},{"id":"0bea1fd6-b579-4653-874a-40879f1e81dd","block_type":"box","text":"residential, corporate and governmental customers.","page_number":127,"box":{"x":69,"y":861,"width":367,"height":11}},{"id":"b8555d80-219b-4610-8995-f022199b3e0b","block_type":"box","text":"Gas.","page_number":127,"box":{"x":102,"y":884,"width":31,"height":9}},{"id":"835ed256-4d1b-4751-a6b3-3b4cb8636178","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":127,"box":{"x":139,"y":884,"width":740,"height":11}},{"id":"fdd23319-7ad0-4ecb-8982-888ba6d0d973","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":127,"box":{"x":70,"y":899,"width":834,"height":11}},{"id":"4f107024-8b52-44f4-99b6-aab5bf78262f","block_type":"box","text":"II-80","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"273d4365-9684-4359-b012-562feccee57a","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a29c479-608a-4687-94db-ee0d1153789c","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":128,"box":{"x":70,"y":45,"width":756,"height":11}},{"id":"dd78e834-c39f-4800-a717-591b1dde8115","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":128,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"7f2b5f0e-5909-4d3f-9eac-14a267a5f4ce","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":128,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"0de50d47-5372-4245-a7a3-67aa8bb99658","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":128,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"760ddfd3-15c5-4236-aac2-5c0ebc68c18e","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":128,"box":{"x":69,"y":105,"width":782,"height":11}},{"id":"7b300251-70b9-4e23-a764-f97f2805af6a","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":128,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"bf30b5f1-623b-440d-bcbe-7267cdd263a1","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":128,"box":{"x":70,"y":136,"width":691,"height":11}},{"id":"8cc9fbc3-be5b-4d51-bef0-4a86a502bcad","block_type":"box","text":"Water.","page_number":128,"box":{"x":103,"y":158,"width":42,"height":9}},{"id":"bd08f425-e949-4e56-9183-a74dd3631ab5","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":128,"box":{"x":151,"y":158,"width":754,"height":11}},{"id":"d94d1156-0ec1-4eec-8657-7e464cdecd91","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":128,"box":{"x":69,"y":173,"width":796,"height":11}},{"id":"c2c2c4f2-d579-4abb-b361-5baa63c55d7b","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":128,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"860931c5-fb87-4862-9350-2880aaaefb43","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":128,"box":{"x":69,"y":203,"width":814,"height":12}},{"id":"9f22603f-83ce-4469-a28e-99eefdd8bf10","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":128,"box":{"x":69,"y":218,"width":808,"height":12}},{"id":"68e0b516-370e-4926-9133-7f7f2310f956","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":128,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"eb59db38-013f-4d98-b925-85337f0e6a1f","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":128,"box":{"x":69,"y":249,"width":662,"height":11}},{"id":"d727c790-5126-440f-a43f-85d6ba14aa7f","block_type":"box","text":"Utility Industries Generally.","page_number":128,"box":{"x":103,"y":272,"width":186,"height":11}},{"id":"dd77aa2a-00a3-4d68-9729-cf738f02db15","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":128,"box":{"x":296,"y":272,"width":584,"height":11}},{"id":"3e79c7d3-b613-4161-8551-c99d6a89cc5f","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":128,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"24cb906b-034e-4930-9c4e-cbe40fd187e5","block_type":"box","text":"not develop in the future.","page_number":128,"box":{"x":69,"y":302,"width":178,"height":11}},{"id":"df524e9b-3306-4f68-8927-1c776cd50040","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":128,"box":{"x":103,"y":324,"width":585,"height":11}},{"id":"7f6b7688-5add-4008-9ffb-082a4c9ea2bd","block_type":"box","text":"A Fund may purchase or sell","page_number":128,"box":{"x":694,"y":325,"width":200,"height":10}},{"id":"c751c803-6558-43d9-ac32-c274103b88e8","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":128,"box":{"x":69,"y":340,"width":795,"height":11}},{"id":"a2bc8603-f02f-47af-89f2-8ddab6cb87d3","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":128,"box":{"x":69,"y":355,"width":777,"height":11}},{"id":"f4dec562-2a76-45b2-94af-d21a8ecfd366","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":128,"box":{"x":68,"y":370,"width":820,"height":11}},{"id":"396f73c0-b533-4973-b665-47c4d096c1bf","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":128,"box":{"x":68,"y":385,"width":807,"height":11}},{"id":"db3f5c3c-77fe-4a91-ac67-ae3506057589","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":128,"box":{"x":70,"y":400,"width":430,"height":11}},{"id":"a0916109-f546-4e2f-acc4-94c3ef1bf208","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":128,"box":{"x":102,"y":423,"width":750,"height":11}},{"id":"72242fab-5a0d-4805-88c5-15a9f012baaf","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":128,"box":{"x":70,"y":438,"width":823,"height":11}},{"id":"d98cf6a8-2199-470e-aae1-70063b2937e4","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":128,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"47377d76-f3e4-422f-a57d-d5a0e6090ba9","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":128,"box":{"x":70,"y":468,"width":755,"height":11}},{"id":"92409cf6-aecb-4210-a49b-6d74cbf1e5a6","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":128,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"e1fdcaf3-8ffa-4574-9b0b-2524854dffde","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":128,"box":{"x":69,"y":498,"width":614,"height":11}},{"id":"a4847ea4-8a20-40c7-b9cc-789d6dfbd6f2","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":128,"box":{"x":101,"y":521,"width":780,"height":11}},{"id":"45c43015-6473-47fe-ba16-22e195e1bf8d","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":128,"box":{"x":70,"y":536,"width":823,"height":11}},{"id":"4182e6af-a1fc-417e-89d4-113e1088b2e8","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":128,"box":{"x":69,"y":551,"width":838,"height":11}},{"id":"f2e9e982-0c37-4e18-83b6-ae7ba9580302","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":128,"box":{"x":68,"y":566,"width":839,"height":11}},{"id":"025cf16c-64fc-431e-98ad-8e67b6e8cef1","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":128,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"e65dcda7-fb14-458b-b260-2a6353d3e533","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":128,"box":{"x":102,"y":604,"width":776,"height":11}},{"id":"ebc61397-5fbc-42b2-86cc-78ec188f6ebc","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":128,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"49f1ffa1-6549-487e-80e3-7f9d62679612","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":128,"box":{"x":69,"y":634,"width":799,"height":12}},{"id":"2fdf1c17-8f66-4825-994c-4f8df6b274cc","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":128,"box":{"x":101,"y":657,"width":784,"height":11}},{"id":"042b3c9e-1e0a-441b-82aa-6b3fe6cfe27a","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":128,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"d688872c-cbbd-4830-9b25-aa079fa84879","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":128,"box":{"x":69,"y":687,"width":434,"height":11}},{"id":"af3844a6-a1aa-4ba0-aefe-38311c9c0257","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":128,"box":{"x":101,"y":710,"width":745,"height":11}},{"id":"abf47ef0-3876-4388-a036-851a02ddeb0e","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":128,"box":{"x":68,"y":725,"width":831,"height":11}},{"id":"7e190c0d-e354-4ea3-8fc2-46a6cff43bbe","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":128,"box":{"x":69,"y":740,"width":823,"height":11}},{"id":"2891010b-fc5e-42ae-9048-e150aea85ba1","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":128,"box":{"x":68,"y":755,"width":514,"height":11}},{"id":"b52b3b2c-76ce-45ea-a75b-de87e1344c06","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":128,"box":{"x":102,"y":778,"width":759,"height":11}},{"id":"5b3229df-5b44-40a9-a770-b0cd55f9c897","block_type":"box","text":"securities (e.g., firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":128,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"30b83595-57f5-47ba-af1d-045f09a2de81","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":128,"box":{"x":69,"y":808,"width":813,"height":11}},{"id":"1cc8634b-98d0-4131-bbf3-bebc2d197f10","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":128,"box":{"x":70,"y":823,"width":822,"height":11}},{"id":"9ae64f74-9c84-4498-9004-67d08a1a3763","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":128,"box":{"x":69,"y":838,"width":802,"height":11}},{"id":"33184d31-dcc8-400a-8724-8ee7f3865ea9","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":128,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"8f0bf24c-9601-4539-9f87-cbabe36b8616","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":128,"box":{"x":70,"y":869,"width":816,"height":11}},{"id":"8c6b96e8-5a89-4b22-afe9-a5dd8bcbc9f5","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":128,"box":{"x":70,"y":884,"width":349,"height":11}},{"id":"27af4cdb-4fee-4398-b9cf-0cb6b0f94b38","block_type":"box","text":"II-81","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3af9e08c-0deb-47f5-9423-e19d0199e0e0","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71b8a402-1abe-40c7-9b6c-c4332de03319","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":129,"box":{"x":102,"y":45,"width":800,"height":11}},{"id":"6bbf028e-5aca-48f9-9ec2-b7500c5eda84","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":129,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"734701e9-b44f-41f8-b279-0faa4fe6a86d","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":129,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"20a95979-9e00-431f-8833-9b1eeba391fa","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":129,"box":{"x":68,"y":90,"width":799,"height":11}},{"id":"27db6166-9972-4b6f-9484-65515015ef4b","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":129,"box":{"x":69,"y":105,"width":836,"height":11}},{"id":"38022121-9ddc-43ee-a456-15986ae5f3eb","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":129,"box":{"x":70,"y":120,"width":824,"height":12}},{"id":"fb7e35b4-1037-489c-a318-07771394fba1","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":129,"box":{"x":69,"y":135,"width":829,"height":12}},{"id":"97ad3fdf-25c0-4073-b0e8-bca3fb14c88b","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":129,"box":{"x":68,"y":151,"width":573,"height":11}},{"id":"36b08d1e-0e2e-463a-9804-0c06ddd1af9f","block_type":"box","text":"Yields and Ratings.","page_number":129,"box":{"x":103,"y":173,"width":139,"height":11}},{"id":"7c4d27b9-1c3d-45a8-96eb-0bc64b3127e1","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":129,"box":{"x":247,"y":173,"width":628,"height":11}},{"id":"09ea5843-8d49-49bd-af1e-3648c4ee79f1","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":129,"box":{"x":69,"y":188,"width":834,"height":12}},{"id":"346c7cce-afaf-4448-99a4-a3a79fc06328","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":129,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"f45219ab-05cc-441d-bd32-0d75a73e334d","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":129,"box":{"x":69,"y":218,"width":824,"height":12}},{"id":"dcf5f54a-0be8-49de-af2c-158143559a6b","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":129,"box":{"x":68,"y":234,"width":792,"height":11}},{"id":"b31c6a98-1c71-4573-ae57-5a069c46cdcd","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":129,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"ddfc33c5-0f97-44b1-8dba-3c48358f422f","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":129,"box":{"x":69,"y":264,"width":786,"height":11}},{"id":"ac10656b-7cd6-47d7-8b88-bdef43cebd32","block_type":"box","text":"continue to hold the security.","page_number":129,"box":{"x":69,"y":279,"width":204,"height":11}},{"id":"4d1325af-df1e-48f6-b0f2-d763e98a3667","block_type":"box","text":"Zero Coupon Securities.","page_number":129,"box":{"x":102,"y":302,"width":175,"height":11}},{"id":"3c0e0c95-acca-4125-b258-0e51df8a9612","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":129,"box":{"x":283,"y":302,"width":601,"height":11}},{"id":"908027b6-3892-45c9-b315-2bd5e2be96bd","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":129,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"7a270320-6b51-4223-9d05-4766f7a873c6","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":129,"box":{"x":69,"y":332,"width":822,"height":11}},{"id":"0652b8f5-c662-418f-9272-d35e28e415b5","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":129,"box":{"x":68,"y":347,"width":814,"height":11}},{"id":"92ddc25a-7018-4ae0-b14f-6feda48939fa","block_type":"box","text":"security.","page_number":129,"box":{"x":69,"y":362,"width":57,"height":11}},{"id":"99e5fa51-f13b-4b30-a875-b895e27dc907","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":129,"box":{"x":101,"y":385,"width":749,"height":11}},{"id":"a5abadeb-a08e-4d52-ab56-aee56596500d","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":129,"box":{"x":69,"y":400,"width":835,"height":11}},{"id":"ef0de6ba-79bc-4517-9678-2356736ed89c","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":129,"box":{"x":69,"y":415,"width":833,"height":11}},{"id":"376d715d-3271-4135-9c4c-bb4ddf52ea89","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":129,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"63772399-5a98-4d37-952a-298287fa5512","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":129,"box":{"x":69,"y":445,"width":804,"height":12}},{"id":"1a931237-8422-4fea-84ae-fde8fa329977","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":129,"box":{"x":68,"y":461,"width":824,"height":11}},{"id":"7dc66c96-f35d-4b07-ae40-c037855202b1","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":129,"box":{"x":68,"y":475,"width":805,"height":12}},{"id":"60ec5a9f-824e-4a8e-9fc1-4547ab86c895","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":129,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"778ff4d2-7cf5-404b-864c-2b0ec94fc0cb","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":129,"box":{"x":69,"y":506,"width":791,"height":11}},{"id":"f396599c-c0d4-44e7-9792-85fd0382632c","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":129,"box":{"x":69,"y":521,"width":800,"height":11}},{"id":"b70013b0-62f1-464f-a509-79e1f3c16270","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":129,"box":{"x":69,"y":536,"width":400,"height":11}},{"id":"94a7f2ef-f9e2-4f52-b3ba-d7d7605efdd0","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":129,"box":{"x":101,"y":559,"width":775,"height":11}},{"id":"c431bc44-f941-4c3f-b0a6-d08e59f991f5","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":129,"box":{"x":70,"y":574,"width":827,"height":11}},{"id":"0a3871fa-9d61-4f68-8047-99f627da0a7e","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":129,"box":{"x":70,"y":589,"width":826,"height":11}},{"id":"ec6089fa-bb45-4713-b133-b814080bc3f6","block_type":"box","text":"intervals.","page_number":129,"box":{"x":70,"y":604,"width":64,"height":9}},{"id":"cec64e5d-4396-49d4-ac1f-1eb65bf4c8a5","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":129,"box":{"x":102,"y":627,"width":749,"height":11}},{"id":"a1151f30-fe20-4087-9012-c4fe652cba5a","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":129,"box":{"x":69,"y":642,"width":784,"height":11}},{"id":"abaff412-fb1d-400b-9b16-bdcbf4797a1d","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":129,"box":{"x":70,"y":657,"width":799,"height":11}},{"id":"463e25bb-cc20-4519-bf26-296e5afba035","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":129,"box":{"x":68,"y":672,"width":799,"height":11}},{"id":"7b71c9d1-8fde-48d5-8045-bf0dce7581a8","block_type":"box","text":"exposure to zero coupon securities.","page_number":129,"box":{"x":69,"y":687,"width":253,"height":11}},{"id":"40512b2f-58d1-4ba2-aca7-f2ea1295d3e3","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":129,"box":{"x":102,"y":710,"width":740,"height":11}},{"id":"6378a065-3fca-4234-b203-66441f2c1cea","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":129,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"e2cca0ef-17d2-4d69-8419-0a16d10146c2","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":129,"box":{"x":70,"y":740,"width":829,"height":11}},{"id":"41b7d61e-80e4-4ae6-8b68-f49d633e2e41","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":129,"box":{"x":69,"y":755,"width":741,"height":11}},{"id":"cd09d125-61e3-4029-a1e2-1e45761c622d","block_type":"box","text":"Suitability. (All Funds)","page_number":129,"box":{"x":101,"y":778,"width":161,"height":11}},{"id":"fcc575e1-2e8d-4672-9f3e-ef34752f76e0","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":129,"box":{"x":101,"y":801,"width":793,"height":11}},{"id":"2f95742d-589d-4eb5-8e34-8421116dce7a","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":129,"box":{"x":68,"y":816,"width":811,"height":11}},{"id":"68f65ae9-91ea-4c66-a028-743d91223773","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":129,"box":{"x":70,"y":831,"width":810,"height":11}},{"id":"e1a19cce-21c2-4cf6-b1cd-2c10e128a752","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":129,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"a0f41ff4-1076-4b67-a3b2-43935cf441f8","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":129,"box":{"x":68,"y":861,"width":460,"height":11}},{"id":"5c15472f-5530-4a5e-86ae-4c1f20a397d8","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":129,"box":{"x":102,"y":884,"width":264,"height":11}},{"id":"e16b1d4f-1794-40ba-a9ae-5428b342525d","block_type":"box","text":"II-82","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7394852d-9a20-41ce-a6f9-0a03bb6d52da","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d628de08-cf68-4a0e-9c6a-1f15c341c6b1","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":130,"box":{"x":102,"y":45,"width":745,"height":11}},{"id":"48cb2b8c-8743-4812-a6a0-513b23094fef","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":130,"box":{"x":68,"y":60,"width":807,"height":11}},{"id":"6374b3f6-6842-462f-a786-c88e995357d9","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":130,"box":{"x":69,"y":75,"width":528,"height":11}},{"id":"d768f6e6-4ac6-4461-8802-a0001623e1db","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":130,"box":{"x":102,"y":98,"width":735,"height":11}},{"id":"165b63e4-6ea3-49a7-b6b3-afc5e73d46d9","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":130,"box":{"x":69,"y":113,"width":775,"height":11}},{"id":"f6f63cd2-73f7-4dfe-a4d7-71583af278ef","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":130,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"f1b851e2-d96a-47b7-a65f-156f15331cec","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":130,"box":{"x":69,"y":143,"width":799,"height":11}},{"id":"0fc68a7c-69e2-482d-9a9e-4512fe34a909","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":130,"box":{"x":69,"y":158,"width":837,"height":11}},{"id":"30269c61-0396-477b-bbba-6e822b28bb37","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":130,"box":{"x":70,"y":173,"width":825,"height":11}},{"id":"0e981843-b72b-47c5-9fd0-d10a26ea680b","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":130,"box":{"x":68,"y":188,"width":802,"height":12}},{"id":"50c657ee-4bd1-45fc-a33d-0e984da833c0","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":130,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"abde1823-2f37-4f26-92b7-b4497b04e458","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":130,"box":{"x":68,"y":219,"width":819,"height":11}},{"id":"541cb2bc-2ab9-4f3a-95cd-499904210962","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":130,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"9b750f30-6ab6-4025-9544-8601e2717f23","block_type":"box","text":"(i.e., par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":130,"box":{"x":69,"y":249,"width":834,"height":11}},{"id":"8572aa5b-e700-43d2-8305-126c55d841d7","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":130,"box":{"x":70,"y":264,"width":824,"height":11}},{"id":"b1b889c7-f37e-4274-ac17-71afed0d8074","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":130,"box":{"x":69,"y":279,"width":824,"height":11}},{"id":"e2198ca1-b916-4c16-8ad8-ca94a8c05cd8","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":130,"box":{"x":69,"y":294,"width":838,"height":11}},{"id":"15a0f245-e24a-4536-9ff3-44d3ab8174e9","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":130,"box":{"x":69,"y":309,"width":815,"height":11}},{"id":"991e7be5-86ca-40db-b760-1138dffc803e","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":130,"box":{"x":69,"y":324,"width":781,"height":12}},{"id":"899a8ef3-a438-45d2-8192-6792346cdc08","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":130,"box":{"x":68,"y":339,"width":810,"height":12}},{"id":"a490401e-43ff-4be0-8234-334f33d7c928","block_type":"box","text":"regarded as the sole issuer.","page_number":130,"box":{"x":69,"y":355,"width":198,"height":11}},{"id":"abb01833-a48c-4a95-be16-ddebae5486c5","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":130,"box":{"x":102,"y":377,"width":784,"height":12}},{"id":"7f34c8f3-6263-46a8-964b-b713754234a4","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":130,"box":{"x":69,"y":392,"width":819,"height":12}},{"id":"c61cdc98-a672-426f-ae6c-30af7bef6998","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":130,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"5de5a1b8-4bf8-4253-b165-cd22c46129e4","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":130,"box":{"x":70,"y":423,"width":747,"height":11}},{"id":"baae0e76-1a6c-4ffd-a695-df1f579a1707","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":130,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"b58a0a99-cd22-4667-9d3a-bfd3c1838ee8","block_type":"box","text":"75% of its total assets.","page_number":130,"box":{"x":69,"y":453,"width":165,"height":9}},{"id":"b87ec0d3-e5f1-45c1-862c-1195cfbd41cb","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":130,"box":{"x":268,"y":482,"width":442,"height":10}},{"id":"e2c2cf20-3a51-4e80-8f95-90583b9bfeca","block_type":"box","text":"Directors and Officers","page_number":130,"box":{"x":69,"y":513,"width":159,"height":9}},{"id":"8d13b2fb-fdc4-4768-9ca5-0247d903b766","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":130,"box":{"x":102,"y":535,"width":733,"height":12}},{"id":"9c9d55c1-5d41-41b8-93b1-841b33bad8ff","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":130,"box":{"x":69,"y":550,"width":783,"height":12}},{"id":"b4fbec77-b2a1-4925-891e-ab5d538e5cdb","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":130,"box":{"x":69,"y":566,"width":795,"height":11}},{"id":"01a57401-3a7b-46c9-b21b-6f9f7cef445d","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":130,"box":{"x":69,"y":581,"width":789,"height":11}},{"id":"1a5ecee1-5ff8-4dbf-b260-395337972779","block_type":"box","text":"Management Arrangements","page_number":130,"box":{"x":69,"y":611,"width":202,"height":11}},{"id":"b2ee2068-001d-4766-8523-0fa97703a095","block_type":"box","text":"Management Services.","page_number":130,"box":{"x":102,"y":634,"width":162,"height":11}},{"id":"30321545-369e-4c16-a2dd-c0d2bda86f27","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":130,"box":{"x":270,"y":634,"width":615,"height":11}},{"id":"bcf2c6c7-041a-40cb-8107-49452b2de73c","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":130,"box":{"x":69,"y":649,"width":836,"height":11}},{"id":"b60dcf06-b1e8-4c17-8257-b6325c6dbc14","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":130,"box":{"x":70,"y":664,"width":820,"height":11}},{"id":"e2bda768-6461-4058-9785-be2e92e6508e","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":130,"box":{"x":68,"y":679,"width":832,"height":11}},{"id":"4a5bb8b2-c2e5-43ae-9c03-74e4fc5f1c17","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":130,"box":{"x":70,"y":694,"width":801,"height":11}},{"id":"9595bb82-d4bd-4c20-9749-83e20c459c5b","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":130,"box":{"x":69,"y":709,"width":370,"height":11}},{"id":"a783e5ce-72fe-4579-88f5-8e87a33f9b7a","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":130,"box":{"x":102,"y":732,"width":778,"height":11}},{"id":"2f90a64f-3af7-4b32-9327-91d4a77aec09","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":130,"box":{"x":70,"y":747,"width":800,"height":11}},{"id":"2be6619c-b8d4-4c2e-b4be-95d0384d3bfc","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":130,"box":{"x":69,"y":762,"width":810,"height":11}},{"id":"855bf59a-14c4-4119-b94c-b10011b73d8e","block_type":"box","text":"Management Fee.","page_number":130,"box":{"x":102,"y":785,"width":126,"height":11}},{"id":"5026b86a-76cd-4a51-9edf-e07d47adc129","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":130,"box":{"x":235,"y":785,"width":646,"height":11}},{"id":"0e81481b-035c-4471-9ee4-d18e80ebfaa6","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":130,"box":{"x":68,"y":800,"width":841,"height":11}},{"id":"ad2272cb-a690-4212-9847-efdb0f677e5b","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":130,"box":{"x":69,"y":815,"width":833,"height":11}},{"id":"81154d54-154a-448d-86b0-4c6a286022b1","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements—Management","page_number":130,"box":{"x":68,"y":830,"width":834,"height":11}},{"id":"0173c900-177c-4677-8443-4068674d113d","block_type":"box","text":"Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":130,"box":{"x":68,"y":845,"width":729,"height":12}},{"id":"ad4fb106-5a82-473c-a1c0-f56bf9cbf34b","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":130,"box":{"x":102,"y":868,"width":774,"height":11}},{"id":"2f430c7e-4525-45fa-8be8-a5b5ac062f22","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":130,"box":{"x":69,"y":883,"width":826,"height":11}},{"id":"8214c948-a5da-4cec-8c92-3e840722b778","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":130,"box":{"x":70,"y":898,"width":820,"height":11}},{"id":"13a53279-805f-4335-89f7-ae6fc4b960c2","block_type":"box","text":"II-83","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"81c40124-6d09-478d-bcb2-1ced294e862d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82859b1c-11e0-446a-90a3-96de40112b3b","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":131,"box":{"x":68,"y":45,"width":797,"height":11}},{"id":"0aa55fb2-d483-457a-913a-4f53b3d4ef2a","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":131,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"c3c619ff-0511-4a73-a306-60a372a64e82","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":131,"box":{"x":69,"y":75,"width":802,"height":11}},{"id":"9da1f0b8-623a-4b65-b12f-5653aec1161c","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":131,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"c88b08d4-f42e-4e98-9a68-2132640fba5f","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":131,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"70089570-93d8-4d12-b667-aedec4a0b9ce","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":131,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"e821863b-787b-428d-9031-6f8e9d64a9a0","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":131,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"fae81a34-7765-4bc3-a7b2-8c5d70e73942","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":131,"box":{"x":69,"y":150,"width":767,"height":12}},{"id":"51ec5aab-4280-49a8-8ec2-c6287c73d5f5","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":131,"box":{"x":69,"y":166,"width":825,"height":11}},{"id":"17739488-ddfb-4c16-9e6d-0a01d5e7077d","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":131,"box":{"x":69,"y":181,"width":830,"height":11}},{"id":"e780b8e3-9aa8-4b26-9caf-9fc499b62d8e","block_type":"box","text":"or JPMorgan Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as","page_number":131,"box":{"x":69,"y":196,"width":794,"height":11}},{"id":"f3bc11d4-1d86-4fbe-b226-f6eb68c8f636","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. In addition, the Manager provides cer tain","page_number":131,"box":{"x":69,"y":211,"width":786,"height":11}},{"id":"1a4c9409-4765-44d3-9832-c980e825d4cc","block_type":"box","text":"accounting services to each Fund and the Fund pays the Manager a fee for such services. The Distributor pays","page_number":131,"box":{"x":69,"y":226,"width":790,"height":11}},{"id":"9ec87bcf-2177-4f34-bf48-cb8d87ae9519","block_type":"box","text":"cer tain promotional expenses of the Funds incurred in connection with the offering of shares of the Funds. Cer tain","page_number":131,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"beabd1e4-6b13-4cf1-9372-34891600ef3c","block_type":"box","text":"expenses are financed by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the","page_number":131,"box":{"x":69,"y":256,"width":767,"height":11}},{"id":"47ce03e5-743b-40af-aac7-9fc46e428152","block_type":"box","text":"Investment Company Act. See “Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":131,"box":{"x":70,"y":271,"width":743,"height":12}},{"id":"aa605ec8-168c-4179-ac1d-286b426e153a","block_type":"box","text":"Sub-Advisory Fee.","page_number":131,"box":{"x":102,"y":294,"width":124,"height":11}},{"id":"dc355b9b-c88d-4d3d-92db-9759fafdccb3","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":131,"box":{"x":232,"y":294,"width":643,"height":11}},{"id":"66bfb9a1-aa89-4dc7-8105-749dbc6f2e18","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":131,"box":{"x":70,"y":309,"width":839,"height":11}},{"id":"ee092124-e157-4910-a0bf-62945ad1c523","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":131,"box":{"x":68,"y":324,"width":830,"height":12}},{"id":"023723e1-774a-4fbf-b0a5-ddb83807ed9c","block_type":"box","text":"Organization of the Manager.","page_number":131,"box":{"x":102,"y":347,"width":204,"height":11}},{"id":"43c0c4b2-b776-40fb-81e7-5c70122c80b2","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":131,"box":{"x":313,"y":347,"width":560,"height":11}},{"id":"7a742a7f-67a0-4a36-bc3d-ae3d02d5f385","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":131,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"4b68eacf-21c2-45dd-bc65-8009324997fd","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":131,"box":{"x":70,"y":377,"width":817,"height":12}},{"id":"54306119-05fc-420a-b0e5-84b449de7e35","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":131,"box":{"x":69,"y":393,"width":768,"height":11}},{"id":"997ce847-419c-4639-b646-ec74989dcadf","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":131,"box":{"x":69,"y":408,"width":821,"height":11}},{"id":"3b588a3b-9608-429e-ba10-5c7858a5ddb3","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":131,"box":{"x":69,"y":423,"width":517,"height":11}},{"id":"ec23a9c7-827d-4661-96d9-1debfeb81e43","block_type":"box","text":"Duration and Termination.","page_number":131,"box":{"x":102,"y":446,"width":182,"height":8}},{"id":"fcff3207-0019-4da7-9aaa-1edf17f5cb11","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":131,"box":{"x":292,"y":446,"width":613,"height":11}},{"id":"e74ac216-bd12-4e2c-bc2f-464a642b4da4","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":131,"box":{"x":69,"y":460,"width":835,"height":12}},{"id":"b789fa3f-2e12-4a61-b3b4-880feae3ab15","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":131,"box":{"x":69,"y":475,"width":803,"height":12}},{"id":"4ee60ed2-dca9-4296-a754-6dd1c674a7bc","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":131,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"b5ba5437-0369-4201-b4d2-6e4db3cb6844","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":131,"box":{"x":70,"y":506,"width":778,"height":11}},{"id":"5e8e8a67-5bc2-4e83-a771-c0ae9430626b","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":131,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"e6dec27e-59af-4d0b-ad03-af82d1a8884a","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":131,"box":{"x":69,"y":536,"width":388,"height":11}},{"id":"596f5cef-7a7c-49aa-b273-09cf077d0ab1","block_type":"box","text":"Other Service Arrangements","page_number":131,"box":{"x":69,"y":566,"width":205,"height":11}},{"id":"3217fe6a-3272-41bb-abbe-cd011753056d","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":131,"box":{"x":101,"y":589,"width":338,"height":9}},{"id":"1a56549f-3e54-4a5d-b0a6-a74d5f1fe14d","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":131,"box":{"x":446,"y":589,"width":439,"height":11}},{"id":"b1f7d1c5-43a6-4a8a-ae4b-c55ea4817961","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":131,"box":{"x":69,"y":604,"width":818,"height":11}},{"id":"bf2e7d19-8f24-42b5-8d27-988958688d2e","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":131,"box":{"x":69,"y":619,"width":808,"height":11}},{"id":"cb90a7ff-ba37-41be-8ee5-81e5a40f00dd","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":131,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"07f54002-7858-4430-b1de-255ce3c432d5","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":131,"box":{"x":68,"y":649,"width":738,"height":12}},{"id":"d3d06bc3-02c9-479f-ba34-72be7d81edf7","block_type":"box","text":"Arrangements—Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":131,"box":{"x":68,"y":664,"width":829,"height":12}},{"id":"4bd96b9f-f17e-4b43-b3fa-9eefa9902e71","block_type":"box","text":"that Fund’s SAI.","page_number":131,"box":{"x":68,"y":680,"width":113,"height":9}},{"id":"02a68d53-86bc-419a-b019-f45d9202f339","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":131,"box":{"x":102,"y":703,"width":755,"height":11}},{"id":"b0fad8a9-c995-48fd-bbcf-1581a83b63a5","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":131,"box":{"x":69,"y":717,"width":800,"height":12}},{"id":"07052b70-cc9e-4359-885f-1ba23801f8b6","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":131,"box":{"x":70,"y":732,"width":809,"height":12}},{"id":"6a51ebff-3f0f-4ff7-b56e-2a5e5a7578f4","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":131,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"dbc4fe4f-3a66-4501-b105-1c6689b8dfd7","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":131,"box":{"x":70,"y":763,"width":362,"height":11}},{"id":"ea7e28f0-655a-4c73-9cd4-b8a61c0c8433","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":131,"box":{"x":102,"y":785,"width":390,"height":12}},{"id":"b38a2976-708f-4124-9f85-24e18352ce14","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":131,"box":{"x":499,"y":786,"width":364,"height":10}},{"id":"ce4cbba7-ee1e-48b5-ad92-b1c0c0307440","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":131,"box":{"x":68,"y":801,"width":832,"height":11}},{"id":"0af9b343-d544-403e-a6c2-d9518d9ab028","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":131,"box":{"x":69,"y":816,"width":802,"height":11}},{"id":"bbb6ec1b-4f43-46a9-bdba-409ee36e390b","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":131,"box":{"x":69,"y":831,"width":800,"height":11}},{"id":"d16c6cb5-a983-4369-b5b6-b24fbfa8436e","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":131,"box":{"x":70,"y":846,"width":810,"height":11}},{"id":"62f38d20-0ba6-4fc5-b6db-5012240acd95","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":131,"box":{"x":69,"y":861,"width":805,"height":11}},{"id":"960d6887-854e-4f3a-853f-0b5819163d9a","block_type":"box","text":"shareholders of the Fund.","page_number":131,"box":{"x":69,"y":876,"width":181,"height":9}},{"id":"a07d11c0-3821-4a63-b967-2a4993558c72","block_type":"box","text":"II-84","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ee62fef3-d19f-43e4-8bb5-fbba1bb61ffb","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1c5733ff-93cf-4078-8abb-98c35c7f50f3","block_type":"box","text":"Transfer Agency Services.","page_number":132,"box":{"x":103,"y":45,"width":180,"height":11}},{"id":"ba4c6089-c94d-4e3f-ad87-7f50a171a593","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":132,"box":{"x":291,"y":45,"width":595,"height":11}},{"id":"26073a64-17a8-40ca-b9b7-fd7567fd06e0","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":132,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"fe4d1691-72f7-4711-88c3-26073959f6af","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":132,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"b53b4c51-513d-4ddc-894b-c2c042982631","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":132,"box":{"x":68,"y":90,"width":792,"height":11}},{"id":"17ae96d0-4d4b-4cf4-8325-bc2bec7dcde2","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":132,"box":{"x":68,"y":105,"width":819,"height":11}},{"id":"22885085-06eb-41ac-b639-03817668159e","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":132,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"9a02fae0-3725-4a6f-9ede-bdb247516aa9","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":132,"box":{"x":70,"y":135,"width":831,"height":12}},{"id":"602d65ec-3f88-4f45-bdb6-9a707d3b31f0","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":132,"box":{"x":68,"y":150,"width":813,"height":12}},{"id":"24b7d4e2-34e6-43f3-94c8-1af3d163f6dc","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":132,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"8078a75a-b780-49f4-a58a-20e6b4ef9f5a","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":132,"box":{"x":69,"y":181,"width":806,"height":11}},{"id":"ff36521e-d9bf-43c7-a7e3-61841fd6dd79","block_type":"box","text":"class on a recordkeeping system.","page_number":132,"box":{"x":69,"y":196,"width":238,"height":11}},{"id":"5ae38cd1-4632-46e8-98cb-73521847717b","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":132,"box":{"x":102,"y":219,"width":338,"height":11}},{"id":"40e908c4-aaae-4046-80f4-513c087744f8","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":132,"box":{"x":446,"y":218,"width":441,"height":11}},{"id":"f6ace03c-a911-4acb-80ae-f98c7262a178","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":132,"box":{"x":69,"y":234,"width":840,"height":11}},{"id":"c334accf-1405-44fd-a885-1a9b527f69ff","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":132,"box":{"x":69,"y":249,"width":823,"height":11}},{"id":"840ec3a4-782a-468f-84c7-24bd66d17333","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":132,"box":{"x":69,"y":264,"width":627,"height":11}},{"id":"7526d869-314c-4c2e-8006-4be533d26d8e","block_type":"box","text":"Custodian Services.","page_number":132,"box":{"x":102,"y":287,"width":141,"height":9}},{"id":"733bd2ba-fde9-43ce-8f4a-bab702b64bf0","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":132,"box":{"x":249,"y":286,"width":654,"height":12}},{"id":"9d9c2ecd-4c4c-43ad-aecb-0063ce44a6b1","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":132,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"66599eae-dae9-48b6-9a90-8f9078468ea3","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":132,"box":{"x":70,"y":317,"width":814,"height":11}},{"id":"3cf9fec2-f560-4ea8-8222-f453185c3718","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":132,"box":{"x":68,"y":332,"width":802,"height":11}},{"id":"a05ac199-90f5-4622-90df-a83aa4fb34b4","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":132,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"bbc3a23c-f046-4382-9f8a-3f8d961ad308","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":132,"box":{"x":69,"y":362,"width":792,"height":11}},{"id":"6d73059f-754e-4fef-9426-0a6b6db69c7b","block_type":"box","text":"cer tain assets.","page_number":132,"box":{"x":69,"y":377,"width":106,"height":9}},{"id":"66e4d4e6-d277-42e5-873e-729b59edefb9","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":132,"box":{"x":102,"y":400,"width":716,"height":10}},{"id":"ebe1c74c-fcb2-48a2-98a8-bd68121fd00a","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":132,"box":{"x":102,"y":423,"width":803,"height":11}},{"id":"79211e23-2b70-490c-b66b-2075547595d3","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":132,"box":{"x":69,"y":438,"width":799,"height":11}},{"id":"026535c2-649b-4e96-a3b6-06b734b6eb15","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":132,"box":{"x":69,"y":453,"width":834,"height":11}},{"id":"9ce0ac70-15b7-4947-b67a-b69aa3b7cc7b","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":132,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"dab81d68-ab28-4165-9093-9d8d6b177540","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":132,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"957c8e1e-cd8b-4f8f-8159-2427a60d489e","block_type":"box","text":"fiscal year will not expire. 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Such other funds or accounts may offer exposure to strategies that are identical or","page_number":138,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"73fb1c96-3e7b-49d4-9df8-f4ae562d6819","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":138,"box":{"x":69,"y":105,"width":803,"height":11}},{"id":"2d0276c1-5db0-4495-8049-3939ac5b8910","block_type":"box","text":"services provided by BlackRock. BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":138,"box":{"x":69,"y":120,"width":838,"height":12}},{"id":"81bccd11-db54-48a6-a415-dd1b1cb84c8e","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. As such,","page_number":138,"box":{"x":70,"y":135,"width":791,"height":11}},{"id":"c247b0b0-9ed2-4175-81ef-dfac8451207e","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and instruments in which","page_number":138,"box":{"x":70,"y":151,"width":835,"height":11}},{"id":"3be58b4c-7621-4415-8233-7f50ead76a28","block_type":"box","text":"a Fund invests.","page_number":138,"box":{"x":69,"y":166,"width":106,"height":9}},{"id":"211df670-a070-4f39-9602-fde1af9a5edb","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in which a","page_number":138,"box":{"x":102,"y":188,"width":785,"height":11}},{"id":"55e3490f-7369-4346-9e12-d9f4f70da8e7","block_type":"box","text":"Fund invests, which could have an adverse impact on a Fund’s per formance. Such transactions, par ticularly in","page_number":138,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"7b80dc2a-b8aa-4628-a2d7-f863bc8d3b8c","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":138,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"730a061f-c880-4d2a-8cc2-c7a101df1ac5","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":138,"box":{"x":68,"y":234,"width":652,"height":11}},{"id":"76a0c90e-f4ed-49a6-96fa-6f089a4dd6d5","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":138,"box":{"x":102,"y":256,"width":787,"height":12}},{"id":"0264e9b4-6a29-4a6a-a630-b51ead92e079","block_type":"box","text":"substantially similar manner as cer tain Funds are made publicly available on a more timely basis than the applicable","page_number":138,"box":{"x":69,"y":272,"width":832,"height":11}},{"id":"b279789d-0461-405f-a8f5-03da29f23f0e","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":138,"box":{"x":70,"y":286,"width":816,"height":12}},{"id":"ecf78efa-bedd-43ac-8629-9592aef2fcd9","block_type":"box","text":"possible that a recipient of por tfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":138,"box":{"x":70,"y":302,"width":831,"height":11}},{"id":"60f0e6d2-b3e3-48b0-a17f-e198541e5d6f","block_type":"box","text":"that is managed in an identical or substantially similar manner, including by trading ahead of or against such Fund","page_number":138,"box":{"x":68,"y":317,"width":813,"height":11}},{"id":"660f1c52-d98d-40ac-b470-711f3645f6e7","block_type":"box","text":"based on the information received.","page_number":138,"box":{"x":69,"y":332,"width":247,"height":9}},{"id":"051cf109-62fa-4453-bf47-67e5cfc7d23a","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":138,"box":{"x":101,"y":355,"width":777,"height":11}},{"id":"2f9f7ed2-93a9-4f2f-81a3-7da923c5f638","block_type":"box","text":"actually purchased or sold may be allocated among the accounts on a basis determined in its good faith discretion to","page_number":138,"box":{"x":69,"y":370,"width":838,"height":11}},{"id":"574f395a-b009-4eac-9803-70a1591edaa0","block_type":"box","text":"be equitable. In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":138,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"99122e14-faa5-4435-8bdb-e80cb68e3f8d","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":138,"box":{"x":70,"y":400,"width":817,"height":11}},{"id":"9b17881e-836e-4f15-b0e1-e5a5ea2b81a5","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":138,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"d3b05e0f-da95-4339-8c43-b15e325ac5ab","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":138,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"e30d5df8-ad7c-4d28-9a85-1e6cbd378876","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":138,"box":{"x":69,"y":446,"width":827,"height":11}},{"id":"2a3754a9-b367-4031-8d77-86186b1da621","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":138,"box":{"x":70,"y":460,"width":785,"height":11}},{"id":"8b34232c-a2a8-4f8b-a002-c6159f916fa6","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":138,"box":{"x":69,"y":475,"width":767,"height":12}},{"id":"118b2c04-f04c-4b21-8361-6dbddd976ef4","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":138,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"b02436ed-ac20-41c4-b26c-c115d5e2daa3","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":138,"box":{"x":68,"y":506,"width":827,"height":11}},{"id":"4dc42407-32c1-4024-bde4-75baff9777f6","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":138,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"0b80e5bb-0301-4eea-a899-f04b89942b82","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":138,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"75534202-d2f0-4469-91a3-1eec3266eb65","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":138,"box":{"x":69,"y":551,"width":781,"height":11}},{"id":"366bb582-2e2c-4c5a-9f51-5b87088f118a","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":138,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"19b06e19-93b7-4d9c-9198-889532a51da6","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":138,"box":{"x":70,"y":581,"width":809,"height":12}},{"id":"937a3bfa-12de-409f-9227-8f193fce13ef","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":138,"box":{"x":70,"y":596,"width":805,"height":12}},{"id":"383d596f-44e7-4aca-a98e-386273e61cbf","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":138,"box":{"x":70,"y":612,"width":797,"height":11}},{"id":"3043c8d0-b4ba-473a-8075-177912230ace","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":138,"box":{"x":69,"y":627,"width":573,"height":11}},{"id":"5f1bbba0-0c90-4e3f-94de-f5f236293535","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":138,"box":{"x":102,"y":649,"width":797,"height":12}},{"id":"e54482ba-d051-4092-b606-eb25f30c4dda","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":138,"box":{"x":69,"y":664,"width":791,"height":12}},{"id":"e50d40a5-0836-4117-b2ff-62cef3a3d5af","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":138,"box":{"x":69,"y":680,"width":835,"height":11}},{"id":"3010a5d7-7e10-4210-8c9e-053274b3092a","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":138,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"7c653360-f427-4b39-bda5-686f134d0ca5","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":138,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"8e06570a-dc6e-41e5-8bd1-1f4c67216cbc","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":138,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"09d5cd18-e598-40bd-926d-a750f6a90fa5","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":138,"box":{"x":69,"y":740,"width":818,"height":11}},{"id":"be931586-ce61-44ae-9f9f-f30cd36c50b0","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":138,"box":{"x":70,"y":755,"width":777,"height":11}},{"id":"b4c6d205-5217-42e4-9a59-05ad35a56ad9","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":138,"box":{"x":70,"y":770,"width":780,"height":11}},{"id":"8fa20acc-4433-4972-80ee-8b3e12b5326e","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":138,"box":{"x":69,"y":785,"width":802,"height":12}},{"id":"abe62e81-1a4c-42d8-ba1c-7f24298408ca","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":138,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"d5aa10ab-091d-4b9e-85ee-824f00bac041","block_type":"box","text":"Funds.","page_number":138,"box":{"x":70,"y":816,"width":44,"height":9}},{"id":"e5cf557e-fd92-4d9d-b25f-a995fe0e1783","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":138,"box":{"x":102,"y":838,"width":755,"height":11}},{"id":"9856f76a-b827-45d0-a3bd-a5bc4fd55e72","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":138,"box":{"x":69,"y":853,"width":836,"height":12}},{"id":"a05a6da1-87a3-4c56-a38d-7c8415fe05fd","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":138,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"85bca1e2-4e42-4877-a802-b612dc8d1435","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":138,"box":{"x":69,"y":884,"width":679,"height":11}},{"id":"57c58339-1b14-4aad-b93f-7baeb2474e24","block_type":"box","text":"II-91","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"57f3d16e-a5c5-494c-a18a-3f55d6fd5299","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa267ee2-62e9-45a2-afe4-49e88d995b5f","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":139,"box":{"x":101,"y":45,"width":760,"height":11}},{"id":"1faa285d-4815-4a1d-bb67-3267d7fdbcb2","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":139,"box":{"x":70,"y":60,"width":818,"height":11}},{"id":"e51998bc-2ef0-4968-94f2-8460fa0502f4","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":139,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"10e3e03f-9178-4f05-abbe-2a452c949d86","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":139,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"9ae66344-8683-457f-8b21-0baaa94acde1","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":139,"box":{"x":68,"y":105,"width":421,"height":11}},{"id":"ebb1593f-86af-474f-a8ce-61cde07ffce9","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":139,"box":{"x":102,"y":128,"width":794,"height":11}},{"id":"fa8682a0-02b9-4455-8692-e1ba5c315db6","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":139,"box":{"x":68,"y":143,"width":817,"height":11}},{"id":"ba786048-26de-4806-a70e-59e06773b165","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":139,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"eaa087b7-cac6-46cc-9448-ae34259035e4","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":139,"box":{"x":69,"y":173,"width":826,"height":11}},{"id":"55696d51-20c0-49bf-8ca7-af609802c37d","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":139,"box":{"x":70,"y":188,"width":780,"height":12}},{"id":"6b6a80ce-055f-4748-b3a1-a0ea95a92e4b","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":139,"box":{"x":69,"y":203,"width":791,"height":12}},{"id":"1ba88e70-5a49-4861-9faf-706c1b5b80f8","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":139,"box":{"x":70,"y":219,"width":457,"height":11}},{"id":"050c31c9-9321-4ed8-90ee-a304af13573a","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":139,"box":{"x":102,"y":241,"width":784,"height":11}},{"id":"94f125d1-86d6-4f6c-a364-0a70ad5e8e31","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":139,"box":{"x":69,"y":256,"width":840,"height":11}},{"id":"49acbc31-a579-4277-9c37-34650c72a471","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":139,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"dc5bf39b-d945-416f-87f2-8b9029cc5bab","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":139,"box":{"x":70,"y":286,"width":828,"height":12}},{"id":"2267b111-bf63-4f65-a866-9fad612e1a7d","block_type":"box","text":"case.","page_number":139,"box":{"x":69,"y":304,"width":37,"height":7}},{"id":"d0691b65-8afa-4dde-90e0-539851648bc9","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":139,"box":{"x":101,"y":324,"width":791,"height":12}},{"id":"3abe5ac6-7b24-40a9-98a2-84d7c6069496","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":139,"box":{"x":70,"y":340,"width":824,"height":11}},{"id":"da201eab-100b-4732-a44a-25af998e383b","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":139,"box":{"x":69,"y":355,"width":798,"height":11}},{"id":"a3840700-8d2b-4189-ad42-1bf7c3e9dd21","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":139,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"ced48660-66ae-4b7c-9b4b-ddf66f19df54","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":139,"box":{"x":70,"y":385,"width":835,"height":11}},{"id":"8bdaa7dc-7eaa-491b-bd84-54229e4da199","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":139,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"4e528b84-f7f9-4d28-b07b-52db9ac1914d","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":139,"box":{"x":102,"y":423,"width":766,"height":11}},{"id":"7fbd3491-ff59-4a21-acc0-a8903216139c","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":139,"box":{"x":70,"y":438,"width":786,"height":11}},{"id":"b55e7492-4e42-4be0-b822-9295b1e53cc1","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":139,"box":{"x":69,"y":453,"width":828,"height":11}},{"id":"4e5094e6-337b-4200-ab54-18e98ebd8f8d","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":139,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"be518efe-368a-4dab-98f8-647ce1dc9d40","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":139,"box":{"x":68,"y":483,"width":825,"height":11}},{"id":"187dd28d-8740-4834-86ae-458c9e7f76b5","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":139,"box":{"x":68,"y":498,"width":790,"height":11}},{"id":"5f1eddf5-93ff-4e0e-a231-0cebdaa8ab7a","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":139,"box":{"x":69,"y":513,"width":830,"height":12}},{"id":"8a2922b8-a340-4ef0-bef4-0dfed72a67f2","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":139,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"bd72ef14-7741-4188-8c77-700f02a1e0b2","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":139,"box":{"x":70,"y":543,"width":271,"height":12}},{"id":"e18976e2-dcd5-443b-a2b7-1237632105af","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":139,"box":{"x":102,"y":566,"width":792,"height":11}},{"id":"c30cb33f-b53c-43bc-b9b6-efcb755175a2","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":139,"box":{"x":70,"y":581,"width":826,"height":12}},{"id":"2b5cad4b-1881-4766-9909-1872c1ad7a14","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":139,"box":{"x":68,"y":596,"width":821,"height":12}},{"id":"9fa50c36-9d2c-4f7e-80a1-e34d55967f92","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":139,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"fbc59a56-d5aa-4214-b156-a69f30f850a1","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":139,"box":{"x":69,"y":627,"width":793,"height":11}},{"id":"18ec1b43-37b4-474f-838e-2aab6ede45b5","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":139,"box":{"x":69,"y":642,"width":762,"height":11}},{"id":"d36e3765-a9aa-49af-a416-b6f48977532b","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":139,"box":{"x":70,"y":657,"width":839,"height":11}},{"id":"ebe5432f-267d-4551-848f-a88b23b1b1d8","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":139,"box":{"x":70,"y":672,"width":795,"height":11}},{"id":"1d9e672b-19f9-415a-be5a-2c3ed6c9dd54","block_type":"box","text":"managing a Fund.","page_number":139,"box":{"x":69,"y":687,"width":124,"height":11}},{"id":"6062fa99-9a23-4577-8235-9da88bfc7ca0","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":139,"box":{"x":101,"y":710,"width":751,"height":11}},{"id":"87f5ec66-3fb9-4bd4-becf-27cf1d209fde","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":139,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"d4d72dd7-649a-4c5e-b6ea-5b971c9a4edc","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":139,"box":{"x":70,"y":740,"width":820,"height":11}},{"id":"b04cde99-8ad3-4061-b257-21ce14d2247d","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":139,"box":{"x":68,"y":755,"width":785,"height":11}},{"id":"7e7fcc9e-1618-4d25-9c3d-cb3f55f5d9c3","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":139,"box":{"x":70,"y":770,"width":481,"height":11}},{"id":"4a79b5ab-dea8-4350-a336-46ebca087ae9","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":139,"box":{"x":102,"y":793,"width":754,"height":11}},{"id":"8edafa2a-7cdc-4708-8e9e-0e33bc963743","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":139,"box":{"x":69,"y":808,"width":804,"height":11}},{"id":"18dc00fd-5bff-438a-915f-4dabbe3bce4b","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":139,"box":{"x":69,"y":823,"width":831,"height":12}},{"id":"eaac7dd4-a665-42f3-9efe-5360049bd4cb","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":139,"box":{"x":69,"y":838,"width":680,"height":11}},{"id":"78b3b908-b547-4a86-99af-e44b3936da88","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":139,"box":{"x":102,"y":861,"width":791,"height":11}},{"id":"2d31045c-d521-4bb8-bd0d-c5f30606874b","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":139,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"9d988a3b-1ae8-4b7a-9468-0737c38da05c","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":139,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"153d9912-c844-49f0-b507-b4f71e62a428","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":139,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"8435ac68-1181-4552-8139-47a6ddb0df0b","block_type":"box","text":"II-92","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0306ca82-416a-4638-a5a6-24afb62b2969","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d205ba6d-f289-4b96-92dd-a3a1ff9b705b","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":140,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"eedd0007-ed8b-4d62-b028-5cac0351ad2c","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":140,"box":{"x":70,"y":60,"width":344,"height":11}},{"id":"c84350d4-fa52-4291-916e-dcd80fede438","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":140,"box":{"x":102,"y":82,"width":741,"height":12}},{"id":"326d29c9-ba90-4ffd-aeaa-f0ebf1fd9b38","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":140,"box":{"x":70,"y":98,"width":824,"height":11}},{"id":"f6672a11-2a50-49c1-974f-d3a8f0d32787","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":140,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"388479df-ae3c-444a-b261-1526a249a1b4","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":140,"box":{"x":69,"y":128,"width":777,"height":11}},{"id":"282eb02f-8a06-45d7-b591-43df39bd6a72","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":140,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"6d8e896c-7092-4857-ac42-01d9e2142f03","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":140,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"f8ea1cc5-0f4f-47a6-8902-d4791fdc10f7","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":140,"box":{"x":70,"y":173,"width":798,"height":11}},{"id":"e59f13d7-c765-42db-a497-3a545d4696da","block_type":"box","text":"under management for BlackRock.","page_number":140,"box":{"x":69,"y":188,"width":243,"height":12}},{"id":"4c1e659f-3007-40dd-9e19-e237adc82dc3","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":140,"box":{"x":101,"y":211,"width":773,"height":11}},{"id":"d854e6eb-0b4c-4c98-ba9e-5e3553d1e09b","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":140,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"bf066706-de26-4782-b483-8e7bc87d95ff","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":140,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"89bd79e7-df4c-4689-99d2-bd96b1dd9be5","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":140,"box":{"x":68,"y":256,"width":837,"height":12}},{"id":"e111698d-018d-4160-9889-954a1659ff1b","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":140,"box":{"x":70,"y":272,"width":781,"height":11}},{"id":"50868edd-6753-45de-889a-475b7ca61194","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":140,"box":{"x":101,"y":294,"width":779,"height":11}},{"id":"74755bff-4c88-4aa4-9550-ef4766fc931a","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":140,"box":{"x":69,"y":309,"width":795,"height":11}},{"id":"7968828c-fc53-44a8-91bf-9adfe87e1233","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":140,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"bc0a2494-cd93-4fc3-8b6e-24585b5f6115","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":140,"box":{"x":68,"y":339,"width":802,"height":12}},{"id":"47e291a6-d01d-47bd-98f6-6f5eba2230a2","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":140,"box":{"x":69,"y":355,"width":792,"height":11}},{"id":"55bfdb70-428c-49f2-95c3-107303b9f590","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":140,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"c5878825-1130-426b-a258-b5d10dd44415","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":140,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"e2442424-a48e-4f88-8281-79d6925bc118","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":140,"box":{"x":68,"y":400,"width":726,"height":11}},{"id":"6ca84285-901d-4a86-953e-9df9c027e33f","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":140,"box":{"x":102,"y":423,"width":796,"height":11}},{"id":"9e58deb9-e6f1-4e9c-94ac-59b7371d3665","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":140,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"2f53be83-10b9-4d59-8528-02c73e96a2c5","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":140,"box":{"x":69,"y":453,"width":823,"height":11}},{"id":"df21a8ab-57c7-422f-89da-ada057bfb433","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":140,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"7b4c6f00-e623-48ec-a048-b54cdb2d5345","block_type":"box","text":"any such fees or other amounts.","page_number":140,"box":{"x":69,"y":483,"width":230,"height":11}},{"id":"3c27eb0e-8213-4aee-b88b-0c4141f5d41f","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":140,"box":{"x":101,"y":506,"width":805,"height":11}},{"id":"3588591a-c118-42e6-b0a6-dc9f970a1379","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":140,"box":{"x":70,"y":521,"width":768,"height":11}},{"id":"d6b61b68-49c3-4e9a-8b13-6da94dee1d83","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":140,"box":{"x":101,"y":544,"width":766,"height":10}},{"id":"c6f34fd8-6211-45cb-b867-ff32559864b9","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":140,"box":{"x":69,"y":559,"width":793,"height":11}},{"id":"388422c8-752c-414c-b8a7-3b0a739a7cee","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":140,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"5ad5cb1a-1c0c-4eb9-8122-ed03ef82369f","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":140,"box":{"x":70,"y":589,"width":374,"height":11}},{"id":"59bf2d37-4724-4507-a3a9-8ba652dabefb","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":140,"box":{"x":102,"y":612,"width":768,"height":11}},{"id":"a9265dfa-f9ae-4ddd-9f36-01ee70f758bc","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":140,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"33be7a16-8ca9-42a2-a954-7ee26096a77f","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":140,"box":{"x":69,"y":642,"width":785,"height":11}},{"id":"04f4bf15-5c9d-4f2d-83c4-e3fffc1aaffa","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":140,"box":{"x":69,"y":657,"width":829,"height":11}},{"id":"df9a16c2-1e73-46b7-bc08-9947ab1c03c8","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":140,"box":{"x":69,"y":672,"width":809,"height":11}},{"id":"b62ea389-17a3-4482-a983-7d0f6ea0c5b4","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":140,"box":{"x":69,"y":687,"width":833,"height":11}},{"id":"c128fcf0-78c3-4d58-accb-01cbfa8e1855","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":140,"box":{"x":69,"y":702,"width":829,"height":12}},{"id":"9db02ee4-3bd6-4758-bdd7-fa1e8c05e9ce","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":140,"box":{"x":69,"y":718,"width":783,"height":11}},{"id":"e1316b35-e82f-4ea3-b067-479061e9c01d","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":140,"box":{"x":70,"y":732,"width":814,"height":12}},{"id":"81ff4185-339d-46f4-bcdf-60dabdf63cd0","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":140,"box":{"x":69,"y":748,"width":660,"height":11}},{"id":"ce16fddc-2be7-4971-951c-475f307a8921","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":140,"box":{"x":101,"y":770,"width":767,"height":12}},{"id":"0db5202e-4599-40b0-925f-3c921e0dc92e","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":140,"box":{"x":68,"y":785,"width":820,"height":12}},{"id":"c4276d89-59a2-45d4-a203-58ef2414cf3a","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":140,"box":{"x":70,"y":801,"width":806,"height":11}},{"id":"da5935e4-64fc-47e9-ad28-01fe86c1f0ac","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":140,"box":{"x":70,"y":816,"width":816,"height":11}},{"id":"64bd0f51-7977-4bac-a861-34b805981e9d","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":140,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"941eab8e-51f2-4e7d-bd44-67e871c3b4be","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":140,"box":{"x":70,"y":846,"width":727,"height":11}},{"id":"2e84bdd4-4533-48b2-ae60-f9ac468543a0","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":140,"box":{"x":69,"y":861,"width":815,"height":11}},{"id":"96fed0de-b629-4c28-915e-75ad75026f7c","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":140,"box":{"x":69,"y":876,"width":786,"height":11}},{"id":"b8735148-e272-455d-89b0-c56d0e513673","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":140,"box":{"x":70,"y":891,"width":796,"height":12}},{"id":"6ef5d469-905e-4cf7-8d49-a6aeb3914420","block_type":"box","text":"II-93","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eb3c06b4-c07a-4faa-91a3-84bd2eef0e0b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f9a5e75b-325b-4b3e-9f91-aadade84d66d","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":141,"box":{"x":69,"y":45,"width":799,"height":11}},{"id":"5e457d71-8a84-4706-b504-d97a07f73a9c","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":141,"box":{"x":69,"y":60,"width":356,"height":11}},{"id":"5e29cb0f-3d89-4223-81a0-25037c1364ef","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":141,"box":{"x":102,"y":82,"width":801,"height":12}},{"id":"56363264-df55-45b1-9106-db04f19ef580","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":141,"box":{"x":68,"y":98,"width":817,"height":11}},{"id":"2b3c9236-7414-4a85-a976-33852d6c3b97","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":141,"box":{"x":69,"y":113,"width":784,"height":11}},{"id":"3e964130-2608-4ea8-80cb-e4f5124eeded","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":141,"box":{"x":69,"y":128,"width":789,"height":11}},{"id":"93cfd4cf-e15c-4f10-ae9c-ed6778c121cd","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":141,"box":{"x":70,"y":143,"width":783,"height":11}},{"id":"009ff1df-2345-4c2f-86cc-983b2027a5a9","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":141,"box":{"x":70,"y":158,"width":790,"height":11}},{"id":"1ab55d1c-0657-4f89-becc-9d15b0e216a5","block_type":"box","text":"regulation.","page_number":141,"box":{"x":69,"y":173,"width":73,"height":11}},{"id":"bc415b64-3cf5-4998-b79a-3cd65fa5b248","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":141,"box":{"x":102,"y":196,"width":777,"height":11}},{"id":"60e099b1-c963-4c03-9584-612c1495dfc0","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":141,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"b13835ba-e044-4bda-9be4-0bb9c14c55ce","block_type":"box","text":"various program limits (i.e. indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":141,"box":{"x":68,"y":226,"width":818,"height":11}},{"id":"93e7a67c-da1a-47ab-8871-c58c17fb588a","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":141,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"c6961be7-1b2d-4e19-8808-3d10b13b313a","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":141,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"ca13e449-8d24-4735-9f7b-d768317d9ef4","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":141,"box":{"x":70,"y":271,"width":780,"height":12}},{"id":"42bf9071-32bd-4dda-bb2c-17bba7f2bba3","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":141,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"676e4646-4706-4fb0-9f27-4c661cd06c2b","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":141,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"a3541b9b-70d3-46f9-9631-dc3416cbb013","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":141,"box":{"x":69,"y":317,"width":444,"height":11}},{"id":"551e3f06-8f5d-4b74-af2c-f800e4d85a92","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":141,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"974bcbb5-4ff9-41b3-8d17-460720ecde4f","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":141,"box":{"x":70,"y":355,"width":840,"height":11}},{"id":"182ae6bf-6a74-4393-9afa-d5efba3baaa4","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":141,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"bf1fb1c5-b8a8-4e9d-acd1-a2953082b7c1","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":141,"box":{"x":69,"y":385,"width":788,"height":11}},{"id":"54ab131f-3243-4d42-935c-1a12507fa062","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":141,"box":{"x":70,"y":400,"width":426,"height":11}},{"id":"51d935d7-4fb8-4f44-b884-d5c6e12295dc","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":141,"box":{"x":102,"y":423,"width":763,"height":11}},{"id":"95da0656-1c81-4784-bb70-5976e4e14384","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":141,"box":{"x":69,"y":438,"width":828,"height":11}},{"id":"baf06c31-600f-4092-b751-4265c4d689db","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":141,"box":{"x":68,"y":453,"width":767,"height":11}},{"id":"3a035b03-7ed6-4b33-9f97-d71a19a06578","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":141,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"bac7d2b1-fbda-4c73-aa11-74bfb93d1787","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":141,"box":{"x":68,"y":483,"width":672,"height":11}},{"id":"339c561e-4364-4f8a-a990-7987c83ed377","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":141,"box":{"x":101,"y":506,"width":767,"height":11}},{"id":"c26d8ade-b3ff-4272-a617-0c5900c3ab01","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":141,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"0ff20fc2-b1ed-43f0-8977-69672aa002ac","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":141,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"7f7d908a-1b4b-48a9-ad66-13186210313f","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":141,"box":{"x":69,"y":551,"width":836,"height":11}},{"id":"44396038-085f-48d8-bd81-2dd4a471a1b4","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":141,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"77a92a1e-6cee-43e6-a84e-0bec11ad33ba","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":141,"box":{"x":69,"y":581,"width":812,"height":11}},{"id":"b3c5d94e-c68a-4b99-8ca7-169bfaf72018","block_type":"box","text":"than through client commissions.","page_number":141,"box":{"x":68,"y":597,"width":237,"height":11}},{"id":"2d59aef7-e691-4c8f-805d-781cfc9f01b4","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":141,"box":{"x":102,"y":619,"width":770,"height":11}},{"id":"319fb27c-71fc-4103-a9ba-3978253d2eb4","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":141,"box":{"x":69,"y":634,"width":797,"height":12}},{"id":"ea2dd210-44fc-4b5a-9daf-0e33aca2af72","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":141,"box":{"x":69,"y":650,"width":830,"height":11}},{"id":"9a4048d4-d7df-4a3e-96eb-c4cb7e2f7947","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":141,"box":{"x":70,"y":664,"width":780,"height":12}},{"id":"46ef7f27-0a2d-4347-b493-c8e9812ce675","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":141,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"eaf1f058-0e48-47a4-9308-a15dd05698b6","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":141,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"da43ec24-d80e-49b4-94f0-4acb079ff62d","block_type":"box","text":"research-oriented software and other services and products.","page_number":141,"box":{"x":69,"y":710,"width":430,"height":11}},{"id":"252ff957-fdf2-4802-8d10-aaa917c32363","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":141,"box":{"x":102,"y":732,"width":785,"height":12}},{"id":"d287695f-db66-45c7-808d-af9838f6ec19","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":141,"box":{"x":70,"y":748,"width":768,"height":11}},{"id":"17f8ebd5-7164-47e9-9024-94cf6f0c09a7","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":141,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"8255a6d4-2178-47ef-be81-196230bd3ff5","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":141,"box":{"x":69,"y":778,"width":818,"height":11}},{"id":"59e49b26-f3d4-48a6-a2ad-5af347f59b38","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":141,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"51d427ba-b3e7-4781-a793-8957b66c3d95","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":141,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"3bc0cb86-4b07-4843-bced-35a80eff3492","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":141,"box":{"x":69,"y":823,"width":824,"height":12}},{"id":"819c27c7-822d-4fcf-97e9-74d38252543b","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":141,"box":{"x":69,"y":839,"width":804,"height":10}},{"id":"3680185f-df26-42f4-80e9-881a1571ac19","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":141,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"1276f947-589a-42af-b701-c188b45ab50e","block_type":"box","text":"and services itself.","page_number":141,"box":{"x":69,"y":869,"width":134,"height":9}},{"id":"4f35438f-3437-4491-91f0-6f7d0ecbb2e0","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":141,"box":{"x":102,"y":891,"width":793,"height":12}},{"id":"66c5f59d-9c29-4764-bffc-c097b7a00f82","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":141,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"fcef709a-1cf1-40f5-bd69-3769ded8737f","block_type":"box","text":"II-94","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d46a9ce2-4d24-42d4-8c41-1f7d645853b7","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e21f4ef6-6932-44de-b64f-0775e65b5507","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":142,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"eab30e48-6185-442f-a441-687f2a6b73e8","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":142,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"88261f08-e30f-4254-a7be-546aae825fcc","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":142,"box":{"x":69,"y":75,"width":760,"height":11}},{"id":"8859fec6-04b4-48a3-9a24-5168a19280b9","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":142,"box":{"x":68,"y":90,"width":803,"height":11}},{"id":"1652b54b-fdb7-49b4-b49a-69c82ce1f3e8","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":142,"box":{"x":69,"y":105,"width":807,"height":11}},{"id":"d304b8ed-32c9-4b2a-9dd4-6db18b0c5995","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":142,"box":{"x":69,"y":120,"width":760,"height":12}},{"id":"85bbaff1-6ad8-4467-8202-03288c866df2","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":142,"box":{"x":102,"y":143,"width":799,"height":11}},{"id":"c99183ef-af74-42ae-8187-f0d8eb2f5095","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":142,"box":{"x":70,"y":158,"width":767,"height":11}},{"id":"79959cad-9459-411b-8206-a320c650174f","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":142,"box":{"x":69,"y":173,"width":794,"height":11}},{"id":"235de859-8b75-48a7-9da5-93ab2e3077f1","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":142,"box":{"x":69,"y":188,"width":825,"height":11}},{"id":"05995ba9-57af-42e7-ae62-1b6cf71499c7","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":142,"box":{"x":68,"y":204,"width":821,"height":11}},{"id":"3f858b25-a309-4a02-b385-a6108667146c","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":142,"box":{"x":68,"y":218,"width":833,"height":12}},{"id":"03f4f8ed-3008-4e30-ab0c-b533373ec757","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":142,"box":{"x":69,"y":234,"width":812,"height":11}},{"id":"53861c0d-b646-46d9-9198-9d9f97b38aa4","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":142,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"4aaa48f7-d0d4-46b5-9f65-807a3c2f70df","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":142,"box":{"x":68,"y":264,"width":519,"height":11}},{"id":"1828a461-3262-42da-ae85-7c63bfe01e44","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":142,"box":{"x":102,"y":286,"width":793,"height":12}},{"id":"6fdacbd9-f348-4cb5-806b-21dc3467d541","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":142,"box":{"x":69,"y":302,"width":782,"height":11}},{"id":"65c59e1c-cdf3-48e9-b94c-f55911b37865","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":142,"box":{"x":69,"y":317,"width":710,"height":11}},{"id":"e8eb0b8e-bd38-4458-8f31-ca3cb8ac1c55","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":142,"box":{"x":102,"y":339,"width":792,"height":12}},{"id":"30136de1-f8b4-4ce1-bfa9-591a17a5257f","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":142,"box":{"x":68,"y":355,"width":784,"height":11}},{"id":"17e36a06-d422-4da0-aa4f-99191dbe26a4","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless,","page_number":142,"box":{"x":69,"y":370,"width":719,"height":11}},{"id":"db8b3640-1124-420c-b6cc-f49764c789d4","block_type":"box","text":"notwithstanding such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have","page_number":142,"box":{"x":102,"y":392,"width":798,"height":12}},{"id":"c3cdfff9-ed28-48b4-a02c-cadd7b2e6525","block_type":"box","text":"the effect of favoring the interests of other clients or businesses of other divisions or units of BlackRock, provided","page_number":142,"box":{"x":68,"y":407,"width":815,"height":12}},{"id":"ef5ce84a-e428-4e7f-acec-11b923ed17c6","block_type":"box","text":"that BlackRock believes such voting decisions to be in accordance with its fiduciary obligations. For a more detailed","page_number":142,"box":{"x":68,"y":423,"width":826,"height":11}},{"id":"c847be65-5c3a-43e7-81a3-e31fb1814d81","block_type":"box","text":"discussion of these policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":142,"box":{"x":69,"y":438,"width":635,"height":11}},{"id":"89ffaa43-c264-483e-8144-086418027ce5","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":142,"box":{"x":102,"y":460,"width":757,"height":12}},{"id":"0fb6d625-63e2-4ef6-a53c-49a9e98b1b5b","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":142,"box":{"x":69,"y":475,"width":825,"height":12}},{"id":"c4c7c47f-ecb3-4cf1-9835-01d1cae28f40","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":142,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"89ab4960-f4db-408c-b987-065b9a17afcc","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":142,"box":{"x":69,"y":506,"width":774,"height":11}},{"id":"7dd27885-7168-4b04-9641-12ae8441e92f","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":142,"box":{"x":69,"y":521,"width":796,"height":11}},{"id":"54676087-baee-4408-ab93-1919c4d6440f","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":142,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"ab43b530-d5ae-4780-8f95-236be47819a8","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":142,"box":{"x":69,"y":551,"width":831,"height":11}},{"id":"f5efa4b0-212a-41a4-807e-adc0cb91fd3d","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":142,"box":{"x":69,"y":566,"width":834,"height":11}},{"id":"3d4920d8-4ca9-49ea-9af2-e3b03f5c662a","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":142,"box":{"x":69,"y":582,"width":355,"height":11}},{"id":"ab70bd2e-02c5-428e-9912-7cfbeeeb8d8b","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":142,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"4f092048-b0f4-4637-b1b2-912aa85367d2","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":142,"box":{"x":70,"y":619,"width":838,"height":11}},{"id":"3f445446-cd3d-46df-bfcd-8da76847d924","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":142,"box":{"x":69,"y":634,"width":788,"height":12}},{"id":"1df68940-f053-4a31-a8d5-a85adf180639","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":142,"box":{"x":69,"y":649,"width":816,"height":12}},{"id":"0d052f80-40c3-4989-bcf7-52fdb3d6d424","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":142,"box":{"x":69,"y":664,"width":806,"height":12}},{"id":"b7d3dbbc-6433-4ecc-8f97-d515f6334605","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":142,"box":{"x":68,"y":680,"width":822,"height":11}},{"id":"57454c45-895a-49e3-a835-592612514666","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":142,"box":{"x":69,"y":695,"width":766,"height":11}},{"id":"4872d536-ca1c-46db-9638-bc340c18e25f","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":142,"box":{"x":70,"y":710,"width":533,"height":9}},{"id":"8e559acd-3f36-44a1-8781-274e2e82fd6a","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":142,"box":{"x":102,"y":732,"width":789,"height":12}},{"id":"2abcd1ff-8cbf-4b9f-bcf6-9f1f53f99194","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":142,"box":{"x":70,"y":748,"width":805,"height":11}},{"id":"d5ab0355-620c-4388-9d46-a1614464b56b","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":142,"box":{"x":69,"y":763,"width":813,"height":11}},{"id":"2a681569-bc1f-45b7-9c05-13d449509108","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":142,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"006eb7ad-2c50-4441-9958-cdeb88e3c6ca","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":142,"box":{"x":69,"y":793,"width":788,"height":11}},{"id":"86dba787-c5fa-4796-8494-5c710a6fbee4","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":142,"box":{"x":70,"y":808,"width":745,"height":11}},{"id":"bdd736dc-c7ee-4426-b716-2da82e1aad0b","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":143,"box":{"x":68,"y":143,"width":803,"height":11}},{"id":"acf8437b-0e89-4111-a3bd-d60a16668a67","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":143,"box":{"x":69,"y":158,"width":831,"height":11}},{"id":"a59bd054-6086-4fdf-9018-95e5366f62de","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":143,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"5bd0588d-873e-4b10-82f7-9da5f122ed38","block_type":"box","text":"(the “Valuation Procedures”). 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The fair value of one or more assets or","page_number":143,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"40d6309a-4626-446c-b8f6-c549fe3a46c8","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":143,"box":{"x":70,"y":294,"width":800,"height":11}},{"id":"981ee3e1-8174-4195-bb38-4c540b1fb282","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. 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In connection with any","page_number":143,"box":{"x":69,"y":392,"width":823,"height":12}},{"id":"d36546cc-5553-4e26-b034-cd29d466f811","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":143,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"d929cf04-3d54-4db1-a5f1-dc6a8b4457da","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":143,"box":{"x":69,"y":423,"width":822,"height":11}},{"id":"587660b4-b87a-4a0a-82e9-8095fa09618f","block_type":"box","text":"some additional expenses.","page_number":143,"box":{"x":69,"y":438,"width":190,"height":11}},{"id":"8207a1a9-8f43-4595-9633-a424374cbb97","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":143,"box":{"x":102,"y":460,"width":787,"height":12}},{"id":"e39847e4-cb7c-4740-873f-3ad856a7e103","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":143,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"00eb5737-9cc0-4816-a960-35266fb1c5c6","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":143,"box":{"x":69,"y":491,"width":764,"height":11}},{"id":"6ac2911f-eda0-4ed2-8a87-525c4154c2e5","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":143,"box":{"x":69,"y":506,"width":809,"height":11}},{"id":"724c0d34-d6c6-4681-be9b-189caf2525a1","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":143,"box":{"x":70,"y":521,"width":802,"height":11}},{"id":"3db8ca85-e69a-43d4-8d75-1c1584a9750f","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":143,"box":{"x":70,"y":536,"width":828,"height":11}},{"id":"df6d59ad-9633-4b51-9ca6-57092dc9c231","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":143,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"2921e4a9-827e-48ff-9041-ec30c1f3f996","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":143,"box":{"x":70,"y":566,"width":816,"height":11}},{"id":"d466ef49-04cb-47ff-a56c-26eacfac94d9","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":143,"box":{"x":70,"y":581,"width":836,"height":12}},{"id":"65eebe67-9983-487c-88d5-d0c9db8613c2","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":143,"box":{"x":69,"y":596,"width":352,"height":12}},{"id":"9f90dc27-ee25-43f8-b0e7-e35bb4593e62","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":143,"box":{"x":102,"y":619,"width":768,"height":11}},{"id":"f8214702-2e19-4bb6-9a71-bac059320068","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":143,"box":{"x":69,"y":634,"width":836,"height":12}},{"id":"929ba528-da88-4862-a854-e537f012220e","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":143,"box":{"x":68,"y":649,"width":839,"height":11}},{"id":"3a9c0fbb-57e8-428f-9253-f8fc7af32ba6","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":143,"box":{"x":69,"y":665,"width":824,"height":11}},{"id":"75158e30-2e92-4f28-b41d-ce3dcd7c27ef","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":143,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"77053f20-9a64-4eb9-893c-b261ede382aa","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":143,"box":{"x":68,"y":695,"width":826,"height":11}},{"id":"3a396ed3-0822-4c97-a77d-2479876ef9d4","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":143,"box":{"x":68,"y":710,"width":810,"height":11}},{"id":"5a155ebc-c357-4857-a228-59d4734f9ef6","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":143,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"e5ad2da7-e9d3-407c-a2f9-4fe137d40a7b","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":143,"box":{"x":68,"y":740,"width":782,"height":11}},{"id":"89bc62db-833c-4694-a186-759c7c08c662","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":143,"box":{"x":70,"y":755,"width":807,"height":11}},{"id":"cf557eea-853f-428a-b85d-8b2e4faf052e","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":143,"box":{"x":70,"y":770,"width":804,"height":12}},{"id":"62c3b90c-af78-4934-b976-bfa000bbd504","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":143,"box":{"x":69,"y":785,"width":799,"height":12}},{"id":"666b9a04-3aa3-4137-a964-846cf78d8a17","block_type":"box","text":"services or has proprietary positions. 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Moreover,","page_number":143,"box":{"x":70,"y":846,"width":805,"height":11}},{"id":"59ed32d9-62f6-4a89-8a59-47458dcde395","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":143,"box":{"x":69,"y":861,"width":784,"height":11}},{"id":"85b6c4a2-e91f-4515-a3a9-3283426e1515","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":143,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"ff6cd305-c3d7-4bec-a26e-2df9911b2751","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":143,"box":{"x":69,"y":891,"width":830,"height":12}},{"id":"cce4977b-9a6c-4f74-9416-d3dc79c4c46d","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":143,"box":{"x":68,"y":906,"width":773,"height":11}},{"id":"84f96a26-d16a-4394-bafe-0e8eb7ba2f15","block_type":"box","text":"II-96","page_number":143,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"26559986-f598-47bf-8b12-efa1588f2891","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"58f9c7f0-6bdc-444b-8f17-0eff3b451492","block_type":"box","text":"securities of which the Funds wish to purchase or sell. 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Cer tain","page_number":144,"box":{"x":69,"y":143,"width":819,"height":11}},{"id":"ecebbb82-c9d3-4e8d-8962-10832124832d","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":144,"box":{"x":70,"y":158,"width":817,"height":11}},{"id":"41913bd5-3144-4bf9-9c28-161362993d45","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":144,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"7466b1c7-c44d-450b-bbc4-567da6a37648","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":144,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"6b2ad476-1ce8-4888-8470-686011f8dfd8","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":144,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"86ffeece-8311-4681-ab64-4ac9fa3bd5cd","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":144,"box":{"x":68,"y":218,"width":797,"height":12}},{"id":"bb2e945a-4566-465c-a632-526cbdaaea6e","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":144,"box":{"x":70,"y":234,"width":667,"height":11}},{"id":"5aa45344-0e13-4964-a49e-290478a93e54","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":144,"box":{"x":102,"y":256,"width":794,"height":12}},{"id":"947cceae-7d47-4745-9e93-f4d2d0d98faf","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":144,"box":{"x":69,"y":271,"width":791,"height":12}},{"id":"cefc5869-c5da-4cf2-bd3a-ca028fc678e6","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":144,"box":{"x":70,"y":286,"width":812,"height":12}},{"id":"a5f2bd07-734f-45aa-b777-5537b9ba76a5","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":144,"box":{"x":70,"y":302,"width":818,"height":11}},{"id":"d6e06519-6ef2-4298-9ba8-75af8ccad445","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":144,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"96bcbfce-8290-4832-b9c4-0929d5013e91","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":144,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"d5658596-dff3-48df-82b8-83cc28c79c87","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":144,"box":{"x":70,"y":347,"width":824,"height":11}},{"id":"784cdbbc-ec21-445d-8179-870ffa0ca35e","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":144,"box":{"x":68,"y":362,"width":472,"height":11}},{"id":"ebbfd93e-51f8-4905-8afd-6b7c8b154277","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":144,"box":{"x":102,"y":385,"width":744,"height":11}},{"id":"760e68c6-6115-41ae-ac25-49b23e714ac7","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":144,"box":{"x":70,"y":400,"width":775,"height":11}},{"id":"3e06b5c3-4576-4fae-9421-6499fe0a86c8","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":144,"box":{"x":69,"y":415,"width":818,"height":11}},{"id":"a91b4a71-e949-47b4-b772-39c7fccd6070","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":144,"box":{"x":68,"y":430,"width":779,"height":11}},{"id":"41697bbd-ff99-4939-9876-68094405f605","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":144,"box":{"x":69,"y":445,"width":771,"height":12}},{"id":"a602a3d8-eb94-4b78-b37f-e486320396b5","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":144,"box":{"x":68,"y":460,"width":812,"height":12}},{"id":"a1ed02fe-65ff-417b-bdc4-fea87eff3625","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":144,"box":{"x":70,"y":475,"width":803,"height":12}},{"id":"b0540757-6c52-4bb8-a78f-fc5c43238c27","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":144,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"9db22436-e025-4ca7-a412-a98519165392","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":144,"box":{"x":69,"y":506,"width":829,"height":11}},{"id":"e7d0b282-17f7-4632-a800-58f72de0f905","block_type":"box","text":"a barrier.","page_number":144,"box":{"x":69,"y":521,"width":62,"height":9}},{"id":"24f06cfd-ebee-4bdf-9541-41ab8cc2ba31","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":144,"box":{"x":101,"y":543,"width":788,"height":12}},{"id":"2613ffb6-0245-457d-918d-3be6144d831a","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":144,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"d822ced3-8e2f-4289-95e4-3a4fe61f8bc0","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":144,"box":{"x":69,"y":574,"width":805,"height":11}},{"id":"852bdf8e-0198-4000-99e4-beab7652a588","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":144,"box":{"x":69,"y":589,"width":840,"height":11}},{"id":"65fbb7d5-bd03-4fcb-b509-becb6432202b","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":144,"box":{"x":69,"y":604,"width":806,"height":11}},{"id":"48d3ff66-2f72-46a0-ad2d-c33af0bfc85e","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":144,"box":{"x":70,"y":619,"width":818,"height":11}},{"id":"0225e529-19ab-408d-80bd-bde2a5c4cb78","block_type":"box","text":"that operate in cer tain industries (e.g., banking, insurance, and utilities) or in cer tain emerging or international","page_number":144,"box":{"x":68,"y":634,"width":789,"height":12}},{"id":"b513969f-26de-4950-97dc-01cd07031b4f","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (e.g., with mechanisms such as poison pills","page_number":144,"box":{"x":69,"y":650,"width":831,"height":11}},{"id":"3cc941c8-c2e5-4214-81bf-ae33af70ffbf","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":144,"box":{"x":70,"y":664,"width":816,"height":12}},{"id":"e4052b2b-bac5-4e52-a884-d01dd9ee4f50","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":144,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"15e9181f-7949-4aa7-a49b-6a8be3232f40","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":144,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"1b8767e8-eb7b-4be7-8956-e4e60e2f5ed0","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":144,"box":{"x":69,"y":710,"width":769,"height":11}},{"id":"5e6f29d5-e713-4776-b7c4-05b7741415c9","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":144,"box":{"x":69,"y":725,"width":775,"height":11}},{"id":"db4bc3ad-0843-43c6-9d1a-d692ace079a8","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":144,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"78f402e2-954b-497e-89a2-2f2fb4295072","block_type":"box","text":"seek to make indirect investments (e.g., using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":144,"box":{"x":69,"y":755,"width":798,"height":11}},{"id":"8d0e9429-3a6a-4a4b-b399-7643b8d13b77","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":144,"box":{"x":69,"y":770,"width":817,"height":12}},{"id":"d48e9adb-03dc-4a63-a5a5-a9160e9f05f9","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":144,"box":{"x":69,"y":786,"width":795,"height":11}},{"id":"0c2a2c87-2ef4-482d-b79d-563db904adad","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":144,"box":{"x":68,"y":801,"width":799,"height":11}},{"id":"1f87a3a0-1cc1-4c3e-8efc-16d09aadf3f6","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":144,"box":{"x":69,"y":816,"width":767,"height":11}},{"id":"0c9de814-0a03-4d22-bc44-45e15485e2fd","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":144,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"297448e8-a718-4873-acb7-106ab3c3e53c","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":144,"box":{"x":69,"y":846,"width":772,"height":11}},{"id":"c992a4f5-f49a-4cb2-bf19-b2665dd84c6a","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":144,"box":{"x":102,"y":869,"width":783,"height":11}},{"id":"e27acf9b-0aa0-46c2-9f6a-99eb558ec181","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":144,"box":{"x":69,"y":884,"width":808,"height":11}},{"id":"5b7cc04f-c8fe-480f-bc6a-bd611018e3b4","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":144,"box":{"x":69,"y":899,"width":837,"height":11}},{"id":"8a986ba7-f284-497a-9753-332aa8f845cf","block_type":"box","text":"II-97","page_number":144,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d1d7c62-aa29-48cb-beb5-d51e36b2002b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c076348d-08e9-4526-9b88-430461797d10","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":145,"box":{"x":70,"y":45,"width":818,"height":11}},{"id":"341d433e-9ece-4728-b4a7-bc7819604cbf","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":145,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"9daf45a1-e02d-49cb-89ad-a630f94e4a36","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":145,"box":{"x":69,"y":75,"width":806,"height":11}},{"id":"b08d8fcb-08d7-4d9d-a3e6-de4607e8bb46","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":145,"box":{"x":70,"y":90,"width":839,"height":11}},{"id":"7bf8ba80-22ee-4674-8cf9-12b86ce755ac","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":145,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"04911153-0170-42d1-a6ea-88032ac0eddc","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":145,"box":{"x":69,"y":120,"width":807,"height":11}},{"id":"b921e562-0ad8-42f4-ae5e-c5b6b3abb668","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":145,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"a48f874e-935d-4c1d-82de-d98cd50a7450","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":145,"box":{"x":69,"y":150,"width":765,"height":12}},{"id":"2af05988-b16b-43be-b0a3-bcdf367c54dd","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":145,"box":{"x":69,"y":166,"width":781,"height":11}},{"id":"2ffa6bb2-4484-4caf-9dfb-0d88d6df4224","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":145,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"e5714edd-1115-4b41-9910-fc8ff1e4afdb","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":145,"box":{"x":69,"y":196,"width":720,"height":11}},{"id":"918a7283-2d67-4089-b796-9b84734afb08","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":145,"box":{"x":101,"y":219,"width":807,"height":11}},{"id":"fa8e8b00-87ad-46d3-bf80-cd3e0ada947a","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":145,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"6e5aa735-9773-4a5f-b9a0-01628c65a66c","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":145,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"d88d82d5-647a-4050-a05c-6111ce492909","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":145,"box":{"x":69,"y":264,"width":824,"height":11}},{"id":"421f0775-c533-4ec7-b89b-7830a677cc1c","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":145,"box":{"x":68,"y":279,"width":841,"height":11}},{"id":"3329d15d-4966-4062-840e-4d222c44e339","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":145,"box":{"x":69,"y":294,"width":770,"height":11}},{"id":"606bf85b-33bd-43c7-aaab-64c9e46a35a3","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":145,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"2c507f91-3272-4685-9090-f754d7b70d8c","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":145,"box":{"x":70,"y":325,"width":794,"height":11}},{"id":"e9c4921b-7184-4359-8280-2b025b269447","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":145,"box":{"x":69,"y":340,"width":757,"height":11}},{"id":"09cff5bf-7147-4894-8d3d-746038464100","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":145,"box":{"x":69,"y":355,"width":807,"height":11}},{"id":"258e9668-3be4-47f2-94fa-bfb0747d772c","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":145,"box":{"x":69,"y":370,"width":833,"height":11}},{"id":"d3eb4223-5705-4d0a-9e66-c2e670757d83","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":145,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"45480c6f-6d35-4f92-854b-fdf302d52263","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":145,"box":{"x":68,"y":400,"width":803,"height":11}},{"id":"eaae68c4-cca2-4a5a-a3c8-cf32af1b9406","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":145,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"946f50c9-0aca-4b3d-b9fc-60ee1c78c1bb","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":145,"box":{"x":69,"y":430,"width":826,"height":11}},{"id":"edd40636-d111-4f51-aab2-3d1337ffaf7d","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":145,"box":{"x":69,"y":445,"width":834,"height":11}},{"id":"870af29c-3200-4ab1-9c0e-49157be63ad9","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":145,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"0d38bcf1-3fe1-4673-8b09-5f1983d4fa76","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":145,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"8be314e7-9d23-4bda-8adf-5f968cc57eb1","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":145,"box":{"x":69,"y":498,"width":566,"height":11}},{"id":"41d2bfc7-453f-4e18-98ec-7b3716c16774","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":145,"box":{"x":102,"y":521,"width":798,"height":11}},{"id":"7305ae18-eec1-4426-9614-e63a508e6db5","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":145,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"bde00c57-f71b-4504-b382-a074f99dda22","block_type":"box","text":"strategy with respect to such security or asset.","page_number":145,"box":{"x":69,"y":551,"width":333,"height":11}},{"id":"0193df7e-70ca-494e-9ff6-bca330350a54","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":145,"box":{"x":102,"y":574,"width":785,"height":11}},{"id":"41a83e64-0eea-43ab-b5ec-b844ec7c4bfd","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":145,"box":{"x":70,"y":589,"width":760,"height":11}},{"id":"af9cd2b4-9794-43e6-a1a2-a7237f582efb","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":145,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"638d3409-e47e-427c-a4c6-2ee345d91f17","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":145,"box":{"x":70,"y":619,"width":830,"height":11}},{"id":"a9ccee2b-6621-478b-8849-0a786c540290","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":145,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"2b3b3875-8057-4353-8b06-d5f3dd22a34d","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":145,"box":{"x":68,"y":649,"width":829,"height":12}},{"id":"5be13e11-8ef1-4e3a-9712-ce6efa4ecdf0","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":145,"box":{"x":69,"y":664,"width":784,"height":12}},{"id":"74f6fc00-ee9c-49d0-9936-03cd3956b6bf","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":145,"box":{"x":70,"y":680,"width":797,"height":11}},{"id":"0b65ed22-6938-42c9-9973-2cc1fb4067f2","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":145,"box":{"x":70,"y":695,"width":837,"height":11}},{"id":"0beeeec2-6ffa-401a-b9c1-4d8ebeea7f6e","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":145,"box":{"x":70,"y":710,"width":746,"height":11}},{"id":"87ff49d3-4dba-4dcb-a9a5-b6ae38c8ff2a","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (e.g., custodians,","page_number":145,"box":{"x":102,"y":733,"width":805,"height":11}},{"id":"1e7be2b7-d3eb-4bac-a649-7d56ab76d09e","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":145,"box":{"x":69,"y":748,"width":756,"height":11}},{"id":"eaafc3e4-6c41-4c11-bac7-666b81fef049","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":145,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"ec0f415f-a904-4409-a238-7bbd6ed0095a","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":145,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"ac0170cb-ef39-4017-b2bd-fdecd66ba17e","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":145,"box":{"x":70,"y":793,"width":800,"height":11}},{"id":"1482e0f0-7483-400a-89b0-e60d83fd86da","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":145,"box":{"x":69,"y":808,"width":771,"height":11}},{"id":"2d92740a-303e-4897-8a74-ad64f6638f7d","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":145,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"98226d6c-3786-44d8-81e3-66ed1da35ad2","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":145,"box":{"x":70,"y":838,"width":785,"height":12}},{"id":"4dbcd470-e224-46cb-b370-b8c75e212ead","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":145,"box":{"x":70,"y":854,"width":786,"height":11}},{"id":"03400e7c-1aed-45c7-88cd-f08bb6562760","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":145,"box":{"x":69,"y":869,"width":837,"height":11}},{"id":"9f097f51-fdc0-42f5-9f59-941c2d574a73","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":145,"box":{"x":69,"y":884,"width":809,"height":11}},{"id":"f703f839-c2e0-4fd4-bc92-7b987d6e824a","block_type":"box","text":"II-98","page_number":145,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"299415fa-daa6-4523-b298-8df091e635ee","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e3b6601-713a-469f-86ea-ea39e0ddfe75","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":146,"box":{"x":102,"y":45,"width":788,"height":11}},{"id":"7a3883b8-9a6d-4201-998a-3c79b4564f41","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":146,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"d9398895-7f26-4b7f-b784-9873096d41da","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":146,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"364e4633-96a0-4614-b271-720b704418a2","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":146,"box":{"x":70,"y":90,"width":363,"height":9}},{"id":"555c1abf-905b-4291-a712-5f2448cbf6fe","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":146,"box":{"x":102,"y":113,"width":757,"height":11}},{"id":"9baf0792-6f5b-45e4-b468-be41fd1088cc","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":146,"box":{"x":70,"y":128,"width":826,"height":11}},{"id":"cd18ff82-dad0-4199-8b3c-392ad1ac1e4a","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":146,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"3034b51a-03b6-4085-a19b-cae76b7b250a","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":146,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"ff933096-a3d6-4901-9c36-d5d025f7b45a","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":146,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"e95567bb-334a-477f-b3df-e98b7ac6a99b","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":146,"box":{"x":69,"y":188,"width":465,"height":11}},{"id":"2f4ffdc6-b697-4efd-bd4f-e67069d0d632","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":146,"box":{"x":102,"y":211,"width":804,"height":11}},{"id":"ab19ef74-e947-4380-8736-01f27a81c549","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":146,"box":{"x":69,"y":226,"width":840,"height":11}},{"id":"b1b07aac-1c4c-4791-a9a9-93625a9e75c1","block_type":"box","text":"provider.","page_number":146,"box":{"x":70,"y":241,"width":58,"height":11}},{"id":"b5a6a2cd-9a8f-4e12-9c32-28cfc12afcaa","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":146,"box":{"x":102,"y":264,"width":778,"height":11}},{"id":"2d1b0bc5-0122-4e32-a170-06bbc9de70e9","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":146,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"eb84c8f2-0b73-4868-94eb-ce027b7b8b91","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":146,"box":{"x":68,"y":294,"width":485,"height":11}},{"id":"28f30186-2c21-4956-85c2-68efafc78605","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":146,"box":{"x":102,"y":317,"width":742,"height":11}},{"id":"a4b38250-1f66-4f78-81d9-c948d38cecc6","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":146,"box":{"x":69,"y":332,"width":517,"height":11}},{"id":"c3cf595b-6e53-4b22-a318-458c65beb834","block_type":"box","text":"PURCHASE OF SHARES","page_number":146,"box":{"x":395,"y":361,"width":188,"height":10}},{"id":"bff1783d-6206-43b4-8e40-20cf25270460","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":146,"box":{"x":102,"y":384,"width":800,"height":11}},{"id":"6d6147e4-e2be-4a36-9906-bf31fb8ca551","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":146,"box":{"x":69,"y":399,"width":771,"height":12}},{"id":"b2b0aab6-5d4b-4665-8f78-777db8718e56","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":146,"box":{"x":69,"y":414,"width":822,"height":12}},{"id":"e5ed4788-358e-489e-94c2-ba17aa2fa232","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":146,"box":{"x":68,"y":429,"width":809,"height":12}},{"id":"a6c68f5e-7cf6-457a-88d4-82a3252accec","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":146,"box":{"x":69,"y":445,"width":781,"height":11}},{"id":"c2f6a4a6-f625-4261-bc96-7949b0ba3b33","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":146,"box":{"x":68,"y":460,"width":833,"height":11}},{"id":"b2696a87-3117-4549-8827-f57b803a7789","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":146,"box":{"x":68,"y":475,"width":833,"height":11}},{"id":"f1e071f9-e92b-428b-8a9e-6fdb04602af9","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":146,"box":{"x":69,"y":490,"width":835,"height":11}},{"id":"25b554db-0ebc-47ef-a3e4-907962e070c9","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":146,"box":{"x":69,"y":505,"width":804,"height":11}},{"id":"e17baf62-82ea-4164-8f98-85f2727fee01","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":146,"box":{"x":70,"y":520,"width":816,"height":12}},{"id":"5b929ce9-76bb-41fe-9264-f97de1ef0031","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":146,"box":{"x":68,"y":535,"width":835,"height":11}},{"id":"85c28e4a-605f-4d62-95df-1779d0478d89","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":146,"box":{"x":69,"y":551,"width":834,"height":11}},{"id":"13cf3f27-b59a-45aa-bee1-99929be7c409","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":146,"box":{"x":69,"y":566,"width":757,"height":11}},{"id":"82b1970e-9628-4b39-a1bd-05c90bc5c521","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":146,"box":{"x":69,"y":581,"width":802,"height":11}},{"id":"9fd569d2-b90f-4018-a4cc-67262eb6ec5c","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":146,"box":{"x":101,"y":603,"width":799,"height":12}},{"id":"01cb2a46-d7da-4f3f-876f-ec4fb4feef48","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":146,"box":{"x":68,"y":618,"width":798,"height":12}},{"id":"c5a26fd5-8cf4-4403-a35b-62d333a60725","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":146,"box":{"x":70,"y":634,"width":795,"height":11}},{"id":"90915f63-6521-482f-b7a5-7a5d0746b320","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":146,"box":{"x":68,"y":649,"width":786,"height":11}},{"id":"7995f8ec-d87e-4e1d-9afc-9defc1aa0d4b","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":146,"box":{"x":69,"y":664,"width":839,"height":11}},{"id":"50fc744d-d6fa-4833-bb48-f86f386c3cd7","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":146,"box":{"x":69,"y":679,"width":795,"height":11}},{"id":"97ecdccb-3503-47e1-b31b-b982b4110a71","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":146,"box":{"x":68,"y":694,"width":819,"height":11}},{"id":"6451dc6a-f2cc-455e-89f3-b7e1cc23a75d","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":146,"box":{"x":69,"y":709,"width":808,"height":11}},{"id":"d4151f20-bf19-4bdb-992d-f0d5dd0e8b3e","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":146,"box":{"x":69,"y":724,"width":803,"height":12}},{"id":"58ef05d7-20ad-4b8f-a9a0-1ac2956c1e1a","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":146,"box":{"x":70,"y":739,"width":812,"height":12}},{"id":"3fe314c9-fb31-41f9-8bb2-737b5dab2196","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":146,"box":{"x":68,"y":755,"width":828,"height":11}},{"id":"2ee5b284-27a9-45e8-b481-80e68220f028","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":146,"box":{"x":68,"y":770,"width":788,"height":11}},{"id":"07842d9e-a656-4d46-91d1-5d7fc0786e6e","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":146,"box":{"x":69,"y":785,"width":779,"height":11}},{"id":"098ad350-0b1c-412d-8e5c-bd4383cd2860","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":146,"box":{"x":70,"y":800,"width":830,"height":11}},{"id":"28fbc4c6-8960-45af-8902-9e9acda37fb7","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":146,"box":{"x":69,"y":815,"width":828,"height":11}},{"id":"6bc42a0c-c097-4279-8b1d-b4ba372871cb","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":146,"box":{"x":68,"y":829,"width":762,"height":12}},{"id":"caf12d48-d606-4c4f-94ef-b52873e756a2","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":146,"box":{"x":101,"y":853,"width":768,"height":11}},{"id":"31e88ba5-2d54-4f98-b0ab-93507f9ee9a1","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":146,"box":{"x":69,"y":868,"width":819,"height":11}},{"id":"04b2d9c0-e630-4586-87a3-c9ba327f3219","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":146,"box":{"x":69,"y":882,"width":769,"height":12}},{"id":"b302a270-fcd7-4812-a105-5eb92494c29f","block_type":"box","text":"investment is $25.","page_number":146,"box":{"x":70,"y":898,"width":132,"height":10}},{"id":"c003861c-76c3-49a0-8fb5-b1905fd700bd","block_type":"box","text":"II-99","page_number":146,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9fc52fa7-b42c-438e-934e-3d613b660455","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e421988b-1fa4-49b4-94c3-b13f9417b547","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":147,"box":{"x":102,"y":45,"width":802,"height":11}},{"id":"e6508e41-407a-44f7-99e0-90147a41c200","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":147,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"6a0462dd-261f-42c9-839a-77c8ab9c17df","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":147,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"7c4f2c06-97ab-4269-aacb-d03660193507","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":147,"box":{"x":70,"y":90,"width":751,"height":11}},{"id":"74ab38e4-d5ed-4531-95c8-39676f38af5b","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":147,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"9081795b-c7f5-41e0-82fe-3ee6533a8ef5","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":147,"box":{"x":102,"y":128,"width":768,"height":11}},{"id":"a69c599b-332f-4985-9eb9-a650d3f0a8c4","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":147,"box":{"x":68,"y":143,"width":807,"height":11}},{"id":"0a99a486-6f83-47d3-93df-9bf5ad1b1329","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":147,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"97994a36-e345-4363-860a-227bad721abe","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":147,"box":{"x":69,"y":173,"width":814,"height":11}},{"id":"591a510e-c41c-493d-a923-62bb3a80fc0f","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":147,"box":{"x":68,"y":188,"width":740,"height":11}},{"id":"4feaa1fd-e39d-4212-ac96-3067273244e6","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":147,"box":{"x":102,"y":211,"width":795,"height":11}},{"id":"da67c6b4-eaff-4dbd-b57f-1c93ab01392b","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":147,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"853de9b2-b532-4f01-8468-d2a6b0a1d3b8","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":147,"box":{"x":68,"y":241,"width":827,"height":11}},{"id":"ae73fa0a-4fe2-4a54-864c-124fb60e3886","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":147,"box":{"x":68,"y":256,"width":750,"height":12}},{"id":"fbb6db96-0bfe-472e-847f-b1d432d76d89","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":147,"box":{"x":101,"y":279,"width":776,"height":11}},{"id":"d43c6240-4417-489d-a03c-1899332f6e10","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":147,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"a0d411f5-c203-40c9-bab1-43319b47d075","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":147,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"1108ffe9-e951-4713-897f-82cc4af06c49","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":147,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"0c9f2bd0-b1fd-49f8-987b-8fa41d84964f","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":147,"box":{"x":70,"y":339,"width":839,"height":12}},{"id":"8bec8418-8704-4a47-a631-528c53cf4575","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":147,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"87f84767-7220-4ccf-a1d3-5fee88fecb0f","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":147,"box":{"x":68,"y":370,"width":827,"height":11}},{"id":"351c87d8-427e-4fb2-87a4-fe9d26027638","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":147,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"ae9bb96e-44a2-4cb2-8c90-91aac203eef8","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":147,"box":{"x":70,"y":400,"width":788,"height":11}},{"id":"98dfc4f9-86c4-465c-a2c4-65435760a108","block_type":"box","text":"adviser.","page_number":147,"box":{"x":69,"y":415,"width":53,"height":9}},{"id":"52f0ed3d-e9ec-4311-b4e6-e3be788cbd68","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":147,"box":{"x":101,"y":438,"width":795,"height":11}},{"id":"6353a00a-6cf5-4142-aa01-d9a1eaa47a4c","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":147,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"cfa159f8-c7b6-4393-a907-9b24e1a65414","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":147,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"4e9f2507-cba6-466d-9c64-c6d31bcae6a9","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":147,"box":{"x":69,"y":483,"width":834,"height":11}},{"id":"74f1747e-a5eb-478a-aad7-de66923a5dc4","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":147,"box":{"x":68,"y":498,"width":747,"height":11}},{"id":"d3079926-053e-4bc0-ac0d-9a879eb352e2","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":147,"box":{"x":70,"y":513,"width":809,"height":11}},{"id":"3604c8dc-1322-45f9-8ae1-a925016f1603","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":147,"box":{"x":69,"y":528,"width":819,"height":12}},{"id":"5c211c8b-131a-4301-9b65-cc36efe27244","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":147,"box":{"x":68,"y":543,"width":840,"height":12}},{"id":"d9bbe555-4c6b-418a-a695-82f803f9acd9","block_type":"box","text":"also be restricted from making additional investments.","page_number":147,"box":{"x":69,"y":559,"width":388,"height":11}},{"id":"cd125ee8-2b3d-4532-886c-c4b6a9cf9ddb","block_type":"box","text":"In-Kind Purchases","page_number":147,"box":{"x":102,"y":582,"width":127,"height":8}},{"id":"e3ec9038-7b05-45d5-8bb4-5040936ed872","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":147,"box":{"x":230,"y":581,"width":649,"height":11}},{"id":"8be1408f-1006-40e7-a553-199051b2b37e","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":147,"box":{"x":69,"y":596,"width":779,"height":12}},{"id":"24833dea-f9ef-4e28-bc0f-6ca4fe2f4224","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":147,"box":{"x":70,"y":612,"width":820,"height":11}},{"id":"bc42a8c2-1c40-4d8c-a7f3-76f3211e61fa","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":147,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"d4a7f2cf-893e-41ce-b8ea-2faa608f5038","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":147,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"28794373-ffac-4e40-b910-d163829a0146","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":147,"box":{"x":69,"y":657,"width":817,"height":11}},{"id":"70e44fa4-a02b-4be1-a02f-3a9cb6af7c48","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":147,"box":{"x":68,"y":672,"width":837,"height":11}},{"id":"8de635aa-b0d5-41f8-9206-ba84f256ad0b","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":147,"box":{"x":69,"y":687,"width":835,"height":11}},{"id":"39f82162-325a-464b-85d6-3e00bb65a515","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":147,"box":{"x":69,"y":702,"width":795,"height":12}},{"id":"0e068381-f720-460e-9888-342c382482c6","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":147,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"c5f900ae-9833-486e-b539-733aac03819a","block_type":"box","text":"has settled.","page_number":147,"box":{"x":69,"y":733,"width":83,"height":9}},{"id":"f576bcd0-16d5-4648-9327-5d391c8d801c","block_type":"box","text":"Institutional Shares","page_number":147,"box":{"x":69,"y":763,"width":142,"height":9}},{"id":"3d5460ca-d603-4231-b48d-55c41c115a34","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":147,"box":{"x":102,"y":786,"width":759,"height":11}},{"id":"882cd206-6baf-435b-900a-60f63e8f71d7","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":147,"box":{"x":70,"y":801,"width":756,"height":11}},{"id":"a1ad8879-fe41-44ae-bb02-853bbe71f08e","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":147,"box":{"x":70,"y":816,"width":775,"height":11}},{"id":"9f0bf9bf-f772-4d20-853e-342f6f80da8d","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":147,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"a3df7790-3fbb-4024-aaad-5230703a4542","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":147,"box":{"x":69,"y":846,"width":807,"height":11}},{"id":"cc30745f-bf88-42ef-9c76-74b83a54c1d2","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":147,"box":{"x":69,"y":861,"width":276,"height":11}},{"id":"9af30276-9a50-4483-985c-e2436ffcfdf3","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":147,"box":{"x":102,"y":884,"width":259,"height":11}},{"id":"4d8f3eba-f82d-413f-a092-1c1c298c6fb6","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":147,"box":{"x":369,"y":884,"width":540,"height":11}},{"id":"f6355792-d887-4db3-99c7-d01fc1ca66b7","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":147,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"83d90cba-ec21-4e85-9d4d-cd6cfdc2ab35","block_type":"box","text":"II-100","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"60e3a968-8641-457a-b094-f1d6aa7ade0d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3c99927b-855a-42a4-9edd-7f723d7ff0a7","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":148,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"6d7a109e-c23b-4fe3-90aa-1b3079990352","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":148,"box":{"x":69,"y":60,"width":819,"height":11}},{"id":"7b2b11e1-e46f-4cfb-b2fa-5a253bed8c3f","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":148,"box":{"x":69,"y":75,"width":840,"height":11}},{"id":"c36c9025-f3fd-4b10-af03-12264cbac96f","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":148,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"6badae0e-8a29-4ca1-9ceb-43056a9e8e06","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":148,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"20a0824a-26ac-43e7-af5b-cfa928f6994b","block_type":"box","text":"these fees and conditions.","page_number":148,"box":{"x":68,"y":120,"width":189,"height":9}},{"id":"000381f7-9358-42a7-8de6-0c085f574578","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":148,"box":{"x":102,"y":143,"width":805,"height":11}},{"id":"627781b7-ae70-4b47-a7f8-f12a21619be0","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":148,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"2eba66fb-305b-4069-82ae-830fa49dcfc7","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":148,"box":{"x":69,"y":173,"width":817,"height":11}},{"id":"dc4cd52d-0e3d-4572-a87c-a21ac5a4a0d4","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":148,"box":{"x":70,"y":188,"width":831,"height":12}},{"id":"d7a54bb8-3702-4f78-8d0b-78cde06f0b68","block_type":"box","text":"incurred by the Fund.","page_number":148,"box":{"x":70,"y":204,"width":147,"height":11}},{"id":"b3826861-cef6-4e7a-8088-32a5a4c7597e","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":148,"box":{"x":102,"y":226,"width":774,"height":11}},{"id":"0ce98a21-aaf1-4c59-834b-2382891ec58c","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":148,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"24770012-792a-44ef-908b-5878ac5b0c9d","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":148,"box":{"x":70,"y":256,"width":773,"height":11}},{"id":"7b66e52d-3a9d-4e54-939e-dd4bfd913102","block_type":"box","text":"immediate family members of such persons; individuals and “Institutional Investors” with a minimum initial","page_number":148,"box":{"x":70,"y":271,"width":762,"height":12}},{"id":"23ed88fc-d5bc-4294-8ce7-b9a73638160f","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":148,"box":{"x":70,"y":286,"width":821,"height":12}},{"id":"e3dd13c1-0081-4775-945c-e091912fca50","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":148,"box":{"x":69,"y":302,"width":819,"height":11}},{"id":"4fc23c96-7c88-4c5c-8443-314ca46caa08","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":148,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"e8c8df2a-7953-41b5-8e02-923b8523e73d","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":148,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"2ca71d3c-dbf4-410b-9674-006eb5c2e038","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":148,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"a96e8bbb-0c98-44ac-be53-ed99b2078d83","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":148,"box":{"x":69,"y":362,"width":815,"height":11}},{"id":"6157540b-5dda-4102-ae59-c9287607ee01","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":148,"box":{"x":69,"y":377,"width":789,"height":12}},{"id":"5020f522-9bcd-48cb-b3ae-7e380c0777c1","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":148,"box":{"x":70,"y":392,"width":772,"height":12}},{"id":"093ad9ba-48da-4966-8c46-56abb89fdbc5","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":148,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"62e6bf17-e8b2-456b-a5f9-3d8748e15a84","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":148,"box":{"x":68,"y":423,"width":783,"height":11}},{"id":"715b3680-bf7e-44bc-994d-30ce6544ecb0","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":148,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"ad662911-85e8-4d68-9dce-d3111b706c09","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":148,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"f5307c86-e591-4d08-a9cf-d77a94202c96","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":148,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"66ff7520-e023-422d-a17c-df9bc2e0885d","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":148,"box":{"x":69,"y":483,"width":751,"height":11}},{"id":"e02f4ee0-61a1-4baa-8c1d-805be2c492f4","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":148,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"ec49915a-efbf-4ae4-82c3-73dab29a2d56","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":148,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"2fad8094-e978-448f-84f4-3932f8ea10b8","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":148,"box":{"x":69,"y":528,"width":771,"height":12}},{"id":"7984ece4-e88e-4222-a590-a7aa0cc6edba","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":148,"box":{"x":69,"y":543,"width":822,"height":11}},{"id":"4d40dd37-b505-4b8a-81e2-519f4b0f2aa2","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":148,"box":{"x":68,"y":559,"width":771,"height":11}},{"id":"3e9c979a-8bad-49ba-9ab9-d85fdbd29c81","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":148,"box":{"x":70,"y":573,"width":801,"height":12}},{"id":"2431a475-5cad-484b-8943-63f73d917d4b","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":148,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"ce71a69e-9689-4fd3-a218-548cd0110874","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":148,"box":{"x":102,"y":612,"width":280,"height":11}},{"id":"0e2ce149-3b9f-4f2e-9340-786e51603f23","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":148,"box":{"x":389,"y":612,"width":496,"height":11}},{"id":"e9adac24-6dd3-494d-8488-9ff4120b1fcd","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":148,"box":{"x":70,"y":627,"width":812,"height":11}},{"id":"d2a3bb85-92d7-48dc-967b-fb271c1bd397","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":148,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"c5013b41-a19f-497b-acb5-577a78177164","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":148,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"9ca94a05-88a9-4876-961b-14ed650cb132","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":148,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"152a41d7-12c9-4e3c-96a6-274561e13fbd","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":148,"box":{"x":69,"y":687,"width":279,"height":11}},{"id":"4d15b577-a99d-4a78-9a1a-0d3fa6424a25","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":148,"box":{"x":69,"y":718,"width":382,"height":11}},{"id":"4c785667-f3d7-4ac8-a59b-04936b87cc5e","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":148,"box":{"x":102,"y":740,"width":770,"height":11}},{"id":"78168f67-3e6b-4b1f-b37e-aa91d4cca60b","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":148,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"325d4e77-c611-4177-ab64-ec554d5834bd","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":148,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"05fdba6f-e492-46d9-acdf-964a4fc445b2","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":148,"box":{"x":68,"y":785,"width":840,"height":12}},{"id":"09d081ad-2113-405d-a232-3de7238d7b2d","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":148,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"740455d6-17d8-49f8-a8a3-26d2f27fe3f3","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":148,"box":{"x":69,"y":816,"width":791,"height":11}},{"id":"3e18128c-3a04-4d62-8102-2b52927f1d0b","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":148,"box":{"x":70,"y":831,"width":727,"height":11}},{"id":"95fbd655-ea00-450a-b6c6-6be1e60d921b","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":148,"box":{"x":102,"y":853,"width":770,"height":12}},{"id":"ba76ec70-4ce0-43bc-b700-e368738be071","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":148,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"a30be0d1-6018-45ae-afc8-5224b54ad549","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":148,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"4b5e592b-eba4-4570-a59a-bb56a90eb13b","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":148,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"43e359ed-ef21-466f-93df-3d7cc4ddaaf2","block_type":"box","text":"II-101","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f6bb30dc-e33c-43f8-bf51-3384d49fdd80","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"30a70b1e-c561-4c5f-bcc6-826d067a0061","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":149,"box":{"x":68,"y":45,"width":808,"height":11}},{"id":"c749a1ff-7068-4ffc-818c-56c219687790","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":149,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"96ac7e83-df14-49a1-9840-97a45f50dda1","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":149,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"dcaa343c-24bd-45ad-a030-41d321158343","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":149,"box":{"x":70,"y":90,"width":789,"height":11}},{"id":"b6026ee0-46d7-44ef-b013-b6ed0e3d9e9a","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":149,"box":{"x":70,"y":105,"width":805,"height":11}},{"id":"f137d582-92a7-433d-a87d-e695f8643619","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":149,"box":{"x":70,"y":120,"width":792,"height":12}},{"id":"a9ac6f8d-836a-475f-858c-1e47cd2c8ada","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":149,"box":{"x":69,"y":135,"width":826,"height":12}},{"id":"24f3cb38-4b45-412d-bbd3-39ba07fd0601","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":149,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"842e4e49-c8da-4ba4-816a-faa99abdde1d","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":149,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"8e28fc7e-253b-4bc8-91f5-29056a1a08d2","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":149,"box":{"x":69,"y":181,"width":358,"height":9}},{"id":"d7357f79-cb74-47ea-b033-7f23f22103ac","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":149,"box":{"x":102,"y":203,"width":734,"height":12}},{"id":"00ad12db-d168-43ce-adda-e9b3e3106eab","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":149,"box":{"x":70,"y":218,"width":785,"height":11}},{"id":"cd9db703-a215-4320-9e2e-a6ea3bcfcb33","block_type":"box","text":"periods indicated.","page_number":149,"box":{"x":70,"y":234,"width":124,"height":11}},{"id":"bbd12c42-b355-4349-b008-45414b6f234c","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":149,"box":{"x":101,"y":256,"width":806,"height":11}},{"id":"e3394ebb-1e4a-4605-99c4-79473d5be8df","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":149,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"6ac94076-e8f3-4923-9ad6-ad56ef12b900","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":149,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"a884c9cd-6621-44a0-9f77-359367c6decd","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":149,"box":{"x":69,"y":302,"width":714,"height":11}},{"id":"e679125c-cc2b-4b5b-b73f-cfc0bb4c9362","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":149,"box":{"x":69,"y":332,"width":297,"height":11}},{"id":"3fe8bd5d-dda9-4e73-92be-16857cfae12f","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":149,"box":{"x":102,"y":355,"width":761,"height":11}},{"id":"94895e83-f369-40c7-b157-c26ae69980e3","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":149,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"6566783b-f050-4341-bcd8-ec4cd1532fa6","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":149,"box":{"x":69,"y":385,"width":812,"height":11}},{"id":"2f514c62-ae3f-44ec-b64d-63023c14c7df","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":149,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"5bf6b4d6-c2d3-4c46-a7a9-2b025bf94c82","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":149,"box":{"x":69,"y":415,"width":578,"height":9}},{"id":"37c0ce3e-3ab0-493a-b9e5-f98890ae8ca9","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":149,"box":{"x":102,"y":438,"width":734,"height":11}},{"id":"f69b9b27-7cb5-4e27-b122-3257439fca5a","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":149,"box":{"x":70,"y":453,"width":800,"height":11}},{"id":"e669d6ea-22a6-466a-a7ee-f5eafe8b6b66","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":149,"box":{"x":101,"y":475,"width":806,"height":12}},{"id":"48ababf4-d65f-4f13-8197-5b70c3d033d1","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":149,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"9597a689-2c8b-4e95-b3c8-367b8ac9428b","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":149,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"03ab17ee-197d-49f3-9c62-6526a296efe8","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":149,"box":{"x":69,"y":521,"width":714,"height":11}},{"id":"47f64b06-0ff6-4c57-bc49-0afe9dfea688","block_type":"box","text":"Reduced Initial Sales Charges","page_number":149,"box":{"x":69,"y":551,"width":219,"height":11}},{"id":"cdf88f0c-452b-4349-b2c1-419caaf176fd","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":149,"box":{"x":102,"y":574,"width":782,"height":11}},{"id":"fb93e70e-f7c5-419e-b0ff-e1a6daad395c","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":149,"box":{"x":69,"y":589,"width":827,"height":11}},{"id":"cc10dfd2-ea8b-4634-8b51-dc7f1f731877","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":149,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"d6d42547-d0e0-4ee3-948e-62f139401363","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":149,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"10d154d4-1c49-4488-bb15-617cdc104982","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":149,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"5fcc5dcb-2242-4b9e-a149-36e1cc2d7a8c","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":149,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"5ef09050-018f-424c-a325-b9fe7612af34","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":149,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"b7ea8265-2d15-4703-84f8-acbb1fab171e","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":149,"box":{"x":70,"y":680,"width":603,"height":11}},{"id":"209c3303-acaf-4bd3-bdd0-8d74353dfdd0","block_type":"box","text":"Reinvested Dividends.","page_number":149,"box":{"x":102,"y":702,"width":160,"height":9}},{"id":"a8b26edc-37ae-4884-900b-9dcbf6967733","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":149,"box":{"x":268,"y":702,"width":566,"height":12}},{"id":"84135bb6-12ae-4a0d-b51a-f6dc6e319b3f","block_type":"box","text":"reinvestment of dividends.","page_number":149,"box":{"x":69,"y":717,"width":186,"height":9}},{"id":"3f7e315a-1c5a-4868-ac4c-7cea5ce6bef7","block_type":"box","text":"Right of Accumulation.","page_number":149,"box":{"x":102,"y":740,"width":166,"height":11}},{"id":"272d2dc8-7abe-42d8-be66-da7317815568","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":149,"box":{"x":275,"y":740,"width":574,"height":11}},{"id":"dd197621-c816-41ab-8d6b-7131bab4c6a1","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":149,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"66781356-477a-4297-8724-d81a33e658be","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":149,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"f85dcecc-fe06-46f5-8f58-590882b48de1","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":149,"box":{"x":70,"y":785,"width":825,"height":11}},{"id":"97e80870-7a37-4be6-b1eb-aac1cf1bdc0f","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":149,"box":{"x":69,"y":801,"width":780,"height":11}},{"id":"9289217b-35ff-477d-8d00-d584ec19adad","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":149,"box":{"x":70,"y":816,"width":828,"height":11}},{"id":"01cff003-cdb2-44a3-96a1-32316d6df857","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":149,"box":{"x":69,"y":831,"width":804,"height":11}},{"id":"04c6e91c-dc2a-4c2f-8494-b6395326f466","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":149,"box":{"x":70,"y":846,"width":794,"height":11}},{"id":"de1bc2ec-271f-4646-b1ce-ed51fed6f885","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":149,"box":{"x":70,"y":861,"width":814,"height":11}},{"id":"824d23ea-2af3-4fda-aa2d-791a2b01b3af","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":149,"box":{"x":70,"y":876,"width":828,"height":11}},{"id":"78dac279-855b-48d6-86e9-3ce4b6583987","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":149,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"b67c19e0-fbb2-47ef-bda1-a27cf4f5d79d","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":149,"box":{"x":70,"y":906,"width":776,"height":12}},{"id":"211dbc93-2436-40d6-930b-a47753afb16e","block_type":"box","text":"II-102","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3b79bee4-ce01-4db0-b60d-1b15473fec12","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce57d375-2b46-4e1c-9cb3-dfbf9fdb4cf5","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":150,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"96001ba2-c2ef-4f51-9442-d08886211fca","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":150,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"be2bdea6-75e4-4759-8196-457f4a401a09","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":150,"box":{"x":70,"y":75,"width":829,"height":11}},{"id":"2e212850-3aa6-4f1e-b11a-157acf951e8e","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":150,"box":{"x":70,"y":90,"width":774,"height":11}},{"id":"b4bc74a2-3c0b-4bcd-86ee-abffa8af4305","block_type":"box","text":"Letter of Intent.","page_number":150,"box":{"x":102,"y":113,"width":114,"height":9}},{"id":"57475614-6541-4194-95df-1eaf8624a89e","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":150,"box":{"x":222,"y":113,"width":680,"height":11}},{"id":"2875f4eb-727c-4471-8049-26d168722982","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":150,"box":{"x":70,"y":128,"width":820,"height":11}},{"id":"08de3705-7e74-4487-b23e-5242e8dd83f0","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":150,"box":{"x":68,"y":143,"width":792,"height":11}},{"id":"0725b23b-83a8-49d8-a375-8f47a4b5d7d3","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":150,"box":{"x":70,"y":158,"width":802,"height":11}},{"id":"439e6752-a5f4-4ebe-99a1-53a9dae51f61","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":150,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"f94be09b-6a70-481f-85b5-566a19352d52","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":150,"box":{"x":69,"y":188,"width":800,"height":12}},{"id":"82cacc35-c839-4c5c-8f63-b1c5652ea15a","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":150,"box":{"x":70,"y":203,"width":826,"height":12}},{"id":"36c5cef4-3bed-4ba5-9357-d242fed3bd01","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":150,"box":{"x":69,"y":218,"width":822,"height":12}},{"id":"ca6e515b-e68a-4bd4-8f6b-3b5efde884b1","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":150,"box":{"x":70,"y":234,"width":764,"height":11}},{"id":"f91c63bb-07e0-4f15-a077-073618b71ab0","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":150,"box":{"x":70,"y":249,"width":800,"height":11}},{"id":"a7467dd6-e1eb-4392-939e-04d4e611ad4d","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":150,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"ab72f303-b8b4-4885-9460-1185046c5197","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":150,"box":{"x":68,"y":279,"width":835,"height":11}},{"id":"a93e4bda-937d-4016-9fdb-500af2384275","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":150,"box":{"x":70,"y":294,"width":811,"height":11}},{"id":"44e0441b-1f7a-4bf6-bd3a-9182afb019a7","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":150,"box":{"x":69,"y":309,"width":814,"height":11}},{"id":"d93d1c3a-b658-43a3-af3e-edd289b37eed","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":150,"box":{"x":68,"y":324,"width":827,"height":12}},{"id":"3ade6a71-0fb7-49ec-b816-ee8a746a7645","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":150,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"7058542b-3e56-4f24-bd5d-99f0e170da81","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":150,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"0c843286-1b77-409a-9c20-b338ac303a7b","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":150,"box":{"x":70,"y":370,"width":807,"height":11}},{"id":"61a246ac-9955-4c12-ad85-c27f174c8d5d","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":150,"box":{"x":69,"y":385,"width":423,"height":11}},{"id":"47611b93-397e-4520-bdea-f54df05ebb12","block_type":"box","text":"Placement Fees.","page_number":150,"box":{"x":102,"y":408,"width":120,"height":8}},{"id":"a512d487-085d-46c2-87d8-afaea1c2a42a","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":150,"box":{"x":102,"y":430,"width":777,"height":11}},{"id":"f4afdd74-abb2-4a57-b44b-ae584b01f132","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":150,"box":{"x":68,"y":445,"width":704,"height":12}},{"id":"fa81ddb0-bc04-4acd-868c-7994c0fb0924","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":150,"box":{"x":102,"y":468,"width":741,"height":11}},{"id":"bc019280-61fe-4a50-80aa-2512bffcb320","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":495,"width":361,"height":10}},{"id":"4d04102a-43f7-44f0-863b-ff2485665f54","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":150,"box":{"x":535,"y":496,"width":288,"height":9}},{"id":"c24642d0-6ada-402f-8d59-6af0cfab152d","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":510,"width":361,"height":11}},{"id":"1235ca60-b234-4787-b58c-39bc71a0c670","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":150,"box":{"x":535,"y":511,"width":288,"height":9}},{"id":"297d7bb8-3c0c-4c2d-8d7b-b67b59641487","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":525,"width":345,"height":11}},{"id":"d02e1f15-17e7-4071-b7f6-c40be1be45a1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":150,"box":{"x":518,"y":526,"width":305,"height":9}},{"id":"5f0448d7-3a30-4b8e-ab08-a0d935f0383b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":150,"box":{"x":101,"y":550,"width":776,"height":11}},{"id":"ef3f9114-6eef-4694-99ec-f90d0c4b993d","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":150,"box":{"x":69,"y":565,"width":774,"height":11}},{"id":"8959740a-8021-4ffc-b0e0-579e6afa3221","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":150,"box":{"x":70,"y":580,"width":824,"height":11}},{"id":"80253e51-d9ad-4411-99ab-4579dbcd9e08","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":150,"box":{"x":69,"y":595,"width":695,"height":11}},{"id":"466f468e-6331-4e56-907d-32b68fd99f17","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":622,"width":410,"height":11}},{"id":"7306fc88-9e53-43fd-a0a2-df6f787f8b41","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":150,"box":{"x":583,"y":623,"width":240,"height":9}},{"id":"24c066d9-509a-41ae-9d4b-591e1b0076e5","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":637,"width":361,"height":11}},{"id":"8c5bd662-e077-42c5-b7b3-fa68af86b1a3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":150,"box":{"x":535,"y":638,"width":288,"height":9}},{"id":"638cd8c5-176f-4d34-baa1-6c54166c74cf","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":652,"width":345,"height":11}},{"id":"5630a26f-0385-47f1-96ae-ddf726f548df","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":150,"box":{"x":518,"y":653,"width":305,"height":9}},{"id":"a937b0a4-2aa6-4b7f-87bb-df2480ee83cc","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":150,"box":{"x":101,"y":677,"width":806,"height":11}},{"id":"8bf6fdcb-2523-4197-aa35-2c228a7af4cd","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":150,"box":{"x":68,"y":692,"width":821,"height":11}},{"id":"173928da-e0e3-4edf-82e9-321bbe531d7f","block_type":"box","text":"SM","page_number":150,"box":{"x":890,"y":693,"width":11,"height":4}},{"id":"1c123f2c-0f10-46b1-ac26-0c70e16a6e59","block_type":"box","text":",","page_number":150,"box":{"x":903,"y":700,"width":2,"height":3}},{"id":"2526b506-63c5-4bec-9204-25791e3277f3","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":150,"box":{"x":70,"y":707,"width":816,"height":12}},{"id":"23cb9443-1572-4f0a-84b4-f6aab1040846","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":150,"box":{"x":70,"y":722,"width":835,"height":12}},{"id":"b5879664-98f5-4915-85d2-a7be7cfd1750","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":150,"box":{"x":70,"y":738,"width":520,"height":11}},{"id":"c222b405-81ee-4f30-9fee-1607f1e8deb9","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":765,"width":361,"height":10}},{"id":"59d59715-29bf-4ef3-a08f-eb1d736aef89","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":150,"box":{"x":535,"y":765,"width":288,"height":9}},{"id":"0ef2a23c-e993-43c6-bc7d-66cc086055f0","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":780,"width":361,"height":10}},{"id":"12fc7472-418d-46d0-8397-ae45ddb37925","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":150,"box":{"x":535,"y":780,"width":288,"height":9}},{"id":"8735c952-a2b7-469d-ad6f-8aa3e2a1854d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":795,"width":345,"height":10}},{"id":"a853b072-3c6e-4cef-93a2-bf12c1e8db1e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":150,"box":{"x":518,"y":796,"width":305,"height":8}},{"id":"57228924-f874-47e8-8fca-eb951d53f2ec","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":150,"box":{"x":101,"y":819,"width":743,"height":12}},{"id":"0c8c0a07-57e7-487f-beaf-d60efc19b40d","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":150,"box":{"x":70,"y":835,"width":674,"height":11}},{"id":"56b1fdd2-9a70-4253-9f1b-36b6a8037472","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":862,"width":361,"height":10}},{"id":"709f66e9-c8e3-4ad9-ad8e-2e2e80dc0436","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":150,"box":{"x":535,"y":862,"width":288,"height":9}},{"id":"3d6d0292-8887-4a4b-9254-bacbd0278c37","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":877,"width":361,"height":10}},{"id":"a71b4c34-e6e4-4e66-9f82-7a5a52c0f596","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":150,"box":{"x":535,"y":878,"width":288,"height":8}},{"id":"eb7bb062-4f67-4068-a599-5af787c40e4f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":150,"box":{"x":167,"y":892,"width":345,"height":10}},{"id":"e3cd9cfb-8ab1-4f16-96bd-ad43a6e8e0ef","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":150,"box":{"x":518,"y":893,"width":305,"height":9}},{"id":"66c55430-bfa4-444a-8220-b5b520a3c599","block_type":"box","text":"II-103","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5a561805-0f7a-42ae-bc88-b43c5cb3597d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72219a6f-06e5-4419-a970-54fc5858b182","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":151,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"59ae889c-ae31-412a-b10e-d483e93c4493","block_type":"box","text":"may be up to the following amounts:","page_number":151,"box":{"x":69,"y":60,"width":257,"height":11}},{"id":"9529ac0a-c35c-4f70-bd47-482f2e46c06a","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":87,"width":410,"height":11}},{"id":"389ec2fb-460b-48f5-a009-3c1d33f44d70","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":583,"y":88,"width":240,"height":8}},{"id":"8c3f9314-db6b-4aca-b627-62432a011fb9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":102,"width":361,"height":10}},{"id":"07d1cfcb-9142-4633-b098-277d71805a8f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":535,"y":103,"width":288,"height":9}},{"id":"a48c199f-12aa-4e8d-bc5c-c55317acb1a7","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":117,"width":345,"height":11}},{"id":"1b17a7a7-954b-4c92-a673-110412b4eeb2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":151,"box":{"x":518,"y":118,"width":305,"height":9}},{"id":"15ed659d-7d65-4246-935b-055d064fbeeb","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":151,"box":{"x":101,"y":142,"width":768,"height":11}},{"id":"250cbf73-21e9-4646-881a-13ec628dfd5c","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":151,"box":{"x":70,"y":157,"width":371,"height":11}},{"id":"acde7585-602a-4804-be38-eee154e8d977","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":184,"width":361,"height":10}},{"id":"2734bb70-c30c-4ad4-8198-81c47a9722ba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":151,"box":{"x":535,"y":185,"width":288,"height":8}},{"id":"e73222e0-76fe-4b15-81bb-4804c2fc9e84","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":199,"width":361,"height":10}},{"id":"8a153a3d-4da2-4987-8558-0b5570280e09","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":151,"box":{"x":535,"y":200,"width":288,"height":9}},{"id":"f07899d7-15fe-48d7-81d9-6f3516d9aaa5","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":214,"width":345,"height":11}},{"id":"4b51f123-8fa1-483e-a13f-bd1598bc7cfd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":151,"box":{"x":518,"y":215,"width":305,"height":9}},{"id":"9c29fdfc-38a3-47dd-905d-f0eac6fa2321","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":151,"box":{"x":101,"y":239,"width":778,"height":11}},{"id":"1746e085-67af-4eb7-a65c-d34eba5c6abe","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":151,"box":{"x":69,"y":254,"width":830,"height":11}},{"id":"b205584a-f90f-42b2-a729-059225ede301","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":151,"box":{"x":70,"y":269,"width":371,"height":11}},{"id":"6fc05e69-346d-4441-8540-7e1458c42cd1","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":296,"width":410,"height":11}},{"id":"32d7bc88-fbf9-488f-bce1-659a3c1fa141","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":151,"box":{"x":583,"y":297,"width":240,"height":9}},{"id":"6330e4ad-ffb3-4a07-a899-7c3f0a880f39","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":311,"width":361,"height":11}},{"id":"016800e8-e47c-448e-aba9-f0744ef29a76","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":535,"y":312,"width":288,"height":9}},{"id":"74ca2189-648e-4cd2-96b8-22ad5a853ade","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":326,"width":345,"height":11}},{"id":"d4082dea-e086-4da5-b451-713e1179d3b0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":518,"y":327,"width":305,"height":9}},{"id":"babc2c77-9eaf-4403-9b9d-c1e934387a1f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":151,"box":{"x":101,"y":351,"width":779,"height":11}},{"id":"7b0d7891-d994-4dc8-91d4-289cd66ba8fe","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":151,"box":{"x":70,"y":366,"width":780,"height":11}},{"id":"822120ed-901f-417a-a1dd-03eff773214c","block_type":"box","text":"$250,000 and above . . . .","page_number":151,"box":{"x":167,"y":393,"width":182,"height":11}},{"id":"8a55b322-d78d-4b7f-8023-28c2a8e94c42","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":355,"y":394,"width":468,"height":9}},{"id":"a7f43a49-810c-4691-83ae-42af388ccde6","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":151,"box":{"x":101,"y":418,"width":779,"height":11}},{"id":"c18dbf2c-9541-4587-972d-388ff133440e","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":151,"box":{"x":70,"y":433,"width":819,"height":11}},{"id":"7350ccf1-79aa-4c1c-af8e-d3b57c4c5525","block_type":"box","text":"the following amounts:","page_number":151,"box":{"x":68,"y":448,"width":161,"height":11}},{"id":"84cf74e0-c2d4-4440-823e-beda59a62fe3","block_type":"box","text":"$100,000 and above . . . .","page_number":151,"box":{"x":167,"y":475,"width":182,"height":11}},{"id":"5f2a7a00-afad-4680-a227-d66472c10d23","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":355,"y":476,"width":468,"height":8}},{"id":"f12eda81-3d8a-4ef6-a522-546504c17725","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":151,"box":{"x":101,"y":499,"width":779,"height":11}},{"id":"17fb82f5-306c-4c8f-bf18-cb131dee6215","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":151,"box":{"x":70,"y":515,"width":775,"height":11}},{"id":"5b7e58f5-203f-40ab-ab4e-1b5d2b39f1a9","block_type":"box","text":"$250,000 and above . . . .","page_number":151,"box":{"x":167,"y":542,"width":182,"height":11}},{"id":"dd628b4a-250b-411d-bb90-4309d32c1f95","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":355,"y":542,"width":468,"height":9}},{"id":"0b7a3511-bfab-4ccd-96e3-5906ad1f7b02","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":151,"box":{"x":101,"y":566,"width":788,"height":11}},{"id":"1a63a800-56b3-473c-ac63-3003db3aba9a","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":151,"box":{"x":69,"y":581,"width":792,"height":11}},{"id":"6e8680aa-7d27-4094-b1dd-c5a527e59d41","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":151,"box":{"x":70,"y":597,"width":787,"height":11}},{"id":"96472778-984c-4713-876b-501fba9ebae9","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":151,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"f3ae03a6-20b9-4ef6-bbaf-ddfd3daada6b","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":151,"box":{"x":70,"y":627,"width":729,"height":11}},{"id":"b09bf8a2-cd55-41aa-8322-4e57f2418746","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":654,"width":410,"height":11}},{"id":"ecc9b1e0-3296-4ef8-adb2-158c003d64bb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":151,"box":{"x":583,"y":655,"width":240,"height":8}},{"id":"142be822-1806-47ac-b272-30d60c1c0bf4","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":669,"width":361,"height":10}},{"id":"8824a7c7-2ca3-4924-8ff0-5eb995f63123","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":535,"y":670,"width":288,"height":9}},{"id":"76d5fe26-0cba-4d43-ac96-da569fb9c5b2","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":684,"width":345,"height":10}},{"id":"3d37f4b7-830a-4cc7-83e4-9e3262e71e2d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":518,"y":685,"width":305,"height":9}},{"id":"2730af87-d695-450a-81e3-78119c12dd53","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":151,"box":{"x":101,"y":709,"width":801,"height":11}},{"id":"515eba8c-7a94-4deb-88ed-7b69e150d2ed","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":151,"box":{"x":69,"y":724,"width":769,"height":11}},{"id":"88a42e04-7d6e-455a-b45a-f7f542c4d6b4","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":151,"box":{"x":70,"y":739,"width":818,"height":10}},{"id":"a529c55f-a602-4196-bf18-6ca9c3ded9af","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":151,"box":{"x":68,"y":754,"width":401,"height":11}},{"id":"14620f35-b80d-4909-b3ac-3cfa69268e6a","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":781,"width":410,"height":11}},{"id":"392033ee-7675-4cae-bdc3-3b6699d11885","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":151,"box":{"x":583,"y":782,"width":240,"height":9}},{"id":"6406a984-3fe5-494c-b44e-32a956ff88dd","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":796,"width":361,"height":11}},{"id":"75ca1b05-8dc7-4095-8770-cdced9fe8bec","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":151,"box":{"x":535,"y":797,"width":288,"height":9}},{"id":"8ab4c8cd-15bd-47f7-831e-f67a08cc4b07","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":151,"box":{"x":167,"y":811,"width":345,"height":11}},{"id":"5f634186-e346-45e5-8bd2-0b2026007dc4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":151,"box":{"x":518,"y":812,"width":305,"height":9}},{"id":"6b525557-5878-4215-9b7b-7e3e24a795a0","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":151,"box":{"x":101,"y":836,"width":398,"height":11}},{"id":"dca7c47c-761a-45ea-8a04-5fa18ec4ee39","block_type":"box","text":"®","page_number":151,"box":{"x":500,"y":836,"width":6,"height":5}},{"id":"c5eaed0f-61c7-4bef-b346-03bc59f1baeb","block_type":"box","text":"Index 2030 Fund, BlackRock 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The following persons associated with the Funds, the Fund’s Manager,","page_number":152,"box":{"x":69,"y":556,"width":812,"height":11}},{"id":"cd0e6860-d317-4fa4-9b6b-065d155d168b","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":152,"box":{"x":69,"y":571,"width":839,"height":12}},{"id":"b45cc942-be5e-44d1-b575-1c788b3e9f7d","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":152,"box":{"x":69,"y":586,"width":788,"height":12}},{"id":"b8fb2aba-a749-4e54-a863-7ff26d8f3615","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":152,"box":{"x":70,"y":601,"width":838,"height":12}},{"id":"9167d95e-9622-4c14-986d-aa3c5ec15ee2","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":152,"box":{"x":69,"y":617,"width":810,"height":11}},{"id":"27b03064-ade5-43b6-a034-bd183ef2e64c","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":152,"box":{"x":68,"y":632,"width":787,"height":11}},{"id":"ed0cd6b8-0e5c-448c-8542-26365d5d1a28","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":152,"box":{"x":69,"y":647,"width":834,"height":11}},{"id":"8b558a41-34ae-4b78-b2ad-fc16c84e1d97","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). 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The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":152,"box":{"x":69,"y":738,"width":783,"height":11}},{"id":"3cbb4454-56e3-40de-985e-e415883b7c82","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":152,"box":{"x":70,"y":753,"width":668,"height":11}},{"id":"c1c87288-7c5c-4551-9d58-94273259dda2","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":152,"box":{"x":102,"y":775,"width":754,"height":12}},{"id":"f7734b1d-af82-411c-8f49-18a9e4a461db","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":152,"box":{"x":70,"y":790,"width":823,"height":12}},{"id":"ec01b117-af9f-456a-a87f-7f0efe551904","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":152,"box":{"x":69,"y":806,"width":833,"height":10}},{"id":"6b479465-79fd-4fc9-bccf-9c1cd521f79b","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":152,"box":{"x":70,"y":821,"width":802,"height":11}},{"id":"3eafe248-8ff6-4598-ba2c-7a96c96bccdf","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":152,"box":{"x":70,"y":836,"width":781,"height":11}},{"id":"fbb6df26-aa76-4e8a-af1d-09ea5fb814b8","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":152,"box":{"x":70,"y":851,"width":819,"height":11}},{"id":"801280db-f36f-4d87-a657-f740d6c72100","block_type":"box","text":"Trust, BlackRock 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BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":153,"box":{"x":68,"y":142,"width":839,"height":12}},{"id":"2a1b24f2-f373-4c58-bbbb-1abac6690284","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":153,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"7ef588f5-9459-4cf7-a02b-700e540e3a81","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":153,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"de692ef9-9aa9-4651-8cc2-718536af2c6d","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":153,"box":{"x":70,"y":188,"width":818,"height":12}},{"id":"4ae04265-d7f6-424f-a499-91ae8be51b25","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":153,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"7a352359-bbd3-4c10-b4b5-1388d3ba4f98","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":153,"box":{"x":69,"y":218,"width":830,"height":12}},{"id":"98f8887e-4206-4513-9351-2d31696a6922","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":153,"box":{"x":70,"y":234,"width":778,"height":11}},{"id":"06abce32-b9c3-40ca-9119-6d03b506b9d8","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":153,"box":{"x":70,"y":249,"width":526,"height":11}},{"id":"90531435-3869-4d85-afb2-bb82f192d126","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":153,"box":{"x":101,"y":271,"width":788,"height":12}},{"id":"bbb8e177-8f78-4dd4-84a9-a101bfff2349","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":153,"box":{"x":69,"y":286,"width":819,"height":12}},{"id":"be63a27b-e194-4dee-87fe-073b69ea92dc","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":153,"box":{"x":69,"y":302,"width":820,"height":11}},{"id":"f2569d63-2900-4ffd-9d3e-fea900933a9a","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":153,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"66e4ce0f-c417-4fb2-bf54-0817066e5bea","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":153,"box":{"x":68,"y":332,"width":812,"height":11}},{"id":"495b7bd0-174f-4e8a-aa29-16b8fcb58faf","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":153,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"acc58632-9131-45c7-9cbd-cb89fc641d25","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":153,"box":{"x":69,"y":362,"width":772,"height":11}},{"id":"1e7ed671-a207-4560-aef1-fd23a63fb15f","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":153,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"88d38650-b561-4173-9388-da0ca4f4bf00","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":153,"box":{"x":69,"y":392,"width":814,"height":12}},{"id":"01f5c152-9eb7-46e1-83ad-94c80bb90da1","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":153,"box":{"x":70,"y":408,"width":772,"height":11}},{"id":"5d9834b2-30ce-418c-b4fc-123561d53403","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":153,"box":{"x":69,"y":423,"width":805,"height":11}},{"id":"32402bc8-87bb-4d1f-9f8d-48acaeb9abb6","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":153,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"b671f962-4899-490f-9a8d-4aaeb993098c","block_type":"box","text":"the absolute discretion of a Fund.","page_number":153,"box":{"x":68,"y":453,"width":239,"height":9}},{"id":"e7e05c0d-8724-4214-a4e6-8fa8567f9237","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":153,"box":{"x":101,"y":475,"width":794,"height":12}},{"id":"211576de-4820-4b3a-85c4-858ab75efe63","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":153,"box":{"x":68,"y":490,"width":776,"height":12}},{"id":"3c9dd188-2079-4cb2-a50f-e778c207b792","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":153,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"4000c065-6504-49d3-9ea6-0fc0bb67a66e","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":153,"box":{"x":70,"y":521,"width":800,"height":10}},{"id":"401d4e6c-bbe0-4398-b825-28f0e25a1c2d","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":153,"box":{"x":70,"y":536,"width":806,"height":11}},{"id":"daf13988-5bba-472c-abce-800689c4d74f","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":153,"box":{"x":70,"y":551,"width":823,"height":11}},{"id":"d6846fd6-73f7-4065-9d70-55b8129868ec","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":153,"box":{"x":70,"y":566,"width":770,"height":11}},{"id":"10cc3510-aea5-4900-b7e4-880c6bfab4ce","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":153,"box":{"x":70,"y":581,"width":766,"height":11}},{"id":"d048bcc6-77b6-4085-bc22-a21f2a321554","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":153,"box":{"x":69,"y":596,"width":837,"height":12}},{"id":"13fab246-9409-4379-8d1c-4c2c780852ea","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":153,"box":{"x":70,"y":612,"width":805,"height":11}},{"id":"04bdfb85-1da3-4430-b7db-a49971ea06e9","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":153,"box":{"x":70,"y":626,"width":832,"height":12}},{"id":"add14cd3-21ba-4a6f-bd6d-61c940f6df16","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":153,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"a79cfae7-0bcd-41b6-9b16-1847b4939cce","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":153,"box":{"x":70,"y":657,"width":746,"height":11}},{"id":"91fa7b02-3737-42d4-b428-8453cdcfdc19","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":153,"box":{"x":70,"y":672,"width":307,"height":11}},{"id":"b4bff012-f75f-492b-8953-5e9dfaa7c28c","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":153,"box":{"x":102,"y":695,"width":799,"height":11}},{"id":"194c31ba-0e8e-491d-a8d5-adfd3646075c","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":153,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"a219d065-79ee-42c7-b1e7-4b85c3cb64fa","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":153,"box":{"x":68,"y":725,"width":317,"height":11}},{"id":"38995bcc-a429-4a3c-8e4f-b971de7b68db","block_type":"box","text":"Acquisition of Certain Investment Companies.","page_number":153,"box":{"x":101,"y":748,"width":335,"height":11}},{"id":"8f30ebb8-cbb5-4c81-8950-3050f4ed2c47","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":153,"box":{"x":443,"y":748,"width":413,"height":11}},{"id":"04854298-cb44-4554-91d8-cc9358ae800c","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":153,"box":{"x":69,"y":763,"width":811,"height":11}},{"id":"e6957894-b6a6-4e09-9352-0ec1c92ad834","block_type":"box","text":"public or private investment company.","page_number":153,"box":{"x":70,"y":778,"width":266,"height":11}},{"id":"c3d3ae59-e51e-43d5-9d84-900ff6a3e18f","block_type":"box","text":"Purchases Through Certain Financial Intermediaries","page_number":153,"box":{"x":102,"y":801,"width":379,"height":11}},{"id":"8c15823e-a171-49ec-83f8-5ff05256a40f","block_type":"box","text":".","page_number":153,"box":{"x":482,"y":808,"width":2,"height":1}},{"id":"26cbf611-2148-466f-b42c-6c3e1db4ae7e","block_type":"box","text":"Reduced sales charges may be applicable for purchases","page_number":153,"box":{"x":491,"y":801,"width":402,"height":11}},{"id":"d9df55bb-cde4-499c-9de4-26add434faa6","block_type":"box","text":"of Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities","page_number":153,"box":{"x":69,"y":816,"width":787,"height":11}},{"id":"6e088650-721a-4b3b-a731-d7732221399e","block_type":"box","text":"dealers and other financial intermediaries that meet and adhere to standards established by the Manager from time","page_number":153,"box":{"x":69,"y":831,"width":828,"height":11}},{"id":"7ece44ce-fa5b-429b-98d3-da4684759ab5","block_type":"box","text":"to time.","page_number":153,"box":{"x":68,"y":846,"width":54,"height":9}},{"id":"e37b285d-35f5-44b5-a92c-680e3fc83440","block_type":"box","text":"II-106","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cd544528-2443-47f7-87bd-21c18263b607","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d651a26e-7a16-4f84-9bf2-6b850b6389c8","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":154,"box":{"x":69,"y":45,"width":405,"height":11}},{"id":"d5a4227e-aca3-486d-8f2c-c4d62535e82a","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":154,"box":{"x":102,"y":67,"width":799,"height":12}},{"id":"9c8fc2d1-1443-4626-a13a-834b573a1753","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":154,"box":{"x":69,"y":82,"width":828,"height":12}},{"id":"22ab4e25-bdbd-4b31-be0c-71484a415f95","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":154,"box":{"x":70,"y":97,"width":778,"height":12}},{"id":"0bfbc761-883b-4e3a-af10-f76a778069dd","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":154,"box":{"x":70,"y":113,"width":826,"height":11}},{"id":"a51a05dd-9edc-4d55-b37e-4b078705895a","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":154,"box":{"x":69,"y":128,"width":311,"height":9}},{"id":"b74cf831-4c8b-42cd-a1bc-1106c16b7280","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":154,"box":{"x":102,"y":150,"width":789,"height":12}},{"id":"5ec32f2a-8eff-4bf0-b085-99ffec26b94f","block_type":"box","text":"intermediary associated with the account.","page_number":154,"box":{"x":70,"y":166,"width":297,"height":11}},{"id":"df08f132-8bd5-44ea-9f90-b00d2736fef5","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":154,"box":{"x":102,"y":188,"width":669,"height":12}},{"id":"98ff5a40-a905-4a75-974d-9180d40960a4","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":154,"box":{"x":101,"y":211,"width":763,"height":11}},{"id":"63b2889e-5dae-4fd3-9557-484bf4643ef4","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":154,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"082948d6-b55f-4204-abdc-41d1fe2a3824","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":154,"box":{"x":68,"y":241,"width":813,"height":11}},{"id":"0ca470fe-f5e2-4826-ba7e-0e8850527ffe","block_type":"box","text":"CDSC shares.","page_number":154,"box":{"x":69,"y":256,"width":97,"height":9}},{"id":"5b31c6d3-0b92-4f93-a099-2dc990c21de4","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":154,"box":{"x":102,"y":279,"width":804,"height":11}},{"id":"62ef7a81-37d7-4682-b591-8d729fb28cc7","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":154,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"f1edbf56-1832-438f-ac93-8064b9569c4d","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":154,"box":{"x":69,"y":309,"width":786,"height":11}},{"id":"2ef22950-f05b-4d16-aa43-6b75c4016d1d","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":154,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"5f0ee705-63b5-43a2-8986-76bd35159c02","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":154,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"57d95844-2188-4409-aacd-e0c806cbbf32","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":154,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"822077f2-ab23-4baa-9a1e-fd2b559c5240","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":154,"box":{"x":70,"y":370,"width":822,"height":11}},{"id":"2a5b8cc0-3364-4e18-a213-2cd845a19732","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":154,"box":{"x":69,"y":385,"width":618,"height":11}},{"id":"d2b62cc3-6b81-4322-924c-e83138820fb3","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":154,"box":{"x":102,"y":407,"width":782,"height":12}},{"id":"85943041-8265-442b-a6ae-e5705f0a81d4","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":154,"box":{"x":70,"y":423,"width":764,"height":11}},{"id":"63878038-1364-44a8-9a7d-c47c8fe145a4","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":154,"box":{"x":69,"y":438,"width":820,"height":11}},{"id":"9ed91ed0-d2c2-4201-951a-bb05f405ba6c","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":154,"box":{"x":70,"y":453,"width":806,"height":11}},{"id":"ac4674ed-2058-4dfe-82ed-e70d8171e2a3","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":154,"box":{"x":70,"y":468,"width":813,"height":11}},{"id":"ba38184b-801b-4a35-9995-01eea60d8984","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":154,"box":{"x":68,"y":483,"width":811,"height":11}},{"id":"7fb73a91-302c-433c-aa35-822b042fbd25","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":154,"box":{"x":68,"y":498,"width":554,"height":11}},{"id":"a8c1039a-17ff-4166-91d9-88f7ec096b0a","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":154,"box":{"x":102,"y":521,"width":783,"height":11}},{"id":"58d6d4f2-644e-4248-bd2c-bf2bff40f905","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":154,"box":{"x":70,"y":536,"width":808,"height":11}},{"id":"08c048af-0d70-4b84-bd8b-8712b6ae6173","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":154,"box":{"x":70,"y":551,"width":797,"height":11}},{"id":"fd595381-5199-4a5a-8954-e837610d8593","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":154,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"d3658e8a-0dcf-4f8e-81d3-cfb7587441b1","block_type":"box","text":"Investor A Shares.","page_number":154,"box":{"x":70,"y":581,"width":128,"height":9}},{"id":"c5d3314b-7a7e-454b-8f02-77d9f361ee26","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":154,"box":{"x":102,"y":604,"width":388,"height":9}},{"id":"1f55d44e-0a70-4c43-898d-4666d525a31e","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":154,"box":{"x":102,"y":627,"width":804,"height":11}},{"id":"78e78de9-b4d3-49a8-bc76-97678d9ead70","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":154,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"445863b5-ecb9-40d1-8d91-38301647381d","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":154,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"9caf4f08-0caf-425f-8853-1f0d234b0316","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":154,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"bc512746-7430-4d63-b26c-bb88ae3d38b0","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":154,"box":{"x":70,"y":687,"width":793,"height":11}},{"id":"69648545-e10a-4fff-9d2b-05fd13ea8bb7","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":154,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"d4b36a48-68e5-45a5-b957-bc347ebcaa02","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":154,"box":{"x":69,"y":717,"width":802,"height":12}},{"id":"0583be5e-1af9-47d3-bcec-3ed75efb047e","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":154,"box":{"x":69,"y":732,"width":793,"height":12}},{"id":"9111e236-19b6-46f9-81c2-b9c6e46a978c","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":154,"box":{"x":69,"y":748,"width":817,"height":11}},{"id":"89807f75-aeaf-4468-a417-f85c5246f421","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":154,"box":{"x":68,"y":763,"width":814,"height":11}},{"id":"2619853d-c4b3-4e4b-a905-d44f7b468526","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":154,"box":{"x":69,"y":778,"width":828,"height":11}},{"id":"3fe713f1-2c79-4d31-9747-fe417646c683","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":154,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"4d50f5f9-a5c5-4ea2-ade9-fd7f480aff35","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":154,"box":{"x":69,"y":808,"width":718,"height":11}},{"id":"61a4675f-320b-448d-ae39-3a18e5f62c07","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":154,"box":{"x":102,"y":831,"width":764,"height":11}},{"id":"fc6af18b-ba64-4d94-af3f-dba399056ee8","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":154,"box":{"x":70,"y":846,"width":816,"height":11}},{"id":"2d3e58f8-8102-4508-ae7f-c20f0218a0d7","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":154,"box":{"x":69,"y":861,"width":772,"height":11}},{"id":"5f4c89cd-7c77-4869-87e4-868b3e2b1da5","block_type":"box","text":"“Investor C Conversions”).","page_number":154,"box":{"x":70,"y":876,"width":186,"height":11}},{"id":"3b78705f-e22b-425c-a129-8a4d8da30d22","block_type":"box","text":"II-107","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6e365e9b-70f0-498e-a42c-bed188ed284b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4af97231-bb67-49fd-8bcd-f9f8c5cc3f9b","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":155,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"980edced-b875-44ae-8386-16863542d35d","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":155,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"8f4f447f-5b2c-448b-a266-8d067b48124e","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":155,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"c945ed3d-fe20-4cd0-b934-989e3e14d05e","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":155,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"fa5cf7b0-7a30-445c-9825-a70673b7189a","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":155,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"96de9b0a-5b7b-4b0c-b2a7-a2b478867685","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":155,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"497469b2-b426-4068-ae9b-0990f0518bdd","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":155,"box":{"x":69,"y":136,"width":445,"height":11}},{"id":"018ce5c7-089e-49b2-86d0-64c518d57e39","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":155,"box":{"x":102,"y":158,"width":405,"height":11}},{"id":"ebbc6513-6674-42b5-b10f-27edd488e961","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":155,"box":{"x":102,"y":181,"width":804,"height":11}},{"id":"7a5b905e-7dce-492e-adb1-e389add7dd42","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":155,"box":{"x":70,"y":196,"width":826,"height":11}},{"id":"39dd6e96-4eb4-4b89-990b-e91a78665ac3","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":155,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"5b9ef2b2-7694-41d2-8812-99ab8ceef03a","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":155,"box":{"x":68,"y":226,"width":795,"height":11}},{"id":"6df8bf2b-4be9-42da-b2f2-2aec32ea7e62","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":155,"box":{"x":69,"y":241,"width":840,"height":11}},{"id":"0e83078c-70ee-4554-a395-562c512717ec","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":155,"box":{"x":70,"y":256,"width":804,"height":12}},{"id":"bec9aed1-1578-4b31-8f55-e0f8e84c8d15","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":155,"box":{"x":69,"y":271,"width":772,"height":12}},{"id":"b30d6f8a-b2a5-499f-bc6f-922e06a1d030","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":155,"box":{"x":70,"y":286,"width":790,"height":12}},{"id":"8ea5e81b-eec8-47d1-a05a-f7ee2803c478","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":155,"box":{"x":69,"y":302,"width":776,"height":9}},{"id":"bee7399b-e4dd-4f4e-8c51-755f537c67d3","block_type":"box","text":"redemption.","page_number":155,"box":{"x":69,"y":317,"width":83,"height":11}},{"id":"a7fe2059-0399-4493-af3a-62291f4c42b5","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":155,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"f6279fda-835c-4ff0-9a6e-4562c5eee0e7","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":155,"box":{"x":70,"y":355,"width":769,"height":11}},{"id":"2f7cc3e7-3601-4236-83a8-24531a9430d5","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":155,"box":{"x":102,"y":377,"width":586,"height":11}},{"id":"744d066f-c8b3-479f-b92b-3204d596a317","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":155,"box":{"x":101,"y":400,"width":740,"height":11}},{"id":"e8337d38-0f4a-4e6d-83aa-3f50e4a58ebf","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":155,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"5e7db182-e211-4b28-8775-1b9323fd0a56","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":155,"box":{"x":69,"y":430,"width":786,"height":11}},{"id":"f5fc5f14-ea53-4ea9-984b-ddb3da9f1a54","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":155,"box":{"x":70,"y":445,"width":797,"height":12}},{"id":"4ca6b6aa-fb43-4718-afba-2093a547d216","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":155,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"a992d95c-d6a3-4e91-bf0d-2d32be409368","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":155,"box":{"x":69,"y":475,"width":747,"height":12}},{"id":"a9049def-c417-4e89-a3b6-c6e6e7c94aa7","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":155,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"e5a2e18d-401e-4e6c-8966-1b72be8b4fac","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":155,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"1cd741e4-b46d-4419-8fa6-87291ba1fe06","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":155,"box":{"x":69,"y":521,"width":806,"height":11}},{"id":"b1b79f5d-eac4-4e4d-9949-74a7a8daa5ab","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":155,"box":{"x":69,"y":536,"width":786,"height":11}},{"id":"aec9e042-d464-4d79-ab28-dd6ad927ead7","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":155,"box":{"x":70,"y":551,"width":834,"height":11}},{"id":"f35646a1-6ee5-4d4c-a4b7-4b887e88cf9a","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":155,"box":{"x":70,"y":566,"width":809,"height":11}},{"id":"30cc4c3c-cec0-453c-b95a-c646ed079f36","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":155,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"e9cfb215-df65-4bf4-a242-46576da1872c","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":155,"box":{"x":70,"y":596,"width":784,"height":12}},{"id":"5e56b7cc-f5e3-40a6-b61f-f20784d29973","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":155,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"0d88c9f0-2df1-4071-a83c-33af47bb5648","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":155,"box":{"x":69,"y":627,"width":451,"height":11}},{"id":"d668e74f-dd37-483d-a41d-efb9df9c00a4","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":155,"box":{"x":102,"y":649,"width":781,"height":12}},{"id":"745d010e-347d-4eb0-813d-6944d6ea48bd","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":155,"box":{"x":70,"y":664,"width":813,"height":12}},{"id":"33d97c70-0c3a-49c6-9b69-6afa9150afc5","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":155,"box":{"x":69,"y":680,"width":462,"height":11}},{"id":"0833f9a9-af22-406d-99aa-dc1285747471","block_type":"box","text":"Class R Shares","page_number":155,"box":{"x":69,"y":710,"width":110,"height":9}},{"id":"0dcfb90b-6d61-4c4e-af08-14f05b43f0c3","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":155,"box":{"x":102,"y":732,"width":775,"height":11}},{"id":"9cf23dff-3380-488a-ba7e-9af59632984d","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":155,"box":{"x":69,"y":748,"width":799,"height":11}},{"id":"50ab138f-625a-4b70-8984-1508a8d2faba","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":155,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"6054dff3-c238-4392-8843-164f1cf5fe23","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":155,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"db4fd737-cd14-4e94-8df6-748f71d5c0a6","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":155,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"1ced03d9-009f-42e0-8433-c5edb6bfcac7","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":155,"box":{"x":68,"y":808,"width":636,"height":11}},{"id":"13300148-c384-43d4-aea3-02f586a4da02","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":155,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"e79beef1-424c-492d-9c02-792640343ee3","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":155,"box":{"x":69,"y":846,"width":440,"height":11}},{"id":"047bd64a-4436-4e90-8ddd-2f837529dba7","block_type":"box","text":"II-108","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"11df0130-d070-4d68-a3bc-5dd269569363","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a972e68f-76db-4a94-999f-361b60cd8b6a","block_type":"box","text":"Class K Shares","page_number":156,"box":{"x":69,"y":45,"width":109,"height":9}},{"id":"7c695701-90d5-4a65-8153-18cea7234d64","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":156,"box":{"x":102,"y":67,"width":797,"height":11}},{"id":"7df939fe-e524-4910-9aa4-8eb341735fc2","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":156,"box":{"x":69,"y":82,"width":772,"height":12}},{"id":"10c79fb1-fd02-4b2d-8dcf-7ca61e8c64ca","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":156,"box":{"x":69,"y":98,"width":827,"height":11}},{"id":"7826e890-18bd-4832-a6d3-7ad7287749d3","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":156,"box":{"x":69,"y":113,"width":817,"height":11}},{"id":"cac4b4a1-4fa5-47a5-bbf9-3e60b0abfb90","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":156,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"209a98ee-c7d2-46ad-9727-6203f0bba435","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":156,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"de9ac5c1-ad8e-47f5-83bd-0b8d8be94ad7","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":156,"box":{"x":68,"y":158,"width":828,"height":11}},{"id":"209863d8-b5e9-4729-b32b-afe41b4f7b30","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":156,"box":{"x":70,"y":173,"width":760,"height":11}},{"id":"d70bc6ab-669a-401a-b4ad-15c9be065eee","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":156,"box":{"x":70,"y":188,"width":823,"height":12}},{"id":"096fa0e6-2e30-4ab2-8369-3cc68a25bfea","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":156,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"b6df6251-d4a9-4be4-8209-7546c0860ba0","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":156,"box":{"x":70,"y":218,"width":814,"height":12}},{"id":"91856bdd-1bc7-4784-8abf-f88c65201235","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":156,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"090a32c7-f427-404f-a0d4-014518a99b97","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":156,"box":{"x":69,"y":249,"width":823,"height":11}},{"id":"bacd6b6e-de3c-4be2-8241-2b93316e4c00","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":156,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"c81ee78a-a659-4295-8d8e-b19e7461f8c9","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":156,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"08351fc7-7406-41ac-820c-311ba36eb7de","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":156,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"f1ef8745-a9d0-4473-8188-427409d7f657","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":156,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"04867255-1cf5-40fe-90d8-bb81b90ece9a","block_type":"box","text":"distribution and marketing agreement.","page_number":156,"box":{"x":69,"y":325,"width":270,"height":11}},{"id":"2a3e7c7f-b1ca-4aae-8b87-65203b809001","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":156,"box":{"x":102,"y":347,"width":734,"height":11}},{"id":"ba0a0c5c-2984-491a-b1ab-ba380e71b01c","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":156,"box":{"x":70,"y":362,"width":817,"height":11}},{"id":"d4896c91-ea61-4ed4-aa1c-3bc1b4bebbdd","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":156,"box":{"x":70,"y":377,"width":753,"height":12}},{"id":"6a9fc85e-1847-49b3-b4a4-eed81345a3b1","block_type":"box","text":"Class G Shares","page_number":156,"box":{"x":69,"y":408,"width":110,"height":8}},{"id":"f2d11c14-eed0-43ee-919b-235c1b2f69d1","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":156,"box":{"x":102,"y":430,"width":804,"height":11}},{"id":"fa5ff046-0cd0-4750-9e6f-2f96a566853c","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":156,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"1ba88d81-3133-4e3c-bada-4c45b31476ee","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":156,"box":{"x":68,"y":460,"width":836,"height":12}},{"id":"e192a54f-33fe-4769-8606-cd30142ac996","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":156,"box":{"x":69,"y":476,"width":803,"height":11}},{"id":"1e8dc845-780d-41d8-ab31-f9c9129e8705","block_type":"box","text":"eligibility requirements.","page_number":156,"box":{"x":69,"y":491,"width":164,"height":11}},{"id":"a4ccea95-5dc1-4391-bcb9-064975504b4b","block_type":"box","text":"Service Shares","page_number":156,"box":{"x":68,"y":521,"width":109,"height":9}},{"id":"abd1a0e5-b2f3-4d87-9756-c38919970013","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":156,"box":{"x":102,"y":543,"width":788,"height":12}},{"id":"702560bd-4b25-4c2a-8c93-f7d1068ac90e","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":156,"box":{"x":70,"y":559,"width":815,"height":11}},{"id":"ee99b4b9-f37e-47d0-84a1-746cf9e46577","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":156,"box":{"x":69,"y":574,"width":693,"height":11}},{"id":"54871bd4-2abe-45b9-8e0b-68c42eb80219","block_type":"box","text":"®","page_number":156,"box":{"x":763,"y":574,"width":6,"height":5}},{"id":"5eb8dcbf-8944-4592-bb07-d891dec0a076","block_type":"box","text":"Fund in 1996; and","page_number":156,"box":{"x":775,"y":574,"width":130,"height":10}},{"id":"4cf151fb-e418-4373-a63d-1cea97ac48b7","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":156,"box":{"x":69,"y":589,"width":287,"height":11}},{"id":"5961296b-5741-4d76-b7af-e37f6fe36071","block_type":"box","text":"SM","page_number":156,"box":{"x":357,"y":589,"width":11,"height":5}},{"id":"7861d709-477b-4a6f-942c-611310290e6d","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":156,"box":{"x":374,"y":589,"width":534,"height":11}},{"id":"2922a171-61c7-4552-9c3e-56cd73ae1f56","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":156,"box":{"x":69,"y":604,"width":776,"height":11}},{"id":"18cd2089-c7a6-4ca8-bd72-c2cec51867c4","block_type":"box","text":"BlackRock Shares","page_number":156,"box":{"x":69,"y":634,"width":133,"height":9}},{"id":"ecd7277e-0203-40db-a7c6-40521a870aab","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":156,"box":{"x":102,"y":657,"width":760,"height":11}},{"id":"bbdcbdf7-4635-422d-880f-ddb997345064","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":156,"box":{"x":69,"y":672,"width":813,"height":11}},{"id":"9b0b31c3-b489-4f54-ae48-b1bb5d9b0c23","block_type":"box","text":"fee-based programs.","page_number":156,"box":{"x":68,"y":687,"width":145,"height":11}},{"id":"194fbe58-8e2f-4689-93cc-b5c5742ae409","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":156,"box":{"x":69,"y":718,"width":348,"height":11}},{"id":"957f644d-1da2-4da2-ab07-9a29a8fc659e","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":156,"box":{"x":102,"y":740,"width":790,"height":11}},{"id":"973f4fdb-300b-4eac-8639-6f890cb85078","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":156,"box":{"x":69,"y":755,"width":761,"height":11}},{"id":"4e42ba52-8bb1-47d6-b1e0-5d8f3d5b9ee8","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":156,"box":{"x":69,"y":770,"width":541,"height":12}},{"id":"dcc1dc83-b3cb-433c-b980-ca43f19ef9b8","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":156,"box":{"x":102,"y":793,"width":803,"height":11}},{"id":"bec0fddf-4c95-44ff-8138-9b0bbb96ac4f","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":156,"box":{"x":70,"y":808,"width":783,"height":11}},{"id":"029b1870-d81b-4078-843c-16c49bb08eee","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":156,"box":{"x":70,"y":823,"width":809,"height":11}},{"id":"9a8274cc-dd5a-4e6a-a112-a2de9ce43baa","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":156,"box":{"x":69,"y":838,"width":360,"height":11}},{"id":"50500258-caac-4510-ae0e-99263c8054d6","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":156,"box":{"x":102,"y":861,"width":770,"height":11}},{"id":"eca66d46-33d3-4635-9d78-81c423729f8e","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":156,"box":{"x":69,"y":876,"width":824,"height":11}},{"id":"71359b0f-010a-4932-ad7c-f45e9f576611","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":156,"box":{"x":69,"y":891,"width":812,"height":12}},{"id":"220c485d-79b1-47e3-bf88-1aaccbb88b71","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":156,"box":{"x":68,"y":906,"width":355,"height":11}},{"id":"ea4ba5b0-0168-46fd-b36e-3d53c98c13e7","block_type":"box","text":"II-109","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"67bc32c5-6ce2-45a2-82e0-91ae0b7c6f1e","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"535875ee-776b-4380-b7c4-f44921f51cc9","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":157,"box":{"x":102,"y":45,"width":727,"height":11}},{"id":"0477fa4f-4685-476b-b0a3-a6780b40a967","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":157,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"c69b05d1-6e74-46b9-aae8-2d20e2a1fd12","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":157,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"926e0868-e4dd-423c-9549-c21ac87b8b6b","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":157,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"9aacc5e5-d1d7-4d00-90b3-5c595aadabd8","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":157,"box":{"x":68,"y":105,"width":786,"height":11}},{"id":"c65eaeef-4b31-40b6-aa6d-d917c7ff83cc","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":157,"box":{"x":69,"y":120,"width":789,"height":11}},{"id":"8978edd3-4e85-4988-85ed-3a7a44813ae1","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":157,"box":{"x":70,"y":135,"width":562,"height":12}},{"id":"70c21a31-dbb8-4dd6-8555-b1cdfe8b7738","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":157,"box":{"x":101,"y":158,"width":798,"height":11}},{"id":"e917a3df-99da-4395-a765-c28d16ebabe8","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":157,"box":{"x":69,"y":173,"width":808,"height":11}},{"id":"5d22b2d3-4e14-4bd2-aa6f-939cd7e51e87","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":157,"box":{"x":70,"y":188,"width":776,"height":12}},{"id":"70cdbd9e-6acc-43f5-b378-54877197530e","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":157,"box":{"x":70,"y":203,"width":835,"height":12}},{"id":"a0e43244-e2b1-4427-9c38-680b8348649b","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":157,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"807ee60d-1f5c-4d3c-9f6a-2684fda29090","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":157,"box":{"x":69,"y":234,"width":813,"height":11}},{"id":"1c46c4c5-b553-4453-930b-2cf7e6f31af6","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":157,"box":{"x":68,"y":249,"width":501,"height":11}},{"id":"820315f7-22a8-4b5c-9e6d-8e2712d061b5","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":157,"box":{"x":102,"y":271,"width":783,"height":12}},{"id":"3335fee0-0a29-4150-aeef-ca5fcbc0bdfe","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":157,"box":{"x":68,"y":286,"width":810,"height":12}},{"id":"8e32f811-27ba-464c-b70c-c0fc319597a5","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":157,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"8e077e68-9177-4d28-8a76-00150f9fcb91","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":157,"box":{"x":68,"y":317,"width":836,"height":11}},{"id":"b81d6aed-9e5d-4ab6-8aab-b7c3e86885d6","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":157,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"536facd3-c230-4e1c-b32e-2dec83185a8f","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":157,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"8b8b55c2-62ea-45ce-9c0b-3def1695293e","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":157,"box":{"x":68,"y":362,"width":803,"height":11}},{"id":"bb0f411c-b674-4852-934d-18a1f064b801","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":157,"box":{"x":68,"y":377,"width":788,"height":12}},{"id":"d78f479d-56dc-4cb6-8de6-d76e852b8c1d","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":157,"box":{"x":69,"y":393,"width":798,"height":11}},{"id":"91b65ce6-0480-4c52-a0e7-c9954fa8928f","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":157,"box":{"x":69,"y":407,"width":755,"height":12}},{"id":"eb2cc270-bedc-45d1-a638-de7e1e009221","block_type":"box","text":"compensation for selling different classes of shares.","page_number":157,"box":{"x":69,"y":423,"width":375,"height":11}},{"id":"85a71dc5-c0a5-45e9-a28c-13d08a9b205d","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":157,"box":{"x":102,"y":445,"width":803,"height":11}},{"id":"b0547fe0-d6c3-4b39-b265-4073a899cb8c","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":157,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"d1b9c1f9-e9ee-4a60-87c8-e3c7824dc89d","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":157,"box":{"x":68,"y":475,"width":788,"height":12}},{"id":"543db721-745e-4112-bfac-93318d40bda9","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":157,"box":{"x":70,"y":491,"width":818,"height":9}},{"id":"9698b237-ed73-4d21-8705-addb7c615e0b","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":157,"box":{"x":69,"y":506,"width":824,"height":11}},{"id":"dfa0669d-b023-49f3-9f9b-fc6958118ddc","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":157,"box":{"x":69,"y":521,"width":821,"height":11}},{"id":"017bd126-0079-4d99-9481-299a9f0af684","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":157,"box":{"x":69,"y":536,"width":778,"height":11}},{"id":"5abda5f5-1dea-4468-bfc6-ecb5bf54ec9c","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":157,"box":{"x":70,"y":551,"width":773,"height":11}},{"id":"d9a97b4c-94c1-430e-b0b5-75c236fb645b","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":157,"box":{"x":69,"y":566,"width":796,"height":11}},{"id":"d472145f-6c4f-4493-a79b-8622c9beb8ee","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":157,"box":{"x":69,"y":581,"width":837,"height":12}},{"id":"ce1de6be-81a8-4b00-a5e7-5417bad3bd50","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":157,"box":{"x":70,"y":597,"width":801,"height":11}},{"id":"170cc2c9-d78b-4163-b78b-b7b91e566b5d","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":157,"box":{"x":69,"y":612,"width":787,"height":11}},{"id":"e0c186a7-127f-452b-8903-f67a805ab1c5","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":157,"box":{"x":70,"y":627,"width":802,"height":11}},{"id":"c1a41a15-574e-4dc8-9f05-1baeebaccf34","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":157,"box":{"x":69,"y":642,"width":826,"height":11}},{"id":"23f466f5-63bf-4204-bc7b-07d1a6647fbd","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":157,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"edcdf573-2c0c-4d07-b1bf-5d7f054c2034","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":157,"box":{"x":69,"y":672,"width":836,"height":11}},{"id":"38d54c96-4e9d-4b98-80d2-c4a1126757a0","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":157,"box":{"x":68,"y":687,"width":792,"height":11}},{"id":"5cc2db05-433d-4602-90da-75a32f8c5102","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":157,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"04efb818-1f4e-4805-aeb9-8e497d6822d7","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":157,"box":{"x":69,"y":717,"width":807,"height":12}},{"id":"c45ebcdd-8e5c-4a72-a196-5e3ddc58fd52","block_type":"box","text":"easily accessible place.","page_number":157,"box":{"x":69,"y":733,"width":167,"height":11}},{"id":"3daefd3e-9256-4dd6-aaf2-b89fdd1c7c12","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":157,"box":{"x":102,"y":755,"width":804,"height":11}},{"id":"11a5a7c8-d0a0-4a32-a86d-6aa2c2987ba8","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":157,"box":{"x":70,"y":770,"width":542,"height":11}},{"id":"805f3b2b-87a5-4548-b789-30715a884eba","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":157,"box":{"x":102,"y":793,"width":734,"height":11}},{"id":"2d5571c6-5600-46ca-bc7f-4b560948e9bd","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":157,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"d05d3a92-1f1b-406c-891c-48a55c384b7c","block_type":"box","text":"fiscal year.","page_number":157,"box":{"x":68,"y":823,"width":75,"height":11}},{"id":"3b4e3ac9-75f3-4d26-8827-f9bf837a2d00","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":157,"box":{"x":69,"y":854,"width":396,"height":11}},{"id":"f2f3f21b-b1e0-4fde-a945-a44aa14d1646","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":157,"box":{"x":101,"y":876,"width":777,"height":11}},{"id":"42cc1197-d2bf-49dc-b4ec-06b8a536bb37","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":157,"box":{"x":70,"y":891,"width":835,"height":12}},{"id":"5f25a03b-d32b-42a0-92b0-4305346c81ad","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":157,"box":{"x":68,"y":906,"width":822,"height":12}},{"id":"4288f292-9b12-438f-a4fd-893f7b230571","block_type":"box","text":"II-110","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"895b88d3-433d-4443-b9ff-fadf73350031","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f42a286-d9ee-4855-9f72-9dc738c65778","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":158,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"b2fdf336-4717-47d7-8670-a459c1c0e684","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":158,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"31015553-52e2-4431-8837-8d942293f95a","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":158,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"fad99ae8-f435-46bd-975d-7ade519a33d5","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":158,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"7dcb5f9b-1804-47d9-b764-160b7d658ee8","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":158,"box":{"x":69,"y":105,"width":839,"height":11}},{"id":"7a6c08ab-d9a5-4587-9910-92878fb31e35","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":158,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"b39a10e1-adb3-44a7-876c-1b49fe48a805","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":158,"box":{"x":68,"y":135,"width":839,"height":11}},{"id":"8443b6de-5e12-4e1d-acaf-6c1743d1c18b","block_type":"box","text":"and Class R Shares of your Fund.","page_number":158,"box":{"x":69,"y":150,"width":236,"height":12}},{"id":"ebd07e56-ff49-4350-bbc4-5b745a7592f0","block_type":"box","text":"Other Payments by the Fund","page_number":158,"box":{"x":69,"y":181,"width":206,"height":11}},{"id":"ac57230c-77d9-42ba-a552-10f2404d0a4a","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":158,"box":{"x":102,"y":203,"width":800,"height":12}},{"id":"d40d0bfd-bf2d-4a2b-a88d-27eac42852dc","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":158,"box":{"x":68,"y":218,"width":816,"height":12}},{"id":"0a8911dd-977b-4c34-9b86-7c49250af174","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":158,"box":{"x":69,"y":234,"width":794,"height":11}},{"id":"c1f69634-c756-443c-a7c7-a2033968ac1d","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":158,"box":{"x":69,"y":249,"width":792,"height":11}},{"id":"99ad6667-cf2b-42cd-9a0d-4f7cb43d1151","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":158,"box":{"x":68,"y":264,"width":841,"height":11}},{"id":"8e30c29d-b650-4163-9957-46347dbc2646","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":158,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"c3cb3194-1c26-4bba-9b04-d3e141eb1089","block_type":"box","text":"of these payments may be substantial.","page_number":158,"box":{"x":69,"y":294,"width":276,"height":11}},{"id":"62f2b166-ad85-4746-92d5-f3209aba656a","block_type":"box","text":"Additional Payments by BlackRock","page_number":158,"box":{"x":68,"y":324,"width":256,"height":11}},{"id":"7c9fc64f-62e4-4ce0-9172-73c80f82342d","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":158,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"bfd44d73-5950-4883-94bf-1205fd12ae9b","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":158,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"7e8c8684-42d3-4192-82a8-c52778500122","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":158,"box":{"x":70,"y":377,"width":768,"height":12}},{"id":"08cb2af0-c76d-4589-99ef-cb2f17700c7a","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":158,"box":{"x":69,"y":392,"width":830,"height":12}},{"id":"7f4a2612-8c2b-4053-80c8-dd04e1d48213","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":158,"box":{"x":69,"y":407,"width":599,"height":12}},{"id":"39babf85-3844-4e05-a081-89b124d9ffe1","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":158,"box":{"x":101,"y":430,"width":776,"height":11}},{"id":"c23b10aa-87e4-495a-9ae0-b3d12a41387a","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":158,"box":{"x":70,"y":445,"width":832,"height":11}},{"id":"57862853-56c2-4635-b5b7-7f3d8fb2199f","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":158,"box":{"x":69,"y":460,"width":833,"height":12}},{"id":"56e98602-8bcf-4234-8ae6-98a4e8e2fd47","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":158,"box":{"x":69,"y":475,"width":802,"height":12}},{"id":"5e6e461a-cf19-4d03-8554-bd6bc973d201","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":158,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"06f1ea5c-4804-4b27-ae27-46174ed88d9f","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":158,"box":{"x":70,"y":506,"width":796,"height":11}},{"id":"4954f037-936d-4732-90a8-ad040fea057a","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":158,"box":{"x":69,"y":521,"width":836,"height":11}},{"id":"ba000c96-029b-4bd6-b35c-ab45a1420811","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":158,"box":{"x":69,"y":536,"width":828,"height":11}},{"id":"84085798-8049-42b8-a19e-985e88ef55d7","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":158,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"2fc54b86-9ce3-41b7-bb67-a8f2d7858033","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":158,"box":{"x":69,"y":566,"width":818,"height":11}},{"id":"f41dbf92-3b76-41a7-bd1e-fcd851b68d3f","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":158,"box":{"x":70,"y":581,"width":294,"height":11}},{"id":"4ce3199f-a4d6-43c3-abda-be60c7d2f0ae","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":158,"box":{"x":101,"y":604,"width":803,"height":11}},{"id":"659a5402-8333-46c5-a4f1-7274eee57e3f","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":158,"box":{"x":69,"y":619,"width":792,"height":11}},{"id":"9b7001e7-440b-4e9a-b8f8-2ce8265f4c84","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":158,"box":{"x":69,"y":634,"width":623,"height":12}},{"id":"192a0d24-ccdf-40dd-a45a-37cb93903f48","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":158,"box":{"x":102,"y":657,"width":765,"height":11}},{"id":"8d32b523-1528-4442-a323-e26e7cda6427","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":158,"box":{"x":69,"y":672,"width":841,"height":11}},{"id":"ea2c76c4-76c7-4910-848d-506da0c78b0f","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":158,"box":{"x":68,"y":687,"width":806,"height":11}},{"id":"ba337753-61e5-474e-89b7-1b0ab18aaffa","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":158,"box":{"x":69,"y":702,"width":776,"height":11}},{"id":"8cbb521f-f16d-428c-9efd-5ada85af7618","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":158,"box":{"x":70,"y":717,"width":802,"height":12}},{"id":"68b13701-555c-4adf-9588-e118bc79b680","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":158,"box":{"x":68,"y":732,"width":811,"height":12}},{"id":"820e08fe-6923-4734-b88e-23901b8a06f3","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":158,"box":{"x":69,"y":748,"width":538,"height":11}},{"id":"e0b73b57-d5ba-4d14-9c4b-5891679e6f8d","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":158,"box":{"x":101,"y":770,"width":795,"height":12}},{"id":"66131473-f0bc-4968-838c-ba5a80308c5e","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":158,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"d5492bbd-38fb-4f2f-b6ef-bb813992a343","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":158,"box":{"x":69,"y":801,"width":823,"height":11}},{"id":"633c6084-0f0d-44d4-a563-7403e5e9f387","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":158,"box":{"x":68,"y":816,"width":819,"height":11}},{"id":"3c033ffb-0234-4f6c-b426-43f93895ba65","block_type":"box","text":"Funds.","page_number":158,"box":{"x":70,"y":831,"width":44,"height":9}},{"id":"d6910379-9137-4fd4-8c91-47e3057c9b38","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":158,"box":{"x":101,"y":854,"width":270,"height":11}},{"id":"3631fc1a-f23f-4896-8385-13cb29c981a4","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":158,"box":{"x":101,"y":876,"width":740,"height":11}},{"id":"776a1e5e-571e-4ff1-b156-65ea239d5eb2","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":158,"box":{"x":70,"y":891,"width":764,"height":12}},{"id":"2bbd03bb-f624-4e95-af03-3e355fc9837f","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":158,"box":{"x":69,"y":906,"width":811,"height":12}},{"id":"27e27d5d-d190-406b-8e61-cf1f5ec96dd0","block_type":"box","text":"II-111","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3eb8d10e-3c49-401f-813f-b0c8207d22e5","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6810f9e7-a347-4c23-9065-d9a5d90528bc","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":159,"box":{"x":69,"y":45,"width":742,"height":11}},{"id":"21a86b01-886e-4e5c-b2a6-e08e82c28b81","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":159,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"126352c2-d65a-4581-941b-b29af3f73e67","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":159,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"2c40c8fd-90fe-4119-857b-809431a7ee3d","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":159,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"cab4a98d-c418-4c57-9ae5-11f29a2534a2","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":159,"box":{"x":70,"y":105,"width":803,"height":11}},{"id":"a3f665cb-6b87-4ee5-9db0-f73f9f7364e7","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":159,"box":{"x":70,"y":120,"width":783,"height":12}},{"id":"9dc31f76-0545-4ff7-bcf8-17e2faa6aa30","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":159,"box":{"x":69,"y":135,"width":823,"height":11}},{"id":"ea2269e7-e33a-4e5b-9a9b-6fa86a196318","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":159,"box":{"x":68,"y":150,"width":805,"height":12}},{"id":"ba5780a0-a395-4252-a88c-1b230afd3edd","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":159,"box":{"x":69,"y":166,"width":828,"height":11}},{"id":"3239475d-3228-46dd-9a5c-4bc01899b437","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":159,"box":{"x":69,"y":181,"width":523,"height":11}},{"id":"b108851e-126f-48c4-8ca0-430e8d48bbc2","block_type":"box","text":"B. Shareholder Services","page_number":159,"box":{"x":102,"y":203,"width":172,"height":9}},{"id":"4e3450bd-2b62-4241-a90a-793d09fcb1e0","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":159,"box":{"x":102,"y":226,"width":754,"height":11}},{"id":"1da0c504-3c65-47f4-a065-bc514022df47","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":159,"box":{"x":69,"y":241,"width":830,"height":11}},{"id":"3e045305-fe3a-4f6e-ba36-8a3d86746185","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":159,"box":{"x":69,"y":256,"width":823,"height":12}},{"id":"bd21c1d5-1139-4d7d-a55a-a8cf907949cf","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":159,"box":{"x":69,"y":272,"width":839,"height":11}},{"id":"3cbbb853-00ab-4eb8-8b66-ba0e1be82929","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":159,"box":{"x":69,"y":286,"width":796,"height":12}},{"id":"359d7e1e-0c88-4d84-aff7-713b9f596490","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":159,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"b822fb9d-3215-414f-9e8d-04977bb35cac","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":159,"box":{"x":68,"y":317,"width":828,"height":11}},{"id":"85dd40a1-9492-49bc-992a-2bee896114ad","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":159,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"a7dbe006-0d8b-41fe-b733-19611343180b","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":159,"box":{"x":70,"y":347,"width":328,"height":11}},{"id":"67723644-ae53-4ad4-af8d-f36779a11aac","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":159,"box":{"x":102,"y":370,"width":299,"height":11}},{"id":"fecad76d-54f3-4d65-b021-6b9960d9ae2f","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":159,"box":{"x":102,"y":392,"width":805,"height":12}},{"id":"6121e843-dd79-4b0e-a4f0-1016a94490e3","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":159,"box":{"x":69,"y":407,"width":788,"height":12}},{"id":"a7981277-53ba-439e-817b-99ced9505498","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":159,"box":{"x":69,"y":423,"width":821,"height":11}},{"id":"1599d1b6-bbe6-4b15-9cd0-4ec01cb6b28b","block_type":"box","text":"D. 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Service Organizations may charge their Customers additional fees in connection with the","page_number":163,"box":{"x":69,"y":181,"width":794,"height":11}},{"id":"d5d5afaa-460d-4463-b6f5-32151d0eedb4","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":163,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"db900fec-ba04-4b74-ae08-697cea0676f6","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":163,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"db2bc0f8-a73a-44a3-bb29-69a815642f83","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":163,"box":{"x":69,"y":226,"width":723,"height":11}},{"id":"7e2abac1-2bec-4313-8466-d6cbac6c0723","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":163,"box":{"x":102,"y":249,"width":759,"height":11}},{"id":"d3403bea-27ad-4949-baac-f86968abd96c","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":163,"box":{"x":69,"y":264,"width":760,"height":11}},{"id":"c8c93a52-1bff-4784-a929-4f99e5e2c22b","block_type":"box","text":"appropriate.","page_number":163,"box":{"x":69,"y":279,"width":84,"height":11}},{"id":"3eaee6a9-d8cc-421f-9522-4ca79b1bdc6f","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":163,"box":{"x":160,"y":279,"width":738,"height":11}},{"id":"65998865-b572-479d-b9fa-0b90922e946f","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":163,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"5d397714-ebd1-415f-bc83-a3c7c15648b5","block_type":"box","text":"described above.","page_number":163,"box":{"x":69,"y":309,"width":122,"height":9}},{"id":"9cdd9567-b4a2-4bad-8677-2ba15e8131cd","block_type":"box","text":"REDEMPTION OF SHARES","page_number":163,"box":{"x":385,"y":339,"width":208,"height":9}},{"id":"10e46492-617f-42d8-aefd-7ec8ec9a31d6","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":163,"box":{"x":102,"y":361,"width":798,"height":12}},{"id":"989964e0-3c54-4a77-bfb9-8e6d99a22f53","block_type":"box","text":"the right to redeem some or all of its shares in-kind under unusual circumstances (valued in the same way as they","page_number":163,"box":{"x":68,"y":377,"width":817,"height":11}},{"id":"ac24cff3-4577-4d1d-aabc-9fa7abaafa2c","block_type":"box","text":"would be valued for purposes of computing a Fund’s NAV), in order to protect the interests of remaining shareholders,","page_number":163,"box":{"x":68,"y":392,"width":840,"height":11}},{"id":"b0975766-1d88-4fa6-9941-816650ad6467","block_type":"box","text":"or to accommodate a request by a par ticular shareholder that does not adversely affect the interest of the remaining","page_number":163,"box":{"x":69,"y":407,"width":834,"height":11}},{"id":"b10808cf-989a-4342-b5a0-bc4d74b0f645","block_type":"box","text":"shareholders, by delivery of securities and other assets selected from the Fund’s por tfolio holdings at its discretion.","page_number":163,"box":{"x":69,"y":422,"width":829,"height":11}},{"id":"c84914f4-9d6b-4cda-9a00-e5c024179b7d","block_type":"box","text":"In-kind payment means payment will be made in por tfolio securities and other assets rather than cash. If this occurs,","page_number":163,"box":{"x":70,"y":437,"width":834,"height":11}},{"id":"852936cf-c95c-42a4-9ffc-6d45b95ee8df","block_type":"box","text":"the redeeming shareholder might incur brokerage or other transaction costs to conver t the securities and other","page_number":163,"box":{"x":68,"y":452,"width":793,"height":11}},{"id":"dd995fcb-fbb7-4ac9-b77c-6b697ec42584","block_type":"box","text":"assets to cash. In an in-kind redemption, a pro rata por tion of a Fund’s por tfolio holdings will generally be distributed","page_number":163,"box":{"x":69,"y":467,"width":834,"height":12}},{"id":"1b80ef0d-6afc-4ca4-a503-002804e3941f","block_type":"box","text":"to the redeeming shareholder, but an Index Fund may, under cer tain circumstances, deviate from pro rata redemption","page_number":163,"box":{"x":68,"y":482,"width":838,"height":12}},{"id":"19ce84c7-4b82-41e5-83b7-bce73ff53990","block_type":"box","text":"if the securities and other assets to be distributed are deemed to be a fair representation of por tfolio holdings and","page_number":163,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"652980d5-ab5f-485a-95d2-8af25395e01c","block_type":"box","text":"the interests of the remaining shareholders in the Index Fund are not diluted. Each Fund has elected, however, to be","page_number":163,"box":{"x":68,"y":513,"width":831,"height":11}},{"id":"3ab110d0-db5b-46ae-80b0-2d0dc88469fb","block_type":"box","text":"governed by Rule 18f-1 under the Investment Company Act so that the Fund is obligated to redeem its shares solely","page_number":163,"box":{"x":68,"y":528,"width":828,"height":11}},{"id":"945be5b4-202c-4112-8f5b-53dc63fe3013","block_type":"box","text":"in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period for any shareholder of the Fund. The","page_number":163,"box":{"x":70,"y":542,"width":826,"height":12}},{"id":"daec35fc-0fe4-471a-a205-365a667e6e5c","block_type":"box","text":"redemption price is the NAV per share next determined after the initial receipt of proper notice of redemption. The","page_number":163,"box":{"x":69,"y":558,"width":810,"height":11}},{"id":"a251a85d-5f43-4376-bda8-a6229c4aa41e","block_type":"box","text":"value of shares of each Fund at the time of redemption may be more or less than your cost at the time of purchase,","page_number":163,"box":{"x":68,"y":573,"width":827,"height":11}},{"id":"7c06839a-ea69-4343-a381-82295561d0e3","block_type":"box","text":"depending in par t on the market value of the securities held by the Fund at such time. Except for any CDSC that may","page_number":163,"box":{"x":69,"y":588,"width":832,"height":12}},{"id":"850786ba-1115-44f6-a981-c8307eb713e8","block_type":"box","text":"be applicable, there will be no redemption charge if your redemption request is sent directly to the Transfer Agent. If","page_number":163,"box":{"x":69,"y":603,"width":828,"height":12}},{"id":"aff0f9ff-fd5b-48e5-9863-35f32138aa16","block_type":"box","text":"you are liquidating your holdings you will receive all dividends reinvested through the date of redemption.","page_number":163,"box":{"x":68,"y":618,"width":746,"height":12}},{"id":"80e7daaa-e4e4-4a57-806d-abf477129257","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":163,"box":{"x":101,"y":641,"width":807,"height":11}},{"id":"7e646a3b-e3ad-4319-a932-935b2ce64111","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":163,"box":{"x":69,"y":656,"width":835,"height":12}},{"id":"59f1ca50-6e4b-4844-917c-5d06bbc79275","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":163,"box":{"x":68,"y":671,"width":811,"height":12}},{"id":"892b944e-01f0-4c14-80ad-0e7efa45adf6","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":163,"box":{"x":69,"y":686,"width":741,"height":12}},{"id":"906d8b4e-e797-4f2c-b2aa-68a5af917cf0","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":163,"box":{"x":69,"y":702,"width":813,"height":11}},{"id":"94b650cd-f15c-4088-a998-19dcedf4f998","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":163,"box":{"x":69,"y":717,"width":787,"height":11}},{"id":"3972e572-9c40-4008-ae96-4b72ae0e42f5","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":163,"box":{"x":69,"y":732,"width":685,"height":11}},{"id":"2c710c2d-1c55-4f61-9796-56acfd86f456","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":163,"box":{"x":102,"y":755,"width":798,"height":11}},{"id":"b7879621-0610-4e98-bbc3-dc95c534ee56","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":163,"box":{"x":69,"y":770,"width":820,"height":11}},{"id":"be3e44d3-ffb6-4b32-8312-7b2baa6effda","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":163,"box":{"x":69,"y":785,"width":653,"height":11}},{"id":"75e890dc-ea37-405d-b34e-c55d0cf7f489","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":163,"box":{"x":102,"y":807,"width":803,"height":12}},{"id":"38c694c5-7f2c-472c-9861-085734e5f61b","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":163,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"a255a641-f18f-4ba5-aa7c-475368400a72","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":163,"box":{"x":68,"y":838,"width":824,"height":11}},{"id":"82c13be3-f15b-4ff0-a581-a4e120458dd3","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":163,"box":{"x":70,"y":853,"width":825,"height":11}},{"id":"7b5f96eb-9ad6-48e4-ab71-f2f84502b0c6","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":163,"box":{"x":69,"y":868,"width":825,"height":11}},{"id":"284a6cb2-1c00-4f20-b084-1f31418b6550","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":163,"box":{"x":69,"y":883,"width":823,"height":11}},{"id":"716863d5-d9b4-4111-9313-093126aa0bc1","block_type":"box","text":"II-116","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1f66394f-1128-43e3-b31d-2880d4e8a130","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"252486f2-a38c-41d7-8882-960b17564fa4","block_type":"box","text":"Redemption","page_number":164,"box":{"x":69,"y":45,"width":86,"height":11}},{"id":"677cd6fb-a7f3-4516-825a-c066d827ec59","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":164,"box":{"x":70,"y":67,"width":481,"height":11}},{"id":"0f44812f-86e0-4cd7-be32-5c63686c4f63","block_type":"box","text":"Redeem by Telephone:","page_number":164,"box":{"x":102,"y":90,"width":162,"height":11}},{"id":"4140e83e-c816-4ae5-b7ab-58b7ccfb2e04","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":164,"box":{"x":270,"y":90,"width":571,"height":11}},{"id":"84823c32-e10b-488d-973b-3b8e1fe260da","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":164,"box":{"x":68,"y":104,"width":829,"height":12}},{"id":"f390cdbb-c18b-407c-9885-cecbf8dc35d5","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":164,"box":{"x":69,"y":120,"width":798,"height":12}},{"id":"aed40942-fa88-4c61-8cf0-17686491950a","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":164,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"fe176ef3-9e3a-4b94-bf0f-36e69485f338","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":164,"box":{"x":68,"y":150,"width":831,"height":12}},{"id":"85d1212d-8987-4114-ba78-90dc1d602c9e","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":164,"box":{"x":69,"y":166,"width":822,"height":11}},{"id":"75148e6a-6d2a-499d-aa2d-1e530ddb5369","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":164,"box":{"x":70,"y":181,"width":791,"height":11}},{"id":"f23681f7-bfc3-4f59-aa33-04854b8406fa","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":164,"box":{"x":68,"y":196,"width":818,"height":11}},{"id":"318b40f1-636b-4e30-9454-0cf3843d151f","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":164,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"477c540a-f628-47c4-a400-498e80b4cd0c","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":164,"box":{"x":69,"y":226,"width":803,"height":11}},{"id":"fbbac4e3-962b-47d8-95bc-14a45e6f884e","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":164,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"1f218d40-673a-47c5-b9c6-a7f9e4642477","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":164,"box":{"x":69,"y":256,"width":825,"height":12}},{"id":"d7fb6bdb-c74d-40c7-92e3-c41cfe602ff5","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":164,"box":{"x":68,"y":271,"width":840,"height":12}},{"id":"b28b4607-f2a3-4f6f-a839-99ac288069c9","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":164,"box":{"x":68,"y":287,"width":835,"height":11}},{"id":"884e3cc6-3a77-417a-ad31-139d7162e374","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":164,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"445e8523-efbb-4f13-bebc-7790f658729f","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":164,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"2da3744b-ee4a-460e-a33e-e4d75aacbc41","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":164,"box":{"x":70,"y":332,"width":603,"height":11}},{"id":"faa665a5-e98d-4129-9f57-e082bdf4edb8","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":164,"box":{"x":102,"y":355,"width":774,"height":11}},{"id":"d31600f4-2714-4b6d-952c-eb5785f4e70b","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":164,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"970c0c9b-daff-4225-bd76-f52427c87356","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":164,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"11c4eeda-8c04-4123-abac-e42d1ef5f7d3","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":164,"box":{"x":68,"y":400,"width":823,"height":11}},{"id":"529f2f93-811c-4e87-b95c-482012ff92ba","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":164,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"c81bd40e-5abc-48db-a20e-6ea0f6886b7e","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":164,"box":{"x":69,"y":430,"width":809,"height":11}},{"id":"1acfb2e5-808d-45bc-9823-bb4c9ff3335f","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":164,"box":{"x":69,"y":445,"width":833,"height":12}},{"id":"4ad7f24f-4919-425f-9ac8-aaac62811bf8","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":164,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"856b87d0-d3be-4746-bb46-aa710f2289c3","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":164,"box":{"x":69,"y":476,"width":785,"height":11}},{"id":"b4ddd90a-1128-4dbe-92bb-06aad490dcf2","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":164,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"59be43e1-9533-4a66-a177-2f8e379117b1","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":164,"box":{"x":69,"y":506,"width":782,"height":11}},{"id":"a6484c70-07a8-41d4-89a9-6b86515d13a3","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":164,"box":{"x":69,"y":521,"width":838,"height":11}},{"id":"7446fc07-c0d7-41b5-a6bf-fb8277a94b6e","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":164,"box":{"x":68,"y":536,"width":837,"height":11}},{"id":"f1e24ce7-fe99-47c1-aa5b-02e3878febda","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":164,"box":{"x":69,"y":551,"width":800,"height":11}},{"id":"4f563fb9-7abc-46a1-ab84-56844193c00e","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":164,"box":{"x":102,"y":574,"width":776,"height":11}},{"id":"8f2822e4-92e6-4fe1-9185-9ec9386619c6","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":164,"box":{"x":70,"y":589,"width":823,"height":11}},{"id":"9dcc79e9-f3cb-48a6-b08b-5be483c417bc","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":164,"box":{"x":69,"y":604,"width":820,"height":11}},{"id":"69882cc0-1f5d-4914-b027-16212f79c2b2","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":164,"box":{"x":68,"y":619,"width":826,"height":11}},{"id":"0bdb60b2-c150-414d-91fd-ff0060732447","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":164,"box":{"x":68,"y":634,"width":817,"height":12}},{"id":"6f528766-fc28-4950-9294-e087e483d753","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":164,"box":{"x":70,"y":649,"width":648,"height":11}},{"id":"93cf8605-ef31-432d-90ec-f1f440090466","block_type":"box","text":"Redeem by VRU:","page_number":164,"box":{"x":102,"y":672,"width":120,"height":11}},{"id":"06a61893-760e-4b2b-8bf1-5224e56c62f3","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":164,"box":{"x":229,"y":672,"width":667,"height":11}},{"id":"40b7e50a-7c73-4c2f-9e78-ef312d1d4d9d","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":164,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"7be155cf-4a1d-4ab0-917e-2617398a62c5","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":164,"box":{"x":68,"y":702,"width":644,"height":12}},{"id":"a682f3d3-a8a3-451d-a23f-f06f79c911ca","block_type":"box","text":"Redeem by Internet:","page_number":164,"box":{"x":102,"y":725,"width":147,"height":11}},{"id":"179d5083-180a-4cbf-988f-b065ce1c062c","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":164,"box":{"x":255,"y":725,"width":637,"height":11}},{"id":"c1df66f9-11e9-4808-b1ad-ef602d1338c2","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":164,"box":{"x":70,"y":740,"width":836,"height":11}},{"id":"af78081b-24b7-481a-ab4b-62736e3e8b1a","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":164,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"5588966f-fbe1-4c13-8fcb-14a9671cfe76","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":164,"box":{"x":68,"y":770,"width":789,"height":12}},{"id":"aca185aa-6d52-42ea-ad8d-9e112eeff338","block_type":"box","text":"institutional investors.","page_number":164,"box":{"x":70,"y":786,"width":155,"height":8}},{"id":"bf8ae2bc-9cd8-492f-87d3-c2e0c56e4a84","block_type":"box","text":"Redeem in Writing:","page_number":164,"box":{"x":102,"y":808,"width":137,"height":11}},{"id":"05bb2ac6-6f02-4cd6-a376-f50fbcda1f5d","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":164,"box":{"x":247,"y":808,"width":639,"height":11}},{"id":"0818d4ee-2c8e-4332-9cab-bdfaaa51921c","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":164,"box":{"x":68,"y":823,"width":831,"height":12}},{"id":"b136cc5a-2b27-46ee-af35-2f0c2f81b6b8","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":164,"box":{"x":68,"y":838,"width":745,"height":12}},{"id":"f5ad710d-b2ff-4270-89f4-309e3103529e","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":164,"box":{"x":69,"y":853,"width":764,"height":12}},{"id":"fe710d69-0292-41b4-a1e8-5a97b995b4b7","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":164,"box":{"x":69,"y":869,"width":831,"height":11}},{"id":"31e18f4f-4b5a-4922-a0d2-fe1790bf9ac2","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":164,"box":{"x":68,"y":884,"width":794,"height":11}},{"id":"a1298e44-d89d-4253-abe5-4c62f35d2af3","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":164,"box":{"x":68,"y":899,"width":782,"height":11}},{"id":"48006837-322c-4d2a-a3cb-d6db4e143497","block_type":"box","text":"II-117","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f851de0e-4b67-4140-8edc-8bd2c69faa95","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"37b7bc94-c5a3-4247-9a6b-3e041c54c1d3","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":165,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"29e6e6ec-b060-49bb-ad40-053af540d9b5","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":165,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"25327d98-99de-4006-957d-e0117b93e901","block_type":"box","text":"or wire to the bank account of record.","page_number":165,"box":{"x":69,"y":75,"width":266,"height":9}},{"id":"ab0fe93e-c729-48cd-8ede-004089ad8694","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":165,"box":{"x":102,"y":98,"width":802,"height":11}},{"id":"78a83972-4480-4d32-87c8-78d69ba4d0a2","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":165,"box":{"x":69,"y":113,"width":489,"height":11}},{"id":"ecc5dc18-266e-4464-af18-d0f557e0d494","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":165,"box":{"x":101,"y":135,"width":668,"height":12}},{"id":"ff4250aa-5054-47ce-afcd-2e149d91d7e9","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":165,"box":{"x":102,"y":158,"width":800,"height":11}},{"id":"2c1f2edb-f2d1-4b96-918b-83387d80a008","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":165,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"2d5c890e-7e7b-4c62-8123-ddb90ff991a5","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":165,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"099b26c0-ecad-4de1-85e0-edb4d37a88da","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":165,"box":{"x":69,"y":203,"width":789,"height":12}},{"id":"cb0d021c-3a02-4f52-b6da-bdf997aef43e","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":165,"box":{"x":69,"y":218,"width":775,"height":12}},{"id":"cfba3498-ef33-4d0f-9955-e86b5154026c","block_type":"box","text":"redeemed by the Fund.","page_number":165,"box":{"x":69,"y":234,"width":162,"height":11}},{"id":"af37ebf5-9e57-4592-9c8e-bbab4bcde959","block_type":"box","text":"Note on Low Balance Accounts.","page_number":165,"box":{"x":102,"y":257,"width":223,"height":8}},{"id":"f0dafd3e-ed02-4555-9ac7-33426ad65263","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":165,"box":{"x":332,"y":256,"width":503,"height":12}},{"id":"e487e637-bf66-485f-ac60-4beff367a3fd","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":165,"box":{"x":70,"y":271,"width":752,"height":12}},{"id":"fce56cc9-d71b-418f-85d4-4ef2dda2050b","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":165,"box":{"x":70,"y":286,"width":829,"height":12}},{"id":"3d9b7487-1794-4fb0-8892-05936e62011c","block_type":"box","text":"for any reason, including market fluctuation.","page_number":165,"box":{"x":68,"y":302,"width":313,"height":11}},{"id":"42c83aea-08ab-4441-8d3d-f8a8d67c46d2","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":165,"box":{"x":101,"y":324,"width":775,"height":11}},{"id":"b04e131a-6f65-405a-8b3a-67c53d69cc6c","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":165,"box":{"x":70,"y":339,"width":773,"height":12}},{"id":"b04b8ac8-4058-46b3-9bec-7d9170059ed0","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":165,"box":{"x":70,"y":354,"width":776,"height":12}},{"id":"656db4db-8448-4fbf-8c78-c39bdac32556","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":165,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"1e110ce6-3d9c-4555-8db6-fdf9634d4986","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":165,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"602c7248-6579-457b-aac7-326a40733d6a","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":165,"box":{"x":69,"y":400,"width":435,"height":11}},{"id":"57e578e0-4121-4fbf-b29b-193341f0c156","block_type":"box","text":"Repurchase","page_number":165,"box":{"x":69,"y":430,"width":85,"height":11}},{"id":"dc12cf92-d078-41c6-9ac5-f1ce805c3f26","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":165,"box":{"x":101,"y":453,"width":800,"height":11}},{"id":"c3d920a6-3d8b-480b-9c9f-20df37b4a0e1","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":165,"box":{"x":70,"y":468,"width":833,"height":11}},{"id":"f0a5517b-c20f-4cfe-8274-d9689a52a110","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":165,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"cb7d4f44-9303-4a26-8328-8d4fc209d6b6","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":165,"box":{"x":70,"y":498,"width":809,"height":11}},{"id":"f7cb3bc2-4fe4-4997-b952-b2ce2a3869e8","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":165,"box":{"x":69,"y":513,"width":831,"height":11}},{"id":"9134c0ff-21b8-4ee7-b5e0-9359a4cf424d","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":165,"box":{"x":70,"y":528,"width":796,"height":12}},{"id":"1c34a85f-e546-4e80-b5ca-5cef7248390a","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":165,"box":{"x":69,"y":543,"width":812,"height":12}},{"id":"edac8929-e46a-4283-a0a1-8f034af9eece","block_type":"box","text":"next business day.","page_number":165,"box":{"x":69,"y":559,"width":130,"height":11}},{"id":"2218b986-8297-4c95-b43c-1a0eeb6821f0","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":165,"box":{"x":101,"y":581,"width":783,"height":12}},{"id":"3e937537-8f6a-44bc-9792-878b70304083","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":165,"box":{"x":69,"y":596,"width":813,"height":12}},{"id":"0245f5a7-b7cc-4e2b-bc28-f0b34cf2e7d2","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":165,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"c067a0be-295d-49b8-a511-b04863c27acc","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":165,"box":{"x":70,"y":627,"width":814,"height":11}},{"id":"5e0f1b2a-38c5-43c3-becd-600b907c1021","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":165,"box":{"x":69,"y":642,"width":788,"height":11}},{"id":"feebe55b-d0be-4c20-8222-60623f14f16b","block_type":"box","text":"redeem shares as set out above.","page_number":165,"box":{"x":69,"y":657,"width":235,"height":9}},{"id":"2ed45a32-f60b-428f-89bd-483ef637c2d6","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":165,"box":{"x":69,"y":687,"width":440,"height":11}},{"id":"95993345-22ae-4e72-9ccd-a355646a8923","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":165,"box":{"x":102,"y":710,"width":791,"height":11}},{"id":"f175511a-b8c6-4635-947f-4f1faa59d7db","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":165,"box":{"x":69,"y":725,"width":815,"height":11}},{"id":"aa52f48e-a9ca-4887-88db-0f82a8e9d814","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":165,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"f12c2378-e29c-47cd-8fbd-50524f740051","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":165,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"0c846f9c-95c8-40f6-87b7-61243518f59f","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":165,"box":{"x":69,"y":770,"width":768,"height":11}},{"id":"46f03b3f-98b6-40b3-b108-64b7d220ebc4","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":165,"box":{"x":70,"y":785,"width":827,"height":12}},{"id":"5b835c3a-b1f7-4847-81ed-081be5f6a80a","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":165,"box":{"x":68,"y":801,"width":809,"height":11}},{"id":"b949063c-7e65-492f-b1de-afe96017bd47","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":165,"box":{"x":69,"y":816,"width":764,"height":11}},{"id":"8b286a36-531e-47b4-bbb4-423654049a17","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":165,"box":{"x":69,"y":831,"width":400,"height":11}},{"id":"128b52e1-81e2-42ad-b29d-242eaf1e63dd","block_type":"box","text":"II-118","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c145ab71-f668-4c13-908d-59ce8391f9bc","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0f87d87-c6b8-4f91-aa7b-a12b70debe77","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":166,"box":{"x":384,"y":45,"width":210,"height":10}},{"id":"6cf16cd8-c76b-4e19-8120-91538459677d","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":166,"box":{"x":102,"y":68,"width":747,"height":11}},{"id":"c199efee-b41e-481e-8cda-df0f9d46155b","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":166,"box":{"x":70,"y":83,"width":781,"height":11}},{"id":"8f7119fc-3d12-4203-a6be-ab1b6a617e53","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":166,"box":{"x":68,"y":98,"width":836,"height":11}},{"id":"f43076b2-93b7-40ec-b087-e7280fbd22d6","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":166,"box":{"x":69,"y":113,"width":641,"height":11}},{"id":"eb2409b7-d270-4385-84e9-fcf5c6ab46d4","block_type":"box","text":"Investment Account","page_number":166,"box":{"x":69,"y":144,"width":146,"height":9}},{"id":"d96037ac-d5e7-4d3f-bf82-3c2488831bde","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":166,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"2279bd4d-785a-4866-84f9-501907efb69e","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":166,"box":{"x":70,"y":181,"width":796,"height":12}},{"id":"723c7d1a-707c-4961-bac9-be2a4582c26b","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":166,"box":{"x":70,"y":196,"width":807,"height":12}},{"id":"5a8f8027-1faa-437e-8af7-78495d36be4e","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":166,"box":{"x":68,"y":212,"width":830,"height":11}},{"id":"32aa2716-27a9-4a26-a602-de61b0a3cef7","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":166,"box":{"x":69,"y":227,"width":829,"height":11}},{"id":"26548f03-156e-4d83-b45c-ed7312bab6ea","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":166,"box":{"x":68,"y":242,"width":815,"height":11}},{"id":"d52b9f20-9007-4906-afb1-e8f4ec2400e1","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":166,"box":{"x":70,"y":256,"width":781,"height":12}},{"id":"d043b2de-b55a-4b95-9cee-2d29920c32cf","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":166,"box":{"x":69,"y":272,"width":825,"height":11}},{"id":"98cce789-28dd-4a3c-a840-29d40f79d52b","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":166,"box":{"x":69,"y":287,"width":785,"height":11}},{"id":"d3e134b5-41be-4764-800e-6972a6260f77","block_type":"box","text":"automatically at the Transfer Agent.","page_number":166,"box":{"x":69,"y":302,"width":251,"height":12}},{"id":"beaa75f1-d9b3-4096-83a0-997b6e2a455d","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":166,"box":{"x":101,"y":325,"width":750,"height":11}},{"id":"861bb55c-c418-4672-ac65-5dfec7d95b49","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":166,"box":{"x":69,"y":340,"width":797,"height":11}},{"id":"60656e1b-2105-424a-b9d9-dcbbaab5ae56","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":166,"box":{"x":69,"y":355,"width":797,"height":11}},{"id":"23ad3c95-f9b0-4e69-9982-d017d24882ca","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":166,"box":{"x":69,"y":370,"width":826,"height":11}},{"id":"2d31aaee-ff4b-4385-b737-718f758efba3","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":166,"box":{"x":68,"y":386,"width":792,"height":11}},{"id":"28fe69a8-c017-476f-8613-9aef353cdeb5","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":166,"box":{"x":69,"y":401,"width":824,"height":11}},{"id":"7cf927fc-cf06-411b-9ab7-e55c5b9b8cab","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":166,"box":{"x":69,"y":416,"width":820,"height":11}},{"id":"6db2cf02-e17d-4367-922b-adc0ecdac774","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":166,"box":{"x":68,"y":431,"width":833,"height":11}},{"id":"830d742f-e37a-4cb3-b51a-7934c202afaa","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":166,"box":{"x":68,"y":446,"width":795,"height":11}},{"id":"9695271f-a1ee-4660-a546-7cfb2efe9003","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":166,"box":{"x":70,"y":461,"width":822,"height":11}},{"id":"4df4c5dc-185b-4850-9fb9-d56d887f60e2","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":166,"box":{"x":69,"y":476,"width":814,"height":11}},{"id":"1328a739-0ca8-4c79-b2f5-deba2fdf807a","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":166,"box":{"x":68,"y":491,"width":822,"height":12}},{"id":"3812ff7b-a1f4-4896-8490-dbfa8c3e60f7","block_type":"box","text":"issued.","page_number":166,"box":{"x":70,"y":507,"width":49,"height":8}},{"id":"aa79d381-795d-4a79-ac47-8c7d37f87969","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":166,"box":{"x":102,"y":529,"width":785,"height":11}},{"id":"271e6a6f-fdc2-4fe2-b77b-a84c0c831de0","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":166,"box":{"x":68,"y":544,"width":830,"height":11}},{"id":"d295fb8f-ec41-4007-a174-be90cb8b2478","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":166,"box":{"x":68,"y":559,"width":790,"height":12}},{"id":"1474d780-333f-4c1a-8ce3-478d46f7d237","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":166,"box":{"x":69,"y":574,"width":831,"height":12}},{"id":"409cc4b4-f442-4cce-9399-7d3e2a28e438","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":166,"box":{"x":68,"y":589,"width":652,"height":12}},{"id":"1fadf095-a9db-45a9-831b-c16403259999","block_type":"box","text":"Exchange Privilege","page_number":166,"box":{"x":69,"y":620,"width":138,"height":11}},{"id":"d284c4c1-fe1f-4edc-8d5d-0b2f6b89d6f4","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":166,"box":{"x":102,"y":642,"width":797,"height":11}},{"id":"59d8482d-5fab-4b62-b4db-7d9e5a5b1ade","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":166,"box":{"x":69,"y":658,"width":832,"height":11}},{"id":"ab44a465-2ecf-4036-a6b3-98aa87d19d89","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":166,"box":{"x":68,"y":672,"width":788,"height":12}},{"id":"dc9f2547-2cad-43c6-b092-3b9a7fdebf3f","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":166,"box":{"x":69,"y":687,"width":796,"height":12}},{"id":"f4c74a9d-3cea-4e8b-9610-e150230a028b","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":166,"box":{"x":69,"y":703,"width":824,"height":11}},{"id":"fa5f21b6-3720-4299-a3b5-c9da48ee9103","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":166,"box":{"x":69,"y":718,"width":835,"height":11}},{"id":"0e2c96d3-0133-424c-8af1-7fe0a7d65ede","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":166,"box":{"x":70,"y":733,"width":820,"height":11}},{"id":"10322da9-79dc-458e-b594-bd0fcf206ed7","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":166,"box":{"x":69,"y":748,"width":600,"height":11}},{"id":"e1af325a-fc59-4337-bbc1-6e8f73ed5312","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":166,"box":{"x":102,"y":771,"width":667,"height":11}},{"id":"bc64f347-fd47-462e-b08e-22a3882fc651","block_type":"box","text":"Institutional","page_number":166,"box":{"x":776,"y":771,"width":81,"height":9}},{"id":"3c47c53c-4463-440e-bf04-f5e05f5638e6","block_type":"box","text":"Shares are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are","page_number":166,"box":{"x":69,"y":786,"width":746,"height":11}},{"id":"c2a7bc6d-decb-4695-af91-97a3b033aedd","block_type":"box","text":"exchangeable for Investor A Shares of other Funds to the extent such shares are offered by your financial","page_number":166,"box":{"x":69,"y":801,"width":750,"height":11}},{"id":"f26d57f4-ee83-4ec1-b1fc-acbf977d8209","block_type":"box","text":"intermediary. Investor P Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are","page_number":166,"box":{"x":70,"y":816,"width":836,"height":12}},{"id":"6c796b7d-cfb5-4aa9-aab2-b6fd2da6103d","block_type":"box","text":"offered by your financial intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G","page_number":166,"box":{"x":69,"y":831,"width":825,"height":12}},{"id":"4ea63421-3f0e-485a-9276-648f521aad29","block_type":"box","text":"Shares are exchangeable for Class G Shares of other Funds.","page_number":166,"box":{"x":69,"y":846,"width":431,"height":12}},{"id":"52cd8766-3303-4e3d-81c3-217f4bdddfba","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":166,"box":{"x":102,"y":869,"width":800,"height":11}},{"id":"da04083c-4eb7-4b68-ac6a-d98cbc95391a","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":166,"box":{"x":69,"y":884,"width":826,"height":12}},{"id":"84e7e9d7-704f-4afb-9338-be7d38401e8f","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":166,"box":{"x":69,"y":899,"width":795,"height":12}},{"id":"9fc00c00-3722-481e-95ca-b57bd3aad121","block_type":"box","text":"II-119","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"89d500b6-321d-4622-9a21-9876854c89d7","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d84d61d2-22f8-4250-8c10-83c8c47b38ff","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":167,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"73fa06f8-71cf-4120-ae71-d72cbfd79765","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":167,"box":{"x":70,"y":60,"width":814,"height":11}},{"id":"2fa9174a-dd88-43e0-8f80-75b213e8369e","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":167,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"e5e3aea9-f5e8-4b9e-aa78-3b80ed901f01","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":167,"box":{"x":69,"y":90,"width":828,"height":11}},{"id":"b32404a5-f87c-4f7e-96e4-28cb22b66c8b","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":167,"box":{"x":69,"y":105,"width":561,"height":11}},{"id":"49473dfa-d0e6-423d-9215-aac0b4eacc65","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":167,"box":{"x":102,"y":128,"width":236,"height":11}},{"id":"bc4c1fb2-0a0f-4d27-aeb6-75bac2b803d8","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding","page_number":167,"box":{"x":344,"y":128,"width":470,"height":11}},{"id":"693adbc6-249c-4df4-a5dd-f4e00242711c","block_type":"box","text":"(“outstanding Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new","page_number":167,"box":{"x":69,"y":143,"width":765,"height":11}},{"id":"498d1a99-7b4b-435d-a880-2a16ba1f3502","block_type":"box","text":"Investor C Shares”) or for shares of a money market fund (“new money market fund Shares”) on the basis of relative","page_number":167,"box":{"x":70,"y":158,"width":833,"height":11}},{"id":"4520a9d8-3ebe-4099-8c6f-20f7b7d0e322","block_type":"box","text":"NAV per share, without the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of","page_number":167,"box":{"x":70,"y":173,"width":825,"height":11}},{"id":"a6d1fb71-c2b6-47c3-81e6-bee2fd73cb55","block_type":"box","text":"computing the CDSC upon redemption of new Investor C Shares or new money market fund Shares, as applicable,","page_number":167,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"32cd88be-0326-4316-91f0-e6f70fc405c3","block_type":"box","text":"the time you held both the exchanged Investor C Shares and the new Investor C Shares or new money market fund","page_number":167,"box":{"x":68,"y":203,"width":818,"height":12}},{"id":"574703cb-4f8f-4091-9569-76a464366d29","block_type":"box","text":"Shares will count towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":167,"box":{"x":69,"y":218,"width":780,"height":12}},{"id":"719fc13a-c1a8-4a20-8325-9eb0e02aa52a","block_type":"box","text":"Exchanges of Service Shares.","page_number":167,"box":{"x":102,"y":241,"width":216,"height":11}},{"id":"c5abc31e-f617-4836-b031-cc39c449f649","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered","page_number":167,"box":{"x":324,"y":241,"width":565,"height":11}},{"id":"8ddb4d97-682e-4960-b976-b81418c8cd8b","block_type":"box","text":"by selected dealer agreements with the Distributor.","page_number":167,"box":{"x":69,"y":257,"width":362,"height":11}},{"id":"f0bc443f-8bee-42ba-8599-e154d6f22fcc","block_type":"box","text":"Exchanges for Shares of a Money Market Fund","page_number":167,"box":{"x":102,"y":279,"width":343,"height":11}},{"id":"eda27604-2e10-4e72-a1ec-129f0cfda591","block_type":"box","text":".","page_number":167,"box":{"x":445,"y":286,"width":2,"height":2}},{"id":"c322b383-9326-4bd3-9919-1978c9fdb051","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":167,"box":{"x":453,"y":279,"width":455,"height":11}},{"id":"9c31b1ee-d893-48c7-9a22-b9bfdecbefe9","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":167,"box":{"x":70,"y":294,"width":788,"height":11}},{"id":"b9c2c006-3866-4fb4-85f7-f14acb1ef06c","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":167,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"af3f0682-de99-4c34-bde4-6e655af2a167","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":167,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"a8785f20-845e-465b-ad53-497def3a8123","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":167,"box":{"x":69,"y":339,"width":824,"height":12}},{"id":"6a57753c-f0a6-4cc3-a678-fbd47160b4b4","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":167,"box":{"x":69,"y":355,"width":805,"height":11}},{"id":"9aac6e92-3a8b-45bf-9ded-f667dae70e8b","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":167,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"212a68cf-8ed8-4dc8-a55b-50e2e634be26","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":167,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"2dfbcc92-1383-428a-b4d2-ae7483619329","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":167,"box":{"x":69,"y":400,"width":822,"height":11}},{"id":"0c790b53-49d0-48a9-90e4-e10bac203459","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":167,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"5d839033-e297-4d66-8d09-177812df3fd4","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":167,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"458fabba-736c-4905-8ed6-dfd3fb4034ad","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":167,"box":{"x":69,"y":445,"width":830,"height":12}},{"id":"515da1dd-1512-4093-93a4-f5224c5f833f","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":167,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"a672f2c2-591b-47cc-9cc9-2123395937d4","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":167,"box":{"x":69,"y":475,"width":823,"height":12}},{"id":"8574a903-3022-4089-a6a5-4161b1ff9d55","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":167,"box":{"x":70,"y":491,"width":781,"height":11}},{"id":"f902754f-1552-4ece-bfa8-7e0db1ff03e8","block_type":"box","text":"exchange.","page_number":167,"box":{"x":69,"y":506,"width":70,"height":11}},{"id":"37893c03-07a3-4271-92a0-6a876ef2abd7","block_type":"box","text":"Exchanges by Participants in Certain Programs.","page_number":167,"box":{"x":102,"y":529,"width":350,"height":11}},{"id":"c10f1cfd-9e41-4dee-a6ed-e37ac9a102c2","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":167,"box":{"x":458,"y":528,"width":448,"height":12}},{"id":"67c2510d-1fa3-4fa1-a97f-2aaae33b0e1f","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":167,"box":{"x":70,"y":543,"width":828,"height":12}},{"id":"fbf83ee7-62fe-4b61-ab4e-ff65e568ae3b","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":167,"box":{"x":69,"y":559,"width":796,"height":11}},{"id":"d1635358-ff4d-4d2f-ba8d-caf4b8befdbc","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":167,"box":{"x":70,"y":574,"width":324,"height":11}},{"id":"b93be1e6-261c-4f28-ab32-9c2c99c531a9","block_type":"box","text":"Exercise of the Exchange Privilege","page_number":167,"box":{"x":102,"y":596,"width":254,"height":12}},{"id":"eeaa4f0c-e452-4a99-9986-0c6499417391","block_type":"box","text":".","page_number":167,"box":{"x":357,"y":604,"width":2,"height":1}},{"id":"e3bd495e-3f4a-450b-b8a7-bb0e421cacb8","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":167,"box":{"x":365,"y":596,"width":543,"height":12}},{"id":"74234cd4-a87a-4142-84a3-89f3933aa87d","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":167,"box":{"x":69,"y":612,"width":794,"height":11}},{"id":"af89952b-418a-41c0-8eca-502ba07cd901","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":167,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"e50e6435-e4ab-488f-8070-c218c8782c16","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":167,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"d4b847ec-83d9-4656-8444-40cdfb8714f6","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":167,"box":{"x":101,"y":665,"width":772,"height":11}},{"id":"82ff819d-1d3e-4979-ac59-bb4663053958","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":167,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"bbed998c-3b40-4981-bd73-82d00f94181f","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":167,"box":{"x":69,"y":695,"width":801,"height":11}},{"id":"5022df35-21a9-491a-983d-31925873d68b","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":167,"box":{"x":68,"y":710,"width":817,"height":11}},{"id":"9a30d3c4-5799-435a-9525-83458d47f188","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":167,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"ef1988e1-2898-42df-9ae6-d681354076ab","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":167,"box":{"x":69,"y":740,"width":840,"height":11}},{"id":"07409317-3f92-4269-a21c-f849f733c8da","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":167,"box":{"x":68,"y":755,"width":811,"height":11}},{"id":"30ce7832-3d48-417d-a44a-0059eeceddc4","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":167,"box":{"x":68,"y":770,"width":815,"height":12}},{"id":"ce2eec22-c19a-4079-a9b1-6148567a2702","block_type":"box","text":"Transfer Agent in writing.","page_number":167,"box":{"x":68,"y":785,"width":175,"height":12}},{"id":"c704be2b-4e55-4ce1-af29-e2d37672678b","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":167,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"7bbcf42e-ddc3-4561-b659-31415654ade0","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":167,"box":{"x":69,"y":823,"width":828,"height":12}},{"id":"ffc9d64f-33ff-4d16-8ec0-ce0d7d7f978b","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":167,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"f8b24f40-c862-44bd-b9f1-380f72ada3c2","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":167,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"68f065e9-beb8-4551-bb06-e53b569f40d3","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":167,"box":{"x":68,"y":869,"width":763,"height":11}},{"id":"35ba9e50-e500-4966-a953-73bbe305a295","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":167,"box":{"x":69,"y":884,"width":424,"height":11}},{"id":"18d9872a-4648-4038-9fb5-2d1818314adb","block_type":"box","text":"II-120","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ef2cd8ef-1327-49f1-90f0-3023f0cd437e","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"acb2a9e5-9ac4-4d75-ab27-c202c79e6776","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":168,"box":{"x":101,"y":45,"width":790,"height":11}},{"id":"f234d865-26ea-4310-b993-0551a1990967","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":168,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"c9f0f117-42b5-493a-95ed-34061bc28b88","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":168,"box":{"x":69,"y":75,"width":771,"height":11}},{"id":"644a8c14-3e00-41d9-9253-5a87253a30fa","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":168,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"23434f13-ca07-40fb-a080-bb0a946f123f","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":168,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"a812007c-8dad-4599-99cb-3f8bc6872442","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":168,"box":{"x":70,"y":120,"width":354,"height":12}},{"id":"45bb7ef2-1006-43ad-b643-edd02a7a88fa","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":168,"box":{"x":101,"y":143,"width":782,"height":11}},{"id":"6cdab82d-fba1-40e7-a20c-da1c68d68b64","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":168,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"6a9b3139-a94c-43d7-875a-6a89953cf694","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":168,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"a7d5c97d-81c8-4e5c-952b-b5c748f19899","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":168,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"b2570b07-19b9-45c1-9b03-21d05b11c760","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":168,"box":{"x":69,"y":203,"width":506,"height":12}},{"id":"8ebf7c92-419c-4255-8c3a-00e0a4b4b68c","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":168,"box":{"x":101,"y":226,"width":733,"height":11}},{"id":"0107dba6-b863-49bd-917f-c0ee47bae4f9","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":168,"box":{"x":69,"y":241,"width":793,"height":11}},{"id":"0e675310-8e31-4646-842f-2129b1ffb94e","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":168,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"f8e088e6-50ff-454d-bc71-cea8db62a17d","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":168,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"d98bbe34-a223-45d4-ae23-7108a432884d","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":168,"box":{"x":68,"y":286,"width":825,"height":12}},{"id":"e66ebe28-9146-4cbf-bd51-8a9c2b632ed7","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":168,"box":{"x":68,"y":302,"width":837,"height":11}},{"id":"75bc5184-c669-4fa1-82ce-70c840951413","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":168,"box":{"x":69,"y":317,"width":767,"height":11}},{"id":"5fbfa569-7f16-436f-bf66-89ee5efb3608","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":168,"box":{"x":69,"y":332,"width":750,"height":11}},{"id":"8d48cbbd-934e-4599-b1bd-bf319e3b4f00","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":168,"box":{"x":102,"y":355,"width":757,"height":11}},{"id":"f35ed502-664a-4b50-8067-ea56847d6338","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":168,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"a94ad614-9a13-4359-b42e-303ca7099c19","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":168,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"19214e41-5353-47ea-b0aa-22285a052c24","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":168,"box":{"x":69,"y":400,"width":817,"height":11}},{"id":"2952d055-7f1f-4d8a-afbd-e23c0801487d","block_type":"box","text":"may be distributed by the Distributor.","page_number":168,"box":{"x":69,"y":415,"width":262,"height":11}},{"id":"6a480612-34ff-49de-9444-a48582fa1383","block_type":"box","text":"Participation in Fee-Based Programs","page_number":168,"box":{"x":69,"y":445,"width":266,"height":11}},{"id":"62decb39-8efe-4c26-920f-b9f3c9c83807","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":168,"box":{"x":102,"y":468,"width":780,"height":11}},{"id":"49a29c6b-9dd2-45f0-9169-87018555b57d","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":168,"box":{"x":69,"y":483,"width":826,"height":11}},{"id":"bdf980ef-3810-4242-a66c-6bf689a22052","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":168,"box":{"x":70,"y":498,"width":825,"height":11}},{"id":"2de914c0-3038-48b3-a722-9117977f041c","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":168,"box":{"x":69,"y":513,"width":770,"height":12}},{"id":"38ba0fe8-4498-47ac-bd3b-9d1a85da8bd4","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":168,"box":{"x":69,"y":528,"width":837,"height":12}},{"id":"4aef08c1-44b8-43ef-b530-7bf6a828cd0b","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":168,"box":{"x":70,"y":543,"width":808,"height":12}},{"id":"718d28ce-c0f4-4a6b-abc8-2be190246dee","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":168,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"cdb28ad5-1331-42e0-8b29-b0894b8b7ccc","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":168,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"f5b4e5c1-ee19-45dd-9976-8c1db45de592","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":168,"box":{"x":70,"y":589,"width":555,"height":11}},{"id":"fe8e29f0-0f0b-4f0d-b36a-05025cf45fae","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":168,"box":{"x":102,"y":612,"width":788,"height":11}},{"id":"c681129a-9b6c-4714-9bed-421daa354928","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":168,"box":{"x":69,"y":627,"width":817,"height":10}},{"id":"4d3dbca7-bc0a-4168-b377-8b8917cc2f30","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":168,"box":{"x":69,"y":642,"width":796,"height":11}},{"id":"2a594d00-9ee3-4e2a-b382-38d561ecace4","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":168,"box":{"x":70,"y":657,"width":754,"height":11}},{"id":"dc9ffae7-ea74-48c6-820a-c0a4d6b256e8","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":168,"box":{"x":70,"y":672,"width":820,"height":11}},{"id":"b2708817-b827-46dc-801e-ec37e56b0477","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":168,"box":{"x":70,"y":687,"width":777,"height":11}},{"id":"c864ba61-74f3-418c-bca8-a508920d03eb","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":168,"box":{"x":70,"y":702,"width":791,"height":12}},{"id":"127c701e-7b99-45be-8d2a-1657d6f1e0d3","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":168,"box":{"x":69,"y":717,"width":756,"height":12}},{"id":"51841659-de24-488b-9740-68825a2c31ab","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":168,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"0dcd6887-1fa4-44b9-9f55-687b6fa2213d","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":168,"box":{"x":68,"y":755,"width":791,"height":11}},{"id":"459f5a38-1dd4-4cdd-a0ea-d23763bb2ba4","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":168,"box":{"x":70,"y":770,"width":830,"height":12}},{"id":"78aea504-f9f6-4568-871d-fed492af003d","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":168,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"8dfab7f9-1bdb-4a72-8a99-5c72431a6dec","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":168,"box":{"x":69,"y":801,"width":801,"height":11}},{"id":"7e7b6235-216f-4b7b-b5ca-c581f4d44daf","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":168,"box":{"x":69,"y":816,"width":424,"height":11}},{"id":"94a2510c-3543-4228-a936-04947817a1d9","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":168,"box":{"x":102,"y":838,"width":752,"height":12}},{"id":"4245ccc9-aed6-4419-9cbf-66b512afcb17","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":168,"box":{"x":70,"y":853,"width":789,"height":12}},{"id":"e1ebe204-5864-4055-91cf-f051058b88c3","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":168,"box":{"x":69,"y":869,"width":785,"height":11}},{"id":"528809f9-5cf5-43c8-a0d2-3a2859ab3032","block_type":"box","text":"information.","page_number":168,"box":{"x":70,"y":884,"width":83,"height":9}},{"id":"56c550fc-9e0e-4922-a053-f21742ef39a9","block_type":"box","text":"II-121","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2e893da7-18b2-4c11-aa7e-e4d4f364170f","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df7763f9-3568-4f01-b85f-9cac58a48ba7","block_type":"box","text":"Retirement and Education Savings Plans","page_number":169,"box":{"x":69,"y":45,"width":296,"height":11}},{"id":"7442f8cc-0ad7-4689-a0d5-8edf1330f417","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":169,"box":{"x":102,"y":67,"width":805,"height":12}},{"id":"f5f194f5-65c3-4b96-ba37-10aaf7e7435b","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":169,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"1159c3f9-bbac-42b3-811f-09cdb7c2e0cc","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":169,"box":{"x":68,"y":98,"width":819,"height":11}},{"id":"ef9d9e41-d0bb-4952-9715-2cc85a523472","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":169,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"7f379925-c0fe-4ed9-8c72-d7502a198f57","block_type":"box","text":"your financial intermediary.","page_number":169,"box":{"x":68,"y":128,"width":191,"height":11}},{"id":"3d39590a-abfe-47b4-bd09-cad97184cc7e","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":169,"box":{"x":102,"y":150,"width":796,"height":11}},{"id":"599321eb-fb27-4cfb-a5e6-29f4712c782f","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":169,"box":{"x":68,"y":166,"width":784,"height":11}},{"id":"ee58b2cd-5b9a-4bb2-9cc3-691ae517855a","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":169,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"afa1e397-5458-4253-aa2f-a67acc0c09de","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":169,"box":{"x":69,"y":196,"width":753,"height":11}},{"id":"856cae86-eebc-4938-9fc0-12f17ca0a4d7","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":169,"box":{"x":69,"y":211,"width":354,"height":11}},{"id":"13f72b3d-201f-4188-9e21-f7ff5e1f23aa","block_type":"box","text":"Automatic Investment Plans","page_number":169,"box":{"x":68,"y":241,"width":207,"height":9}},{"id":"2dd73ecc-ffa9-4349-b872-08e8318ee083","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":169,"box":{"x":102,"y":264,"width":773,"height":11}},{"id":"db961558-ac2e-446b-94b6-6f23476ac57c","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":169,"box":{"x":69,"y":279,"width":477,"height":11}},{"id":"e57fc2c2-15b8-46e5-938c-9f66cc156d77","block_type":"box","text":"®","page_number":169,"box":{"x":547,"y":279,"width":6,"height":5}},{"id":"232766cb-6e48-46bb-ac8a-159cdf999487","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":169,"box":{"x":559,"y":279,"width":272,"height":11}},{"id":"e74883d9-220e-42bb-a2e7-2b13d65a09e4","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":169,"box":{"x":70,"y":294,"width":787,"height":11}},{"id":"353ed8ab-6885-45c6-b927-db3246c0542d","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":169,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"243322db-7479-468b-b74b-607fa2e4515d","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":169,"box":{"x":68,"y":324,"width":805,"height":11}},{"id":"76fa16d9-cc09-4581-be7c-c33d80475ab0","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":169,"box":{"x":68,"y":355,"width":285,"height":9}},{"id":"f1aad078-c019-4c7c-b158-08145de46353","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":169,"box":{"x":102,"y":377,"width":782,"height":12}},{"id":"44556154-4a01-4e3c-b5b1-9d32a6e554ff","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":169,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"c5118ee5-e196-49f2-b038-69c6ea076884","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":169,"box":{"x":69,"y":407,"width":839,"height":9}},{"id":"94860fb4-250f-416a-b1d2-9847cc372131","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":169,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"2337ec70-c0ca-4e9c-ba40-ab22f44bb287","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":169,"box":{"x":69,"y":438,"width":614,"height":11}},{"id":"c3dad82a-4493-432c-9006-b9607fc8e7b1","block_type":"box","text":"Systematic Withdrawal Plans","page_number":169,"box":{"x":68,"y":468,"width":214,"height":11}},{"id":"9b4cbc53-cf0f-4530-87bd-800e8fae0706","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":169,"box":{"x":102,"y":491,"width":780,"height":11}},{"id":"35c6df5b-5836-4f93-82a6-99ec02abafaf","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":169,"box":{"x":70,"y":505,"width":742,"height":12}},{"id":"573f3052-7369-4b55-8046-97c51a0eab6c","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":169,"box":{"x":69,"y":520,"width":834,"height":12}},{"id":"874c033d-388f-4162-a2fb-edddf68dffb8","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":169,"box":{"x":68,"y":536,"width":823,"height":11}},{"id":"191f78ac-48bb-438e-81b3-4372fd906f30","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":169,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"56f013da-68b1-42a2-89d5-20621dec6cf5","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":169,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"ea8b4e4e-a36a-47ae-abf2-591db5fa8ae4","block_type":"box","text":"www.blackrock.com.","page_number":169,"box":{"x":68,"y":582,"width":142,"height":8}},{"id":"a27ebefe-b7fe-4511-8770-edbf0f4684e5","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":169,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"ada85d93-441b-4306-923a-c165dee5fbac","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":169,"box":{"x":68,"y":619,"width":774,"height":11}},{"id":"f41993f0-693c-44cd-9b56-985d5d9e9b2c","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":169,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"eaaca806-2792-416d-9e9a-5f6aafcdab78","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":169,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"e5384953-0c44-4982-ba5b-b49953736eab","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":169,"box":{"x":69,"y":664,"width":803,"height":12}},{"id":"8188c7c1-a8a0-498e-a75b-e7c0865e5fd4","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":169,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"d6f5bdf5-df25-4016-aac7-0208e85b119d","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":169,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"9daad107-40e2-4cd9-889c-360120dd4bcc","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":169,"box":{"x":70,"y":710,"width":816,"height":11}},{"id":"128d6bb1-d82f-480c-9a00-5560238cd188","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":169,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"9e54f005-e359-42eb-b601-e619176d9d70","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":169,"box":{"x":69,"y":740,"width":367,"height":11}},{"id":"15bdf8cb-1362-4af4-8299-63e0f4b92be5","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":169,"box":{"x":102,"y":763,"width":798,"height":11}},{"id":"1331acb7-0ead-4301-9849-42e81f7af0ca","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":169,"box":{"x":68,"y":778,"width":834,"height":11}},{"id":"c665ca48-c60d-48b9-8f62-69a426df0a12","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":169,"box":{"x":69,"y":793,"width":311,"height":11}},{"id":"c98d8fb3-a139-426d-a376-2ac1c1214464","block_type":"box","text":"Dividend Allocation Plan","page_number":169,"box":{"x":69,"y":823,"width":176,"height":9}},{"id":"ace051ba-8c6e-43ba-987b-00de62b58caa","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":169,"box":{"x":101,"y":846,"width":807,"height":11}},{"id":"c5725f5e-2de5-45ca-a940-da9dae3f0f26","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":169,"box":{"x":69,"y":861,"width":763,"height":11}},{"id":"b52b765f-795e-4e83-9cc3-e64084934a38","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":169,"box":{"x":69,"y":876,"width":814,"height":11}},{"id":"497cd58f-8a17-4898-90cf-74428da5b52f","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":169,"box":{"x":70,"y":891,"width":771,"height":11}},{"id":"fc7021d7-eaf5-4767-8292-d929e5b5960c","block_type":"box","text":"II-122","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"36ed0aa9-a41c-4cf2-8a6e-6de2103af8a2","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2d468dab-126a-4c93-929e-51e0cafb8ca8","block_type":"box","text":"PRICING OF SHARES","page_number":170,"box":{"x":406,"y":45,"width":167,"height":10}},{"id":"369e0d58-c417-46e4-8001-7bcafcb34a56","block_type":"box","text":"Determination of Net Asset Value","page_number":170,"box":{"x":69,"y":76,"width":243,"height":8}},{"id":"98457e8d-d363-4794-981c-e7c02e7adb22","block_type":"box","text":"Valuation of Shares.","page_number":170,"box":{"x":101,"y":98,"width":145,"height":9}},{"id":"9f1e9955-b1dd-4595-80f2-3a5eef82126a","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":170,"box":{"x":252,"y":98,"width":626,"height":11}},{"id":"dffda219-e65e-410e-b2af-ea6270a9e9d7","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":170,"box":{"x":69,"y":113,"width":785,"height":12}},{"id":"ad174dc8-da97-4062-ab86-9ebc28ef4d5e","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":170,"box":{"x":101,"y":136,"width":342,"height":11}},{"id":"0248e05b-f53a-43e2-aaa4-1e73628a906f","block_type":"box","text":"Equity Investments.","page_number":170,"box":{"x":102,"y":159,"width":143,"height":11}},{"id":"0665a191-9775-451a-8684-365a3d70a39a","block_type":"box","text":"Equity securities traded on a recognized securities exchange (e.g., NYSE), on separate","page_number":170,"box":{"x":252,"y":159,"width":615,"height":11}},{"id":"51b71721-b6f4-48c0-a7a3-fafb2b5b61da","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":170,"box":{"x":68,"y":174,"width":799,"height":11}},{"id":"8bfc158e-2a03-4f17-b7ae-b9f76bb13d0f","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":170,"box":{"x":70,"y":189,"width":808,"height":11}},{"id":"48daa1a0-ca02-4bf5-84d1-e899dec16716","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":170,"box":{"x":68,"y":204,"width":820,"height":11}},{"id":"29b65d72-6c65-4195-a6eb-b69a80200a63","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":170,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"71fade6e-27ac-4475-a51e-3140f6a8027b","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":170,"box":{"x":69,"y":234,"width":793,"height":12}},{"id":"c28d9650-d3a5-47ff-87d9-a093e01ba833","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":170,"box":{"x":70,"y":249,"width":836,"height":12}},{"id":"3c8c315d-241a-4ac7-b2c1-fdd3bc030cf0","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":170,"box":{"x":68,"y":265,"width":815,"height":11}},{"id":"e9578280-1f56-43b7-9259-0fcf1c0b94aa","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":170,"box":{"x":70,"y":280,"width":837,"height":11}},{"id":"8acc705a-53c9-4f82-a567-e10704cc9f84","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":170,"box":{"x":69,"y":295,"width":832,"height":11}},{"id":"e001acb9-49aa-40c9-980a-d69f488d8d9b","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":170,"box":{"x":68,"y":310,"width":828,"height":11}},{"id":"f2d296d7-8be4-468f-aa15-43b4277d00ca","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":170,"box":{"x":68,"y":325,"width":819,"height":11}},{"id":"58c93ec8-8e80-4895-82d8-f91ea2f1f172","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":170,"box":{"x":70,"y":340,"width":798,"height":11}},{"id":"1eb2db07-575d-49a0-8625-bf33767f751b","block_type":"box","text":"defined below).","page_number":170,"box":{"x":69,"y":355,"width":106,"height":11}},{"id":"bcb9a08a-c2a9-4cc5-b69e-ed53ec6b4572","block_type":"box","text":"Fixed-Income Investments.","page_number":170,"box":{"x":102,"y":378,"width":194,"height":9}},{"id":"304821a6-418f-4b7b-85b8-d420214a5059","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by dealers or","page_number":170,"box":{"x":304,"y":378,"width":592,"height":11}},{"id":"4a4a1474-ef01-4109-93cd-4a8c96cf70e5","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":170,"box":{"x":70,"y":393,"width":825,"height":11}},{"id":"68421634-9c94-49b3-9e87-b298dffc1b95","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":170,"box":{"x":69,"y":408,"width":823,"height":11}},{"id":"1fa441fa-aaf7-45d4-becd-6ce5acd46c53","block_type":"box","text":"and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit","page_number":170,"box":{"x":69,"y":423,"width":800,"height":12}},{"id":"c1e3dd30-e823-435e-b69f-b050023bd6bc","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":170,"box":{"x":69,"y":438,"width":834,"height":11}},{"id":"de799439-96af-4935-9f2e-1ca72fa63e8e","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":170,"box":{"x":69,"y":453,"width":769,"height":12}},{"id":"c09c3e33-a739-4949-9ed1-3cddda9ea2c2","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":170,"box":{"x":70,"y":469,"width":797,"height":11}},{"id":"d384c7cf-eef3-44a1-b025-bd07a1acba8a","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":170,"box":{"x":69,"y":484,"width":821,"height":11}},{"id":"edd2f1e8-e057-4969-af5a-5f184ff1012c","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":170,"box":{"x":68,"y":499,"width":798,"height":11}},{"id":"9a8fb55d-2eae-40c6-a776-fd2fbbced3c1","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":170,"box":{"x":69,"y":514,"width":825,"height":11}},{"id":"4c49d225-252d-4a7a-826b-eb6c2a4a4cf0","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":170,"box":{"x":69,"y":529,"width":791,"height":11}},{"id":"a2a63a63-1e11-42cf-b259-bdb8086a2d24","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":170,"box":{"x":69,"y":544,"width":814,"height":11}},{"id":"974b7a53-82f1-4925-8e89-f39d0073ab96","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":170,"box":{"x":68,"y":559,"width":802,"height":12}},{"id":"482de4f6-1ebc-4c1a-a4af-982a0612c4c3","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":170,"box":{"x":69,"y":574,"width":773,"height":11}},{"id":"5dbdcb63-af01-4d99-b4b2-8cfcebe05069","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":170,"box":{"x":69,"y":589,"width":795,"height":12}},{"id":"3cb20f06-183e-45a7-8710-3b68967e9b6d","block_type":"box","text":"attributes of the tranche.","page_number":170,"box":{"x":69,"y":605,"width":176,"height":9}},{"id":"f61a7da4-7097-4236-8209-37547f9be707","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":170,"box":{"x":101,"y":627,"width":344,"height":11}},{"id":"eac5a48c-76a2-4ae8-bf15-47a387ab8691","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":170,"box":{"x":453,"y":628,"width":416,"height":11}},{"id":"ab3a5617-cd2c-4e1c-b05c-8b120d938588","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":170,"box":{"x":70,"y":642,"width":829,"height":12}},{"id":"a6da46e6-c017-4ba2-b82c-84bd037b9579","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":170,"box":{"x":69,"y":658,"width":824,"height":11}},{"id":"af83501b-68b0-4ff4-a0ac-9a4b883ec072","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":170,"box":{"x":68,"y":673,"width":838,"height":11}},{"id":"40b7f2ae-c7c7-43e8-9348-169c1a59f5ee","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":170,"box":{"x":68,"y":688,"width":820,"height":11}},{"id":"22746b4d-5587-4dc8-b38c-2d94cf07163b","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":170,"box":{"x":68,"y":703,"width":808,"height":11}},{"id":"db230a4f-6558-42ed-82c9-6a5efd9ca98a","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":170,"box":{"x":69,"y":718,"width":824,"height":11}},{"id":"c3196973-101c-4379-83e2-b35525fdd4dc","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":170,"box":{"x":68,"y":733,"width":789,"height":11}},{"id":"239327f4-1ed1-4d8f-a8b8-b1207d4af147","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":170,"box":{"x":69,"y":748,"width":807,"height":12}},{"id":"7520538e-77b7-4e4e-b193-2ebeff1d0fb7","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":170,"box":{"x":69,"y":763,"width":824,"height":12}},{"id":"22d4764d-7511-418b-8a43-99f507f2fa73","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":170,"box":{"x":69,"y":778,"width":833,"height":12}},{"id":"5dd9ecc4-03c3-48c8-bace-fab60c01215c","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":170,"box":{"x":69,"y":794,"width":830,"height":11}},{"id":"edc42b69-4bee-4db4-b5da-99eb9ce52d4d","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":170,"box":{"x":69,"y":809,"width":301,"height":9}},{"id":"7dcbe8c0-31a7-4cef-b201-88e469f0c6a1","block_type":"box","text":"Underlying Funds.","page_number":170,"box":{"x":102,"y":832,"width":128,"height":11}},{"id":"9511879e-f5d4-4c62-b481-41a0b215caaf","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued at NAV.","page_number":170,"box":{"x":237,"y":831,"width":621,"height":12}},{"id":"8c302ee7-f09d-4473-ac46-0c1981462ade","block_type":"box","text":"Shares of underlying exchange-traded closed-end funds or other ETFs will be valued at their most recent closing price.","page_number":170,"box":{"x":69,"y":846,"width":837,"height":12}},{"id":"3fcdffc6-f0d6-4c1b-95b7-37a01b2414f6","block_type":"box","text":"General Valuation Information.","page_number":170,"box":{"x":101,"y":869,"width":220,"height":9}},{"id":"3f68e9bd-d409-478d-a99f-cd39d6800903","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":170,"box":{"x":328,"y":869,"width":564,"height":11}},{"id":"1f8dc9b5-45d5-4d68-89dd-7361e78d2310","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":170,"box":{"x":69,"y":884,"width":831,"height":9}},{"id":"ccc8865d-09f5-4226-b34c-7a36a792c7cd","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":170,"box":{"x":68,"y":900,"width":828,"height":11}},{"id":"722a4eee-129b-4e38-8808-4449379359ac","block_type":"box","text":"II-123","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"61ec2788-65ba-4dac-9a19-204d8f145118","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c216d271-a274-45d2-9ac5-c03ed25a4354","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":171,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"06d22172-6f5a-4348-b60a-f3ebc9eed9bc","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":171,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"d261a4d5-d843-476d-b823-f612ef25cc4e","block_type":"box","text":"the revision.","page_number":171,"box":{"x":68,"y":75,"width":87,"height":9}},{"id":"a1c919f6-16ad-46bc-a23d-b7f7bb0fe5a0","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":171,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"5e7b2b8e-08cb-4892-ad67-dcac16526f36","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":171,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"2abe2fe2-d904-445b-a005-a48cdb2343cf","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":171,"box":{"x":69,"y":128,"width":818,"height":11}},{"id":"40bbc2dd-6635-4381-beed-ef74bd063db3","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":171,"box":{"x":70,"y":143,"width":832,"height":11}},{"id":"cd9fa458-79b4-4b38-9e58-f1eb7809bff7","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":171,"box":{"x":70,"y":158,"width":832,"height":11}},{"id":"bccc4f70-2c28-4ccd-ab8a-14df5d187dbe","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":171,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"b3a9738d-6406-450b-8763-9897ba214e2b","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":171,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"1dd623d2-0abb-4b0c-a189-07df9b759a41","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":171,"box":{"x":70,"y":204,"width":833,"height":11}},{"id":"683a1ca2-59fb-44f6-9cb5-4f4f4b34adf3","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":171,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"823f8b5f-31db-48a1-a334-67c4a4583023","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":171,"box":{"x":70,"y":234,"width":741,"height":11}},{"id":"5d342c67-27bd-4114-a9a9-846664dfa29c","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":171,"box":{"x":102,"y":256,"width":800,"height":11}},{"id":"0404f575-6054-436f-866c-36bbc6cc7f5a","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":171,"box":{"x":69,"y":271,"width":811,"height":12}},{"id":"d8d55a1b-6804-4b2f-9829-f1806c2a7c3a","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":171,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"1b4920d0-495f-4026-9545-2631dcc00e7b","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":171,"box":{"x":68,"y":302,"width":824,"height":11}},{"id":"713f8b8f-5bcc-40ad-9714-aa9f82a6ea45","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":171,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"2c0e12e9-ebe4-4262-ab9b-8f894261fc73","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":171,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"8e8d01f7-a9c5-46ab-a8c2-591af1fabe60","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":171,"box":{"x":69,"y":347,"width":685,"height":11}},{"id":"7d2c8a8f-0bea-4eff-8158-a28fdb7b2fa1","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":171,"box":{"x":102,"y":370,"width":795,"height":11}},{"id":"907e99ac-5c89-4c08-a90a-2c872f8d4fe7","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":171,"box":{"x":68,"y":385,"width":805,"height":11}},{"id":"e1053448-8613-4094-84e4-dfb4e27efa40","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":171,"box":{"x":69,"y":400,"width":529,"height":11}},{"id":"bb423254-e3ba-44db-855b-621b36925528","block_type":"box","text":"Fair Value.","page_number":171,"box":{"x":102,"y":423,"width":74,"height":9}},{"id":"66a3e303-5fd2-4bf1-9193-b831515f174e","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":171,"box":{"x":183,"y":423,"width":693,"height":11}},{"id":"4b55453c-0efc-45c5-9633-83ca16b8d9c8","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":171,"box":{"x":70,"y":438,"width":785,"height":11}},{"id":"641f353d-d6a1-41bb-bd7e-f83f20596946","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":171,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"f867d176-9a36-45f1-92a8-687cd062b899","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":171,"box":{"x":70,"y":468,"width":779,"height":11}},{"id":"e545c664-7f56-4c23-ad69-4cbcaaf9c10b","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":171,"box":{"x":70,"y":483,"width":773,"height":11}},{"id":"d98bb5e7-7c54-438c-ab35-fdecc7148010","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":171,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"0f4d5f3b-7b1d-479b-b156-bda1be90e29b","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":171,"box":{"x":69,"y":513,"width":826,"height":12}},{"id":"e1f312d8-5978-4f42-b800-9930e68a8b05","block_type":"box","text":"(e.g., where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":171,"box":{"x":69,"y":528,"width":838,"height":12}},{"id":"8f26a654-705a-4811-9f97-fb962e114320","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":171,"box":{"x":69,"y":544,"width":813,"height":11}},{"id":"990a49af-6b69-4c49-a523-bbb646c7bd44","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":171,"box":{"x":68,"y":559,"width":837,"height":11}},{"id":"ac7734fc-30a7-4dad-805a-b00da192c8bd","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":171,"box":{"x":70,"y":574,"width":838,"height":11}},{"id":"fc38be30-2a86-4a56-8dfe-2531589a4efd","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":171,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"892d7f65-7f34-4c39-b6ae-08f5e461e79e","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":171,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"cdc92f6d-c8d0-499f-a0a6-29dd0484ee17","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":171,"box":{"x":69,"y":619,"width":793,"height":11}},{"id":"45732548-ff0c-401c-95ba-c5c6702894e2","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":171,"box":{"x":70,"y":634,"width":819,"height":12}},{"id":"bc376098-443b-4ed7-bd37-5c65949ee0db","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":171,"box":{"x":68,"y":649,"width":810,"height":12}},{"id":"06c77348-eab9-4381-835d-24317366b9a4","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":171,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"cfb2042d-8fec-4c66-958f-0e708bda7461","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":171,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"2b3a081d-a617-4030-a45a-f9de8a0a788e","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":171,"box":{"x":68,"y":695,"width":814,"height":11}},{"id":"d52e93f0-0568-4ad0-85db-f1e17bf0e3b6","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":171,"box":{"x":69,"y":710,"width":827,"height":11}},{"id":"ee61f3d6-5f2c-43e6-8cc7-1ee20155281b","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":171,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"2f37af0f-de2f-48f3-b98d-934f5c1387aa","block_type":"box","text":"pricing time.","page_number":171,"box":{"x":70,"y":740,"width":85,"height":11}},{"id":"e5a1d815-e46c-40bf-9763-2941cc719345","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":171,"box":{"x":102,"y":763,"width":794,"height":11}},{"id":"9cf6383e-a99b-4c26-9eca-fa1657588f3e","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":171,"box":{"x":69,"y":778,"width":829,"height":11}},{"id":"140d9b35-b178-460e-9980-7d0a2b01b62a","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":171,"box":{"x":69,"y":793,"width":813,"height":11}},{"id":"93c9c636-3b12-4bf7-83b6-334270dd080d","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":171,"box":{"x":70,"y":808,"width":808,"height":11}},{"id":"d5524d84-19e8-48e6-84b3-1713aa5803a1","block_type":"box","text":"assets and liabilities of the Funds.","page_number":171,"box":{"x":69,"y":823,"width":245,"height":9}},{"id":"2a62f9f8-8623-46f2-9338-f9d8c0ab3c48","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":171,"box":{"x":101,"y":846,"width":795,"height":11}},{"id":"b3d67f63-1465-40f0-bbb1-c5c819a65301","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":171,"box":{"x":69,"y":861,"width":832,"height":11}},{"id":"1a25e880-b9bf-4188-9c45-9042a20e12f7","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":171,"box":{"x":69,"y":876,"width":805,"height":11}},{"id":"dccebc3c-7303-4f52-990d-868e1f1a189b","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":171,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"bc43fc99-7eaf-4088-8691-37dbf83bc617","block_type":"box","text":"II-124","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"53bded49-3cfb-40c9-b501-4c516a820c7b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1aae0e00-651d-4057-886b-404b510e943e","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":172,"box":{"x":69,"y":45,"width":744,"height":11}},{"id":"f0fe2f01-da20-4f0e-bb2f-6508afe81be6","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":172,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"ed0e0a85-4abb-4713-8510-8674f9175ad9","block_type":"box","text":"valuation models.","page_number":172,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"0b3bbeae-c6f2-4bbb-9384-1573a7f66f69","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":172,"box":{"x":102,"y":98,"width":785,"height":11}},{"id":"f232bda5-ff26-4849-a348-cf9fa1e7b8ac","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":172,"box":{"x":68,"y":113,"width":822,"height":11}},{"id":"927f7de8-5e27-4a43-ae3c-b082f8fb0c6e","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":172,"box":{"x":68,"y":128,"width":820,"height":11}},{"id":"b3ba0cb5-5cea-4ff5-900f-50bf51bfe04e","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":172,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"daa3db9c-e462-4739-b427-5c7a8010069c","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":172,"box":{"x":69,"y":158,"width":766,"height":11}},{"id":"db14b975-1b09-4f08-b03d-08cdfc2c2eec","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":172,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"e9014f39-8a8f-40d1-bf11-38c135f2fd86","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":172,"box":{"x":69,"y":188,"width":378,"height":12}},{"id":"4ce2eeff-76fc-460b-b655-de4aabd5f13e","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":172,"box":{"x":101,"y":211,"width":784,"height":11}},{"id":"b990c4c6-98d9-462e-a481-d126b9597e04","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":172,"box":{"x":70,"y":226,"width":836,"height":11}},{"id":"b696f1ad-432e-47dd-a2fe-c92e6a702f33","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":172,"box":{"x":70,"y":241,"width":834,"height":11}},{"id":"1676abff-3897-461b-a744-cdef62664b51","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":172,"box":{"x":68,"y":256,"width":728,"height":12}},{"id":"b5a7e5ba-55f5-47b4-8ab1-e0042f701585","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":172,"box":{"x":102,"y":279,"width":786,"height":11}},{"id":"fcca0335-3d81-4c67-9b30-9860c7386660","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":172,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"28672bf3-b227-45d1-943a-9428afdafdf9","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":172,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"1ec0061b-c46b-4268-80ca-d10f06beac4c","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":172,"box":{"x":70,"y":324,"width":818,"height":12}},{"id":"7ca46c06-4be8-4da0-bdec-d68acfd847ba","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":172,"box":{"x":69,"y":339,"width":641,"height":12}},{"id":"e4a3b9bc-3e93-4d4b-98ba-2e0239865c9f","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":172,"box":{"x":102,"y":362,"width":786,"height":11}},{"id":"a41b712c-1785-4123-8454-7576c905c333","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":172,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"5ade3c83-67c9-41fb-943d-270f5bd43bd6","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":172,"box":{"x":69,"y":392,"width":780,"height":12}},{"id":"46af2587-3f41-4b2a-81f6-0fa0d87bb10d","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":172,"box":{"x":70,"y":407,"width":810,"height":12}},{"id":"090aef9e-b48c-491b-a622-a6c105fa925d","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":172,"box":{"x":70,"y":423,"width":810,"height":11}},{"id":"d67fae17-4b91-4d8c-afca-4d3cec492a85","block_type":"box","text":"par ty determination of fair market value.","page_number":172,"box":{"x":70,"y":438,"width":285,"height":11}},{"id":"f3d2b949-fcdc-48b1-adb2-0f16f8559483","block_type":"box","text":"Computation of Offering Price Per Share","page_number":172,"box":{"x":69,"y":468,"width":292,"height":11}},{"id":"3f334f33-5c0b-43d0-a74b-376e4423727f","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":172,"box":{"x":102,"y":491,"width":791,"height":11}},{"id":"287cbb8b-f60e-45a7-b17e-bab26e19a07a","block_type":"box","text":"the offering price for shares of your Fund.","page_number":172,"box":{"x":68,"y":506,"width":295,"height":11}},{"id":"1ad5be78-305f-41ac-bcdf-228fe6f4d60c","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":172,"box":{"x":303,"y":535,"width":373,"height":10}},{"id":"68e3acf6-824a-406b-9231-620ae3d8daeb","block_type":"box","text":"Transactions in Portfolio Securities","page_number":172,"box":{"x":68,"y":566,"width":257,"height":9}},{"id":"d94b4f29-f70d-43c6-98ab-4414a7cd8bd5","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":172,"box":{"x":102,"y":588,"width":798,"height":11}},{"id":"88d67a2d-3a94-4e75-81d5-c6a7a2a84040","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":172,"box":{"x":69,"y":603,"width":839,"height":12}},{"id":"ecc343cf-14e8-46a5-b376-1acf5aa60a6c","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":172,"box":{"x":70,"y":618,"width":822,"height":12}},{"id":"8d4ea6b0-3b7f-4771-b489-bc7b901e4860","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":172,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"cee3c1ad-d6af-47bf-a2f7-afc890eb095e","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":172,"box":{"x":68,"y":649,"width":798,"height":11}},{"id":"1ba2eac2-d1f2-477d-9092-2dd96cc7d595","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":172,"box":{"x":69,"y":664,"width":765,"height":11}},{"id":"18161173-10dd-4577-9bab-61425ea291ae","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":172,"box":{"x":69,"y":679,"width":768,"height":11}},{"id":"ebbe5dd4-b0de-437d-8b1c-af444e43a396","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":172,"box":{"x":70,"y":694,"width":830,"height":11}},{"id":"378ac23e-0e9a-4a98-8bec-f07fb2ed9d68","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":172,"box":{"x":69,"y":709,"width":760,"height":11}},{"id":"9facbd88-b3e4-45de-98ff-a79ae71ad95b","block_type":"box","text":"reasonable in relation to the services provided.","page_number":172,"box":{"x":69,"y":725,"width":336,"height":10}},{"id":"baa8126d-df11-4c4c-be02-46b3aad39469","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":172,"box":{"x":102,"y":747,"width":794,"height":11}},{"id":"d458b7cd-737e-42e8-a5c9-bf7f85308121","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":172,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"6900d17e-4d98-4a17-ac1a-65233a000ddb","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":172,"box":{"x":102,"y":785,"width":784,"height":11}},{"id":"1d408ca9-7946-4d16-b909-dc0f3d1e6010","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":172,"box":{"x":68,"y":800,"width":829,"height":11}},{"id":"2a0f3e56-cf55-4c00-8742-ce72e5bbe50f","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":172,"box":{"x":69,"y":815,"width":802,"height":11}},{"id":"08431767-6efe-4b30-8bca-625abeba2e7d","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":172,"box":{"x":69,"y":830,"width":826,"height":11}},{"id":"aa905ec0-6b8c-4445-a441-7113379ba5b1","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":172,"box":{"x":69,"y":845,"width":789,"height":12}},{"id":"350cfa2b-d60a-405b-8282-90d2d5f4c2d3","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":172,"box":{"x":70,"y":860,"width":818,"height":12}},{"id":"12cc4b4c-4374-43a6-9527-31589aea1e93","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":172,"box":{"x":69,"y":875,"width":769,"height":12}},{"id":"4beb6834-9221-41e9-8485-28fee6f3dfad","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":172,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"32db5dca-9c18-418e-ae11-ee56dcd5de6b","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":172,"box":{"x":69,"y":906,"width":391,"height":11}},{"id":"e62bd880-5ba4-4086-8468-14332055ae26","block_type":"box","text":"II-125","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2761f8c9-858c-4c53-afde-0574f2002638","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c2d8495-dfa7-4ea2-aaf2-cf3af0b33323","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":173,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"8f22ad41-71c9-40ad-bf9c-ee750c41a058","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":173,"box":{"x":68,"y":60,"width":802,"height":11}},{"id":"f187ca1f-bc22-4759-87b7-eb3e5b021cfb","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":173,"box":{"x":69,"y":75,"width":775,"height":11}},{"id":"9be38bc2-b0c2-4103-af8f-6184004b0092","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":173,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"9d33abf0-94ff-4bc7-b803-47e109e48f99","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":173,"box":{"x":70,"y":105,"width":827,"height":11}},{"id":"9db6beae-a863-4848-b7a1-dfef0cb8ed6a","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":173,"box":{"x":68,"y":120,"width":753,"height":12}},{"id":"bba8111a-d45f-4fc2-a4a8-4b699326a2d0","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":173,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"c4dcea68-3a0f-4fca-bc3d-73ddc70dd18e","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":173,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"db64b37c-c4b0-490e-a26f-acd7c9ac9c6a","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":173,"box":{"x":70,"y":166,"width":775,"height":11}},{"id":"5809a228-322f-48e4-9e68-dfd5a38e8b8e","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":173,"box":{"x":69,"y":181,"width":764,"height":11}},{"id":"27d3781d-8fcc-4348-ba38-ebf9e26519d8","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":173,"box":{"x":69,"y":196,"width":770,"height":11}},{"id":"b44b6ad9-30b5-481d-b0e6-6ebacad2208c","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":173,"box":{"x":69,"y":211,"width":599,"height":11}},{"id":"911036c5-1342-4154-b85a-da02949ca4bb","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":173,"box":{"x":102,"y":234,"width":796,"height":11}},{"id":"85af86a1-a6b8-4278-8471-5adf3dfc6dc2","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":173,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"af8f1667-c83e-4d69-8647-bc66c2a63a5f","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":173,"box":{"x":68,"y":264,"width":839,"height":11}},{"id":"f4b9ae0d-2be6-4064-a85c-87116680991d","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":173,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"750a0eab-0dbd-4d5b-84c1-2b8585313986","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":173,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"ac84c7ec-8de1-439a-b6e9-6e70f9413992","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e).","page_number":173,"box":{"x":69,"y":309,"width":703,"height":11}},{"id":"584ce2b1-74fb-4ad5-a4ba-8cd2cfb5c844","block_type":"box","text":"Cer tain Funds may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment","page_number":173,"box":{"x":102,"y":332,"width":743,"height":11}},{"id":"235fe140-e7be-43ba-b340-98de19e12e67","block_type":"box","text":"managers, including BIL, pay for any research out of their own resources and not through soft dollars or commission","page_number":173,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"b6cf9aa5-55bd-405f-af90-64d6757e8702","block_type":"box","text":"sharing arrangements. BlackRock regularly evaluates the soft dollar products and services utilized, as well as the","page_number":173,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"ae838ad4-1e0d-41e8-8d79-a04c910ac4ba","block_type":"box","text":"overall soft dollar and commission sharing arrangements to ensure that trades are executed by firms that are","page_number":173,"box":{"x":69,"y":377,"width":781,"height":12}},{"id":"3aeafede-4c55-497d-85e1-a88af53f1388","block_type":"box","text":"regarded as best able to execute trades for client accounts, while at the same time providing access to the research","page_number":173,"box":{"x":69,"y":392,"width":832,"height":12}},{"id":"d4d1d27f-520c-4d4b-bba0-d51f2672d09a","block_type":"box","text":"and other services BlackRock views as impactful to its trading results.","page_number":173,"box":{"x":69,"y":407,"width":500,"height":12}},{"id":"75f61cb9-93aa-412e-b188-f59bfc091383","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":173,"box":{"x":102,"y":430,"width":791,"height":11}},{"id":"ed816e2d-8848-4a5b-be66-b6c8deaa121c","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":173,"box":{"x":69,"y":446,"width":819,"height":10}},{"id":"e95be503-c72d-4422-a0c1-57b932f585b2","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":173,"box":{"x":69,"y":461,"width":772,"height":11}},{"id":"15a63004-fe90-416d-9b8d-bfcea70354f4","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":173,"box":{"x":70,"y":476,"width":785,"height":11}},{"id":"7426687a-5a6d-40eb-8ade-6eb735574919","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":173,"box":{"x":70,"y":491,"width":806,"height":11}},{"id":"3a85f1f6-3011-4bb3-972c-27d50f9f038d","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":173,"box":{"x":68,"y":506,"width":772,"height":11}},{"id":"9214a41f-9c12-499d-8243-4ca955576c87","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":173,"box":{"x":69,"y":521,"width":838,"height":11}},{"id":"814d0d2e-d5d6-4d30-add4-ee833dcd01ad","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":173,"box":{"x":68,"y":536,"width":769,"height":11}},{"id":"a08bf2e3-7cd0-4226-add2-4b081ef7dd05","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":173,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"76178c35-b061-4e6c-863f-196d64ff7eaa","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":173,"box":{"x":69,"y":566,"width":778,"height":11}},{"id":"f478a1f4-2b5f-40dc-b4ae-9a4819c9e2da","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":173,"box":{"x":69,"y":582,"width":363,"height":11}},{"id":"70b03551-a777-46cf-a52c-c355ff92584f","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":173,"box":{"x":102,"y":604,"width":749,"height":11}},{"id":"5547e995-5276-4ceb-88bf-4f6bcc1b76f0","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":173,"box":{"x":69,"y":619,"width":799,"height":11}},{"id":"64fa51dc-0e5b-42d3-ba28-4ffe1ae05027","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":173,"box":{"x":70,"y":634,"width":752,"height":12}},{"id":"3b2b3f4e-93fa-470e-8f64-a0fb9c33627d","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":173,"box":{"x":70,"y":649,"width":823,"height":11}},{"id":"e56c6371-bd7d-4bd5-a5dc-5c42785c6d9c","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":173,"box":{"x":70,"y":664,"width":822,"height":12}},{"id":"6d27dfa4-fc85-4af8-b2dd-9bb5fffb751f","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":173,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"9e2065f2-2b66-4ec1-8302-dba0c19d6378","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":173,"box":{"x":68,"y":695,"width":805,"height":11}},{"id":"2b1a3db6-bbe5-4524-82cd-f92a91c80a43","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":173,"box":{"x":69,"y":710,"width":798,"height":11}},{"id":"b003e9b3-a2d7-49fb-88e1-1b3f359edafa","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":173,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"6aff8a71-c0f8-49c2-87be-c51d7db63785","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":173,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"318cfaa2-7ca3-4325-981e-c615eb545209","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":173,"box":{"x":70,"y":755,"width":798,"height":11}},{"id":"f528e01a-09a7-472b-ae5e-840ca06007b6","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":173,"box":{"x":69,"y":770,"width":780,"height":12}},{"id":"857d4d5e-98bb-425e-b55c-dbdefb85d92d","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":173,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"89321b84-612f-4443-92ef-e9c75a981cef","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":173,"box":{"x":69,"y":801,"width":821,"height":11}},{"id":"a08fa6a9-af8b-4280-85d3-9a7eae26f91c","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":173,"box":{"x":69,"y":816,"width":797,"height":11}},{"id":"72aa84a3-3009-4085-8d3c-bccaf321ea2c","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":173,"box":{"x":70,"y":831,"width":815,"height":11}},{"id":"06e96ec4-a44d-4532-a139-1f6b5d2fed4f","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":173,"box":{"x":68,"y":846,"width":555,"height":11}},{"id":"bb24a657-db87-4760-b0c4-e3c96b1e275a","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":173,"box":{"x":102,"y":869,"width":802,"height":11}},{"id":"224c0426-a480-4324-a5df-4a7a5747b35c","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":173,"box":{"x":68,"y":884,"width":825,"height":11}},{"id":"8fb9c12b-280c-4f23-8ffa-dc7e12df6c61","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":173,"box":{"x":69,"y":899,"width":798,"height":11}},{"id":"1879bfee-d8b7-4e62-8b0b-07d8f32fcd85","block_type":"box","text":"II-126","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4d701321-5252-4c1f-91f9-794308c0b43c","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95568ec4-75c0-48bb-9fd9-6be0f1e1b013","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":174,"box":{"x":68,"y":45,"width":824,"height":11}},{"id":"aea186bf-7a6b-4db4-ae7b-61cda51ceddd","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":174,"box":{"x":70,"y":60,"width":812,"height":11}},{"id":"b6180700-b8f0-40df-addc-1640053546db","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":174,"box":{"x":69,"y":75,"width":547,"height":11}},{"id":"7550eb18-38b5-45ed-93a8-0a811ae9d9c3","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":174,"box":{"x":102,"y":98,"width":804,"height":11}},{"id":"7725e849-53ba-42ca-8233-7156ee22dc0b","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":174,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"346560a2-1c78-4aa0-989e-e247e7d0a743","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":174,"box":{"x":70,"y":128,"width":836,"height":11}},{"id":"6579e446-9fd4-4b02-a18e-056b460ef145","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":174,"box":{"x":70,"y":143,"width":777,"height":11}},{"id":"663377fd-e706-4381-9290-f49b6b0a5022","block_type":"box","text":"brokerage.","page_number":174,"box":{"x":69,"y":158,"width":74,"height":11}},{"id":"2f07eaf4-4671-48c6-b324-f0c1cd56b670","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":174,"box":{"x":102,"y":181,"width":781,"height":11}},{"id":"42fed858-2783-4682-98e5-0db95e2f020d","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":174,"box":{"x":68,"y":196,"width":810,"height":11}},{"id":"f85ed366-deeb-4cd1-a006-fae702f91958","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":174,"box":{"x":69,"y":211,"width":771,"height":11}},{"id":"3c7c9b85-8579-4ebd-88ba-55b0aa86555f","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":174,"box":{"x":69,"y":226,"width":818,"height":11}},{"id":"e4bc15d9-57e2-4186-97c8-1d7eb718a9c1","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":174,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"a00e6689-d995-47df-95f7-3a01106c6050","block_type":"box","text":"Section 28(e).","page_number":174,"box":{"x":69,"y":256,"width":99,"height":11}},{"id":"e527b10a-bfc5-44c8-90a8-3f1ef7e8ea08","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":174,"box":{"x":102,"y":279,"width":755,"height":9}},{"id":"d6d770ff-b69d-46de-8662-8e14e47e85e0","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":174,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"37c83f2e-edcb-490b-b249-7ef27bb63d6a","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":174,"box":{"x":69,"y":309,"width":799,"height":11}},{"id":"bbedfacb-10cf-42bb-8895-f95c858a72f3","block_type":"box","text":"execute transactions for those mutual funds.","page_number":174,"box":{"x":69,"y":324,"width":319,"height":9}},{"id":"d3ac2b9f-42ef-413d-93bd-fc8c5af2bf95","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":174,"box":{"x":102,"y":347,"width":770,"height":11}},{"id":"e07866ae-363e-475f-a9fe-87b8cbce14b0","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":174,"box":{"x":70,"y":362,"width":825,"height":11}},{"id":"74cf648d-7e42-4739-a105-b48bf5db21e1","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":174,"box":{"x":70,"y":377,"width":816,"height":12}},{"id":"78224880-66e8-4560-a637-bdde0cc1e8ea","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":174,"box":{"x":69,"y":392,"width":805,"height":12}},{"id":"f976856d-88ea-4c1b-a80a-902722f76f16","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":174,"box":{"x":68,"y":408,"width":773,"height":11}},{"id":"51a56c44-5356-4607-9157-62df126d0a0f","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":174,"box":{"x":69,"y":423,"width":798,"height":11}},{"id":"b0949bc9-0ff6-4593-9323-6e939fba7574","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":174,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"900f73ae-525b-4667-a6ce-bb08dd9c07e3","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":174,"box":{"x":69,"y":453,"width":754,"height":11}},{"id":"15c6e2ba-8aca-4448-9dec-1d828232b79b","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":174,"box":{"x":69,"y":468,"width":540,"height":11}},{"id":"0f84909c-9a04-496b-a87e-18562a305bb2","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":174,"box":{"x":102,"y":491,"width":798,"height":11}},{"id":"e168ce2b-7673-4ebd-a5f4-c16760b06293","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":174,"box":{"x":68,"y":506,"width":597,"height":11}},{"id":"4a8059e0-1f3e-4071-a493-669b995aae6f","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":174,"box":{"x":102,"y":529,"width":802,"height":11}},{"id":"2f1bd7c7-2b62-4bf1-af34-0ae6a997d918","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":174,"box":{"x":68,"y":544,"width":822,"height":10}},{"id":"e6ef8834-367e-4f78-b89e-b78c6562f563","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":174,"box":{"x":69,"y":559,"width":804,"height":11}},{"id":"8ba7b7d6-6f91-4c0c-b523-9590a79caacf","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":174,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"f1567a65-e32a-4c19-9cd2-3c202b7dc693","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":174,"box":{"x":69,"y":589,"width":762,"height":11}},{"id":"692b5f62-c06d-4b6e-b1e7-f087bb53b194","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":174,"box":{"x":68,"y":604,"width":770,"height":11}},{"id":"d1632fdd-ffe2-41df-beaf-d3c40b4b781d","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":174,"box":{"x":69,"y":619,"width":828,"height":11}},{"id":"467266cb-a17c-4a69-b884-793fa3c725db","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":174,"box":{"x":70,"y":634,"width":814,"height":12}},{"id":"8ff25a3f-3c46-4564-9de0-8838f4e2bb15","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":174,"box":{"x":69,"y":649,"width":825,"height":12}},{"id":"051089ef-23fe-498f-8571-e9cd8806688e","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":174,"box":{"x":69,"y":664,"width":645,"height":12}},{"id":"e8fcff02-ef0c-4313-9e41-240d45648515","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":174,"box":{"x":102,"y":687,"width":797,"height":11}},{"id":"3fdef451-8ba5-4315-a65a-2ccf77fb6ff6","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":174,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"42327b4d-48a4-40f3-9d18-2868522e2707","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":174,"box":{"x":69,"y":718,"width":839,"height":11}},{"id":"dc47c20e-7602-437f-866e-821c616420cb","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":174,"box":{"x":69,"y":732,"width":833,"height":12}},{"id":"45b096e6-049f-4774-9a27-5af78603b289","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":174,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"12e42ab9-5c7e-4bea-8d41-b32279acc310","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":174,"box":{"x":70,"y":763,"width":730,"height":11}},{"id":"41e9ab0a-9f0e-4d97-af6d-fd64f59a0029","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":174,"box":{"x":102,"y":785,"width":800,"height":12}},{"id":"9b9d03e9-3cfd-4519-b579-71077c29394f","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":174,"box":{"x":69,"y":801,"width":807,"height":11}},{"id":"2f597a9f-60ec-4541-b38f-2ed588514bd5","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":174,"box":{"x":70,"y":816,"width":812,"height":11}},{"id":"0e9780d6-1ea4-45b5-afd7-6b3f1a3df5fd","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":174,"box":{"x":69,"y":831,"width":807,"height":11}},{"id":"9363033e-e900-4f19-bd87-e47956ba2a9f","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":174,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"7516128c-d445-4967-a605-e7671ae9ec2a","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":174,"box":{"x":68,"y":861,"width":817,"height":11}},{"id":"77a8b776-e73f-42ff-b9c5-494e43e0a3e6","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":174,"box":{"x":69,"y":876,"width":802,"height":11}},{"id":"9657b683-ebfa-4c71-8eb3-e770f0f65d76","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":174,"box":{"x":69,"y":891,"width":700,"height":11}},{"id":"d38673ef-b165-4b3d-bcb3-bba2e7b9e2e5","block_type":"box","text":"II-127","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4bbf1d14-3b31-4ea5-9b0e-145a01d5dc6b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e467fced-36d9-42d2-bf1e-8386a0485646","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":175,"box":{"x":102,"y":45,"width":756,"height":11}},{"id":"64500aab-bd53-4494-849c-a450f167c05b","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":175,"box":{"x":68,"y":60,"width":804,"height":11}},{"id":"54e2b792-d74b-43c6-84af-243b2728b093","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":175,"box":{"x":69,"y":75,"width":766,"height":11}},{"id":"fe6dcb20-05c7-488b-9c1d-2f9161cb59e4","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":175,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"1bb4039e-f94e-4ba2-a88b-5f8ea0bb1dc7","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":175,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"6f337b1b-e9ed-4910-bb94-0ef07d36acf0","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":175,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"87430c45-f9a7-47de-9e0d-7944747af78d","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":175,"box":{"x":69,"y":143,"width":776,"height":11}},{"id":"58aa4795-8880-4205-85c5-b94e0fe2d7ec","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":175,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"3a72720e-286b-4808-afdf-c7fafc000bbf","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":175,"box":{"x":69,"y":173,"width":352,"height":11}},{"id":"69d6defd-124b-4c41-bc05-e4c4e3b8689a","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":175,"box":{"x":102,"y":196,"width":800,"height":11}},{"id":"00ce320d-d585-44c4-89ac-4716253a92fb","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":175,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"1807b28a-9edf-4afb-9349-921672f02f04","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":175,"box":{"x":69,"y":226,"width":828,"height":11}},{"id":"6c505d0d-23aa-4261-9f55-9841b918824a","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":175,"box":{"x":68,"y":241,"width":788,"height":11}},{"id":"191e02f5-c94c-477b-bc5e-74cf510934f2","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":175,"box":{"x":69,"y":256,"width":759,"height":12}},{"id":"1093b09f-c3b7-4d9e-8aa9-b6802c96b54a","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":175,"box":{"x":69,"y":271,"width":780,"height":12}},{"id":"27e24813-c1de-4f75-bf2e-fc5fba88af08","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":175,"box":{"x":69,"y":286,"width":777,"height":12}},{"id":"317fc2bb-2d74-4a43-8f3a-fbdf09a8d957","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":175,"box":{"x":69,"y":302,"width":788,"height":11}},{"id":"1b3679d2-3ac6-4fed-8e5d-5d0bbde342e8","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":175,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"a53c266c-6ea2-4fb3-b49d-2a2386b1f0c6","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":175,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"c0e8aee6-3939-41ef-a47e-7872a8c586a7","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":175,"box":{"x":68,"y":347,"width":808,"height":11}},{"id":"a29e207c-f9d6-4629-9a6f-05b375c9f8ab","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":175,"box":{"x":70,"y":362,"width":832,"height":11}},{"id":"32727bb2-1faf-4db5-a477-c8fb20a09d7c","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":175,"box":{"x":70,"y":377,"width":836,"height":11}},{"id":"1f4f56d2-0465-46f1-a333-86e67ef7be1a","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":175,"box":{"x":69,"y":392,"width":613,"height":12}},{"id":"cf896774-4d34-4a10-a978-bd1e11f4f838","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":175,"box":{"x":102,"y":415,"width":802,"height":11}},{"id":"72b352b6-8ce5-42d4-9ad6-5ef8bf655eb2","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":175,"box":{"x":69,"y":430,"width":800,"height":11}},{"id":"63b7889b-520d-4bb6-af81-4aab432fab26","block_type":"box","text":"accounts and compliance constraints.","page_number":175,"box":{"x":69,"y":446,"width":269,"height":10}},{"id":"3e44573e-1f29-4a5e-8eb6-0fcd379a6100","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":175,"box":{"x":102,"y":468,"width":736,"height":11}},{"id":"b8e4719d-2329-4da9-844f-ce4952b7d1e5","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":175,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"151c5d68-6ab8-40c6-a138-ee6cbf4aef3b","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":175,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"e5c2e988-5bd0-4e34-b66b-977d1817a0b8","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":175,"box":{"x":69,"y":513,"width":823,"height":12}},{"id":"d4883ed0-ac0c-4213-b773-8877f0bf0877","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":175,"box":{"x":70,"y":528,"width":783,"height":12}},{"id":"97ad49c1-17f6-41b7-a40c-721a2f1fe12d","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":175,"box":{"x":69,"y":543,"width":793,"height":12}},{"id":"3f835f56-84a1-45ce-9337-2551dffede92","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":175,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"1db6f37f-6272-432c-8598-842d6736e675","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":175,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"2a193e0d-fd97-48c9-b5ed-4fde3fc813bd","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":175,"box":{"x":68,"y":589,"width":839,"height":11}},{"id":"e76d187d-368e-42a3-8224-2342b214e141","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":175,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"748c448e-f021-4fc2-a658-cd58c4740f3a","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":175,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"1db8cdbf-b81b-4243-a4cf-1d584bbcc755","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":175,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"0f5e1a5f-b486-4a9a-9b79-2fee82f6d8fb","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":175,"box":{"x":69,"y":649,"width":791,"height":12}},{"id":"f4c3ef09-3f87-46a6-b2e5-85e551fec7a1","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":175,"box":{"x":69,"y":664,"width":799,"height":12}},{"id":"82092cbe-11d3-4cfc-9ffc-7ff38e1e95b7","block_type":"box","text":"clients may be used as well.","page_number":175,"box":{"x":69,"y":680,"width":200,"height":11}},{"id":"0b025383-5d25-4e0d-92e9-352534aa5aa1","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":175,"box":{"x":102,"y":702,"width":789,"height":12}},{"id":"e76b7102-533f-4ae9-8c44-58b28e6ee603","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":175,"box":{"x":68,"y":717,"width":815,"height":12}},{"id":"f7c0c4c6-7975-4c0a-b571-c37cd70fdf5a","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":175,"box":{"x":69,"y":732,"width":835,"height":12}},{"id":"e7cefc6f-aa70-45df-b0c3-d22ce4f3d416","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":175,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"9e0813ce-c431-4b53-a630-e70e8a99e9e6","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":175,"box":{"x":69,"y":763,"width":829,"height":11}},{"id":"61b4daba-0365-49f0-95be-49ee2f4f6ff9","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":175,"box":{"x":69,"y":778,"width":825,"height":11}},{"id":"714210a7-a67c-48f4-8d91-c78c01d82d16","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":175,"box":{"x":69,"y":793,"width":806,"height":11}},{"id":"4f0bef49-82a1-4335-b9d6-2e5b896894e8","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":175,"box":{"x":69,"y":808,"width":814,"height":11}},{"id":"7456b779-333c-4883-b1ae-2c52b1e842d7","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":175,"box":{"x":69,"y":823,"width":836,"height":9}},{"id":"cf429746-d9e4-4037-8238-cfb72e5dffad","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":175,"box":{"x":69,"y":838,"width":773,"height":12}},{"id":"d962f41e-7d26-456a-b18d-a5f847b40d21","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":175,"box":{"x":69,"y":853,"width":467,"height":11}},{"id":"9f0a76e5-2e1d-4e9f-8d1a-de0ec790272d","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":175,"box":{"x":102,"y":876,"width":741,"height":11}},{"id":"f9d39ff6-f375-45ec-9c6f-7d9002d94e11","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":175,"box":{"x":69,"y":891,"width":721,"height":12}},{"id":"82eed8f2-d5f8-4fa6-970f-410f89b6e815","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":175,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"784f7c61-1c46-4a7e-aa87-02d586a11471","block_type":"box","text":"II-128","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"89e816c7-ed21-4d21-9274-ac2aa1731555","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4bb7c68d-f602-419e-aa02-193a3eec9081","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":176,"box":{"x":68,"y":45,"width":795,"height":11}},{"id":"078b0f70-12a5-43e3-acb6-b324bf3badee","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":176,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"5fd3d29f-5fbd-443d-9efe-9514036aefbe","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":176,"box":{"x":69,"y":75,"width":783,"height":11}},{"id":"842d74e2-ec63-447f-8c56-8d2ab8fac24a","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":176,"box":{"x":70,"y":90,"width":796,"height":11}},{"id":"335c7aba-05d7-4e02-817b-80ed89c43102","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":176,"box":{"x":69,"y":105,"width":821,"height":11}},{"id":"05281519-6682-4cb6-a5ec-060b78e6a70c","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":176,"box":{"x":68,"y":120,"width":819,"height":12}},{"id":"dd35a123-51a2-4f38-9ce1-4d26d057f990","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":176,"box":{"x":70,"y":135,"width":771,"height":11}},{"id":"d07b7998-8caa-4046-9f2d-b41067c26be3","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":176,"box":{"x":68,"y":150,"width":815,"height":12}},{"id":"590a0ca9-e04d-4d2e-ab7b-6d62aa4e04b8","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":176,"box":{"x":68,"y":166,"width":835,"height":11}},{"id":"abb1637a-80b1-4cf8-baf5-061f49cde777","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":176,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"ef2511b2-8fee-498d-80ee-a30b27c91930","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":176,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"8abd4a47-d4f7-4ebb-9546-1e194fe61066","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":176,"box":{"x":69,"y":211,"width":803,"height":11}},{"id":"687542ac-ca99-4ab1-b60f-6d78d7c7dd24","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":176,"box":{"x":101,"y":234,"width":767,"height":11}},{"id":"2e58ad64-7ab9-42df-9918-ac71ffeceb30","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":176,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"a50f48c5-1f2c-4951-afea-74b6b14084a7","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":176,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"cbc52bb6-35a6-4170-8415-734bf92307a2","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":176,"box":{"x":70,"y":279,"width":833,"height":11}},{"id":"6f97740a-46a1-461e-ba43-1c4421e1967c","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":176,"box":{"x":69,"y":294,"width":818,"height":11}},{"id":"449c6a00-a5e5-471b-a715-774737fb3a7a","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":176,"box":{"x":101,"y":317,"width":786,"height":11}},{"id":"cf394535-42d8-4c92-8995-00364dfef12d","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":176,"box":{"x":69,"y":332,"width":814,"height":11}},{"id":"1cf9439f-3986-42b5-83fa-fa92dc91d4c7","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":176,"box":{"x":69,"y":347,"width":751,"height":11}},{"id":"cb5fb393-4e47-4cc9-9568-b494ff154e95","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":176,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"a831af5c-0420-49df-acf6-98254273231f","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":176,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"03cfab4e-b29a-40fb-8b02-04219907e436","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":176,"box":{"x":69,"y":392,"width":834,"height":12}},{"id":"c5e5256a-6ed8-4509-926d-56c8f93963ad","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":176,"box":{"x":68,"y":407,"width":820,"height":12}},{"id":"54de345d-eb6d-4b6e-a350-7ce2832cbf59","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":176,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"a0513b77-875e-4119-87b6-807c74c06084","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":176,"box":{"x":69,"y":438,"width":781,"height":10}},{"id":"9e7080c8-dba4-4415-abbc-19d611736883","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":176,"box":{"x":69,"y":453,"width":805,"height":11}},{"id":"48e829ae-633a-457d-993c-dfb142b00294","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":176,"box":{"x":69,"y":468,"width":840,"height":11}},{"id":"3f6a20c7-e8bd-4359-8ad9-a38726d8c392","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":176,"box":{"x":69,"y":483,"width":815,"height":11}},{"id":"d7887421-e57e-4452-8c97-9226a84e7c2c","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":176,"box":{"x":69,"y":498,"width":713,"height":11}},{"id":"dfc67862-e6b1-4979-afac-a56917dbfde0","block_type":"box","text":"Portfolio Turnover","page_number":176,"box":{"x":69,"y":528,"width":129,"height":9}},{"id":"5e0a28d6-d8a9-4a63-8050-bb2379dfae06","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":176,"box":{"x":101,"y":551,"width":798,"height":11}},{"id":"33592cab-bc39-44e9-8323-0bb775dce531","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":176,"box":{"x":69,"y":566,"width":839,"height":11}},{"id":"4905436e-a236-4311-8234-85401f8f88ec","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":176,"box":{"x":68,"y":581,"width":814,"height":12}},{"id":"b6ba3c65-3fdb-4efc-8251-11a57f5bcdd5","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":176,"box":{"x":68,"y":596,"width":777,"height":12}},{"id":"1cb0ed0c-5a10-4890-ad0b-c9d3485c0c94","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":176,"box":{"x":69,"y":612,"width":818,"height":11}},{"id":"301bd293-88c9-4ba5-a818-17e27cab56a3","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":176,"box":{"x":69,"y":627,"width":519,"height":11}},{"id":"dc714fdc-ac96-4c25-854a-109fdb77405c","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":176,"box":{"x":396,"y":656,"width":186,"height":10}},{"id":"ff85cd5b-02fa-4ad3-8fab-5f7722217171","block_type":"box","text":"Dividends","page_number":176,"box":{"x":69,"y":687,"width":69,"height":9}},{"id":"24a10a3c-de20-4272-aae9-393951bb0841","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":176,"box":{"x":102,"y":709,"width":776,"height":11}},{"id":"e4ff8339-e229-4f94-a015-a4fc47feb40e","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":176,"box":{"x":70,"y":724,"width":795,"height":11}},{"id":"28ab0ca9-b0e3-4896-bfa3-fdc27619de1b","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":176,"box":{"x":69,"y":739,"width":837,"height":12}},{"id":"968ee570-7714-4218-92fd-99e8929a4989","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 cer tain","page_number":176,"box":{"x":69,"y":755,"width":836,"height":11}},{"id":"9834591c-5562-4084-90ca-0f8eebb4587f","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":176,"box":{"x":70,"y":770,"width":822,"height":11}},{"id":"45fd9c6f-be34-45b2-8014-98197d8a6351","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":176,"box":{"x":69,"y":785,"width":739,"height":11}},{"id":"9d6f012e-50f7-4423-8958-e43f79256e4e","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":176,"box":{"x":102,"y":807,"width":773,"height":12}},{"id":"0cc002b1-9e58-493d-9dd4-3ad0d6c908f5","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":176,"box":{"x":70,"y":823,"width":819,"height":11}},{"id":"1e1fbaba-6122-4187-9cd2-fb10f251ae78","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":176,"box":{"x":69,"y":838,"width":807,"height":11}},{"id":"dc7f1f67-6d5e-4a0d-8bd9-0718187574b4","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":176,"box":{"x":68,"y":853,"width":800,"height":11}},{"id":"f77d7523-e018-4937-9b32-ce1093a84485","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":176,"box":{"x":69,"y":868,"width":801,"height":11}},{"id":"e07a61f3-61d7-46bf-80fc-65a57ca83eaa","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":176,"box":{"x":69,"y":883,"width":783,"height":11}},{"id":"09cbd90a-f367-4a47-b730-4bb92199a23e","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":176,"box":{"x":69,"y":898,"width":820,"height":11}},{"id":"b9da24fe-8164-4eba-a52f-2d5c47a2e979","block_type":"box","text":"II-129","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2b6c0a88-6999-48fa-8faa-88ddf425569d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"01afb0ae-6ccd-4b86-8820-b72fa912918c","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":177,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"dd182d48-dcab-4c83-8053-b37c77873d54","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":177,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"f713d833-df5d-450d-9ea5-5edff8f45523","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":177,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"d77b4536-2766-427f-9f38-6419da51d856","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":177,"box":{"x":69,"y":90,"width":816,"height":11}},{"id":"af8631ce-1d07-4384-94ee-34fa082fe042","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":177,"box":{"x":68,"y":105,"width":461,"height":11}},{"id":"f91e214a-a285-48ba-baa4-18d72136c9e7","block_type":"box","text":"Taxes","page_number":177,"box":{"x":68,"y":136,"width":42,"height":8}},{"id":"a0611317-6456-4ccc-9223-d95655eeb077","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":177,"box":{"x":102,"y":158,"width":732,"height":11}},{"id":"6488de99-6d6b-499a-a169-a999f7ff2b73","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":177,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"5bc7b2df-19ef-4da3-8767-042283e9566c","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":177,"box":{"x":70,"y":188,"width":817,"height":12}},{"id":"176f6448-cc52-49de-9170-71be96c86cdf","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":177,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"bb747124-1fcb-4bc7-b07a-82f6c309bb55","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":177,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"921fb621-9950-48ea-8269-f7cff2e62c10","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":177,"box":{"x":69,"y":234,"width":786,"height":11}},{"id":"fb4c0770-783f-4558-8652-980ab8622728","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":177,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"bf6bf3ba-3cd4-4d58-8d5a-9275d723f0bf","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":177,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"d087a0cd-648c-4389-bab8-593b3b8eb28e","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":177,"box":{"x":69,"y":279,"width":824,"height":11}},{"id":"d9751539-5c91-45fa-b8c4-89a467082efe","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":177,"box":{"x":69,"y":294,"width":739,"height":11}},{"id":"10f4affa-ecd0-48d5-939c-68cea33d10af","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":177,"box":{"x":101,"y":317,"width":792,"height":11}},{"id":"363ee464-5e60-4311-870d-6e597528764f","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":177,"box":{"x":68,"y":332,"width":819,"height":11}},{"id":"d8631c21-bf37-40ec-a153-4f5b20dea1db","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":177,"box":{"x":70,"y":347,"width":830,"height":11}},{"id":"386dc502-c413-47b1-b2e0-52354f948520","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":177,"box":{"x":68,"y":362,"width":744,"height":11}},{"id":"81c8db0b-9792-4a77-a8ce-6bdbc380aee8","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":177,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"2c024150-41f3-4d49-9449-5ee0ba2d0917","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":177,"box":{"x":69,"y":392,"width":808,"height":12}},{"id":"f354c1e5-7e87-4bbc-bebe-39ea33c3fb75","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":177,"box":{"x":69,"y":407,"width":767,"height":12}},{"id":"223c933a-97d4-45ec-a1e2-89bbf2a2dd4f","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":177,"box":{"x":70,"y":423,"width":826,"height":11}},{"id":"55ad171d-7b23-44f0-83b0-d4e394dde42b","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":177,"box":{"x":68,"y":438,"width":521,"height":11}},{"id":"e3cfd863-65ee-414f-9c0e-f45db469bbcb","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":177,"box":{"x":102,"y":460,"width":798,"height":12}},{"id":"3f0d3860-5d6d-4bc9-8305-612ac75bb390","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":177,"box":{"x":69,"y":475,"width":762,"height":12}},{"id":"6b15a18a-2fef-46ae-871d-5024da53856d","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":177,"box":{"x":70,"y":491,"width":789,"height":11}},{"id":"91a008b1-3aed-47b3-b5ef-30a4abb2391c","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":177,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"fb1dd707-0e20-4f5a-a088-2c98061141f9","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":177,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"655ef04e-2cab-42e8-b51b-00a6ffa620f2","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":177,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"c65603ec-3efb-4995-b869-708c68814cc2","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":177,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"63c974f3-8190-47c1-98e6-d7ef729ad48a","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":177,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"79018ee8-a62a-43ec-be36-a714e087b9ac","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":177,"box":{"x":70,"y":581,"width":813,"height":12}},{"id":"a80744cb-faee-475e-8c09-b59c84550109","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":177,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"bec1b01f-2dd8-4ba3-b75c-caf622a43519","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":177,"box":{"x":69,"y":612,"width":790,"height":11}},{"id":"057870f6-b9aa-4ca0-a186-3631376451fd","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":177,"box":{"x":69,"y":627,"width":771,"height":11}},{"id":"93ca826a-61eb-47f8-9a6d-5246433c129b","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":177,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"cc8bc46f-3c7a-4764-8fd4-aa4e5451e51c","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":177,"box":{"x":101,"y":665,"width":759,"height":11}},{"id":"ba7b3b84-c86e-4f38-bfbd-a44b949099cb","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":177,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"e4c17f20-27a9-48ff-b984-db1d4fb18449","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":177,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"559a98ed-05d7-4933-a9b4-f279a3c38a65","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":177,"box":{"x":68,"y":710,"width":832,"height":11}},{"id":"ee94575b-9b81-493d-a238-dd166607e244","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":177,"box":{"x":70,"y":725,"width":825,"height":11}},{"id":"ba6290f2-9764-4535-84e5-b14e0e8e278f","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":177,"box":{"x":70,"y":740,"width":810,"height":11}},{"id":"b85acf24-5cb4-423c-a7c7-15bdab3f7e8a","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":177,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"ddd518e2-18b0-4959-bbd0-ca2adee4162b","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":177,"box":{"x":68,"y":770,"width":666,"height":12}},{"id":"9e5a2517-7cf4-4975-99c0-705599353b23","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":177,"box":{"x":102,"y":793,"width":790,"height":11}},{"id":"34aed0e6-99fe-4762-95fe-bb57f233078d","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":177,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"d367866d-0760-4e61-88c4-7f1e96cd67a5","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":177,"box":{"x":69,"y":823,"width":770,"height":11}},{"id":"c0e6783a-fc7a-41be-bdf9-6fed4bad28aa","block_type":"box","text":"limitation.","page_number":177,"box":{"x":70,"y":839,"width":68,"height":8}},{"id":"b3348305-82d5-49e0-8ce1-3dd695b54f82","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":177,"box":{"x":102,"y":861,"width":803,"height":11}},{"id":"7dddbf92-433f-41b6-88f4-8677112f9581","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":177,"box":{"x":68,"y":876,"width":790,"height":11}},{"id":"d3879bef-e205-420f-9359-2242045893ff","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":177,"box":{"x":70,"y":891,"width":815,"height":12}},{"id":"284c1a11-972c-4eaf-816b-e811d4e3e096","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":177,"box":{"x":68,"y":906,"width":748,"height":12}},{"id":"dbb4df84-1b5a-488f-a129-4ac3fad9699b","block_type":"box","text":"II-130","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"afa46a0b-1754-4150-a6eb-c30d967b97dd","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfd42bcd-41c3-41a7-a7e5-018b323c55f1","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":178,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"44164e28-1fbd-42d1-aab4-6c1225430755","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":178,"box":{"x":70,"y":60,"width":829,"height":11}},{"id":"8c9442c6-7fa3-4b78-b044-d333175e1496","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":178,"box":{"x":70,"y":75,"width":785,"height":11}},{"id":"2aae9c4a-65ef-4fd9-b0bb-b198d0521ae9","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":178,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"ec11f5d4-13da-4b72-bb45-9cd247736e36","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":178,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"7326edcd-1174-4312-9c73-dd825b71f2c8","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":178,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"d9863a01-d16f-4b82-a9c3-59deeb5ac912","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":178,"box":{"x":68,"y":135,"width":822,"height":12}},{"id":"bd193270-642a-4884-93c3-c33b52a4bc4c","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":178,"box":{"x":68,"y":150,"width":751,"height":11}},{"id":"666d3a5f-84a1-4948-9d7d-9182475fc722","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":178,"box":{"x":69,"y":166,"width":823,"height":11}},{"id":"14ab07e8-eab0-49d7-93ab-a9a97223cc38","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":178,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"93b258de-ddfc-4df9-9706-d3d83a157168","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":178,"box":{"x":68,"y":196,"width":813,"height":11}},{"id":"6840de1e-37db-4e56-9711-851a00ed3050","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":178,"box":{"x":69,"y":211,"width":825,"height":11}},{"id":"37f099c4-f1d4-4de5-9f31-906180ab6cbc","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":178,"box":{"x":68,"y":226,"width":789,"height":11}},{"id":"d7fc2ecf-8717-4b1c-83e9-5bbdc21e5534","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":178,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"e9e050a7-eee9-457b-9eae-b4bc39392250","block_type":"box","text":"constitute “qualified dividend income.”","page_number":178,"box":{"x":69,"y":256,"width":275,"height":11}},{"id":"ccc24ed5-5420-40ee-8e78-52be1fda88f3","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":178,"box":{"x":101,"y":279,"width":806,"height":11}},{"id":"96411f1e-dbd8-49d5-b685-7b6f0dfd96e6","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":178,"box":{"x":70,"y":294,"width":368,"height":11}},{"id":"1a375c53-525c-4a45-b760-b14b1b9581b3","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":178,"box":{"x":101,"y":317,"width":772,"height":11}},{"id":"ff990585-8e30-42b5-a07a-78a5c3af9954","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":178,"box":{"x":69,"y":332,"width":811,"height":11}},{"id":"ac920103-6387-4f4f-92c9-2cd6b07ba57c","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":178,"box":{"x":70,"y":347,"width":745,"height":11}},{"id":"6dd545db-bc88-410f-a944-c4215680c1c7","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":178,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"252d8d7b-0fc4-48eb-9487-e07878f41d34","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":178,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"891296ec-f588-4beb-8a24-223c6c837623","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":178,"box":{"x":69,"y":392,"width":809,"height":12}},{"id":"c42cf3ed-62ed-44e3-9041-fd1666a7f653","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":178,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"ef30aa89-e625-4127-b8c3-6fe1ee9c1ea5","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":178,"box":{"x":69,"y":423,"width":838,"height":11}},{"id":"0fd98777-7a5f-40d9-aa67-00fde53da623","block_type":"box","text":"against their taxes.","page_number":178,"box":{"x":69,"y":438,"width":135,"height":11}},{"id":"6d825f71-c728-4ef8-a6db-e6a161f26399","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":178,"box":{"x":102,"y":460,"width":783,"height":12}},{"id":"954c3d83-05ec-4154-b8e3-8cc67d8de4bd","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":178,"box":{"x":68,"y":475,"width":812,"height":12}},{"id":"27d6a980-c9b5-464d-8fcc-b1b8a7c6a2b1","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":178,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"11164d7f-9c76-4559-935f-8921226d6f72","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":178,"box":{"x":69,"y":506,"width":805,"height":11}},{"id":"b08429e9-b591-43ad-b210-2dca8b964bea","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":178,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"0a4f7fdb-a362-4cc9-a5c5-13b3227e341b","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":178,"box":{"x":68,"y":536,"width":831,"height":11}},{"id":"516160a0-20c8-4e55-ba47-0d6766ea440c","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":178,"box":{"x":68,"y":551,"width":817,"height":11}},{"id":"4026f3aa-298e-48c9-84c4-786dad09a916","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":178,"box":{"x":70,"y":566,"width":797,"height":11}},{"id":"f7a75c22-30a6-48ee-a5ce-8468a4e184da","block_type":"box","text":"dividends received by the shareholder.","page_number":178,"box":{"x":69,"y":582,"width":272,"height":10}},{"id":"ce5e95b5-c356-4667-9091-b0bb262d7c81","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":178,"box":{"x":102,"y":604,"width":792,"height":11}},{"id":"1c946878-886a-4ea5-ad3e-a735aa1e2d50","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":178,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"d7a5fb79-fffd-4e57-add3-1ca52f8c0255","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":178,"box":{"x":68,"y":634,"width":809,"height":11}},{"id":"c14bdac3-ac51-4722-8bc6-a723e9af87c1","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":178,"box":{"x":68,"y":649,"width":819,"height":11}},{"id":"78aef844-9438-4397-a8df-42ccc721e5d1","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":178,"box":{"x":69,"y":664,"width":839,"height":12}},{"id":"db1bada7-a18c-41b0-aa15-7ba426b03705","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":178,"box":{"x":69,"y":680,"width":794,"height":11}},{"id":"d16b267a-d408-471e-bdf7-12a9bf64c281","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":178,"box":{"x":69,"y":695,"width":804,"height":11}},{"id":"1dfc2188-d53a-46bd-83a6-3b3d78619461","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":178,"box":{"x":70,"y":710,"width":797,"height":11}},{"id":"2bd97342-9b27-4e91-a009-c879266b9b86","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":178,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"4c29942e-c3f0-4b1b-9d96-2f46cd3d99cf","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":178,"box":{"x":68,"y":740,"width":826,"height":11}},{"id":"aef220fb-6eb0-4335-a52c-2cfe365449ba","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":178,"box":{"x":70,"y":755,"width":772,"height":11}},{"id":"9dd93de0-8b4d-46dc-92ae-7639b096d042","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":178,"box":{"x":70,"y":770,"width":795,"height":12}},{"id":"ead67d39-95df-45d7-8cd1-0996421a209c","block_type":"box","text":"taxable year.","page_number":178,"box":{"x":68,"y":786,"width":89,"height":11}},{"id":"5395152f-0cbb-47c7-821c-8be3a6c4294d","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":178,"box":{"x":102,"y":808,"width":733,"height":11}},{"id":"ca010fe0-0015-4e04-b930-711e20ec888e","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":178,"box":{"x":69,"y":823,"width":832,"height":11}},{"id":"8b540805-63e2-4a0f-8bec-dd6dc9e70329","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":178,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"3b7d0a2e-f67a-41ec-99b0-cf6ab8c0abcf","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":178,"box":{"x":69,"y":853,"width":362,"height":12}},{"id":"39eb84df-9cd1-458b-aea6-af1d8752c227","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":178,"box":{"x":102,"y":876,"width":795,"height":11}},{"id":"dc4c4125-cd8c-48ef-98df-e6c8aa852322","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":178,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"4b55ac06-ea77-4ec4-8c85-65ed2e998918","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":178,"box":{"x":69,"y":907,"width":797,"height":11}},{"id":"7dafceff-93d2-44c6-a0c0-a498c08372c2","block_type":"box","text":"II-131","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"43c7ce4d-4a23-4935-838d-5bc419c4b358","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"29af9625-88cb-4cdc-a691-3f78a4d5aaaa","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":179,"box":{"x":69,"y":45,"width":791,"height":11}},{"id":"5a8163c4-3f29-4441-96da-591d0f69099f","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":179,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"3ed8af20-7e91-41b8-ae56-249d4a4849e2","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":179,"box":{"x":101,"y":82,"width":807,"height":12}},{"id":"ff0c32b6-1ae3-4220-89eb-02c4fc948b6b","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":179,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"0866ef21-61d2-4c29-a171-4d680b45d974","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":179,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"e38b6245-3952-4620-8252-8487e7994526","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":179,"box":{"x":69,"y":128,"width":534,"height":11}},{"id":"2b938ed1-18bc-4b46-82a7-c914d91771d4","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":179,"box":{"x":101,"y":150,"width":792,"height":12}},{"id":"09fb043b-ddbc-4001-8eb5-77612ce5d89b","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":179,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"7f11ae46-a20e-4806-bf88-5a6e127a02e1","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":179,"box":{"x":70,"y":181,"width":828,"height":11}},{"id":"a76791fe-7eba-4f0a-a313-6addc806d50c","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":179,"box":{"x":70,"y":196,"width":824,"height":11}},{"id":"632bf9d8-a96d-4f50-9265-153e08e63187","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":179,"box":{"x":69,"y":211,"width":816,"height":11}},{"id":"7463212d-b8e2-418b-99bd-c02fdd227b1b","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":179,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"8fa2ace9-b862-4d24-aa55-d5a7402b1ce0","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":179,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"52e3f446-cf6e-4cad-a035-6451bf7b3f2f","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":179,"box":{"x":69,"y":256,"width":788,"height":12}},{"id":"c1829117-d894-42bd-8598-14ff398a6ed2","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":179,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"aa12dd4c-93f2-4418-a6f2-8f2ff45fe1cc","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":179,"box":{"x":69,"y":286,"width":821,"height":12}},{"id":"085df4dc-cd5a-47d9-9c73-bb8cf5c16eeb","block_type":"box","text":"redemption of such shares.","page_number":179,"box":{"x":69,"y":302,"width":195,"height":11}},{"id":"8dda744a-57f4-4ac1-8c8f-55d0e35e2ceb","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":179,"box":{"x":102,"y":324,"width":799,"height":11}},{"id":"87b869a4-6d01-48ab-bf52-c844bb1ca6b7","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":179,"box":{"x":69,"y":339,"width":791,"height":12}},{"id":"bde618cf-b248-47fd-8ca6-6ae1fb13b9e7","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":179,"box":{"x":70,"y":355,"width":826,"height":11}},{"id":"ba13d9d3-06cb-4fb6-9304-68fdb3a6d762","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":179,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"0e418e88-fde4-4e86-96a6-3f7ec70f33d2","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":179,"box":{"x":70,"y":385,"width":825,"height":11}},{"id":"e87316aa-9e6f-4f66-9a06-2e1bf02dc8aa","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":179,"box":{"x":69,"y":400,"width":829,"height":11}},{"id":"1ccfc0ca-3975-4bc3-88f2-3a461900a477","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":179,"box":{"x":69,"y":415,"width":826,"height":11}},{"id":"019318ac-c5d9-467d-b0c5-4729ba39dcd2","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":179,"box":{"x":69,"y":430,"width":808,"height":11}},{"id":"6446e6fa-f8e3-4d06-aa7c-e6b05740c24d","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":179,"box":{"x":69,"y":445,"width":787,"height":11}},{"id":"43a910fe-779d-4289-b7d9-c68c558b952f","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":179,"box":{"x":69,"y":460,"width":816,"height":12}},{"id":"50d9bc86-5845-43d2-b827-01b3ec47a1a6","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":179,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"5150de5f-2263-4c4e-b448-47d35ef8cb6b","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":179,"box":{"x":68,"y":491,"width":542,"height":11}},{"id":"500735e9-339c-422e-89b3-e4067e070723","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":179,"box":{"x":102,"y":513,"width":744,"height":12}},{"id":"1d4b40ca-694e-4c27-8535-64f22ea51f34","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":179,"box":{"x":69,"y":528,"width":751,"height":12}},{"id":"ad4e29b8-88a5-4533-80c5-107764aa9d4b","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":179,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"48498afe-d51c-44c9-b544-53e8dc2d1050","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":179,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"6e87abda-8cb7-4ec9-9253-17a3a3915666","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":179,"box":{"x":68,"y":574,"width":823,"height":11}},{"id":"9ab4c975-3194-4a6a-8b04-89f5e488bf43","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":179,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"228176da-5df0-475d-ac1e-0d538869f935","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":179,"box":{"x":69,"y":604,"width":797,"height":11}},{"id":"da2d2035-1208-4f1d-b92d-8051693dd8fd","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":179,"box":{"x":68,"y":619,"width":838,"height":11}},{"id":"7aa15028-2996-435b-a512-6402a3738274","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":179,"box":{"x":69,"y":634,"width":695,"height":12}},{"id":"78f8f719-2348-4217-b643-f0a4440cb32c","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":179,"box":{"x":102,"y":657,"width":768,"height":11}},{"id":"dd2735d3-2160-46ab-9bec-d15786e5c146","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":179,"box":{"x":69,"y":672,"width":769,"height":11}},{"id":"6aff302b-462e-4a69-aece-bde413f6a1a0","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":179,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"1422cf8c-173f-40d6-832d-68f46fbf327a","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":179,"box":{"x":70,"y":702,"width":819,"height":12}},{"id":"19526e09-5b42-4aba-b670-7f9a481ff9d8","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":179,"box":{"x":68,"y":718,"width":818,"height":11}},{"id":"1656a903-f891-405b-ad32-5b1242d3a158","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":179,"box":{"x":70,"y":732,"width":830,"height":12}},{"id":"50b4f645-f8f1-48a9-9151-8253ac65187a","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":179,"box":{"x":70,"y":748,"width":792,"height":11}},{"id":"ebce7e27-758a-4f1a-ab78-2e48452484c1","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":179,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"ff395b3a-7366-414b-b1fb-42ecbb15f97f","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":179,"box":{"x":70,"y":778,"width":812,"height":11}},{"id":"fb4a2368-1b29-4129-8471-8964d4bdbeb6","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":179,"box":{"x":69,"y":793,"width":789,"height":11}},{"id":"2c39bfab-7abb-4aed-9e8f-4baa188e5cf4","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":179,"box":{"x":68,"y":808,"width":777,"height":11}},{"id":"ff44a3bf-1041-4259-aba2-bee24aa3aa83","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":179,"box":{"x":69,"y":823,"width":810,"height":12}},{"id":"996edad4-a0d1-48ea-9d35-73ff4fdaf80c","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":179,"box":{"x":70,"y":838,"width":801,"height":12}},{"id":"82a923b7-1157-4d9c-ab01-9f0b7b502eee","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":179,"box":{"x":69,"y":853,"width":762,"height":12}},{"id":"6d3fd8e9-0f41-44d6-984b-860329f5484b","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":179,"box":{"x":70,"y":869,"width":827,"height":11}},{"id":"2e4ec357-b8ef-4ffe-81b0-0b76fc50748f","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":179,"box":{"x":69,"y":884,"width":787,"height":11}},{"id":"b8c42834-7047-4670-b536-7add7a4abcf3","block_type":"box","text":"II-132","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c13520b8-31ac-4d63-b947-eac1ab698da5","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b607240b-1c59-4668-a009-e7ea62d620c2","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":180,"box":{"x":70,"y":45,"width":822,"height":11}},{"id":"0ededbc3-6e32-47f0-9dd0-b92ec7312c70","block_type":"box","text":"in subsequent taxable years.","page_number":180,"box":{"x":70,"y":60,"width":203,"height":11}},{"id":"f237bec9-c358-4deb-843b-2927202882fd","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":180,"box":{"x":102,"y":82,"width":795,"height":12}},{"id":"89b2ded5-3d89-4086-8ba9-d19047515c3b","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":180,"box":{"x":68,"y":98,"width":816,"height":11}},{"id":"1856360d-2a5d-4f22-9215-ddff106161a8","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":180,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"8a4d3457-2b49-4c1d-8daa-9ee3cad1919e","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":180,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"01d5dd0c-bb6e-4fff-8ef6-2c8871af6c1b","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":180,"box":{"x":69,"y":143,"width":816,"height":11}},{"id":"8f0f797b-b2db-45e3-96e3-a8fcf193b5ab","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":180,"box":{"x":69,"y":158,"width":840,"height":11}},{"id":"e20d8dff-9307-4576-b53d-e4b945166438","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":180,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"6a6dabba-18d9-499a-b1d8-3f1c4f48aee9","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":180,"box":{"x":69,"y":188,"width":824,"height":12}},{"id":"c842b875-e1ff-4e57-808f-9966a7509f93","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":180,"box":{"x":69,"y":204,"width":832,"height":11}},{"id":"fb8c2574-22c6-46d6-9b66-a1ed73adb139","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":180,"box":{"x":68,"y":219,"width":808,"height":11}},{"id":"7ec9f6c1-dfc9-4cd2-9097-94129f614abb","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":180,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"04ba23e6-6420-4569-92fc-e85cf21d3702","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":180,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"1baf5bd8-e9ad-4e95-b7b0-1bad90ade239","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":180,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"42238e99-156f-4f4e-9ed5-0b3e711c3374","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":180,"box":{"x":68,"y":279,"width":784,"height":11}},{"id":"f38f6313-2d9d-4dbd-9ae0-81f4292e8375","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":180,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"47f19623-8cc0-4f9b-aea1-c9b5b96c151d","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":180,"box":{"x":70,"y":309,"width":839,"height":11}},{"id":"d8809459-c1db-472e-9361-7f7493d5e426","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":180,"box":{"x":70,"y":325,"width":772,"height":11}},{"id":"0b4eb78e-1a9c-40c6-a4c7-7c0487ba30eb","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":180,"box":{"x":70,"y":339,"width":791,"height":11}},{"id":"bc797767-0cb2-4441-99f0-068f0d15d324","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":180,"box":{"x":70,"y":355,"width":787,"height":11}},{"id":"569a5c6b-62d1-4844-92fe-32200f2630f4","block_type":"box","text":"dividends under these rules.","page_number":180,"box":{"x":69,"y":370,"width":201,"height":9}},{"id":"dfa1c291-5200-418d-a48c-590c2b2dfdf9","block_type":"box","text":"Special rules may apply to a foreign shareholder receiving a Fund distribution if at least 50% of the Fund’s","page_number":180,"box":{"x":102,"y":392,"width":756,"height":12}},{"id":"f55dd3c9-e412-41ad-82bc-f6a879b70a4f","block_type":"box","text":"assets consist of interests in U.S. real proper ty interests, including cer tain REITs and U.S. real proper ty holding","page_number":180,"box":{"x":69,"y":407,"width":798,"height":12}},{"id":"7edef58d-d24b-4e5b-aef5-57621bcf123b","block_type":"box","text":"corporations (as defined in the Internal Revenue Code and Treasury regulations). Fund distributions that are","page_number":180,"box":{"x":69,"y":423,"width":769,"height":11}},{"id":"c74d3a50-2fec-478c-b79f-d1e4633a1b16","block_type":"box","text":"attributable to gain from the disposition of a U.S. real proper ty interest will be taxable as ordinary dividends and","page_number":180,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"82553e24-4182-4330-89c7-bd3d0cf74065","block_type":"box","text":"subject to withholding at a 30% or lower treaty rate if the foreign shareholder held no more than 5% of the Fund’s","page_number":180,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"f6ed7e74-90da-42c7-8104-0baf60da6843","block_type":"box","text":"shares at any time during the one-year period ending on the date of the distribution. If the foreign shareholder held","page_number":180,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"ee556a4d-4244-46a8-a4e1-cad5a20d0a8d","block_type":"box","text":"more than 5% of the Fund’s shares, the distribution would be treated as income effectively connected with a trade or","page_number":180,"box":{"x":69,"y":483,"width":835,"height":11}},{"id":"bf095829-ab64-49eb-9618-9d069201f8e5","block_type":"box","text":"business within the U.S. and the foreign shareholder would be subject to withholding tax at a rate of 21% and would","page_number":180,"box":{"x":69,"y":498,"width":826,"height":11}},{"id":"0ee13506-7129-4128-a318-d01026c9c15f","block_type":"box","text":"generally be required to file a U.S. federal income tax return. Similar consequences would generally apply to a foreign","page_number":180,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"3206e862-df70-41fb-a908-2683162373a2","block_type":"box","text":"shareholder’s gain on the sale of Fund shares unless the Fund is domestically controlled (meaning that more than","page_number":180,"box":{"x":69,"y":528,"width":814,"height":12}},{"id":"bef0adce-be90-44f8-9487-11bfa4ad4297","block_type":"box","text":"50% of the value of the Fund’s shares is held by U.S. shareholders) or the foreign shareholder owns no more than 5%","page_number":180,"box":{"x":69,"y":543,"width":840,"height":12}},{"id":"62ab9020-4bce-4ec2-bb7d-d2fb42f5faf4","block_type":"box","text":"of the Fund’s shares at any time during the five-year period ending on the date of sale. Finally, a domestically","page_number":180,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"bb2924d8-5d77-4eaf-9780-ddf927b79743","block_type":"box","text":"controlled Fund may be required to recognize a por tion of its gain on the in-kind distribution of cer tain U.S. real","page_number":180,"box":{"x":69,"y":574,"width":790,"height":11}},{"id":"55e2978a-2183-4941-9200-8e982a6a4d2f","block_type":"box","text":"proper ty interests. Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax","page_number":180,"box":{"x":70,"y":589,"width":804,"height":11}},{"id":"40e67358-348b-4e5d-8499-0979d170342b","block_type":"box","text":"advisors concerning the par ticular tax consequences to them of an investment in the Fund.","page_number":180,"box":{"x":69,"y":604,"width":648,"height":11}},{"id":"287c3058-91eb-4506-b178-6e2551389fad","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":180,"box":{"x":102,"y":627,"width":763,"height":11}},{"id":"b275e200-ac6e-436b-ac92-3b09f72fdd96","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":180,"box":{"x":70,"y":642,"width":820,"height":11}},{"id":"57631a54-9b0f-4985-b639-2985184146f5","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":180,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"e0a04804-256c-48d1-a2ab-b033a26b26d9","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":180,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"3195e432-9b26-4e0e-825e-2627e709b539","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":180,"box":{"x":69,"y":687,"width":791,"height":11}},{"id":"9d12bc5c-4cf6-4a89-be61-86cd742d6965","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":180,"box":{"x":68,"y":702,"width":791,"height":12}},{"id":"4197d905-97d4-40a8-9629-82cc1db34a38","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":180,"box":{"x":70,"y":717,"width":822,"height":12}},{"id":"eef70c17-d261-420f-9857-f403e1348104","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":180,"box":{"x":70,"y":732,"width":739,"height":12}},{"id":"d7d4cf9c-a5ed-4bf5-9f7d-136bc7f3bf48","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":180,"box":{"x":102,"y":755,"width":786,"height":11}},{"id":"ca2520a2-c99a-4360-90cd-e6267e76b7b9","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":180,"box":{"x":70,"y":770,"width":820,"height":12}},{"id":"46d638e6-2e22-4acb-8349-57fc459b4373","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":180,"box":{"x":69,"y":785,"width":837,"height":12}},{"id":"f84eff2d-e072-4df6-8fd2-fb5f7a88ced2","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":180,"box":{"x":70,"y":801,"width":821,"height":11}},{"id":"7fc8b294-4ab4-468a-842b-d84e610a9bf1","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":180,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"e8d1ef8b-e214-490b-ada3-4827ee790b9d","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":180,"box":{"x":69,"y":831,"width":826,"height":11}},{"id":"2b802f8d-1735-47ae-923b-2b555c2eee05","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":180,"box":{"x":69,"y":846,"width":802,"height":11}},{"id":"af37193f-2822-4ac3-8495-c130058011bb","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":180,"box":{"x":69,"y":861,"width":364,"height":11}},{"id":"9a35a796-7fc1-4145-90de-964aaa4b8da3","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":180,"box":{"x":102,"y":883,"width":774,"height":12}},{"id":"bffedb8e-ff16-4999-b56f-cd324aac435e","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":180,"box":{"x":68,"y":898,"width":787,"height":12}},{"id":"6e6e5982-7122-4da0-a6e7-b30c4c190050","block_type":"box","text":"II-133","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bda5bea1-c4b6-4b99-abf1-7cc4a852431d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a0c8bef-2551-44d7-ad8c-d6909106fcbd","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":181,"box":{"x":68,"y":44,"width":835,"height":12}},{"id":"0050e721-8c1a-4760-86bb-02a518b9cae4","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":181,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"a54860ae-5c3a-4364-9bf0-bc25c6cad0a7","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":181,"box":{"x":69,"y":75,"width":817,"height":11}},{"id":"1f4627c1-3498-4168-92c0-242519330003","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":181,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"b7cd9918-9de5-42dd-a32a-166ae75ddc2c","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":181,"box":{"x":69,"y":105,"width":710,"height":11}},{"id":"f2e81041-9b6a-4df8-9b82-c8a76f3ab60c","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":181,"box":{"x":102,"y":128,"width":758,"height":11}},{"id":"8f4f05d8-3529-446b-979f-b7a72e6258d4","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":181,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"dfd66135-4329-4637-b952-ae1886203812","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":181,"box":{"x":70,"y":158,"width":783,"height":11}},{"id":"6dd55b39-d072-455e-a890-4c497cda4242","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":181,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"2c37d135-1318-4c22-a580-5ceb5fe88d89","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":181,"box":{"x":70,"y":188,"width":822,"height":12}},{"id":"32644c5b-cafe-45c6-8704-c2ed9e3ff446","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":181,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"def47db9-af67-4aa2-9314-77517644114a","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":181,"box":{"x":70,"y":218,"width":826,"height":12}},{"id":"3067ed2e-608c-431a-8712-d3502cb6edb1","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":181,"box":{"x":69,"y":234,"width":808,"height":11}},{"id":"aa9a468c-a7e7-49d8-9e8f-ef517da6d963","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":181,"box":{"x":69,"y":249,"width":800,"height":11}},{"id":"e323c921-06b7-4713-89cf-157075cfa910","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":181,"box":{"x":70,"y":264,"width":770,"height":11}},{"id":"a9d128ae-1e9d-4c22-a1ef-950579e22296","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":181,"box":{"x":70,"y":279,"width":816,"height":11}},{"id":"73ba5c8b-937b-40b6-bee0-1e02c16b6542","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":181,"box":{"x":70,"y":294,"width":796,"height":11}},{"id":"3b8a8a60-8be1-486e-a1f4-676a7b8548f2","block_type":"box","text":"investment oppor tunities.","page_number":181,"box":{"x":70,"y":309,"width":180,"height":11}},{"id":"fad1b7ea-0af8-4978-a3dd-9ecb75648465","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":181,"box":{"x":102,"y":332,"width":801,"height":11}},{"id":"018c915e-829d-4479-8ad4-c141e52a5be1","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":181,"box":{"x":70,"y":347,"width":839,"height":11}},{"id":"f647f9b3-1f69-4e24-b25f-ea61e85c2a5c","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":181,"box":{"x":69,"y":362,"width":840,"height":11}},{"id":"394ef849-084b-44f8-8ba6-0502d7ac0870","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":181,"box":{"x":68,"y":377,"width":837,"height":12}},{"id":"994ba32a-c287-458d-9b5a-53690aa696e9","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":181,"box":{"x":70,"y":392,"width":774,"height":11}},{"id":"30a463f4-0d59-4f92-884a-974e9fa88e75","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":181,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"ae4312be-5171-4721-8b70-3113f5304af5","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":181,"box":{"x":69,"y":423,"width":795,"height":11}},{"id":"a0049587-9084-4731-9ed5-06c101f8574f","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":181,"box":{"x":69,"y":438,"width":755,"height":11}},{"id":"826f7490-af05-4d68-a686-45b75688ca47","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":181,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"b4d51c14-3cf0-489e-83b6-b3220e21eb87","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":181,"box":{"x":69,"y":468,"width":839,"height":11}},{"id":"db406235-8fa0-44f8-99ef-dbf773852ccc","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":181,"box":{"x":68,"y":483,"width":812,"height":11}},{"id":"c5066dfd-b878-4521-8a36-08e9275c703b","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":181,"box":{"x":69,"y":498,"width":829,"height":11}},{"id":"d5ec766e-d2b9-4d85-b62d-8b9210e0dbf5","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":181,"box":{"x":68,"y":513,"width":827,"height":12}},{"id":"1a075b52-78bc-4054-9fb9-d303d95ee104","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":181,"box":{"x":70,"y":528,"width":829,"height":12}},{"id":"09928f38-5627-4cd6-8946-58aa0faf30e1","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":181,"box":{"x":68,"y":544,"width":825,"height":11}},{"id":"12734e13-1f56-49d0-b006-27593d52dde2","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":181,"box":{"x":69,"y":559,"width":788,"height":11}},{"id":"25024f6c-e717-456b-b09a-53732c065bc2","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":181,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"54724da3-89b4-4583-ba36-44768db87acd","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":181,"box":{"x":69,"y":589,"width":773,"height":11}},{"id":"cd45308a-2ca5-454e-9107-7b824708bbc8","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":181,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"3d8d3f5a-3b5d-4943-9d54-df96aad76f74","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":181,"box":{"x":70,"y":619,"width":814,"height":11}},{"id":"f0b4a877-13c2-471f-b07d-fcfbbcc9dfd6","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":181,"box":{"x":69,"y":634,"width":821,"height":12}},{"id":"c72c5148-5aa7-4b9e-a204-03040398ff85","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":181,"box":{"x":68,"y":649,"width":527,"height":12}},{"id":"b4efe544-e25f-42de-a1bb-3b1941946121","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":181,"box":{"x":102,"y":672,"width":768,"height":11}},{"id":"bbb8f1fc-b05a-42e7-8118-e13a00cfc083","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":181,"box":{"x":69,"y":687,"width":780,"height":11}},{"id":"4537abef-4f68-4b28-b017-51e38d7b3ab1","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":181,"box":{"x":69,"y":702,"width":797,"height":12}},{"id":"ee888b9f-c329-4956-838e-46a109d46c1a","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":181,"box":{"x":69,"y":717,"width":802,"height":12}},{"id":"4ccae9f0-c4c3-4a01-81ae-0446ab4c1570","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":181,"box":{"x":69,"y":732,"width":831,"height":12}},{"id":"7f96bdc3-b2d9-47f9-8449-1394c258c02f","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":181,"box":{"x":69,"y":748,"width":776,"height":11}},{"id":"736b15e1-2393-4930-b3be-80a60c74e4cf","block_type":"box","text":"positions in its por tfolio (i.e., treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":181,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"27daf92c-93ab-400a-84ba-1a8b594bc8cd","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":181,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"217eae2f-4dfb-4fd7-945b-c2e0c9b78d98","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":181,"box":{"x":70,"y":793,"width":830,"height":11}},{"id":"670e7ee5-261a-40a9-9ad0-3b7bcc4cc370","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":181,"box":{"x":69,"y":808,"width":804,"height":11}},{"id":"8ba7ddfb-8bf5-4369-b99d-845903c1e206","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":181,"box":{"x":69,"y":823,"width":415,"height":12}},{"id":"9a1c5ff1-361b-45fd-8be8-078f53d28421","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":181,"box":{"x":102,"y":846,"width":781,"height":11}},{"id":"5aa980db-d7c4-4604-ac9b-e00e73e8e70c","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":181,"box":{"x":69,"y":861,"width":835,"height":11}},{"id":"0ba04c4a-9ba0-4ab8-b790-ea77d712cabb","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":181,"box":{"x":70,"y":876,"width":811,"height":11}},{"id":"e90d8546-5d6a-4702-b04d-37cb72b9aad1","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":181,"box":{"x":69,"y":891,"width":818,"height":11}},{"id":"2544c4d9-63fe-4910-8aa8-0f5761c70625","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":181,"box":{"x":69,"y":906,"width":820,"height":12}},{"id":"2826a19e-9b47-468d-968d-14ef9da13e3c","block_type":"box","text":"II-134","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ea202db0-5731-4255-82b7-fdd9e6d8a9b7","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"006d01f1-e48b-48e5-aa43-ff4a76137780","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":182,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"ea8f234f-f00c-4ae9-8c1e-7003d8bb4ec5","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":182,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"07735922-02fb-4827-9ba0-e20408c831d4","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":182,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"cfbcaa80-773f-4326-8b1c-8b88a5b3e871","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":182,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"fbb056ad-1021-4475-86ff-ce2392e8e58b","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":182,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"583b116e-b3db-407e-872b-2c76a131c1c9","block_type":"box","text":"capital asset.","page_number":182,"box":{"x":69,"y":120,"width":95,"height":11}},{"id":"a8619ebe-c2a6-4d1f-b0c2-a7138593e764","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":182,"box":{"x":102,"y":143,"width":787,"height":11}},{"id":"defab74d-19f9-42c3-a1d6-f73a1df07f4a","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":182,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"9caa781d-e9cb-4c8e-b039-6ba3726cad1a","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":182,"box":{"x":69,"y":173,"width":812,"height":11}},{"id":"7005af17-e20d-4f8d-b98d-ab7a9d83b3d2","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":182,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"f4f4fc28-ec05-41ec-82c2-7948f512d8a1","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":182,"box":{"x":68,"y":203,"width":829,"height":12}},{"id":"f84e641d-d558-45d6-b4bf-b0431479e3f9","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":182,"box":{"x":70,"y":218,"width":803,"height":12}},{"id":"db9eb676-4c94-4139-bcac-4fac0febf111","block_type":"box","text":"Fund were to invest otherwise.","page_number":182,"box":{"x":70,"y":234,"width":216,"height":9}},{"id":"9b286542-8893-4af1-979d-6deb4548a76e","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":182,"box":{"x":101,"y":256,"width":721,"height":12}},{"id":"f75ce044-43ed-45d3-8f74-5395988909e8","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":182,"box":{"x":70,"y":271,"width":787,"height":12}},{"id":"e5a821a3-ce55-4130-b431-6d0d238559bf","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":182,"box":{"x":70,"y":286,"width":831,"height":11}},{"id":"51070fbc-4e37-47d2-8350-397e53acf657","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":182,"box":{"x":68,"y":302,"width":823,"height":11}},{"id":"9b2a110e-b7cd-40be-ac75-400aae9b0e6f","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":182,"box":{"x":69,"y":317,"width":825,"height":11}},{"id":"1d7166ae-28fd-48b3-a988-275831ecff1b","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":182,"box":{"x":68,"y":332,"width":838,"height":11}},{"id":"fa01c13a-1a05-47d5-ba51-50f9921f50d4","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":182,"box":{"x":68,"y":347,"width":830,"height":11}},{"id":"fd8fa567-8194-4233-a32e-5f2791a30149","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":182,"box":{"x":69,"y":362,"width":515,"height":11}},{"id":"3b7b8c77-3b8f-4fe6-9261-c0b29e0ffc0d","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":182,"box":{"x":102,"y":385,"width":798,"height":11}},{"id":"ecb2ce9e-6ac7-4c00-b421-6d81d7f54983","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":182,"box":{"x":68,"y":400,"width":835,"height":11}},{"id":"016fd91f-d4a5-497f-9c79-cc223e32955f","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":182,"box":{"x":70,"y":415,"width":827,"height":11}},{"id":"37d67922-aebd-4267-9ee4-effd5ba9d8a4","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":182,"box":{"x":68,"y":430,"width":830,"height":11}},{"id":"afb5b130-7107-40ce-ac65-03534170c913","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":182,"box":{"x":69,"y":445,"width":802,"height":12}},{"id":"9e58cbc6-c1cb-44e2-b71b-85eaf5163402","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":182,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"671a5fb2-a4aa-42eb-ace4-7182ded9abf1","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":182,"box":{"x":70,"y":475,"width":797,"height":12}},{"id":"c54c43f7-06fa-409c-bb5d-29694483d698","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":182,"box":{"x":69,"y":491,"width":801,"height":11}},{"id":"9f9a1df1-86d3-4df2-affb-b6503fad6fbb","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":182,"box":{"x":69,"y":506,"width":818,"height":11}},{"id":"0e7b1951-0f3a-4272-a0e8-fcc418f586a3","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":182,"box":{"x":68,"y":521,"width":797,"height":11}},{"id":"44ee19c6-cabc-4ced-bc16-eb4e34835c8a","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":182,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"51126ec7-ce81-4248-aa2c-cae6db39f6ef","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":182,"box":{"x":68,"y":551,"width":804,"height":11}},{"id":"e924a503-660d-473c-a766-7f2197433d67","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":182,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"ac1d78c5-94cf-4b7c-b6e9-137bffd87213","block_type":"box","text":"PFICs.","page_number":182,"box":{"x":69,"y":581,"width":42,"height":9}},{"id":"6ef3b7e4-ec45-4621-96c4-6995743e5519","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":182,"box":{"x":102,"y":604,"width":804,"height":11}},{"id":"a368a919-da3b-4538-ace5-bef29309cd65","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":182,"box":{"x":69,"y":619,"width":816,"height":11}},{"id":"ab2aa048-1b45-4008-89ef-6462f194a03b","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":182,"box":{"x":69,"y":634,"width":816,"height":12}},{"id":"2c163a1e-25a3-485c-9305-45e6dfad214c","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":182,"box":{"x":68,"y":649,"width":840,"height":11}},{"id":"67516c71-d33f-46a3-b8e8-c110f82ef402","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":182,"box":{"x":68,"y":664,"width":804,"height":12}},{"id":"6a09d866-664e-428b-b8d8-aef26ba138ae","block_type":"box","text":"difficult or impossible to obtain.","page_number":182,"box":{"x":69,"y":680,"width":225,"height":11}},{"id":"0684f722-368e-41ea-b3c8-4948af210ce6","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":182,"box":{"x":102,"y":702,"width":796,"height":11}},{"id":"4171db3a-04dc-4d45-aeed-17ea1fc102de","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":182,"box":{"x":69,"y":717,"width":806,"height":12}},{"id":"b93be08d-2cd7-46bc-ae34-edb3bc3be6ce","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":182,"box":{"x":69,"y":732,"width":778,"height":12}},{"id":"ca037315-3fcc-4de7-89b7-bd85b6e9ddfb","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":182,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"61098eb7-0b9c-4d2c-ad6e-45cd9386253a","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":182,"box":{"x":68,"y":763,"width":824,"height":11}},{"id":"73f4d972-c571-41ba-9498-75dd540aade1","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":182,"box":{"x":69,"y":778,"width":830,"height":11}},{"id":"87da113f-14ea-45ec-8fe5-5293b067cb59","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":182,"box":{"x":69,"y":793,"width":511,"height":11}},{"id":"30dd9ab1-24e1-4a62-baf6-66293729f535","block_type":"box","text":"Municipal Funds","page_number":182,"box":{"x":102,"y":816,"width":115,"height":11}},{"id":"42eedeac-7085-4069-9a31-ec651f87d741","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":182,"box":{"x":102,"y":838,"width":798,"height":11}},{"id":"df22de09-a3d9-45b2-9c1c-251b8590f3b4","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":182,"box":{"x":69,"y":853,"width":815,"height":12}},{"id":"82cc13f7-680f-4b39-86dc-1fe79e195b8d","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":182,"box":{"x":70,"y":869,"width":803,"height":11}},{"id":"c51c5038-3d9b-47e1-b936-e658e45a3774","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":182,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"8769b4bc-77ab-444f-a9a2-ec858ea503a6","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":182,"box":{"x":69,"y":899,"width":752,"height":11}},{"id":"c1b8b9ba-1b12-4056-9b3b-c9f3e94f71a9","block_type":"box","text":"II-135","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a6867c9a-de53-4837-a4d7-b5f9cc1a4dfa","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8608e629-43d2-4880-ba3c-b6cb9a8a9bcc","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":183,"box":{"x":70,"y":45,"width":817,"height":11}},{"id":"b3870181-8af7-46b8-adb3-266c8c918670","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":183,"box":{"x":70,"y":60,"width":780,"height":11}},{"id":"44fa3e07-f054-4a5e-9ea9-632acdac2ced","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":183,"box":{"x":70,"y":75,"width":815,"height":11}},{"id":"ed4a0893-80dc-447d-bd8a-57b7103eec08","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":183,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"18e2567f-d9a9-498f-98c0-f715d0a0946e","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":183,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"ab8aa491-60a3-4b87-9b71-b71aca68f429","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":183,"box":{"x":68,"y":120,"width":730,"height":12}},{"id":"100b06b5-2f4f-4585-914a-393713fc7d49","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":183,"box":{"x":102,"y":143,"width":763,"height":11}},{"id":"28161ecb-9a04-4e66-9eac-657124dbc801","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":183,"box":{"x":70,"y":158,"width":809,"height":11}},{"id":"fd7f9cc1-b0a3-4541-91d0-d2867796d74b","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":183,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"2d4a639e-6a90-4a91-ae03-e94d0c98e287","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":183,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"8c3c061e-a000-4ab6-9bd7-f23ae31bfd83","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":183,"box":{"x":68,"y":203,"width":800,"height":12}},{"id":"212e6c50-23e0-4521-8ed7-48257a5d9162","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":183,"box":{"x":69,"y":219,"width":810,"height":10}},{"id":"bca61c4a-ad6a-4fdc-90a3-bdc2e2f59cf7","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":183,"box":{"x":70,"y":234,"width":836,"height":11}},{"id":"ac835421-b292-44db-8d65-b50eb3690c0f","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":183,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"259ee6ee-5beb-43ba-b89d-e8b2dae320c4","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":183,"box":{"x":69,"y":264,"width":217,"height":11}},{"id":"cd6cebf5-0fdd-47b6-bde3-9d55eac29da3","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":183,"box":{"x":102,"y":287,"width":788,"height":11}},{"id":"d24c3d18-a635-45fb-a34b-da6fbdc48e56","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":183,"box":{"x":70,"y":302,"width":790,"height":11}},{"id":"95705085-ab96-40eb-899a-35eabff0996e","block_type":"box","text":"constitute exempt-interest dividends.","page_number":183,"box":{"x":69,"y":317,"width":261,"height":11}},{"id":"9d944cfd-bedf-471b-9705-e3b65334e9b8","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":183,"box":{"x":102,"y":339,"width":765,"height":12}},{"id":"c87bfc0c-b061-4692-9725-d70aef96981d","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":183,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"e4d91efa-9340-4f83-b452-0b92ec54d191","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":183,"box":{"x":68,"y":370,"width":813,"height":11}},{"id":"b902ed94-cfc1-42c0-a3e6-624f4e5a0b97","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":183,"box":{"x":70,"y":385,"width":809,"height":11}},{"id":"0b53d49b-46c4-4341-a6d8-26bfa7656bd7","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":183,"box":{"x":69,"y":400,"width":829,"height":11}},{"id":"091aeda1-599a-42ac-b0b9-3efcd4935255","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":183,"box":{"x":69,"y":415,"width":388,"height":11}},{"id":"6f3d92e7-492f-4933-8bdb-72ede44ae2da","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":183,"box":{"x":101,"y":438,"width":787,"height":11}},{"id":"cb48d919-0b87-4e8e-90a9-054acc4141ae","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":183,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"0e49bc0c-967e-4a89-98c1-959c0749b6e4","block_type":"box","text":"income dividends received by shareholders.","page_number":183,"box":{"x":70,"y":468,"width":309,"height":11}},{"id":"eb54f837-9d64-4a70-957b-e46025878541","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":183,"box":{"x":101,"y":491,"width":766,"height":11}},{"id":"50934869-f124-4eda-8b69-b7549c843b13","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":183,"box":{"x":69,"y":506,"width":808,"height":11}},{"id":"439c5b92-855c-4e01-81ec-c4130437ce84","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":183,"box":{"x":70,"y":521,"width":815,"height":11}},{"id":"f43a48e2-fbac-4e2e-8258-043be9a3e59d","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":183,"box":{"x":70,"y":536,"width":815,"height":11}},{"id":"f9469353-0f46-4c5f-b066-f52450bfe8e1","block_type":"box","text":"the accrued market discount.","page_number":183,"box":{"x":68,"y":551,"width":208,"height":9}},{"id":"56ac5e8e-e351-4cbf-ba36-87365a91279e","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":183,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"55735e7d-5f43-4491-9930-b74d0805d8c1","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":183,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"f70b27c5-55e4-4886-9d3e-e7abe423fd0d","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":183,"box":{"x":69,"y":604,"width":816,"height":11}},{"id":"5557f3a9-4cc1-4535-8475-1fca26e8c4e3","block_type":"box","text":"units and that benefit non-governmental entities (e.g., bonds used for industrial development or housing purposes).","page_number":183,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"4f6b0f9f-3659-4f9b-99f6-6448ad47c3e7","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":183,"box":{"x":70,"y":634,"width":827,"height":11}},{"id":"193eaa25-8a34-4b15-b2b6-b2aa09e5c508","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":183,"box":{"x":69,"y":649,"width":786,"height":12}},{"id":"d0315756-c488-4427-863b-86a72e4e03a8","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":183,"box":{"x":70,"y":664,"width":782,"height":12}},{"id":"2dd9c447-6420-464a-9ced-e9fb5204b1ee","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":183,"box":{"x":69,"y":680,"width":740,"height":11}},{"id":"6952d48b-adfb-427b-9657-070150af1af0","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":183,"box":{"x":102,"y":702,"width":802,"height":12}},{"id":"88aca4dc-c445-4d74-8bf5-a03e41136a74","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":183,"box":{"x":68,"y":717,"width":812,"height":12}},{"id":"4f467421-2fbc-4703-85fe-e2786c9c2743","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":183,"box":{"x":69,"y":733,"width":794,"height":11}},{"id":"e1b828f3-24e0-4a5b-b5b9-c49515634e58","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":183,"box":{"x":70,"y":748,"width":776,"height":11}},{"id":"cbf64a3f-ef5c-4e53-95e7-25281e2c105f","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":183,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"0c822300-163e-46d4-9a9e-717193c4c3e3","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":183,"box":{"x":69,"y":778,"width":436,"height":11}},{"id":"6a7b1284-4a98-4ed6-b008-07184ceea8d7","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":183,"box":{"x":102,"y":801,"width":771,"height":11}},{"id":"ea1f075d-8d63-4d88-8fa4-1280dd87151f","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":183,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"9af12468-f1e0-4a6f-ad17-d98976c8823f","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":183,"box":{"x":69,"y":831,"width":836,"height":11}},{"id":"8e3eba75-a423-44fa-a7f0-73c5afc6759a","block_type":"box","text":"within each applicable state.","page_number":183,"box":{"x":68,"y":846,"width":203,"height":11}},{"id":"3509caef-9462-4a0b-95e4-66e22846bdc8","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":183,"box":{"x":102,"y":869,"width":774,"height":11}},{"id":"f332edcd-3ef4-4c95-82af-01f5c6773a6d","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":183,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"82ca2a6d-f010-4abc-b743-d6656349a3a1","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":183,"box":{"x":70,"y":899,"width":816,"height":11}},{"id":"5b8076dc-a2e8-4be9-a7a7-5420da4e9f2a","block_type":"box","text":"II-136","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1aac155b-bb7f-4471-99d3-98b097de76b0","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49765e23-d61b-4e25-bbc4-f0bc679e4809","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":184,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"3c94fe27-868c-4273-b35e-84a023d4f39b","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":184,"box":{"x":68,"y":60,"width":822,"height":11}},{"id":"4cc6d4c2-3c60-4e3e-8946-076f4a9fa127","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":184,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"6fd5b58c-93bc-486f-a3d8-65e5fc679ea2","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":184,"box":{"x":68,"y":90,"width":822,"height":11}},{"id":"face2f96-edb6-44f8-97b7-c7bd7ee2ef9c","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":184,"box":{"x":68,"y":105,"width":710,"height":11}},{"id":"1310270f-dcb9-45a5-bd05-2234419af98c","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":184,"box":{"x":102,"y":128,"width":796,"height":11}},{"id":"35a0f45f-322e-4c76-864d-2f4a0d9c1c3d","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":184,"box":{"x":68,"y":143,"width":828,"height":11}},{"id":"84cb881c-0c05-4fa3-9ee4-f53bee2529b1","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":184,"box":{"x":68,"y":158,"width":841,"height":11}},{"id":"35bd04ff-fec5-469c-9f5d-5b998ce35500","block_type":"box","text":"exempt from state income tax.","page_number":184,"box":{"x":69,"y":173,"width":216,"height":11}},{"id":"174cad9e-74db-4fac-be78-b6d465718422","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":184,"box":{"x":102,"y":196,"width":771,"height":11}},{"id":"dba49fe7-39da-4aa7-bf37-66d72c6568d8","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":184,"box":{"x":68,"y":211,"width":823,"height":11}},{"id":"4c8c08c5-7d9f-4bb8-b1f0-0149a1409c9c","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":184,"box":{"x":68,"y":226,"width":309,"height":9}},{"id":"e97936f6-97ab-47dd-9bae-11396f37943c","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":184,"box":{"x":101,"y":249,"width":749,"height":11}},{"id":"c9470b90-fc08-4b9f-941a-ea998ff7f85c","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":184,"box":{"x":69,"y":264,"width":803,"height":11}},{"id":"da7b4397-ca63-42ad-807f-ead20dd077d6","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":184,"box":{"x":69,"y":279,"width":801,"height":11}},{"id":"5c8b7185-123d-461f-9826-e886bfbca32a","block_type":"box","text":"decisions may have a retroactive effect.","page_number":184,"box":{"x":69,"y":294,"width":283,"height":11}},{"id":"241067a3-5904-4cf0-a26e-d13e57864691","block_type":"box","text":"PERFORMANCE DATA","page_number":184,"box":{"x":403,"y":324,"width":173,"height":9}},{"id":"e7ab7fad-0f3d-4302-9713-451f3c41aa0a","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":184,"box":{"x":102,"y":346,"width":738,"height":12}},{"id":"40950562-23fe-4fab-bcb2-b313258bdbd7","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":184,"box":{"x":69,"y":361,"width":779,"height":12}},{"id":"60d7714e-9e26-4fac-91e5-679d5012a94e","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":184,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"f0f7c951-a398-4d8d-8af9-eb6c485bc62f","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":184,"box":{"x":70,"y":392,"width":792,"height":11}},{"id":"c981f8ff-c759-4c73-98c3-ea113f070c17","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":184,"box":{"x":69,"y":407,"width":473,"height":11}},{"id":"b00bf257-1329-4d86-9bba-3d8406714f4a","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":184,"box":{"x":102,"y":429,"width":761,"height":12}},{"id":"91a29319-4caf-4173-b5a1-e6d2f447313e","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":184,"box":{"x":69,"y":445,"width":836,"height":11}},{"id":"343e14a7-228e-4530-9e14-279a63df13d4","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":184,"box":{"x":68,"y":460,"width":798,"height":11}},{"id":"2acb9caf-db5d-4a60-87ad-45afe5274133","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":184,"box":{"x":69,"y":475,"width":765,"height":11}},{"id":"afc34605-42ad-48fb-b4cf-de9f7f8a02f2","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":184,"box":{"x":69,"y":490,"width":808,"height":11}},{"id":"f5ce907a-42b0-4e9c-9f9a-894a84b382e4","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":184,"box":{"x":69,"y":505,"width":813,"height":11}},{"id":"f6c23b07-ce92-45a6-8554-5ca40d980840","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":184,"box":{"x":69,"y":520,"width":839,"height":11}},{"id":"faeed2c5-9240-4a1f-9112-b0b0c3960207","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":184,"box":{"x":69,"y":536,"width":546,"height":10}},{"id":"f0f3a51f-d5d3-40c0-8dad-1133a02af8da","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":184,"box":{"x":102,"y":558,"width":781,"height":11}},{"id":"4626e147-4b13-44c6-b32c-4f5b6ad9cadf","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":184,"box":{"x":68,"y":573,"width":819,"height":11}},{"id":"2908b1ab-28e2-4156-9353-8f29e407d825","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":184,"box":{"x":68,"y":588,"width":810,"height":12}},{"id":"fe7d5a9f-99ff-45bd-a837-3f341e499149","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":184,"box":{"x":70,"y":603,"width":823,"height":12}},{"id":"c4ea457c-df31-4dea-9c7e-ac842bfd4ca9","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":184,"box":{"x":69,"y":619,"width":780,"height":11}},{"id":"b8288c02-91ee-4cca-988d-7bed257c5004","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":184,"box":{"x":70,"y":634,"width":825,"height":11}},{"id":"fceae75b-c186-4222-affa-b07215a432c9","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":184,"box":{"x":69,"y":649,"width":817,"height":11}},{"id":"5880995b-7126-4bea-afd1-b383a384c50d","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":184,"box":{"x":69,"y":664,"width":820,"height":11}},{"id":"27837dd0-9415-490c-8fab-491020318a7f","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":184,"box":{"x":70,"y":679,"width":833,"height":11}},{"id":"381346c4-3b31-4923-a5a1-a63fbef127da","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":184,"box":{"x":69,"y":694,"width":797,"height":11}},{"id":"7055bd2f-2af7-4db8-9d08-53b55842f190","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":184,"box":{"x":68,"y":709,"width":824,"height":11}},{"id":"ade508fc-57df-46fd-90ae-b1ec2c1b2f7e","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":184,"box":{"x":69,"y":724,"width":837,"height":11}},{"id":"23d30a7f-15fb-492c-991d-747c67dfc42d","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":184,"box":{"x":69,"y":739,"width":814,"height":12}},{"id":"6fb7bfd7-6197-4052-8e79-8ed99ace4d28","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":184,"box":{"x":69,"y":755,"width":830,"height":11}},{"id":"731f2f4c-ebb6-4a5c-8053-a41aceeaa136","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":184,"box":{"x":69,"y":770,"width":774,"height":11}},{"id":"eb9a5e18-eb70-4d49-aa2a-a283d846a362","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":184,"box":{"x":102,"y":792,"width":752,"height":12}},{"id":"59551548-8b03-43de-bc8e-812b21ef439c","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":184,"box":{"x":70,"y":807,"width":835,"height":12}},{"id":"c25f2eb0-0401-4741-a8cb-54d92ac626be","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":184,"box":{"x":70,"y":823,"width":820,"height":11}},{"id":"877f4cad-ec1c-471f-b019-9b087e675253","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":184,"box":{"x":69,"y":838,"width":756,"height":11}},{"id":"90e5fc50-5748-4035-bf03-781f5c9c8dbd","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":184,"box":{"x":69,"y":853,"width":772,"height":11}},{"id":"d1cb74d0-5e33-4051-91b3-841be44926f6","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":184,"box":{"x":69,"y":868,"width":827,"height":11}},{"id":"2f47a85d-e89c-4294-8f6c-d52c911d47d9","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":184,"box":{"x":69,"y":883,"width":825,"height":11}},{"id":"5f0037a2-b5c6-4d36-922e-1f5e59ce9126","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":184,"box":{"x":70,"y":898,"width":812,"height":11}},{"id":"d837b11b-5fb8-4cbe-9d04-aa052b19f88d","block_type":"box","text":"II-137","page_number":184,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"94ace5eb-5cc9-4780-a72b-03f816034109","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9709f785-63b0-4c3d-8f96-54083fd34d52","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":185,"box":{"x":69,"y":45,"width":795,"height":11}},{"id":"49c521cf-d6d4-45b7-9ddc-1779b0877a0a","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":185,"box":{"x":69,"y":60,"width":768,"height":11}},{"id":"30812b22-6e8f-4ece-ad94-af30203738cc","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":185,"box":{"x":69,"y":75,"width":810,"height":11}},{"id":"feb636fd-ec5d-430d-a429-cc9edb7f6220","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":185,"box":{"x":69,"y":90,"width":802,"height":11}},{"id":"9a0b7f3a-c039-4364-96c4-fefd93f0d925","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":185,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"588d638e-9427-409c-a81a-aae0ad15b4a5","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":185,"box":{"x":68,"y":120,"width":823,"height":12}},{"id":"27046482-63b2-41ff-8b4d-794dc2c1cc75","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":185,"box":{"x":69,"y":135,"width":743,"height":11}},{"id":"ea19895a-c2a5-4196-bacb-0b09f6372437","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":185,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"8baef656-16c0-4c63-bcfb-31f8fdb89372","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":185,"box":{"x":68,"y":166,"width":422,"height":11}},{"id":"8ed1d21b-8260-46bc-82cf-f2bef7ae6cc6","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":185,"box":{"x":101,"y":188,"width":720,"height":12}},{"id":"8569a4c4-34e6-4d6e-bb36-0d24c4c36851","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":185,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"b588b955-7454-452e-9ed4-500d59c1dd13","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":185,"box":{"x":69,"y":218,"width":781,"height":11}},{"id":"96a8d365-4daf-49b8-847c-3ab436209bf7","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":185,"box":{"x":69,"y":234,"width":837,"height":11}},{"id":"928a48d4-c55b-4060-ae2d-3441f9a56842","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":185,"box":{"x":69,"y":249,"width":817,"height":11}},{"id":"21b8e669-c778-4cbc-b6c5-b675042b822c","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":185,"box":{"x":68,"y":264,"width":815,"height":11}},{"id":"676a2b71-55b0-429e-8956-d45b22627877","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":185,"box":{"x":70,"y":279,"width":801,"height":11}},{"id":"e0c55254-0c0b-4e92-b237-7d03b201a252","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":185,"box":{"x":69,"y":294,"width":819,"height":11}},{"id":"320f27bb-09d2-4e5f-95a2-58b1942afc03","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":185,"box":{"x":69,"y":309,"width":811,"height":11}},{"id":"584f9b6d-a2bf-450e-87ca-4724e3e6f716","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":185,"box":{"x":69,"y":324,"width":686,"height":12}},{"id":"b1c20b65-acd6-4bfb-bfb8-e87afe9d89a9","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":185,"box":{"x":101,"y":347,"width":796,"height":11}},{"id":"c5caa52a-9e02-4afd-a359-d05c44cca48a","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":185,"box":{"x":69,"y":362,"width":821,"height":11}},{"id":"650b15fc-7082-4916-b623-e1da126ac4f1","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":185,"box":{"x":68,"y":377,"width":817,"height":12}},{"id":"f064370e-584a-49db-a8ab-1e14fa791669","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":185,"box":{"x":68,"y":392,"width":837,"height":12}},{"id":"caaeaf27-fed1-46dd-b615-8c074c2b2830","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":185,"box":{"x":69,"y":407,"width":759,"height":12}},{"id":"b1acf5e0-4832-4e52-b871-670da767c47a","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":185,"box":{"x":101,"y":430,"width":779,"height":11}},{"id":"7c395b09-a950-49dc-bb6b-b316dd5e1a9b","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":185,"box":{"x":70,"y":445,"width":819,"height":12}},{"id":"a3586dd5-ec4a-4d8f-b332-9088c23b37c6","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":185,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"91288b1b-4a94-490d-b6de-e7405e4e00a6","block_type":"box","text":"less than their original cost.","page_number":185,"box":{"x":70,"y":476,"width":196,"height":11}},{"id":"0990a492-55e4-4a90-82c4-cd148199bbaf","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":185,"box":{"x":102,"y":498,"width":782,"height":11}},{"id":"b04ab18a-b1c5-4aec-a6ed-de3475b8dd57","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":185,"box":{"x":68,"y":513,"width":836,"height":11}},{"id":"ed9efd06-5fd2-44d2-aa42-807c0b1977a3","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":185,"box":{"x":69,"y":528,"width":807,"height":12}},{"id":"9354e0c8-9c95-43b0-92e3-4a7c996796cd","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":185,"box":{"x":68,"y":544,"width":820,"height":11}},{"id":"9d4683f9-d3f4-4830-8294-af1c3731de53","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":185,"box":{"x":68,"y":559,"width":824,"height":11}},{"id":"7d7e5d92-15dc-4bd6-ab06-5b1cf7605733","block_type":"box","text":"lower amount of expenses is deducted.","page_number":185,"box":{"x":70,"y":574,"width":278,"height":11}},{"id":"38f8b712-1bf9-4311-8217-3d1a267f6aa2","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":185,"box":{"x":102,"y":596,"width":741,"height":12}},{"id":"09d4312d-c9b5-47bf-8979-6fc8c8803b28","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":185,"box":{"x":70,"y":612,"width":830,"height":11}},{"id":"020d2edd-1f1e-44ec-9943-1e8129ba2edf","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”), Money Magazine, U.S.","page_number":185,"box":{"x":70,"y":627,"width":810,"height":11}},{"id":"7aa17e88-90f2-409f-b3fc-0574fa3e47ff","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine or other industry publications. When","page_number":185,"box":{"x":70,"y":642,"width":795,"height":11}},{"id":"6b2433f2-d30e-433c-9d76-022bcd7a5aed","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":185,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"1fa11760-464c-4c1d-b1e6-a809a8a67392","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":185,"box":{"x":69,"y":672,"width":803,"height":11}},{"id":"8f7aefc5-ea3c-40ab-a0d2-476d9ec68391","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":185,"box":{"x":69,"y":687,"width":824,"height":11}},{"id":"ba2c2c90-e398-4168-985b-64d9ec2bedae","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":185,"box":{"x":70,"y":702,"width":818,"height":12}},{"id":"221dcfa3-1116-48ca-8e87-1534010bd42c","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":185,"box":{"x":69,"y":718,"width":793,"height":11}},{"id":"53bcd4b6-beb3-42e8-8d58-e5869038d43d","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":185,"box":{"x":69,"y":732,"width":826,"height":12}},{"id":"1699fc46-54b3-4e7a-a2ad-4b4dedb5ce6e","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":185,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"5bc39337-f64e-4f50-bfd3-41027d31aafa","block_type":"box","text":"developed by Fund management.","page_number":185,"box":{"x":69,"y":763,"width":233,"height":11}},{"id":"858699bd-275b-4407-aaab-3550bbcb3376","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":185,"box":{"x":101,"y":785,"width":780,"height":12}},{"id":"84a46a74-b370-4b89-af72-7bd14311b39c","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":185,"box":{"x":70,"y":801,"width":810,"height":11}},{"id":"fc52c13e-3c49-401e-96f8-2d7a63aa0636","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":185,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"8f8ccc98-b2ce-4c03-947d-c1ffeb4e6308","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":185,"box":{"x":69,"y":831,"width":792,"height":11}},{"id":"cf7c9361-47c7-4ab6-9b21-6b6922e2acf8","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":185,"box":{"x":68,"y":846,"width":788,"height":11}},{"id":"bdb56c03-e1bd-4fa4-ad52-8a66bc8198fe","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":185,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"24cdc880-9b23-4c02-b56b-833f1b21b9c0","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":185,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"ae635335-e7ab-4a12-857e-796bc3c7a21b","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":185,"box":{"x":68,"y":891,"width":461,"height":11}},{"id":"aa970713-6a20-427f-b728-c39200acad1a","block_type":"box","text":"II-138","page_number":185,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"27c42ff9-3ac4-45e9-9ad0-2240438219cd","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f63c586f-6056-44d2-a595-a10aee3fa2dc","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":186,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"f5706ed3-4d24-4661-a2f4-7601373a8ab4","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":186,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"e5468da6-790b-4247-a51a-0c5ae66637ca","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":186,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"32fdd089-be8b-4d1d-9197-8087b239b674","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":186,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"65678aab-74b3-40ca-bb40-55b99f9dc75c","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":186,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"ae3c2958-5e10-429a-a665-accaa7adfa64","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":186,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"04f29520-c580-43f7-9350-d27a4ed016fe","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":186,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"d9ffc602-bc8c-4f15-af5a-e69319a44a88","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":186,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"d00137c5-313c-4a75-8bb4-ac392cd1ac6a","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":186,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"9a1793d3-c5d1-4ba3-9d43-03b2a6f90a23","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":186,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"85d27895-2ddb-448f-8955-d9d4fc6f305d","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":186,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"4103bcef-2c86-4093-8932-80c57349f51e","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":186,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"d13e4ad2-35bb-4288-81fb-dbeeddf9852c","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":186,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"d817fcf1-cf94-4d9b-987e-6a596b66bc9d","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":186,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"e25a3447-ba1a-4908-ab3e-f8c178586604","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":186,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"9a260420-c7e2-41a0-b61c-908212870bac","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":186,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"ad66b6ba-efc5-427b-8ca3-73d04da3cdc1","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":186,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"b77e2380-e5fd-47f5-a775-06327886e578","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":186,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"568e4c22-d6f2-4220-a3ec-c1fcb5582261","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":186,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"1956ea63-b04c-4371-a234-294e999b09ff","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":186,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"e2d77332-9961-435d-928c-ca243f581df6","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":186,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"4b8c67de-f97b-4389-a2ca-146c36abcc83","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":186,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"f312b2ba-1f6c-412a-b10c-42db72baf51e","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":186,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"5effa515-00a2-4360-b79b-2938e3f4c7bb","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":186,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"71b73db6-2960-424c-844f-ae5f92a7eb61","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":186,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"aa57c80e-b7e2-4b11-b657-c12ae5487553","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":186,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"8132acd5-d470-4287-b5aa-9eb7a9719d3c","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":186,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"f620bea3-c618-4d45-a272-32a0b4ed6cb0","block_type":"box","text":"GENERAL INFORMATION","page_number":186,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"a38bfc26-3dc5-461b-ab31-dc3b7af78683","block_type":"box","text":"Description of Shares","page_number":186,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"3b68fc01-c04a-46c1-8e8f-06f8969fa082","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":186,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"f720b0b2-ede5-4f45-956c-21722efc6198","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":186,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"327887df-8c79-4d5b-a022-4f1c16c47111","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":186,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"7d0d1225-2fc3-4bc1-9b5a-24d11ea9fd50","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":186,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"db2ba0ae-fe7e-4edd-bd7f-46a930867197","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":186,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"2883f5ca-4ae2-4c3d-8e56-e032b86bcfc4","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":186,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"534aa3de-489d-4f9e-aa12-c3e0a865d267","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":186,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"434c44b7-92c8-4066-b9d1-54aecbdbfe11","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":186,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"a07d1aec-fe1c-4625-8ec6-e1c2d32d8fa2","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":186,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"799a1d9c-5be6-4b9f-9e84-57ba88755dec","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":186,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"6f3fa10b-2d70-44ae-8075-efdf813b9a0a","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":186,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"bba3c106-6595-4857-9480-5848b6edcb88","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":186,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"61358eae-d48f-4867-82da-ddfdb1b1f6fe","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":186,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"35d13502-3646-4697-85de-a098ed5c1136","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":186,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"b15b8e11-ab42-4cbf-b7d6-d4c68e71cea4","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":186,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"15535a66-bbf0-4310-90b9-43ba22372721","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":186,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"a79b7c37-1b75-42d7-a50c-54b8483af7fb","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":186,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"6f76fe75-7419-4151-8425-732b0e8b40bb","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":186,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"aa753554-336a-4f58-8b93-65b52a7990ab","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":186,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"c7e0db54-fa95-4e2a-94f5-5cc14e0a429f","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":186,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"ef4bf823-7b2f-4b25-af8d-b548d5460667","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":186,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"2c9206cb-65e4-45bb-90a1-e94f4cac507f","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":186,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"6556f885-7f34-491c-bd1d-9b967a3faf3b","block_type":"box","text":"II-139","page_number":186,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1dcc2c6c-0987-4ec7-be43-358fe9195e91","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea79f45c-5a87-4c08-bdca-9d66c795172f","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":187,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"bba9ded0-f07c-44bf-a609-f38fe1080b59","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":187,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"abefa42c-ed19-44c4-8f3f-0aebc0a93cbe","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":187,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"cefce951-8b05-4e75-802d-c93ec47ff7ed","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":187,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"b3ba534a-e56e-4371-a8d1-9e5eb389fab6","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":187,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"5f1819a7-d833-4d20-b986-98951601e07f","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":187,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"8c5780de-0602-41c1-a7fe-62ae11ed2751","block_type":"box","text":"Additional Information","page_number":187,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"9e6a76c5-7530-48a8-a31f-787bdf129e89","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":187,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"414e352b-e629-4935-a349-d6c65dc3466d","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":187,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"af1feb36-9ce8-4eac-81b8-a1455ee30c9d","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":187,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"93ff48f1-2223-4e23-8333-5868281808c4","block_type":"box","text":"such name to any other company.","page_number":187,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"04fc47c8-67ba-42a9-a050-0238aaaefa47","block_type":"box","text":"II-140","page_number":187,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a6b2d3c5-cf34-4b16-81c2-47b146bd616b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7d49568-4b3b-47ea-bdbf-2f8b875a5cac","block_type":"box","text":"APPENDIX A","page_number":188,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"968ef167-4b0e-4af9-a677-50ea3af1bc35","block_type":"box","text":"Description of Bond Ratings","page_number":188,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"8ec3848c-6812-4d55-a596-c4487ecd1228","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":188,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"14909293-88a3-4985-92f4-774dd794525c","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC. While NRSROs may from","page_number":188,"box":{"x":69,"y":106,"width":827,"height":12}},{"id":"3b5f37a5-6e4b-4f1e-b2c1-cd2e602628aa","block_type":"box","text":"time to time revise such ratings, they under take no obligation to do so, and the ratings given to securities at","page_number":188,"box":{"x":68,"y":122,"width":775,"height":11}},{"id":"d89dbf3e-cb16-43f8-9d15-ea5a39eb67f8","block_type":"box","text":"issuance do not necessarily represent ratings which would be given to these securities on a par ticular subsequent","page_number":188,"box":{"x":70,"y":137,"width":815,"height":11}},{"id":"d024b0d9-e7c5-4ae0-912c-9693979eb070","block_type":"box","text":"date.","page_number":188,"box":{"x":69,"y":152,"width":34,"height":9}},{"id":"d2e18d37-c0ea-4bc9-a2e3-615cdf37d38e","block_type":"box","text":"NRSROs may rate specific investments (","page_number":188,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"2ccb5cf8-5deb-41e8-8dd0-51f3cee32407","block_type":"box","text":"e.g.","page_number":188,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"d7b1c418-a902-488c-8e42-730b2219193d","block_type":"box","text":", bonds), issuers (","page_number":188,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"4690a154-bcd9-4055-b3b9-63d8dcf0ba4d","block_type":"box","text":"e.g.","page_number":188,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"e00415c5-753c-4d72-bca8-7f3a554ec898","block_type":"box","text":", corporations, governments and financial","page_number":188,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"fde85678-bc6c-4c91-a8ac-7c6cb9c57dcf","block_type":"box","text":"institutions) and/or programs (","page_number":188,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"18f8de9e-6b4b-4586-bdcc-db35a1256970","block_type":"box","text":"e.g.","page_number":188,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"0e324dee-ea57-411d-b6bd-6880ccaa9982","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":188,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"ba6c9bfa-18aa-4fb3-a00a-49ed55f357e8","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":188,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"107f13f5-90f3-4a5d-b27e-9a7f41b66c97","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":188,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"846d2539-addf-4dfb-a3c5-62ceb955fab1","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where a NRSRO has not rated the","page_number":188,"box":{"x":70,"y":235,"width":798,"height":11}},{"id":"6fb4e297-8726-45d8-a80a-5b9f1fe03d25","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":188,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"eb4be505-890a-410a-91cf-88de094c0d95","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":188,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"6561ff8a-b3c2-4ed0-81e5-a1066d300db2","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":188,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"e77c9b09-cbb0-4892-853a-dc010669d09a","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":188,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"aee791e2-2dae-4bbc-904f-7e433f68ec76","block_type":"box","text":"security (","page_number":188,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"99e58f52-5c7d-4d15-9c3b-bcad364c0733","block_type":"box","text":"e.g.","page_number":188,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"9b79feb7-a56a-4e59-853f-02a694993bfa","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":188,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"0ff3f042-1d5b-441a-b90b-cd844c42933f","block_type":"box","text":"highest of the multiple ratings.","page_number":188,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"317030d2-fbc6-485b-8c4a-6d722fa1aede","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial offering.","page_number":188,"box":{"x":102,"y":348,"width":751,"height":12}},{"id":"e6484da5-942d-4815-9cda-64075499f6f7","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":188,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"24693b88-af4d-48fc-baa7-9f5c7070fada","block_type":"box","text":"determined by the underwriter and/or issuer) or a NRSRO rating for the issuer of the security. If applicable, when","page_number":188,"box":{"x":69,"y":378,"width":804,"height":12}},{"id":"a73fdf0f-1c26-47d0-ae64-c005a095ad3c","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by a NRSRO, BlackRock may attribute","page_number":188,"box":{"x":69,"y":394,"width":831,"height":11}},{"id":"8e14170b-83ec-4b32-b3bc-d876efbeb577","block_type":"box","text":"an expected rating to the security based on: (i) the expected rating of the security set for th in the preliminary","page_number":188,"box":{"x":69,"y":409,"width":777,"height":11}},{"id":"564d6d2a-a45f-451e-8bda-a6ab434aed32","block_type":"box","text":"prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in the","page_number":188,"box":{"x":70,"y":424,"width":779,"height":11}},{"id":"b0c52f96-b91b-41d6-b4e9-4aed26d784ab","block_type":"box","text":"preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a","page_number":188,"box":{"x":70,"y":439,"width":819,"height":11}},{"id":"d8fdd93d-2eba-489b-8389-4736c22b9ff1","block_type":"box","text":"prior issuance having a similar structure or the same sponsor.","page_number":188,"box":{"x":70,"y":454,"width":441,"height":11}},{"id":"ed96dcd4-37ad-4aeb-9826-f69c8fdc55ee","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":188,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"a18eb407-cf49-464b-a787-13e9eb813f2c","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":188,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"b29932d1-3ec9-4e87-8347-41590f628050","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":188,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"8c21eb61-ea72-4d88-8f01-a51b315b097f","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":188,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"6514587d-c616-464f-8ea8-d08bf2ba7ddb","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":188,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"3e1171c8-1eb2-4db0-aef3-11426daf7069","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":188,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"9104cc10-eff1-49dc-81f1-29d80e6f0b11","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":188,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"e47babc4-d554-4ed9-b5cb-9ce548c72b1c","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":188,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"eba9ce47-8448-410e-b325-be2f04d0250d","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":188,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"c8474726-7485-4ba8-988e-e1fd681f9785","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these","page_number":188,"box":{"x":70,"y":620,"width":773,"height":12}},{"id":"d5d7b1bc-cae9-4bd9-b3f0-85b0324db078","block_type":"box","text":"securities is dependent on BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":188,"box":{"x":69,"y":635,"width":791,"height":12}},{"id":"4c298943-e61a-4487-8202-860f69d7142c","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":188,"box":{"x":102,"y":658,"width":776,"height":11}},{"id":"b7b33d21-fc17-4662-8ceb-0b6e669f1d10","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":188,"box":{"x":69,"y":673,"width":818,"height":11}},{"id":"34f257e0-cd91-4774-a613-93d2d65475cc","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":188,"box":{"x":102,"y":696,"width":799,"height":11}},{"id":"407ce228-5866-4466-aaf1-9d4255ead834","block_type":"box","text":"Fitch.","page_number":188,"box":{"x":70,"y":711,"width":35,"height":9}},{"id":"446df57d-b410-4d3c-8b8b-1f96667db732","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":188,"box":{"x":101,"y":734,"width":643,"height":11}},{"id":"61add04f-f5ee-4961-ba99-6d7127ae8dc5","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":188,"box":{"x":68,"y":764,"width":616,"height":11}},{"id":"83f6a46d-7eff-4376-a36a-1a6e6101afb8","block_type":"box","text":"Ratings assigned on Moody’s global long-term and shor t-term rating scales are forward-looking opinions of the","page_number":188,"box":{"x":102,"y":787,"width":787,"height":11}},{"id":"01d831c8-1c5c-4bfb-88b3-5cc1401cf17d","block_type":"box","text":"relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured","page_number":188,"box":{"x":69,"y":802,"width":785,"height":11}},{"id":"3728b3d3-7c98-4583-8dd5-b862d0690592","block_type":"box","text":"finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the risk that an","page_number":188,"box":{"x":68,"y":817,"width":820,"height":11}},{"id":"bbe19978-46ff-486b-9115-c0bb0d047493","block_type":"box","text":"entity may not meet its contractual financial obligations as they come due and any estimated financial loss in the","page_number":188,"box":{"x":69,"y":832,"width":807,"height":11}},{"id":"2e09451b-d8f7-4fdf-89d9-deaa89f684be","block_type":"box","text":"event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are those that call","page_number":188,"box":{"x":69,"y":847,"width":835,"height":11}},{"id":"25745ed6-e6f2-4aa3-ac38-42a0b6f8c29d","block_type":"box","text":"for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based upon standard","page_number":188,"box":{"x":68,"y":862,"width":822,"height":12}},{"id":"2c585248-567e-45df-b738-b1605491d23d","block_type":"box","text":"sources of variation (","page_number":188,"box":{"x":69,"y":877,"width":149,"height":11}},{"id":"26594fac-2ac5-48a3-9041-234cd9fb682b","block_type":"box","text":"e.g.","page_number":188,"box":{"x":220,"y":879,"width":25,"height":10}},{"id":"fb7dbf66-0b88-4bb5-ac01-bc2b9371fd08","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses the issuer’s","page_number":188,"box":{"x":247,"y":877,"width":637,"height":12}},{"id":"f41f6118-ffcf-4524-8c95-6845b3ad8ba3","block_type":"box","text":"ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do not address","page_number":188,"box":{"x":69,"y":892,"width":820,"height":12}},{"id":"6ddc14f6-f88b-4567-bc56-d1ed7d08c1a1","block_type":"box","text":"non-standard sources of variation in the amount of the principal obligation (","page_number":188,"box":{"x":69,"y":908,"width":536,"height":11}},{"id":"677e877a-d83c-47d3-9c61-d68510aca0b1","block_type":"box","text":"e.g.","page_number":188,"box":{"x":607,"y":909,"width":25,"height":10}},{"id":"1ec0a85f-17f9-4807-864f-d09f114cc562","block_type":"box","text":", equity indexed), absent an express","page_number":188,"box":{"x":634,"y":908,"width":257,"height":11}},{"id":"fad659ae-079d-48e8-a708-1a814bc4502b","block_type":"box","text":"A-1","page_number":188,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"78e309c3-8caf-4d84-b705-97a5b7755590","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1af07a58-d8c3-4147-9d00-75f2f27d3f1a","block_type":"box","text":"statement to the contrary in a press release accompanying an initial rating. Long-term ratings are assigned to issuers","page_number":189,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"cbdb8a3f-78a3-4537-ac6f-ee400d9a191c","block_type":"box","text":"or obligations with an original maturity of one year or more and reflect both on the likelihood of a default or","page_number":189,"box":{"x":69,"y":60,"width":761,"height":11}},{"id":"06474285-dbf1-4992-8bf5-abd214d80234","block_type":"box","text":"impairment on contractual financial obligations and the expected financial loss suffered in the event of default or","page_number":189,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"eddb8cd7-28e9-4ec9-b98b-5367ca30f793","block_type":"box","text":"impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen months or less and","page_number":189,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"00936718-d379-4238-af66-8fcab1da31d8","block_type":"box","text":"reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":189,"box":{"x":69,"y":105,"width":775,"height":11}},{"id":"54675d03-ddb0-427f-8c45-22879f59c52e","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level and","page_number":189,"box":{"x":68,"y":120,"width":764,"height":12}},{"id":"8d837b2b-f822-407f-8269-d8bdbbd2339e","block_type":"box","text":"instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly available","page_number":189,"box":{"x":70,"y":136,"width":819,"height":11}},{"id":"76d20edd-3099-4158-97f2-8d8515c3f3b5","block_type":"box","text":"although private and unpublished ratings may also be assigned.","page_number":189,"box":{"x":69,"y":151,"width":454,"height":11}},{"id":"2b2d2085-35a3-4569-aba9-2b15927d20a0","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":189,"box":{"x":102,"y":173,"width":542,"height":11}},{"id":"1fc90c7b-54cc-4c85-8e4d-3386fb9b6606","block_type":"box","text":"i.e.","page_number":189,"box":{"x":646,"y":173,"width":20,"height":9}},{"id":"8a80213b-e752-43b0-a1f7-d3119f2f7730","block_type":"box","text":", ratings on nonfinancial","page_number":189,"box":{"x":669,"y":173,"width":169,"height":11}},{"id":"246a4030-c25c-4928-8be5-235dceb0e170","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":189,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"9c8cea1f-6c88-4458-9f2f-8d40c7516e3c","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":189,"box":{"x":68,"y":203,"width":828,"height":12}},{"id":"fb7b98d9-a8bb-4b6f-8d6a-2c2802f14d84","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":189,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"9d6f57c4-18b0-42c3-8de9-7ad288bf62cb","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":189,"box":{"x":69,"y":234,"width":797,"height":11}},{"id":"e870a533-f207-47cc-b750-78f76153d543","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":189,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"0885ad68-700d-438e-95ef-288a1971bdd6","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":189,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"06dd9bb2-9ec0-4ebb-8ac1-31beed0ca231","block_type":"box","text":"of time.","page_number":189,"box":{"x":69,"y":279,"width":53,"height":9}},{"id":"999efc44-e8d2-473a-9756-ab263a529a78","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":189,"box":{"x":69,"y":309,"width":395,"height":11}},{"id":"eea87ff3-49de-425f-94c7-f5acedd370f0","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":189,"box":{"x":68,"y":337,"width":815,"height":11}},{"id":"8203e264-5f46-4927-afb1-b4b259321ed2","block_type":"box","text":"risk.","page_number":189,"box":{"x":197,"y":352,"width":28,"height":9}},{"id":"a9e79246-6fc3-4a27-bea0-52566a410249","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":189,"box":{"x":68,"y":372,"width":773,"height":11}},{"id":"10b05cb5-f911-4db6-b30e-1942fe753bc3","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":189,"box":{"x":68,"y":392,"width":776,"height":12}},{"id":"bfa918a0-3749-415a-9dc1-58223013a2a7","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":189,"box":{"x":70,"y":413,"width":813,"height":11}},{"id":"f9fe1bf9-0670-43dd-9f1e-9aa534e24e5a","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":189,"box":{"x":196,"y":428,"width":385,"height":11}},{"id":"9bbe9ae0-73d3-4db3-b58e-b55182c78ade","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":189,"box":{"x":70,"y":448,"width":775,"height":11}},{"id":"b7293387-4d38-466e-babf-b305f2ac4d90","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":189,"box":{"x":70,"y":468,"width":707,"height":11}},{"id":"f4ca87c0-e031-4e30-9949-ce864d14b7ad","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":189,"box":{"x":69,"y":488,"width":810,"height":11}},{"id":"c38cc337-c017-492a-81aa-0931bc870633","block_type":"box","text":"credit risk.","page_number":189,"box":{"x":196,"y":503,"width":74,"height":9}},{"id":"c0e1a14f-1cef-45aa-8e7f-3736e641c1aa","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":189,"box":{"x":69,"y":523,"width":783,"height":12}},{"id":"b42b7f36-2c2b-4b45-8b6b-b16ee21fbb6f","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":189,"box":{"x":197,"y":538,"width":322,"height":12}},{"id":"d147b23e-4436-42dd-bd60-4668f09dca47","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":189,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"977778de-8e81-4775-9091-19d9da8aa3bf","block_type":"box","text":"of principal or interest.","page_number":189,"box":{"x":196,"y":574,"width":160,"height":11}},{"id":"0b99768e-ac23-4123-82e9-c37f054f5ac3","block_type":"box","text":"Note:","page_number":189,"box":{"x":102,"y":594,"width":37,"height":9}},{"id":"34c5df2e-db1c-40d1-9efa-f12f7e581d2e","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":189,"box":{"x":146,"y":594,"width":731,"height":11}},{"id":"0f69f8bb-6326-4b54-b8bb-faa42df4a383","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":189,"box":{"x":69,"y":609,"width":831,"height":11}},{"id":"37df2e10-858e-4139-ae90-456e34601bc6","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":189,"box":{"x":70,"y":624,"width":829,"height":11}},{"id":"cb12ab68-3149-4c0a-a627-52b5b6cfd8f9","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":189,"box":{"x":68,"y":639,"width":795,"height":12}},{"id":"9ee0757b-195c-4bcb-a160-0dc852c3e6b9","block_type":"box","text":"companies, and securities firms.","page_number":189,"box":{"x":69,"y":654,"width":232,"height":11}},{"id":"4da122fb-20cf-409b-a670-38c3fc4f95a6","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":189,"box":{"x":102,"y":677,"width":787,"height":11}},{"id":"7666bc5a-2abc-49f6-bd12-b65d116e08d0","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":189,"box":{"x":68,"y":692,"width":788,"height":11}},{"id":"012c2295-7da4-42f1-aa8b-90ea57c695f4","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":189,"box":{"x":69,"y":707,"width":833,"height":12}},{"id":"072da067-8b26-4dea-a11d-551d9ef53479","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":189,"box":{"x":70,"y":722,"width":809,"height":12}},{"id":"28a5fe15-083c-480d-afa4-39319ae1a8d5","block_type":"box","text":"that security.","page_number":189,"box":{"x":68,"y":738,"width":91,"height":11}},{"id":"00e55015-309e-43e6-9509-0b73be545cb4","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":189,"box":{"x":69,"y":768,"width":400,"height":11}},{"id":"95a74953-0791-4b0b-9fa7-dba3ecaaffe7","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":189,"box":{"x":69,"y":795,"width":658,"height":12}},{"id":"d13685eb-ade6-4358-b373-f0d301c40004","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":189,"box":{"x":69,"y":816,"width":645,"height":11}},{"id":"0d043c2a-2546-4dbc-8b3a-c70cb683d949","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":189,"box":{"x":69,"y":836,"width":686,"height":11}},{"id":"66836340-a16f-4481-9604-615b0ae3a2b9","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":189,"box":{"x":70,"y":856,"width":778,"height":11}},{"id":"a145a173-3c29-4f70-b327-4513924174ac","block_type":"box","text":"categories.","page_number":189,"box":{"x":196,"y":871,"width":77,"height":11}},{"id":"0f39f68d-10bf-404b-bbd5-e1f01d32bba2","block_type":"box","text":"A-2","page_number":189,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"91b06593-362c-42c3-8cba-0fb24e6288da","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"926cd24b-b24f-4c5a-8773-3d12c822b3cb","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":190,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"e9e9729d-8cdb-45dd-9489-7ef993b4aedb","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":190,"box":{"x":69,"y":75,"width":391,"height":11}},{"id":"30aeefae-61bd-4820-b37b-c319fd531601","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":190,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"2a7c39c5-473d-4e8e-8aca-9ab309d2501c","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":190,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"51d2981d-851e-45de-8c71-2183edc1c571","block_type":"box","text":"an issuer’s self-liquidity.","page_number":190,"box":{"x":69,"y":128,"width":170,"height":11}},{"id":"a19e4458-e5f0-4e4b-9be6-948cb6f848b1","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":190,"box":{"x":102,"y":150,"width":736,"height":12}},{"id":"72b854a4-fc98-4b53-875a-ebe299df0679","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":190,"box":{"x":70,"y":166,"width":796,"height":11}},{"id":"0f38d668-f486-4f4e-816f-36e367eac161","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":190,"box":{"x":102,"y":188,"width":803,"height":11}},{"id":"07bfbee8-694c-4c13-b6c6-69fb6ead6a46","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":190,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"73808fb8-ebd7-4ce9-8ee4-f51c6efa15ca","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":190,"box":{"x":69,"y":218,"width":480,"height":12}},{"id":"5dd720b7-5ac0-4c21-aa7e-2e0f34ae995a","block_type":"box","text":"MIG Scale","page_number":190,"box":{"x":102,"y":241,"width":71,"height":9}},{"id":"1b847182-30d7-43d2-9361-bdc028404c0d","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":190,"box":{"x":70,"y":269,"width":802,"height":11}},{"id":"69bc2969-ea64-44c1-8295-32a4ee004790","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":190,"box":{"x":196,"y":284,"width":703,"height":11}},{"id":"f73cbf7c-d6ac-447e-a848-118335a58c6d","block_type":"box","text":"refinancing.","page_number":190,"box":{"x":197,"y":299,"width":80,"height":11}},{"id":"0f00bb50-b518-468e-9c97-aa8f06844be0","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":190,"box":{"x":70,"y":319,"width":809,"height":12}},{"id":"ba9b6acc-08e6-47db-864b-02960b0624e6","block_type":"box","text":"large as in the preceding group.","page_number":190,"box":{"x":197,"y":335,"width":224,"height":11}},{"id":"584891e6-ef8b-4626-a846-c1135d8136ee","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":190,"box":{"x":70,"y":355,"width":785,"height":11}},{"id":"a75847c0-0634-4413-9788-b0ebe50ff754","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":190,"box":{"x":197,"y":370,"width":554,"height":11}},{"id":"45118cb6-1c4c-48db-bf7c-a0f5f18361e1","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":190,"box":{"x":69,"y":390,"width":813,"height":11}},{"id":"8e776d5b-242b-4dcb-ba83-b207dff5155b","block_type":"box","text":"lack sufficient margins of protection.","page_number":190,"box":{"x":197,"y":405,"width":259,"height":11}},{"id":"fa83b40a-02cb-4121-a41c-8c0b5f0ee364","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":190,"box":{"x":69,"y":433,"width":371,"height":11}},{"id":"a7ec443d-0722-455f-a651-759f1f9aa631","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":190,"box":{"x":102,"y":455,"width":804,"height":12}},{"id":"f1dd951a-1cc3-4347-8e84-7d1d3de25dde","block_type":"box","text":"are a long-term rating and a shor t-term demand obligation rating. The long-term rating addresses the issuer’s ability","page_number":190,"box":{"x":69,"y":471,"width":826,"height":11}},{"id":"8d635f44-e29e-4134-af1a-0d1b39639b8b","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term demand obligation rating addresses the ability of","page_number":190,"box":{"x":68,"y":486,"width":832,"height":11}},{"id":"508df9c5-1b7e-451e-8b37-a0d61b53180c","block_type":"box","text":"the issuer or the liquidity provider to make payments associated with the purchase-price-upon-demand feature","page_number":190,"box":{"x":68,"y":501,"width":784,"height":11}},{"id":"bc6f6b02-4ce5-4cbc-8ab9-2825146f8997","block_type":"box","text":"(“demand feature”) of the VRDO. The shor t-term demand obligation rating uses the VMIG scale. VMIG ratings with","page_number":190,"box":{"x":69,"y":516,"width":811,"height":11}},{"id":"f781680e-2fcb-4b0c-a1e7-7a4a130f7570","block_type":"box","text":"liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t provider, or the long","page_number":190,"box":{"x":70,"y":531,"width":819,"height":11}},{"id":"e792ca10-1a52-40eb-8097-e5541830a00a","block_type":"box","text":"term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of VMIG ratings of","page_number":190,"box":{"x":68,"y":546,"width":802,"height":11}},{"id":"c298f61a-032d-49a2-95de-65b3880f6903","block_type":"box","text":"demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to reflect the risk that","page_number":190,"box":{"x":69,"y":561,"width":833,"height":11}},{"id":"3a91fb10-e4b7-4951-a921-d801acd63ace","block_type":"box","text":"external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment grade.","page_number":190,"box":{"x":69,"y":576,"width":719,"height":12}},{"id":"15a852e5-980f-443f-ba7c-e0c6995d7338","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":190,"box":{"x":102,"y":599,"width":807,"height":11}},{"id":"bdbdd028-344a-470c-b3aa-3aff0acb1c29","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":190,"box":{"x":70,"y":614,"width":833,"height":11}},{"id":"da2d3a6d-ee91-4311-b217-a8130d94f320","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":190,"box":{"x":70,"y":629,"width":635,"height":11}},{"id":"2e565943-a46f-4d1d-9cac-47327bf46e64","block_type":"box","text":"VMIG Scale","page_number":190,"box":{"x":101,"y":652,"width":81,"height":9}},{"id":"50fd9a05-728b-4bc9-b533-3302ea8cddad","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":190,"box":{"x":68,"y":680,"width":808,"height":11}},{"id":"949d0b49-9adc-4653-ba14-be26a156bf43","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":190,"box":{"x":196,"y":695,"width":695,"height":11}},{"id":"05675285-d55d-4045-b4d8-d99473e11569","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":190,"box":{"x":195,"y":710,"width":370,"height":11}},{"id":"92da4412-13c5-4869-a554-6e14a3c381c0","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":190,"box":{"x":68,"y":730,"width":834,"height":11}},{"id":"4765ef0b-3ab0-4fb7-83fc-a463f9284afd","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":190,"box":{"x":196,"y":745,"width":691,"height":11}},{"id":"92a993ea-a288-4e9f-84bc-516dbb6f2fd1","block_type":"box","text":"payment of purchase price upon demand.","page_number":190,"box":{"x":197,"y":760,"width":294,"height":11}},{"id":"eddf04a5-2c49-4630-b82a-cd5635422a7d","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":190,"box":{"x":68,"y":780,"width":768,"height":12}},{"id":"a2589327-9fbe-45ff-9d57-7f2cbfcbcd82","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections","page_number":190,"box":{"x":196,"y":795,"width":697,"height":12}},{"id":"91492653-bafe-4d2f-a9b5-a7dac87d2bbf","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":190,"box":{"x":195,"y":811,"width":457,"height":11}},{"id":"2f0c266f-05cc-4a61-99f0-0ea313347a41","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":190,"box":{"x":69,"y":831,"width":820,"height":11}},{"id":"68964616-d725-4121-9048-618428674f6e","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":190,"box":{"x":197,"y":846,"width":711,"height":11}},{"id":"21db8f35-23b0-4b8a-80d7-fe99cabfc036","block_type":"box","text":"may lack the structural or legal protections necessary to ensure the timely payment of purchase","page_number":190,"box":{"x":197,"y":861,"width":684,"height":11}},{"id":"5e52ef34-6e4f-4227-a898-d269e4ecc489","block_type":"box","text":"price upon demand.","page_number":190,"box":{"x":197,"y":876,"width":139,"height":11}},{"id":"036d99e8-5877-4829-8b4b-66212c46c9ed","block_type":"box","text":"A-3","page_number":190,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"8ab635de-9510-46b9-90ae-5504a3f7bff7","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6db0cdb4-74e1-4e1b-adbe-28fd89365b14","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":191,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"e1d2af4e-e964-446f-8427-d80d93f9d8d3","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":191,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"bee7fc3e-40ff-465b-bcf1-74fd34e15bd9","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":191,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"e6972f89-2815-4f57-9454-eb88b88b6496","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":191,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"90d8625b-f887-4ebb-9eb1-43f7500bcd32","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":191,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"57e8dea1-7202-4d08-91be-c0adddc5a65b","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":191,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"a448193b-53d1-4d11-a707-92069e697a01","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":191,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"68a07fdb-78d4-4c17-b26d-694dccbbfac5","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":191,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"06e5b96f-c3f2-4529-bca3-dc549e56adc4","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":191,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"f45fb090-afbe-455f-b429-75efe7a5e4a9","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":191,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"eb15dd97-05c9-4d02-8051-3d502fb4462b","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":191,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"85467a38-fe21-41b3-a593-d98105e39600","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":191,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"efba0d91-7b85-4e1e-920d-d8b7a5e63271","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":191,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"03f73374-fe56-4a15-bd1b-a0b5efc7c4ed","block_type":"box","text":"from these guidelines based on market practices. Medium-term notes are assigned long-term ratings.","page_number":191,"box":{"x":68,"y":256,"width":724,"height":12}},{"id":"720a88a8-8843-4e9c-b718-a0d50b2689a3","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":191,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"ed9bec80-1342-4509-a1b9-cbc743dca8d0","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"3d6bc051-08c4-43a5-a48c-7dd2a1fd6006","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":191,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"fd8febf4-5abe-4bb4-a799-d420146b6465","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":191,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"0f99ddd8-ac8b-42fb-b390-f5074321574a","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"0222fab6-0369-41d5-8997-c543758ae6c6","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":191,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"41dff786-5dab-4077-87a9-19d783f2a3d1","block_type":"box","text":"•","page_number":191,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"a02a5b6d-93e7-4238-b665-ca00333a05cd","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":191,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"cbf38a4e-5f6d-4636-bf91-c8abe945410c","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":191,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"b99ca67a-13a6-4980-88bb-d150a3cbd50a","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":191,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"1f9c3af9-dbdb-49de-8467-9126a1d1dd6e","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":191,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"6f820f5f-4d08-4e0c-a95a-13affff901f3","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":191,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"32ac3b26-944b-401d-86a8-019719a844ed","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":191,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"68431c54-e838-47d3-bde2-a5382dceca01","block_type":"box","text":"obligations.)","page_number":191,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"d2b33ee0-f96e-44d6-934b-fa354f7f62ba","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":191,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"d876942b-bb82-4661-92f1-98160b702937","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":191,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"fee5eae3-ea93-4cc5-95ea-eeb0e6ff32d7","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":191,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"9938afa4-a656-4627-bb5d-bb8e5cb789f9","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":191,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"dd823d72-fcf8-47b6-aa44-5d17125dcf5e","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":191,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"2162ee66-3ec6-4b7e-b055-68f80c45ce8d","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":191,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"3b403059-56dc-4f74-97e4-47dbf666eaa4","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":191,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"93e5863b-dc3e-46e0-ae67-1ea706920171","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":191,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"12e03d68-20da-4dde-8961-5dc009ce1142","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":191,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"74a80fbe-3d5b-4be2-9951-0a18c24be0b8","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":191,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"ddcc163f-e0a3-4dec-b2a6-ca4dde8d9ec2","block_type":"box","text":"financial commitments on the obligation.","page_number":191,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"b50c0127-f4c8-4005-8a87-c9fa49c59ccf","block_type":"box","text":"BB,","page_number":191,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"9798a435-e5df-4dca-8a59-7b6c943349c5","block_type":"box","text":"B,","page_number":191,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"91005405-d1ca-4a19-b1f7-c4482e4e4e31","block_type":"box","text":"CCC,","page_number":191,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"b3fae081-7d55-4f7a-a2c3-4851fa954c7c","block_type":"box","text":"CC,","page_number":191,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"30fddc00-d9f0-4e6a-a70d-cacfab4caa6e","block_type":"box","text":"and C","page_number":191,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"6a1430f8-140e-41cc-8950-03953fa7c076","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":191,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"ea5f07c1-bb8b-42f7-aa8f-5b0bbd529363","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":191,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"177ed0ba-88f2-40f5-b5a9-7541e88453b5","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":191,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"b8a7689e-f526-4784-b9c5-5b4d560b688a","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":191,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"eb944ed6-db4f-4709-9e96-c635c6a9c07f","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":191,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"9c8f773c-940e-4d6a-aeb6-e41fb8f25701","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":191,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"416b8ac8-1fc4-4751-b083-61ae6f949d25","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":191,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"c715ce8d-aa1b-486c-8f0e-acef65b69670","block_type":"box","text":"on the obligation.","page_number":191,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"c79bdc24-4657-4757-a082-d2769c73f0cf","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":191,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"e9be118f-6339-4cfa-8592-7037f0024a9c","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":191,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"6fa5e9b9-f911-45fe-b620-fb39af60c2f2","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":191,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"1d0ee49f-ea26-4144-a0b9-7c29d06cfe3c","block_type":"box","text":"financial commitments on the obligation.","page_number":191,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"59937f93-d63e-4c7c-b847-294354bce761","block_type":"box","text":"A-4","page_number":191,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"957964ae-355c-4b7f-a6d4-ec121885dedd","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"97b4cbbf-8c62-4a99-9e84-73780bded328","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":192,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"6fcd3225-b3fd-4b1a-a893-17228639f072","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":192,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"93718309-68f8-40cc-8211-5c7cd78b0b10","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":192,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"0d037b34-b884-4085-a14e-447c146fe3e3","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":192,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"b942a53d-3da1-4fbe-8a37-0148a27db637","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":192,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"c0cf9516-a818-4e4d-9749-e3617bb4ed2a","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":192,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"b23b869d-5ad0-4408-8e82-86bd2675ce0d","block_type":"box","text":"anticipated time to default.","page_number":192,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"416652dd-6a1a-44ea-af29-3fed386d66f7","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":192,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"033f6872-5923-46df-b2ac-dca98147c666","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":192,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"41e654cd-b07d-40b7-b5cc-c524b9f18c50","block_type":"box","text":"higher.","page_number":192,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"e921cb71-bb91-4cc2-9638-74725838f871","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":192,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"2742e62f-0345-41d9-8803-8527cbfc6fa4","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":192,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"509ca303-639b-4073-997a-0a4adb3e4762","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":192,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"78f6c650-54a5-4aa0-bcbd-e0eebe2e88e9","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":192,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"ace9801a-d683-401e-a923-7001ba8ba50a","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":192,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"ae97dbb3-c856-46d9-a274-0a47b194adfd","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":192,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"c0055616-20f1-440b-b588-a4ffbd19b94a","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":192,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"854a5905-1f13-4476-919c-92dbe22c0fab","block_type":"box","text":"restructuring.","page_number":192,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"065fff7e-b920-4962-8f3f-2ba52293e34c","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":192,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"f56bd0b8-09ce-4baf-8f6c-b49f81719e75","block_type":"box","text":"standing within the rating categories.","page_number":192,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"164d2a53-6d26-47b5-95d4-9bdbfe471e1f","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":192,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"d0798d97-12ab-4c7c-a4d7-cb0c3949de7a","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":192,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"5fd1d887-a116-4a44-83e4-304a57757b9a","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":192,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"606a142e-f0f0-4bdd-8cf2-55e8d2df781d","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":192,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"9af089f1-8eb2-4e30-aafc-b8ba3f0a3b60","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":192,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"e4a3f4b6-ef08-45b2-86de-6c522a948943","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":192,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"b91baa4f-dc48-4b80-b01e-54cae336b224","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":192,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"2aa76599-de68-409d-87a3-f3964c51f13a","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":192,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"50fff145-eb89-43b0-88c5-88f1401cd2d2","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":192,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"47f23743-45bd-46f7-9032-a9b2191838cd","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":192,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"134c54ba-7960-4aa2-b8f9-ad57837c61b6","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":192,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"3b3d6945-8231-46c8-a6aa-4266543db168","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":192,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"81b18254-da6b-4f3f-907a-1103abe83e38","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":192,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"d3d47f1a-cfd5-40f6-ac04-048ff76078d9","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":192,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"fc8020ea-bbd6-4d71-83de-a9232721621e","block_type":"box","text":"financial commitments.","page_number":192,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"232f2105-a0a6-498b-a544-7bccc34edad6","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":192,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"cad163c6-22ea-482a-80d9-11457a6ac81a","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":192,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"434879cf-6abb-4653-922f-87786ef9e2df","block_type":"box","text":"commitments on the obligation.","page_number":192,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"7154c907-a037-41ab-9cfa-62e292e766a4","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":192,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"95e50049-8afb-4ddd-bfe9-9475e4d9ae26","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":192,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"4b8f1d7c-ec6f-449b-8bd3-ff301e017a82","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":192,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"2d3642b9-0c1a-46c0-b72d-5629b19cddd1","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":192,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"325676d2-0910-4e67-8b53-8e162bdbbb84","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":192,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"d02cc5a0-07fa-4276-b0ab-a92f68885ed4","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":192,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"d106bd61-2dd4-453c-a884-37fca3af9f16","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":192,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"52e3c683-5bb8-43ab-82a4-95770f322dd8","block_type":"box","text":"debt restructuring.","page_number":192,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"3b519598-4a87-465b-a742-784a6dcc8a62","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":192,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"87164449-7f2b-443d-a13a-15e760279766","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":192,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"b4d2ab6c-2113-4d68-ae8d-a14ecd24e667","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":192,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"ca5bc5da-3b30-4690-80c3-0ae02b54fc16","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":192,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"26a04880-de92-4f9c-9687-40142de0006f","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":192,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"0e8cdfad-efb1-4fb8-9eb1-b376a28f8225","block_type":"box","text":"A-5","page_number":192,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"d09a92f8-41cb-4b12-a858-ae5be6af339d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7896952-3d9e-4ce4-b369-b712f5a46bda","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"33d55fec-e6a1-46e4-9b46-a142f182198b","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":193,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"3298a372-d5d2-407b-98b0-096c8fcc1450","block_type":"box","text":"as a note; and","page_number":193,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"7bba7cb1-307f-4e02-9313-1724eeaf47ad","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"f7719838-ef85-456a-8168-f9e6012d7e1c","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":193,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"267e12e0-413d-4c8c-8e75-cd6585c7b883","block_type":"box","text":"treated as a note.","page_number":193,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"65635e8c-2c47-45e5-8404-2cc2d6c3aedc","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":193,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"0a406bc3-793f-4b7b-a2c9-9ea868b7ded6","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":193,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"94045214-db76-4e70-9ba2-991ba73793a0","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":193,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"63afb082-606a-474b-acc6-3d427dee6207","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":193,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"e22fb18c-d59b-4295-81d5-d289f0645042","block_type":"box","text":"economic changes over the term of the notes.","page_number":193,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"9f021e6f-083b-465c-862f-4fa62372dae7","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":193,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"5447c9b7-40ca-48c5-a78b-54d699f3e02c","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":193,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"45fd87b0-4e4f-4a7a-bc9d-0b060efabc11","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":193,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"a5e6ab2c-076f-4ae8-8ab4-3267db990b36","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":193,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"aad2cf7f-6561-4537-b35a-5dcd65519948","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":193,"box":{"x":69,"y":294,"width":455,"height":11}},{"id":"edea71c3-af5e-4516-a9df-e78c6d7bd84b","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings, but the","page_number":193,"box":{"x":102,"y":317,"width":778,"height":11}},{"id":"2bd948fc-534b-41a3-a126-0ab62f8ca026","block_type":"box","text":"agency also publishes ratings, scores and other relative opinions relating to financial or operational strength. For","page_number":193,"box":{"x":69,"y":332,"width":804,"height":11}},{"id":"d09ad847-a6d3-4749-9ef6-cd05aaedaab9","block_type":"box","text":"example, Fitch also provides specialized ratings of servicers of residential and commercial mor tgages, asset","page_number":193,"box":{"x":69,"y":347,"width":776,"height":11}},{"id":"aede1f00-7332-4138-9466-8d972d7f4cf5","block_type":"box","text":"managers and funds. In each case, users should refer to the definitions of each individual scale for guidance on the","page_number":193,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"1b57ad91-2490-49be-a396-5ed2be93c47d","block_type":"box","text":"dimensions of risk covered in each assessment.","page_number":193,"box":{"x":69,"y":377,"width":344,"height":9}},{"id":"9bbd46ea-3ea7-49e5-8063-3c7c9c702d7e","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":193,"box":{"x":102,"y":400,"width":747,"height":11}},{"id":"f1118ff9-70c5-47e0-b552-d5093256c10f","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":193,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"4ea1172c-c40a-421f-8dc8-0256c945b22b","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":193,"box":{"x":69,"y":430,"width":793,"height":11}},{"id":"7d36fd9f-dc20-4424-8a6e-3d7eb6707249","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":193,"box":{"x":69,"y":445,"width":761,"height":12}},{"id":"3dcf77f0-e167-4c6b-8a02-d3b129269b42","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":193,"box":{"x":69,"y":460,"width":766,"height":12}},{"id":"d69e1586-8ba6-48c5-9491-53980bf17260","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":193,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"42ffd2d3-462d-46bd-912c-abeb0b81fbe7","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":193,"box":{"x":69,"y":491,"width":779,"height":11}},{"id":"401e16cb-2e16-4c22-9618-96fff268b90e","block_type":"box","text":"receivables or other financial assets.","page_number":193,"box":{"x":69,"y":506,"width":262,"height":9}},{"id":"744f4dd6-18ba-43e8-b223-fb77307b2343","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":193,"box":{"x":101,"y":529,"width":794,"height":11}},{"id":"eb017da3-49bd-464f-9111-485d32980dea","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":193,"box":{"x":69,"y":544,"width":826,"height":11}},{"id":"159e35bc-2fe8-44c4-b0c3-46306edbc14f","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":193,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"d4915512-e190-4cb8-8763-83c20a4d4d47","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":193,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"f12bfbd3-af21-4123-99a9-d3172e965118","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":193,"box":{"x":68,"y":589,"width":793,"height":11}},{"id":"41d2f2ef-1030-4568-a09b-44aff59a8ab7","block_type":"box","text":"occurred.","page_number":193,"box":{"x":69,"y":604,"width":65,"height":9}},{"id":"0190c182-e61a-4d2e-a4ef-5d5ba3aa7bd9","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not and have","page_number":193,"box":{"x":102,"y":627,"width":788,"height":11}},{"id":"cdda0396-3a0c-4c32-8ac4-876d260557a6","block_type":"box","text":"not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":193,"box":{"x":69,"y":642,"width":506,"height":11}},{"id":"a4025a89-deee-4323-b424-e7909354118b","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":193,"box":{"x":102,"y":664,"width":797,"height":12}},{"id":"9fbaedcf-5b2f-45bf-9587-4f7475e44140","block_type":"box","text":"not predictive of a specific frequency of default or loss. For information about the historical per formance of ratings","page_number":193,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"dfbdbf24-cd00-4139-9251-93e3fbf8a257","block_type":"box","text":"please refer to Fitch’s Ratings Transition and Default studies which detail the historical default rates and their","page_number":193,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"1c3e4b44-b49e-4838-bc49-4601ed9ec153","block_type":"box","text":"meaning. The European Securities and Markets Authority also maintains a central repository of historical default","page_number":193,"box":{"x":69,"y":710,"width":801,"height":11}},{"id":"1d3a3cea-ef62-4251-a584-44029db7f1d9","block_type":"box","text":"rates.","page_number":193,"box":{"x":69,"y":726,"width":39,"height":8}},{"id":"e29aa1bf-ac56-49a5-9966-524e931e17ed","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":193,"box":{"x":102,"y":748,"width":798,"height":11}},{"id":"32cd0e14-2932-4758-8c8b-9b0a5e54a495","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":193,"box":{"x":68,"y":763,"width":780,"height":11}},{"id":"ce929fdc-e086-443b-9e57-43d16b43a830","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":193,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"0576c125-78c6-4a21-bcda-8d4b88fd6895","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":193,"box":{"x":69,"y":793,"width":531,"height":11}},{"id":"c8ae893d-67cf-4042-9ce0-9867fe49ba21","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":193,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"0f172c6d-aadd-4d4f-a73e-b629fac31e37","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":193,"box":{"x":68,"y":831,"width":639,"height":11}},{"id":"48047c0c-2a05-4af7-8f0f-6f5740b68369","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":193,"box":{"x":102,"y":853,"width":799,"height":12}},{"id":"e5a33548-26db-45fa-b709-ab2c94c256e2","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":193,"box":{"x":68,"y":869,"width":794,"height":11}},{"id":"576ad1ee-72eb-40d4-878b-2463f519f0a2","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":193,"box":{"x":70,"y":884,"width":420,"height":11}},{"id":"7cd4f8fc-5e0d-45f6-ab2e-8295bbba477d","block_type":"box","text":"i.e.","page_number":193,"box":{"x":492,"y":884,"width":20,"height":9}},{"id":"f412d00e-12a5-4409-929d-0773bb39ed50","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":193,"box":{"x":519,"y":884,"width":380,"height":11}},{"id":"017f2592-2aac-4c04-99a3-0ec3664e22c5","block_type":"box","text":"the obligation’s documentation).","page_number":193,"box":{"x":68,"y":899,"width":230,"height":11}},{"id":"a4bc2651-9d7e-4da6-91c5-680b644b1863","block_type":"box","text":"A-6","page_number":193,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c4ee6037-1334-49d2-b152-7742fdbe97c5","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dfc9cd2c-d8c9-434b-b961-2d173fea280f","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":194,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"ceb4d9c1-ab08-41eb-b0cb-901cbbe92e09","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":194,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"9c89ede6-6cdc-4733-b005-db1a9631daec","block_type":"box","text":"agents in the form of a rating letter.","page_number":194,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"4bd71757-c05a-4770-9ab3-0f865401ca9c","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":194,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"69b97c53-6a7a-4c12-a6fe-f85c534b8348","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":194,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"4edabd37-e6fd-4b51-acd0-eb22f9d6a75e","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":194,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"d22010e6-9005-41c6-a498-6888eb1a7c9b","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":194,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"07430279-cf09-49e1-aa34-f410b7a3c559","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":194,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"2f9a42e2-faff-4766-8bd0-3f58f12584f6","block_type":"box","text":"e.g.","page_number":194,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"e851237b-e0e7-4ee6-b890-673c40204079","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":194,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"8ac427d9-9d79-430e-b307-f786648c233b","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":194,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"66659d02-d721-4643-b296-bbfaf7f7310e","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":194,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"5f2f7622-fc6d-4b32-8106-ce90e03a5920","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":194,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"edd84f81-3daa-47c4-b49c-aa4d47016311","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":194,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"3c6211e6-9f5a-41ae-8f06-f86df2f49efb","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":194,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"9ad02d58-5079-43e0-94c9-dc57da88247a","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":194,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"6cd2c6bf-0cc6-46ec-ae1d-54a4622487c5","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":194,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"2650c5b0-75a9-4d28-a710-f8a7231fb465","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":194,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"bfee0eae-05a3-497d-8611-efa35a952440","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":194,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"083405f9-89c5-44d5-aaa3-c698575225a6","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":194,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"8da49334-a9bf-4928-8580-a29c49422259","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":194,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"19c7be3c-5e82-4919-b81a-0f00c1060b72","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":194,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"9cac1bd5-9b25-4f5d-a49a-792baaf08988","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":194,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"a8958589-dd7e-42cb-9dcc-fd8cf04fce61","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":194,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"0650c247-ee7d-434f-906b-723c57bddcf2","block_type":"box","text":"Ratings.","page_number":194,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"ff7956c4-ecec-4095-85ed-d94dc6650cb6","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":194,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"383cfe14-e27a-44df-83e7-64db9bf9b717","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":194,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"0d1af16d-41e3-4d27-9686-248413233a96","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":194,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"8608fa56-5a8f-496d-9c06-a3d34b552d9f","block_type":"box","text":"obligation ratings.","page_number":194,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"00ce3658-cb95-4c09-a609-163dec311bc8","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":194,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"0f026eb0-724c-40c4-81fd-cf918a5ba03b","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":194,"box":{"x":68,"y":533,"width":833,"height":12}},{"id":"073b3223-bb59-4494-9984-fdcc022446a5","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity","page_number":194,"box":{"x":196,"y":549,"width":697,"height":11}},{"id":"db8cc03c-21a5-474d-8187-5ce0a06dda03","block_type":"box","text":"is highly unlikely to be adversely affected by foreseeable events.","page_number":194,"box":{"x":197,"y":564,"width":457,"height":11}},{"id":"436d70f8-49e5-4558-b1d7-4f74fd237873","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":194,"box":{"x":68,"y":584,"width":829,"height":11}},{"id":"4f2318f4-5c1b-4e7b-ba31-0fb3d0cabfe5","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":194,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"a44f6012-0bc8-4117-b1f2-09f15d71f913","block_type":"box","text":"to foreseeable events.","page_number":194,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"dcef5dd8-c641-4a53-b689-9fa97a6c1ea6","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":194,"box":{"x":68,"y":634,"width":819,"height":12}},{"id":"60f2039f-c28f-40ea-849b-3214087626d9","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":194,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"e9312ed4-3cc7-4a2c-a3da-df469ae71bb5","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":194,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"fa48ffd1-a205-4fb1-b0b3-8ba86e017975","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":194,"box":{"x":70,"y":685,"width":805,"height":11}},{"id":"c9ee2ebb-f8c0-4dbf-8685-f8f2213622fc","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":194,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"65de02ae-6f99-4764-86e2-141ba21ee2b1","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":194,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"f0382113-76bd-4fc7-80d3-01d6e7606807","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, par ticularly in the event of","page_number":194,"box":{"x":70,"y":735,"width":830,"height":11}},{"id":"d5edfe21-0ec6-4c08-939a-2f4fdd442b9e","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":194,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"8ebbf6c5-e184-40c4-b280-6fa355900cf4","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":194,"box":{"x":196,"y":765,"width":511,"height":11}},{"id":"f042de91-1ab0-4670-81d1-557424b17f24","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":194,"box":{"x":70,"y":786,"width":650,"height":11}},{"id":"b5496efa-7288-4299-b394-33f257e380bb","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":194,"box":{"x":69,"y":806,"width":727,"height":11}},{"id":"ab3a187d-c099-47b3-a7ad-9791f518e76f","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":194,"box":{"x":69,"y":826,"width":712,"height":11}},{"id":"1449ed12-3972-40a6-96eb-209b9d8be801","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":194,"box":{"x":69,"y":846,"width":780,"height":11}},{"id":"e8336af4-368e-4e34-b1da-87cbc046f467","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":194,"box":{"x":101,"y":866,"width":808,"height":11}},{"id":"f14b5012-fdca-4e19-9b61-ca9942a6b000","block_type":"box","text":"relative status within major rating categories.","page_number":194,"box":{"x":69,"y":881,"width":320,"height":11}},{"id":"34ee1ba2-1381-4b4c-ab47-5118cfdec5e9","block_type":"box","text":"A-7","page_number":194,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"eca68b1d-89aa-46f3-903e-99b90d96b2c7","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39635f7c-6e68-42ab-ba59-02701ef6311a","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":195,"box":{"x":102,"y":45,"width":761,"height":11}},{"id":"8b098482-aa91-4292-bd96-4b230d938893","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":195,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"61ba0545-95a5-4771-8ce6-e745b224c607","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":195,"box":{"x":69,"y":75,"width":289,"height":11}},{"id":"6f5c8757-d91a-4fa7-b5bd-ff554ae99c9e","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":195,"box":{"x":69,"y":105,"width":568,"height":11}},{"id":"85a491f5-9331-442f-81fa-9f2a1731f9c0","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":195,"box":{"x":101,"y":128,"width":806,"height":11}},{"id":"8edfeafc-5e45-48ec-b678-06848a0d1a2a","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":195,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"8c00b1fe-4d64-4ba3-b1c9-633980f3850c","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":195,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"409ba61a-1016-4b29-86e5-fd4a7031e96b","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":195,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"96d736e5-0404-4eb4-8b90-ecd53bc51813","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":195,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"df935082-299b-4898-b2e4-abccba4ee507","block_type":"box","text":"finance markets.","page_number":195,"box":{"x":68,"y":203,"width":118,"height":9}},{"id":"bc4eb55d-61bb-4db1-8d03-5bc387a82a08","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":195,"box":{"x":102,"y":226,"width":273,"height":11}},{"id":"505a2021-9e70-40f3-86db-2739b52d1610","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":195,"box":{"x":70,"y":254,"width":816,"height":11}},{"id":"bb9e8929-2c0a-4674-b204-d51c64ad0ed3","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":195,"box":{"x":196,"y":269,"width":692,"height":11}},{"id":"6e52586e-d262-493c-86bf-752c16b2d038","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":195,"box":{"x":70,"y":289,"width":734,"height":11}},{"id":"bdbbffcb-f2b9-42ea-955d-175316a210fc","block_type":"box","text":"commitments.","page_number":195,"box":{"x":196,"y":304,"width":100,"height":9}},{"id":"b510341a-c962-4287-89a1-1122986c612d","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":195,"box":{"x":70,"y":324,"width":831,"height":11}},{"id":"5bf778fb-27d5-43a1-b37e-d173701cf99b","block_type":"box","text":"adequate.","page_number":195,"box":{"x":196,"y":340,"width":70,"height":10}},{"id":"731eadff-470f-4664-9d9c-e99aa323cf4c","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":195,"box":{"x":70,"y":360,"width":737,"height":11}},{"id":"87e41fd1-2af0-432d-a428-66724c52a8fa","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":195,"box":{"x":196,"y":375,"width":641,"height":11}},{"id":"e0f3b8b4-8c90-49b3-9eb3-2a894baa73ca","block_type":"box","text":"economic conditions.","page_number":195,"box":{"x":196,"y":390,"width":149,"height":9}},{"id":"8ef42789-6d5d-4d69-8d5a-bba36c044b54","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":195,"box":{"x":69,"y":410,"width":535,"height":11}},{"id":"1ccbb4a0-10bb-44e6-b58e-36f38c0e1b14","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":195,"box":{"x":70,"y":430,"width":749,"height":11}},{"id":"48eb17ef-31a9-401d-9e61-1e9d7b803bcd","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":195,"box":{"x":196,"y":445,"width":714,"height":12}},{"id":"927fa45d-2a9b-4032-8f5a-e94129f8741f","block_type":"box","text":"ratings only.","page_number":195,"box":{"x":197,"y":461,"width":83,"height":11}},{"id":"68281b0d-5693-4ea3-a6cd-3501e2362cd6","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a shor t-term","page_number":195,"box":{"x":70,"y":481,"width":761,"height":11}},{"id":"aa33051d-13aa-4dfc-aeab-f6615fbbadae","block_type":"box","text":"obligation.","page_number":195,"box":{"x":196,"y":496,"width":72,"height":11}},{"id":"d31001f8-08e8-496e-b243-a37499496ea1","block_type":"box","text":"A-8","page_number":195,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"18a6c35c-6941-4e7b-8d4f-c6757ee43932","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9b1c419-ce86-476d-84b6-82ed0cd3503b","block_type":"box","text":"APPENDIX B","page_number":196,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"b28f9658-81c4-460a-99b1-fcb06fbff1fc","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":196,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"a941f16c-9d06-4c64-b2b7-d4f53146ed2e","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":196,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"735ccbb7-a817-47c6-ad66-a29cf0695e4a","block_type":"box","text":"Effective Date: January 1, 2025","page_number":196,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"d5fdc12e-4c74-463e-9183-8b8c0654ba7e","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":196,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"d3ce184d-d74a-4618-8e45-d9117eb2dc14","block_type":"box","text":"□","page_number":196,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"50c9de37-0414-4bd7-aa52-1b98460ed6c4","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":196,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"da23f86b-7bab-4b88-93d5-05788d0ebfbb","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":196,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"253974cf-ea34-4a24-b0a0-a968e24f414e","block_type":"box","text":"□","page_number":196,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"6b3805ec-1c93-44e3-a389-3cea93198796","block_type":"box","text":"Money Market Funds","page_number":196,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"066f7463-fa45-4b12-9f74-ff1a2799b401","block_type":"box","text":"□","page_number":196,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"849243dc-9852-420f-8e62-3f3a7723aa54","block_type":"box","text":"Closed-End Funds","page_number":196,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"800fe76e-7895-4617-899d-a9908880bf4d","block_type":"box","text":"□","page_number":196,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"a7197fb3-9a80-4ab8-a841-8268c369f69b","block_type":"box","text":"Other","page_number":196,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"b3b2e51d-6e4c-4432-bec2-5997fb9f2fe4","block_type":"box","text":"Objective and Scope","page_number":196,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"52cb27c7-4c03-40ff-a3f0-05713eeffd2e","block_type":"box","text":"Set for th below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":196,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"77810b35-aacd-433d-ab1e-84c1c05e7711","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":196,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"4ce23943-f897-404d-9533-afdc5e6140fb","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":196,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"e11d146c-1979-40de-adf9-9d29f7eabb2d","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":196,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"11d7457b-b0a9-4ade-a81a-a114c1d507a9","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":196,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"c4bea70c-2b4b-4ed4-a11f-7423b03d7418","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":196,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"46f4df59-70b6-4636-ab2a-2aca67d4b90c","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":196,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"a79a1671-69f7-40e5-9548-1cc1dc84d334","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":196,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"f82d61b6-f510-4d3b-8d67-b14e70409cf4","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":196,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"1d36b42b-d871-4189-94dd-1afcdd198398","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":196,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"465785dd-1f0f-4ee9-9c12-4cccaaf1ee5c","block_type":"box","text":"index Funds managed by BlackRock. 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Potential material conflicts, and the resultant potential for undue influence, might","page_number":196,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"24f569eb-31d6-4278-b38f-446781350980","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":196,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"3a0348c3-4193-4078-b062-619c1b3f0098","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":196,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"2b3365b0-d04d-42b5-877e-5537a0bfb14b","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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The benchmark policy also may apply to","page_number":200,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"25656883-43c6-4865-be4d-4733ae8a3692","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":200,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"fc1d38ac-7f26-45d9-806e-238f21a39ad6","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":200,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"68f5fe2f-a9d8-4500-9148-35459b1dfa70","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":200,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"1726e1c4-8f7a-4785-8cea-f55d1ad9e1ac","block_type":"box","text":"2","page_number":200,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"d3c634e1-016f-4175-bb52-e84da7cf9920","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":200,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"837cd627-5d8a-4f2a-946c-9410861ba1ba","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":200,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"4d6d943a-7153-4994-96a2-00929884e9e5","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":200,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"6cfd8a1f-e565-4de9-b9ee-dda2f65d6624","block_type":"box","text":"policies.","page_number":200,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"6ff6f49a-720b-4205-9346-bdd6768ff413","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"64d38087-e3ad-42d7-9ce7-448e44579975","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"1042d50e-766a-40e4-a5bb-cff7d078f5c4","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b701b3e7-6178-4d2f-95ec-6550732333e5","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":201,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"8c4b2e1f-3fa7-4794-921a-70595f3705a4","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":201,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"716f9f3a-c9a3-40b2-aada-ce67c2eac4f2","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":201,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"b5697cfc-cda8-4548-afe9-9cbf31678d07","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":201,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"acd687d7-74eb-46b8-a261-b49141a5d8c8","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":201,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"91e70273-066a-400c-9293-785736600bcd","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":201,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"21561c47-1657-4a95-ac9e-4c94e51085ad","block_type":"box","text":"this work with research, data and analytics.","page_number":201,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"2225158d-8e61-491b-bc31-aeb1296a3fbd","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":201,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"5eada898-8d6a-44c3-8118-3e8de2cdd4c5","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":201,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"7ecff83f-e16c-4a9c-b3b3-2335f591a867","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":201,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"03c75769-005f-4170-b48e-3099c36cb65c","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":201,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"3950b94c-7b01-4fb9-bd72-4336c2020104","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":201,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"97fa2325-72e9-408e-aa80-2809fd92ac07","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":201,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"81cebe40-f849-4faa-822d-b77a8e45b433","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":201,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"b96e9fe1-be61-42e4-bddc-f1ee4dd9f51f","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":201,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"b1d46bf1-a0a6-493a-9075-40a6a8d324c5","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":201,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"c063e426-56bf-487d-8c5a-193839a7f25c","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":201,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"90fa3d1b-32ef-4837-a515-01459f0d031c","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":201,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"90366962-6183-4f01-8f07-046965d84d06","block_type":"box","text":"shareholder meetings.","page_number":201,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"a312703b-6c1c-477c-a347-c0e26280b503","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":201,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"5e233926-a5bd-45f4-8047-435b5496f96f","block_type":"box","text":"investing.","page_number":201,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"d4d6849c-82c0-4366-a684-2120d26b1682","block_type":"box","text":"3","page_number":201,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"f0061b89-46f5-444f-b7f0-39e3abd8ca9d","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":201,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"212a0a5f-be2d-4ecd-948c-51bd9f50a203","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":201,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"2dc0ff65-7836-44c9-8867-d4c86b0c1119","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":201,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"15a2ab08-0cc6-4bb2-ba23-3003555b5ca4","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":201,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"2d30e59c-a223-4aa6-be1e-973ca115ac97","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":201,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"d8fc6b8e-e677-43de-a1e2-5a10991f0158","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":201,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"609b58f2-e5f6-423a-b4cc-cc795e33f254","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":201,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"c07ed909-090f-43b3-bb27-730f3a1829a2","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":201,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"52060c6f-dc72-4882-9b2c-82bbc1eb6e79","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":201,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"8d2caf72-8557-4157-972f-1ee9dd5f6559","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":201,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"b989b522-f467-4661-a45b-412798d90ea5","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":201,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"ef9505ea-6a5c-4cda-9e44-85f7d21a3924","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":201,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"6d39f486-9d25-47e3-9dde-9290b884ec8e","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":201,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"48863ea1-6a9a-42e7-b212-0db42c8f5768","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":201,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"1d10e2c0-f2ef-49c5-8e80-887933872e8d","block_type":"box","text":"management teams and board directors","page_number":201,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"0abe8f84-592c-4b1e-98f0-620068a76221","block_type":"box","text":"4","page_number":201,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"196b8948-8d29-427e-b8b7-f0a6c1a6c774","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":201,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"eb3c79f1-50a0-4947-a733-20cad47e1810","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":201,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"29306c1c-ee6a-4183-af15-0bf99ddf7263","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":201,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"44c7ad72-6c66-4dba-9394-5f910a661b43","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":201,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"471d2951-84fd-4b33-a42b-76faea12139d","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":201,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"1831fda6-86b8-4eb3-8d94-05f96084bbe6","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":201,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"2dafbf93-a52c-47a9-ae4c-b2115b3c6d65","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":201,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"21fa896d-1186-4f71-9702-476594f74be7","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":201,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"200ff509-6ae1-40bf-aac2-da338d7cdc5f","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":201,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"ddbc81dc-ed8d-44fe-a4dc-b63898995231","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":201,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"8254e682-3e47-46af-99f7-b4aa545e8061","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":201,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"d7ac67b2-08c3-4ed7-b7b0-6e5b45f6db69","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":201,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"f7186eec-a7d5-40e0-ba28-b82d8dcc81c1","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":201,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"816b5361-0219-4f15-a32f-37daef35c358","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":201,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"88281a61-4858-4c69-9a95-950653ff548b","block_type":"box","text":"3","page_number":201,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"5247fd00-5bdd-40a5-b3f6-72975b618300","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":201,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"679f9d28-ced1-477a-967f-73915ef891c4","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":201,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"e231832d-9059-417c-8ace-1b60055476f5","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":201,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"5133e4c9-5da1-42cb-a389-a3f1216f8225","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":201,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"4dd565bf-4e29-4f87-8acb-57a458e85443","block_type":"box","text":"4","page_number":201,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"cb0e45cf-99e3-408f-a37c-18efe0b684bd","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":201,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"b5cae2dc-0250-49ae-b649-c10e344c1fdd","block_type":"box","text":"boards and their members, where relevant.","page_number":201,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"570d5fa6-d7c1-47af-b940-ee750db40681","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3c21ffeb-61cf-4111-9705-76c356c23e03","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"c4066ab4-88a1-4827-87a9-f370b07f6218","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"057859b7-8888-4bf2-91b9-c0b9c033902a","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":202,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"1108a9d3-1b6b-40e0-b2c8-75df3389a720","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":202,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"48ee585c-abcc-43ea-ba54-d6f825c0c1d0","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":202,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"c4bd9c53-bc29-4d5d-a2b9-f8ec90cab0c6","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":202,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"e94282a7-44ac-4299-aa65-b876dc24a7e9","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":202,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"fe51dd29-596a-4303-ae62-fa76091b0473","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":202,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"96df23ba-dbde-4920-9329-899932b84f70","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":202,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"a0aae529-d45c-41e1-8116-e5cc6e3fe50b","block_type":"box","text":"5","page_number":202,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"00ad80c9-5303-4375-aa74-c0d6bc36f3f4","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":202,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"05b807b8-0935-4472-beac-bc409b17a298","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":202,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"3c5b1fd3-4bd9-4777-b067-e1f39b4f7fa6","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":202,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"8878935d-16f3-4ed9-8165-774e1d415f2f","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":202,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"6fe3336b-0a98-410e-892b-aecc8437e595","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":202,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"3bb4ea44-745e-449d-884f-ce496723c513","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":202,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"aef0317f-df08-41f9-bd06-df8780d234c8","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":202,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"557248dc-a235-42c5-a87f-76caa12108ef","block_type":"box","text":"5","page_number":202,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"e86d9d74-c0e3-4fc3-b98b-132220c12eb4","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":202,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"c06fb0cd-e876-4cd0-89be-78378f74c45e","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":202,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"ad719db0-1072-4543-b075-15b8a3376ae3","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":202,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"b4d18bd2-6294-4260-947d-978cd295849d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"74acd159-6d6e-45a8-80fe-e7299029bc1d","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"be6b7139-ab5a-4e8f-a7d0-c6237ae01280","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4130cac2-706c-4e0d-9408-c8f76a5fc1df","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":203,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"f0163e74-ffe3-4b68-85d0-57c5983bdae7","block_type":"box","text":"Roles and responsibilities","page_number":203,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"97cc1fe5-f585-4dcd-9420-36b3675d0919","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":203,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"1802125d-bbf5-4b53-b887-59cf39867ec1","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":203,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"2f786b1c-2684-4562-ae75-44cbb409733f","block_type":"box","text":"6","page_number":203,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"5093c255-4da3-47b5-a06d-0020dacb18c8","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":203,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"bd93edb1-9576-4e87-993e-3171a68ae410","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":203,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"b19b037f-00ad-4f76-a339-fdf4dfb83e85","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":203,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"06bc94bf-e31e-4e04-b059-2ff649d6463b","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":203,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"6c9f12ba-421a-4599-8cc9-8531ba4f559c","block_type":"box","text":"per formance over time.","page_number":203,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"6914c075-8928-4469-925c-4d62a485017b","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":203,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"4dc0d965-e4ff-4468-acdb-5c808636786c","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":203,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"c1321ca3-fe3b-4179-93f8-37cf9c1e4cd1","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":203,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"06fe051f-1c81-41fc-82e2-20ad5dc2afb8","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":203,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"fdba4732-6526-4071-90b3-aa1e9d4ee12f","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":203,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"691547cd-1978-4cd7-9351-afb326d8f814","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":203,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"db2f1756-967b-46fa-83d1-8278e101115d","block_type":"box","text":"Composition and effectiveness","page_number":203,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"3c442a6c-a117-4656-960f-ac52b882ba52","block_type":"box","text":"Appointment process","page_number":203,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"ad824d6e-100b-4f1e-8565-9fa11621c2d3","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":203,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"000cb702-fc99-4eb1-afc1-c0a0031814bc","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":203,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"c9d83537-c655-443f-9c91-72a8f423bc11","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":203,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"1e82f778-037c-491c-868d-dcee3d6b3ab0","block_type":"box","text":"e.g.","page_number":203,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"7a210b6e-a9bc-4241-9964-67db3c57fcd0","block_type":"box","text":", sector, maturity, geographic","page_number":203,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"bb848b92-e5b6-468a-9cad-94062530ceeb","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":203,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"a38e687d-feed-4f3c-ad23-f15a230e3c11","block_type":"box","text":"e.g.","page_number":203,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"22e2eccf-87b1-4f30-982e-ddcb5c7d5612","block_type":"box","text":", financial exper tise, industry track record). To","page_number":203,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"6eabf69c-3aaf-4c7c-a374-78a3d12706ef","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":203,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"777c1951-5fd4-4006-aab2-ab35af109833","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":203,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"ec824de4-d61c-420e-aff5-447217380185","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":203,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"85fb5ea2-12da-4ba7-b571-cb6c76c3ea5a","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":203,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"abbf7026-287c-4671-a16c-7c5fc37e666f","block_type":"box","text":"and local market requirements.","page_number":203,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"917f94d4-bb5e-47ee-bad2-77b6a2684c9c","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":203,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"798c8e91-f9e7-4a4d-8970-20819cc5d5f6","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":203,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"80092786-a8bf-460d-8712-0a5e327d5614","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":203,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"36a69d80-db66-49bc-9f9b-d0cf7e608dbc","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":203,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"c2fafa2a-9c3f-489e-b1b7-a1cc85fe9560","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":203,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"729220ed-a2a0-46b8-822b-dafb5626161b","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":203,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"befd157d-ff49-4740-9486-561e2e4f4c0d","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":203,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"82c9a969-7d29-4e91-a0fa-4fda0b2e57be","block_type":"box","text":"Independence","page_number":203,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"959e5717-3b70-4fd5-97cf-e98534dcc8a3","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":203,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"04462228-1b8a-4177-a680-33921ed4757a","block_type":"box","text":"e.g.","page_number":203,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"86ce0a80-32f5-4049-9dd0-6c38218013ee","block_type":"box","text":", government or","page_number":203,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"a279b107-e1e7-477e-9060-81f96c53e030","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":203,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"8e07e28c-dc66-49b9-9732-1a0d365a1096","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":203,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"e52c096a-52df-458c-af20-41918d55230f","block_type":"box","text":"conflicts of interest or undue influence.","page_number":203,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"40a20c20-9440-4dbf-9398-8c68fe4e2b04","block_type":"box","text":"7","page_number":203,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"bd50603e-96dc-458d-a3b8-f4a61ffd1d8c","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":203,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"0a44fef8-08ef-465b-8293-6e26ce61bf65","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":203,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"6868dbc0-daeb-4349-82ee-a14f37dbf18d","block_type":"box","text":"independence should meet those local requirements.","page_number":203,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"4fe5f3d7-40e2-4a5a-b893-c114bc6cdc88","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":203,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"82eed6b1-71a0-4fe9-a7b8-14b08ae208a6","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":203,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"9049ff65-85ee-42de-86d1-3baace50ad74","block_type":"box","text":"composition if this is a perennial issue.","page_number":203,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"3a56bac6-3b58-421f-a92c-ebd3bf3db7ce","block_type":"box","text":"6","page_number":203,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"ebd90005-51d3-468a-a9b9-50353336162d","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":203,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"c7c456a6-f483-442e-9c48-7fa6888b4b3a","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":203,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"708af807-1e2f-4166-9bc2-5b36f7c37993","block_type":"box","text":"7","page_number":203,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"49017536-3d6b-457a-a421-3f15ebc8e298","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":203,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"49fbf612-8ce3-4af1-b214-0cbc194e9b58","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":203,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"19f96dd7-ef5b-4d74-94f2-fe1795c2fa89","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":203,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"3068f114-5754-4e23-a279-daec40c2eb94","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":203,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"58c263a9-21f3-45d4-8203-a5297957f670","block_type":"box","text":"of the company and shareholders.","page_number":203,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"24e15429-a74a-4ffd-9ea2-d491446ffc5e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f9cb2aaa-64c2-4d9c-a382-806f660c07a0","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":203,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"808795ea-40ab-4f4e-8f5a-4e5af5696dc9","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5454bf36-02ee-4e58-a60d-b74d5bf8e833","block_type":"box","text":"Independent board leadership","page_number":204,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"0664ceae-e69c-473d-9f5f-bf983752947b","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":204,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"0f6847a9-6e4c-47af-96d4-f661893618c3","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":204,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"f165c0d5-11f0-4a2f-ab72-08b273718318","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":204,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"cbe139a1-0605-4d48-a08d-7d2796a8982d","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":204,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"d37263aa-d64a-4f5a-85a3-934b0796c30c","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":204,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"e45a93db-1a14-436f-aee5-2e76bff11fc9","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":204,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"3e1af699-8af9-4b0a-acfd-2810d275a0c7","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":204,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"90d6b40c-fc33-404b-9757-61d8f5bf6f15","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":204,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"9b7eaaf8-8af8-4ac8-8e23-200f4f4223fe","block_type":"box","text":"how it serves the interests of shareholders.","page_number":204,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"4fb9190e-c423-472d-b18a-7b33936e8dd8","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":204,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"78fd8d66-6e46-4657-bd2f-fbb529965a67","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":204,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"e25e0776-aa15-48a9-b47c-153ee95e66c9","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":204,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"8c41186c-f74d-4381-af4b-b88b8fee1f53","block_type":"box","text":"Tenure and succession","page_number":204,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"5b3706e7-1983-4b99-8610-6f7520417b69","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":204,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"c160039d-351d-48b6-83db-db6ef343f53c","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":204,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"08abe6df-e593-488a-ae9a-4ffe778d976f","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":204,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"8fc3ca1d-a6ef-4712-81f3-c28b449c1aaf","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":204,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"7ffe093b-eeea-4600-a4d3-5dbeceb75ad3","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":204,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"f95c2658-c691-4e6e-aa52-63fecef9acfe","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":204,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"20083974-1130-4590-927e-7cbd5ec3250b","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":204,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"7f7d1aa4-4230-45d0-94e8-b953fd5a2c7e","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":204,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"b552ef96-29c0-4468-8cdd-21437bc23a03","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":204,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"16b1adec-c1dd-4895-8f99-0537e035a5f0","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":204,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"7c4072e6-8a4b-4464-ae95-b66087f98c3c","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":204,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"af6dc6f1-fd6f-4021-9292-c471668d3865","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":204,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"b2bdcd8f-ced8-4a0d-8531-161e98d1481a","block_type":"box","text":"for their continued service is not evident.","page_number":204,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"932583a6-b659-4267-986b-84c71d2a14a9","block_type":"box","text":"Capacity","page_number":204,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"d819f7ad-b348-4a42-a940-2101254c5ef5","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":204,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"1a79d56d-b95d-4376-9295-3cad06b34ff4","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":204,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"e482be4a-5b82-4347-9f05-405cbeb3809f","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":204,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"7a0dcde4-f272-460a-bf8a-2b61e21d16bf","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":204,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"53566ac3-986d-4024-9eaf-6ee1aa443c18","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":204,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"2f49f99d-b3b5-41b9-93a8-274e219cc1de","block_type":"box","text":"determinations across markets.","page_number":204,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"3ad344a1-2785-40bb-90a9-40b99be70e19","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":204,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"04347f74-50b8-4d5a-bcd1-049e04b0ea44","block_type":"box","text":"their duties to the board and company.","page_number":204,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"4ae81243-eb2d-4eff-b74a-01bc92166bd7","block_type":"box","text":"Director elections","page_number":204,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"1c8e6550-95da-4d8c-bca6-bd263268493e","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":204,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"2e4ad2a6-f612-4a58-a257-d2be6fc94c88","block_type":"box","text":"structure","page_number":204,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"fe475c23-68b5-4056-bd95-2c672d82f6fa","block_type":"box","text":"8","page_number":204,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"a4d4ccb2-45e0-4483-984d-4f5895c7034d","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":204,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"778c122c-6a02-404e-84dd-1d0fc7d8be2d","block_type":"box","text":"basis of its business model (","page_number":204,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"dd129a78-ba4e-4d0b-a9b2-f93db748ed9e","block_type":"box","text":"e.g.","page_number":204,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"ce650f4b-5d91-43cd-9a1f-ac3c5a933340","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":204,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"f0d3aaae-f3d1-47bd-a79f-90156d9a4f43","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":204,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"9c4fed0b-d4f2-4c9b-bbaa-04404d71028e","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":204,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"a51e545c-604c-4d4b-b447-9a1059e89ec5","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":204,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"a2e88676-66d0-4254-b020-00d331eea843","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":204,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"69868259-d27a-4c06-85d3-da71e23e236f","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":204,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"ed4892b3-e8f4-4bfb-95c9-c02429bbfcdb","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":204,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"7b7d8b1c-fea8-4b6f-b325-54868e87574b","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":204,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"1bb0f409-7341-4c68-aeca-33c6279bf01f","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":204,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"362cbb27-5333-4a26-9941-62b1f200a219","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":204,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"eedef8ac-e914-4d71-8c3b-4e969c37c306","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":204,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"a2eeff99-9b2b-4c44-97d8-7c4306ae4342","block_type":"box","text":"8","page_number":204,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"beb9488d-e003-40e8-bfe8-a6f16a86abad","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":204,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"87a6bf9a-7fac-4654-a5ae-339a15edc8d1","block_type":"box","text":"directors stands for election in any one year.","page_number":204,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"fc7a8a2f-d3b4-4cca-82cd-7f9486df1057","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6546f0cb-0f40-49ad-a27a-23725eb451da","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":204,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ed925e5b-53b1-49a7-b568-d5387ea4d885","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b6478de5-07fd-4c2d-b9a2-6ddef9dcad40","block_type":"box","text":"Committees","page_number":205,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"de90a745-af50-4357-8e8d-97b50a1fa4be","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":205,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"4911a061-bcab-4c5b-b428-23a6baeed26c","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":205,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"48d2b512-a742-4b89-ab97-b61d9d447d29","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":205,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"1c087387-4846-40b4-b2f2-dbc4a9f0aa7d","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":205,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"5057d2b4-7761-437f-a0cc-5859f8156a15","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":205,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"b55773bd-817e-4e9c-a6e8-e9baf3d0909f","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":205,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"733cc466-43b1-4f4f-9e17-d81a60628a0d","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":205,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"4564e309-3e11-403d-b962-6fd1d50fd372","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":205,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"e8c1afaf-aaef-4067-a197-895561251fd7","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"3e9c6866-ed26-464b-969d-1d8c142ea874","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":205,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"45e646ff-b4db-45d8-a063-cfe8a4859a6f","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":205,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"941cfc64-5c5e-4780-8a88-719391b95a18","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":205,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"959d5db9-70d3-47e8-a81b-e6d231d010c7","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"c8875ae9-e418-4522-8fc6-0814a14b9ddf","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":205,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"58dd86f1-f3f9-4407-bb40-f07812731f99","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":205,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"957ee0ca-e383-4dc2-84d4-a18e6137980a","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":205,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"8d8c4a95-a256-4541-bcf4-aee654df2855","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":205,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"b8bc3637-85f5-4362-af78-739b4ea5b22d","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"1c59d463-3961-4add-abc1-2cb01f89a4fe","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":205,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"92d9592e-081c-4ce1-ba70-8b8e5de572df","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":205,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"5d4ae9ec-77c0-4e2a-aeaa-81f74ae855f9","block_type":"box","text":"firm-wide compensation policies.","page_number":205,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"146f2642-bf5c-441d-8d50-9728b2963992","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":205,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"94fc7f75-ca3d-4265-a1f7-961626d9d34c","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":205,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"3f846245-5689-4931-bcc9-d41c3ff1e293","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":205,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"bfe81d73-02ab-4132-8117-ccbabf290c6d","block_type":"box","text":"Board and director evaluation","page_number":205,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"0bbb3675-bc27-4393-bf35-1a14a2e7b4b3","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":205,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"bc670629-fac1-4e7f-897d-ba70c5273e35","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":205,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"6b711779-16cd-49b1-a644-09acd3af412e","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":205,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"125877a4-6d87-490c-a2a2-3636c9dcf8a9","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":205,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"20f8ad68-b370-4dc6-b7af-f51e570d0ae8","block_type":"box","text":"a result.","page_number":205,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"35652928-5daf-4063-a1b9-c927c9e22c73","block_type":"box","text":"Access to independent advice","page_number":205,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"fc85e7bc-7eb6-4dc0-bcc7-bfc68c5effb3","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":205,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"316e24c9-4ff6-42a5-8672-86a1f54601ef","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":205,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"634f9154-2a2b-455d-8a25-fa3b45dec343","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":205,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"4fbd0791-4fc2-44b0-b6db-92cb31e75fb1","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":205,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"f9802733-197b-42f0-8ec3-32e5cb26940c","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":205,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"1291cfcc-9404-46d9-a95a-083fcc201de9","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":205,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"cc916fa5-9855-46ad-9afb-b50020c819fe","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":205,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"3b9686cf-053c-4ee5-921a-5ce1bf039427","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":205,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"55bd534c-e275-4aa5-89db-fae4bd528035","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":205,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"e5e0a6f3-b382-48d1-b4a0-18070af284ea","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":205,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"1218a47a-d152-4e4e-9ac7-baa943f41441","block_type":"box","text":"per formance.","page_number":205,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"87ddea3c-3946-423a-86b1-c4d92df855d3","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":205,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"a246e20c-5edd-497b-b108-49604924e2f1","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":205,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"789eefc3-774a-4d51-a287-47f562acc450","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":205,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"1f67cee7-411f-43b6-afcc-44e44479f1b9","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":205,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"07eb8336-2f36-4f74-9838-c85c00fcc392","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":205,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"2d165db4-d494-4875-bb8c-bb4edd8e0e23","block_type":"box","text":"recruit and motivate.","page_number":205,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"f879a4b3-c60f-4f3e-ae57-3820ff815e08","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":205,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"b2ea653d-604f-4260-9fc6-6a39f61d1053","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":205,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"b956901a-aea5-4333-afb4-24f86fa6cf57","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":205,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"f74797aa-9132-4924-ac39-b869f0b1d3c1","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":205,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"9f1bc36c-9d35-4092-b84a-e28f01514426","block_type":"box","text":"arrangements include:","page_number":205,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"3eb6e42e-40ea-46ab-85fb-5822f8bb3392","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"e199b7e3-11ea-46f1-9d56-1c1b0d1a5bae","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":205,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"be598eac-7195-4757-9007-ce547ab14a09","block_type":"box","text":"the company’s size, sector and market.","page_number":205,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"ec271044-ab67-4d14-a84d-c2b1d05e4890","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4840ab0c-1825-4fa0-9d86-019130f9ea79","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":205,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"0b728b7d-746b-453e-a11c-ef5ca24e9c3c","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f00d059-588d-4d87-b0a6-0d2e80fc236d","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"ee64fb7e-b3b4-4b9a-922d-9967c3ddcb14","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":206,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"58bea49c-12bb-47e0-8f0b-81cfd4f58d90","block_type":"box","text":"strategic objectives.","page_number":206,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"5fa3ba59-b447-4caf-b935-62a9523bb568","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"b4cbce68-ff36-494a-9e80-21eafc5c4ca2","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":206,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"0d23b5d0-c22f-436a-9a2c-776bf361455a","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"f6f87403-d862-4e58-ad96-c3eb419be3f4","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":206,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"8f717e8c-d4c0-4ebb-b3a3-8e5e9dc484e8","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":206,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"6f36ee89-3286-488e-9b64-962233f0a381","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"c173ee7a-2ab2-49b7-8d8b-b9686324d339","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":206,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"895dffe3-036d-4395-8e5d-a15cb53b20c7","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"8fa38576-2452-4303-b131-f390483d9436","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":206,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"0a03962a-4cde-40cc-9b83-741f5438fde1","block_type":"box","text":"transparently.","page_number":206,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"2e8985dc-8c9e-479f-9d8e-d3bba390c10f","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"cbccdabc-48dc-4aac-bb57-50724e888acd","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":206,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"dc736879-6247-498e-a952-071768d30090","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":206,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"db1caaa1-6257-4cf6-9c3d-770a4a7bd37f","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"f7c34717-2880-45ff-b2e9-412202973e8c","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":206,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"5a54fc4f-58ff-4b2e-bf74-d020bcf49488","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"8287c91f-ffb8-4583-9bfe-d7b814efc792","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":206,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"4427dc70-fb9a-49f9-b41b-7b667fd26356","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":206,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"9e3a28d2-d03f-44a6-b857-6d99c1d6eb9f","block_type":"box","text":"misconduct.","page_number":206,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"00f07ad9-347d-44e4-a5af-0c37c2930f2e","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"fa338cd1-3c7b-4a8d-8cac-1b0e03177d58","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":206,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"87fbc610-7a84-4c67-bd5f-1795d3d326f7","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":206,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"be502a9c-7c06-44d2-bc1f-cb17a85462c2","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":206,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"63071abc-7c8c-4d3c-939e-22b5ace5567f","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":206,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"ac0b3b7a-eebc-4977-ad3b-995b19ea5631","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":206,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"60dfff51-a0f8-4407-981a-ca19bb6be2cf","block_type":"box","text":"committee, or the most senior independent director.","page_number":206,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"211d0950-73dd-4ac4-8c9e-dc118adf5106","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":206,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"49cef4a5-64ae-4ae6-a44f-ac0f598315eb","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":206,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"44b22ac6-d17e-4a65-b688-527ff6e04482","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":206,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"6e3c3f66-d9b2-46dc-98f4-a27622848641","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":206,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"e1ecc473-bf58-4440-a358-b03b0dc5ceec","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":206,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"0aec2996-6263-4ce3-8670-9ceb583a25c5","block_type":"box","text":"CAPITAL STRUCTURE","page_number":206,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"493b89c2-3910-4c07-961d-84262e726b29","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":206,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"86c7e9f9-c979-489d-9469-c303895e9f66","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":206,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"ae139d89-ddb7-4ef6-b1ae-3d85fee78fcf","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":206,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"803996bb-fc2c-43a0-8e52-3b48528cacea","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":206,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"1dd8801a-6b09-4089-80f3-31da036150c7","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":206,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"8ef9895c-351e-4c74-827e-528f2232afa0","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":206,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"6d5dd8d5-c323-47d7-96d7-4aa43546bf76","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":206,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"acc2bb0f-623b-4a16-b7f5-0ecdc41d1f2d","block_type":"box","text":"Share issuance","page_number":206,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"546d2495-911d-429e-b425-bae598e1e150","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":206,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"84907b65-3764-4e61-ab6a-aa271d0d2d8c","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":206,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"2ad237d2-4e44-4a1a-ace2-b9ae7869798c","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":206,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"cdf26980-e44f-4ce7-90c6-d75242d2345f","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":206,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"2556dd61-f3b7-4b4a-a4b8-dd72f0521806","block_type":"box","text":"market environment.","page_number":206,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"6f914fbd-524c-4d2e-b8b1-8ca4784bfca4","block_type":"box","text":"Share buybacks","page_number":206,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"2baeda81-8ea1-421a-9195-0eb35634e25d","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":206,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"73130479-93b9-4c70-abe1-b34d06065083","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":206,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"f5168f59-ade0-4c8b-bfca-ad116ca5bde6","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":206,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"db9433c2-6d74-4354-810f-c6dc23491432","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":206,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"27242039-89d6-4391-b15c-ba6fae81e92e","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":206,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"2a2163de-d771-4c42-90b3-fa33c96a58b7","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":206,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"42dc185a-0723-4624-a654-c7a13efecb59","block_type":"box","text":"of the company and the market environment.","page_number":206,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"555a335c-cdd4-4937-8799-e752c0d87c3f","block_type":"box","text":"Dividends","page_number":206,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"1c238826-5cb7-41cc-bed3-6306a9caa70c","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":206,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"898078cf-ce5e-4d4e-8a27-08f9754db83b","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":206,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"20dbd35f-6829-49cc-8888-61526b21c3f5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"09a89fbf-9271-412a-bb91-6ecb6dfc9de6","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":206,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"199e52c1-95e7-4ee2-9174-e8c0641cfc0c","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d246956-030b-4955-b03f-aa1e4310a64b","block_type":"box","text":"Differentiated voting rights","page_number":207,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"76bfaf32-fb2f-435d-b6cc-40e7db531f0d","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":207,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"668f0d9d-51f5-496a-9d4e-aea6ec4a9c56","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":207,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"f314e15f-2ef7-4dd7-8e07-266d2d0dd491","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":207,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"2e637ebb-05a1-4b53-980f-819d5b094101","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":207,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"d60e6cf3-b9c3-45a3-abb6-1bc79c27afe3","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":207,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"a78a34ac-b1aa-444b-a8e6-84e28316f66c","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":207,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"c22e472b-44a8-4553-baf6-accff2ad9062","block_type":"box","text":"analyses of proposals.","page_number":207,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"67b77a89-ec26-4a66-bddb-acc7888e1afb","block_type":"box","text":"Mergers and acquisitions","page_number":207,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"b780e347-d511-4047-b7d1-5f9eeaa2723e","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":207,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"4b8b3b10-4cf8-4a73-af63-9251d1b880af","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":207,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"1cec557a-cf58-4286-8756-207294b24a3c","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":207,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"ab57725f-5980-410f-a606-37f049a419c0","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":207,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"1cdffa27-54fc-47eb-8b65-ef89b8f4eafb","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":207,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"17f3332b-9614-413e-8c55-996c7b3984d5","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":207,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"d7e5fd2e-ea69-4ce3-9ae6-d01d253b1122","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":207,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"fe53c2db-b7b1-4dab-97fb-d8a1c9d91e89","block_type":"box","text":"Anti-takeover defenses","page_number":207,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"5faa1f3b-7dac-4789-8ea2-a8c564a06e2d","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":207,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"1c337cfc-b42a-4a42-b480-4c2a6c3d7362","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":207,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"285c5b6d-f7e2-4afd-b867-cb0ddc419707","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":207,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"7432b35b-6f2e-4255-8222-98240969a6ba","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":207,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"5d8bc105-a711-4bfe-8bcb-15a04ada01cd","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":207,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"f1ed9282-738b-4a47-8a61-efb789a64e5a","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":207,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"23efa307-fdd9-47cd-ba71-226cbbfb9053","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":207,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"81f75790-0cf7-4c6d-ad10-76272bf444b2","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":207,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"dd3abcb9-7684-4c9c-af42-32a00d4518ee","block_type":"box","text":"Shareholder activism","page_number":207,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"151758c4-27ac-4a4d-ba67-6363293ca09d","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":207,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"f2e95b61-0161-4570-aca1-1d79c1a048e5","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":207,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"df28bc26-1b78-4c39-8e12-405c8a1cde2d","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":207,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"11872779-e1b3-40c8-b4bb-09aeb3e6860b","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":207,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"a3eb1b93-877f-4b11-80a9-972801b9ea53","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":207,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"442fa28c-cb18-4dac-ab9f-24a5635b691a","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":207,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"7e160f8a-c7ac-4480-b419-764d8e89cc90","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":207,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"7b2f877d-6684-47ba-8b39-47a69d5db959","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":207,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"7ce99c42-0a8d-4f45-8a65-bfe72c3117d6","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":207,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"c5a0c0e5-3397-4bec-949e-ffdc9303a369","block_type":"box","text":"protecting shareholders’ interests.","page_number":207,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"281fed49-5ca2-4d37-940b-c5e370092700","block_type":"box","text":"Significant shareholders and related party transactions","page_number":207,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"7ebbce8d-24b2-4ee2-aa4e-ee2eff074d03","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":207,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"0c43c2f5-4460-44f7-8bc9-53093bad649b","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":207,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"b348d631-a4c7-424f-8c02-246a47d84eec","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":207,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"32e53cb0-a9eb-4d99-9b02-e5e843c5bbb0","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":207,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"646e8a5f-704b-4d70-9660-fe87eb8953c7","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":207,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"e3a4189a-0c1a-4448-92b7-f1ea11f070f4","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":207,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"c9422aa0-c6ff-44d9-93cf-24a4752215f2","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":207,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"7847c25a-e7d3-4c9e-9172-be5a789ebf00","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":207,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"8a8f3ea7-acd2-4136-8534-5aa2fa8ae240","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":207,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"2bfefff6-465c-46c3-b35b-50af4d158de0","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":207,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"8c4a2274-b426-4045-afd1-ea3a1c9e117f","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":207,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"aed8a648-f226-40f9-9445-2a277aba051b","block_type":"box","text":"audit.","page_number":207,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"6f8e416b-326a-4afc-8fcb-105d2de16e0f","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":207,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"5861f118-2f2b-46e6-821b-84f1ebdab9b8","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":207,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"bb1c78ca-8cf3-41a5-9daa-fc3f36421c0b","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":207,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"1eb83b8e-3bc5-4420-9362-e5d6c006084b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ed94cbe9-f0ae-4a69-8c33-9b2d3e1868ec","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"5b1335d5-44e9-4a9e-bfdb-b6fda5e5262e","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2395c192-6444-45c0-823e-696d29346281","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":208,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"697c4263-0fde-464c-816f-52f8b4c019b7","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":208,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"8629587d-2263-42f7-8353-268e709323c9","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":208,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"0880eaab-efca-4bcd-b094-a7ed9af02246","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":208,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"29a9981e-d66c-44e0-9011-8a11695fcba9","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":208,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"e48be06f-7f42-4d67-b3cd-7e3495853ace","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":208,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"34011b96-f767-4f55-98bd-bcbd61887a93","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":208,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"04d73a91-6875-4213-8bf0-8c7e99d04a3f","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":208,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"c10465b4-05c5-43be-bfa9-8d3ac569c4f5","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":208,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"8a322597-bd0c-4a84-859c-db83ae0a8f71","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":208,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"cffaebb1-f075-4390-b843-cb2c4f53e6c0","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":208,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"f1fe7eed-5d6b-4a14-b999-69b721081f55","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":208,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"1f906bc0-d027-4a41-b7dc-3056b1cc0424","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":208,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"638a8c4d-d2c8-40bd-aff5-fe4ae04c066f","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":208,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"e3925c09-cae8-45dd-982f-618ae236cf77","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":208,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"2a04b2eb-5d50-482f-a841-f9aff10df10d","block_type":"box","text":"9","page_number":208,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"e29d8a54-c09c-4d10-86ba-a706884b100a","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":208,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"19fa80c3-ef8f-4c22-826c-e192694df2b4","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":208,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"f5e688e0-8c0c-4e27-9986-c713bca07fb9","block_type":"box","text":"standards specified by policy makers.","page_number":208,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"f84b6437-2acf-4bc4-af9e-be249b4802df","block_type":"box","text":"10","page_number":208,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"83ee5e9a-f2b6-46c9-b612-27378cece6e2","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":208,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"1ea05729-ddd4-4d16-adf5-d5936fdacf1d","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":208,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"557b9d72-b941-468c-86ca-fed6bfa47806","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":208,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"256734b8-a579-4f21-ac73-c3f18dfa0cee","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":208,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"13fe03ed-75dc-43dd-87ea-43c930b9f249","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":208,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"dcc2f8ed-5004-49a8-8919-a580f11dc3cd","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":208,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"e0bc2592-4d52-4d22-bf25-b654f360b724","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":208,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"f8f7ca5b-d53d-4007-bcc3-90c126749426","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":208,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"c85469d5-ba7a-457c-a804-7244b3c1bfc0","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":208,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"03d33c89-1b1f-4ce6-ad31-fe3966bed9ae","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":208,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"f05782cd-ae29-4e64-acdc-a74cfce25679","block_type":"box","text":"remained independent.","page_number":208,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"75bb976b-de63-4da5-b259-1df6863c5807","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":208,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"242b973a-9615-4eed-94a5-4ffc40411cca","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":208,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"14aba18f-59cc-4fff-9cd4-71dde281405b","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":208,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"7d20fe88-2e46-4579-b157-a58d3cf107d6","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":208,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"5d7aaa04-3b4f-40e6-9c2a-0865ea780af8","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":208,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"1463ee90-62b4-4a78-8aef-b8205f27da15","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":208,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"44e057dd-470f-4f6a-9c92-d7e589984bce","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":208,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"36d82ccb-7714-42e1-b448-343bf2ef620d","block_type":"box","text":"General shareholder meetings","page_number":208,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"ab214db9-7142-46e8-b881-91941ecf6b86","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":208,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"4ea47f84-397c-4dce-aa5f-9d80f58f26d8","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":208,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"553efcf6-5630-49ce-ba35-7da6ad783c5c","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":208,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"ff658b6f-2778-411b-9fa3-5dd5978412c7","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":208,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"69fa095d-c28c-4f03-9d7b-bb8ecb49c468","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":208,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"1e75eb4e-2353-46d6-9947-2c879ff32410","block_type":"box","text":"an in-person meeting.","page_number":208,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"bd57ebd0-7c1e-49ff-b8c5-28d35c75dea6","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":208,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"8c979b1b-a35a-458a-bfed-3d7376413f71","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":208,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"d928cf55-09e8-4b5c-add7-4d00a69dba33","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":208,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"6649d88d-7fbd-4cc6-82a0-23304261a90e","block_type":"box","text":"par ticipation.","page_number":208,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"a9c9377d-2df1-4b1d-9d71-81579c12a3fd","block_type":"box","text":"9","page_number":208,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"6cf8a390-7d7a-41da-95ba-299ff76477b3","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":208,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"5340ff83-890b-48c2-8b81-294e37894409","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":208,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"0461e5b0-0b31-4e4e-adf6-7926662d168b","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":208,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"91f670ea-3df6-42e5-81e5-204f248ae926","block_type":"box","text":"Disclosures.”","page_number":208,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"2209412e-c9f4-411c-bd15-655a5f5ff746","block_type":"box","text":"10","page_number":208,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"37f9ea4f-e1a3-4f71-bec2-18b37d17a3a9","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":208,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"731ff754-56b1-4686-9075-708c13690e80","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/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":208,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"0d919c62-52f0-45d0-9486-d7b5e2111fad","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":208,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"c7a0ebfa-7748-4cc4-b870-7de1bb95c89d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b3240eaf-638c-4bac-b589-4b1123027d6b","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"ff679f46-0cfd-4c57-a579-35e83b2be382","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"53c042c0-14d6-4bbf-b4be-465701458c42","block_type":"box","text":"Bylaw amendments","page_number":209,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"e135ec91-5e67-4030-8b2f-93b49c438723","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":209,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"53e6f458-1c6a-4815-a61d-9f3b6e467a4c","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":209,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"f8a180a1-8f6b-4e0c-95f5-c1e5dcf6d28d","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":209,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"83225d49-09b8-4773-820c-b42f785965f1","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":209,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"cc4d33e0-43b3-4e53-83ae-6d2b78a7fff3","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":209,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"53da05a8-4a5e-463c-bb31-8603a1d3e8cf","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":209,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"606b413a-aaf2-4302-b1c6-f72d5f645f18","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":209,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"facc0fc7-ebe7-41ac-93cc-b22115d4679c","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":209,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"80128942-fd1c-4e88-a34f-b53fb439ae0e","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":209,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"31316944-e093-4e75-a0f4-d047531839df","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":209,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"ec9fb47a-cb6e-4a77-b17d-912e620c210f","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":209,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"07d14647-5a6a-45c2-afbc-ffe0c5cd9ee0","block_type":"box","text":"nomination process.","page_number":209,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"ee230b52-529e-4a82-ba9b-ba0c62116b84","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":209,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"bb1e3b5a-00f5-478f-8f74-13d33d3ab2e1","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":209,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"42963e90-8331-4d19-901f-3d7b60ac0ca1","block_type":"box","text":"Change of domicile","page_number":209,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"b69dc87c-0b82-490b-9f61-33685e961040","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":209,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"787ed071-b408-4d61-a084-834a76c9afd9","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":209,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"7990b311-2346-40f0-8e04-f7975fc99157","block_type":"box","text":"immaterial.","page_number":209,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"f411afe9-a63e-4f0d-8dd1-5537a0fd9ec6","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":209,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"d0a6ce0f-6128-476b-a2e6-d58ae8cb011b","block_type":"box","text":"with our clients’ financial interests.","page_number":209,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"171554c5-489d-4ab5-b6ee-fe3d0b3c09fa","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":209,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"75407253-07b2-4adb-8785-562cf911a6b4","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":209,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"d51d1a2e-cd42-4987-9a5b-6155f92e82da","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":209,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"effe0925-940d-4092-be41-053bcbf5b542","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":209,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"3a44db5a-7850-4bc5-9f8c-62cc43a9013f","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":209,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"3ce1ec2f-3427-482c-8b30-17136b54fbc2","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":209,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"6d26ee4c-da07-41b1-b4ae-a7782fa3164c","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":209,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"026e1664-c397-4fd8-a5e3-e2527d489e28","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":209,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"45c99380-cbb7-4776-af1d-9eda5bbc7dce","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":209,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"41f9e152-aada-4f81-b778-b8f8c5df2db4","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":209,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"505e73a3-28cc-4337-b836-9d7ba88e0792","block_type":"box","text":"relevant to a company’s business.","page_number":209,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"dfdb3517-18a6-4139-abca-38b3375c9220","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":209,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"b7f11353-f431-4e56-91b6-b86e3e2c0a7e","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":209,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"e1f5dee3-7625-44c0-a20f-a6178e16bcb1","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":209,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"3bbe2119-289a-4071-976e-741e0b6887fa","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":209,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"f416d270-a690-4045-a699-3f5e871bcf6b","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":209,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"0ae26bbb-d52e-409b-a577-435e5dc277c7","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":209,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"2b3edeb3-9513-4454-80b4-0e7668a1efd6","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":209,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"63c8b96b-c7f1-4983-9ca0-a59eefbb2bdd","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":209,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"a1427d8c-411e-4303-bc7b-e81dceb0ebc2","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":209,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"0c67d0ba-7048-440f-962f-ff5ed14066e2","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":209,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"73ff84d4-0562-4697-81b1-f01a04c9b518","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":209,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"ab29f0e2-708c-4e41-9f91-9dc0064990be","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":209,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"8fe7f482-3a3f-4d23-9e29-5cf42cfe21b1","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":209,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"0a6614d2-d11d-4cbf-8ea3-bddad0d47b06","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":209,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"cab2910e-7e9e-4a47-942c-72cb17f1e42f","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":209,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"9afc9df6-8061-4379-a8b8-b6556c43eaae","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":209,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"54c64145-e954-4dab-8b66-96b3fc42dcdc","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":209,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"05090b50-c1b7-470e-a9e6-e1fde755df6e","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":209,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"175ffebb-c99b-4014-892c-d668485ba512","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":209,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"f4550cd7-1e38-4f13-ac43-acb8801171d4","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":209,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"a9ee4062-3161-4425-91f5-d47835389f6d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9a389fcf-31c3-4112-b0bb-d5e798a28a54","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b3bdb8df-26d2-4910-9f98-24be6c30eb39","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"362c2796-fbbd-4b1b-a981-8212d50e1bd1","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":210,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"1657850f-fa92-46cd-813c-fdbe679360b0","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":210,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"094b299d-2c2e-4413-ab6b-b64505706e08","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":210,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"4b7de67b-8bb1-4372-b818-4b436c47fdfe","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":210,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"61cca115-c4b3-428b-9c6e-961663cbe5e8","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":210,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"9195eae9-df81-4d38-8a76-a1f7888311e2","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":210,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"13defa6f-71ed-4d13-a5b3-76472ee3cae5","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":210,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"fdac5b88-d997-4102-8c0b-1266f33439c6","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":210,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"c78c4171-939f-4ca2-b5ab-e89c210daf17","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2e5a5fbf-99b0-4907-a48d-2d438fa5b882","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":210,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"267d6eec-c8b0-40f2-9a23-b99c4fda1574","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"911eb1f6-0e86-41e9-954d-cf4133a79d82","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":211,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"3be74947-bf7e-4304-af0e-337a74f90d15","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":211,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"c5888ecc-04a9-4e9f-9919-369075810fa2","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":211,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"04048aab-448a-46b3-b465-76f5be12f02c","block_type":"box","text":"11","page_number":211,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"7dbf0362-b0b5-46ce-ac1a-e9e885c96f78","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":211,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"a1e6458f-e0be-4fbe-8ee7-da22d777294d","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":211,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"6b471eef-3b57-49dd-ba2b-9753bde44041","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":211,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"6ca6f515-9d40-4892-a56f-5890208ebd9c","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":211,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"09754d78-827a-485d-86f3-ca6a826843ab","block_type":"box","text":"regulatory requirements.","page_number":211,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"7c4c55f9-3ef5-4ccd-bddb-0395f1222dea","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":211,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"3d634aba-393d-4a1e-8262-1cc112138f12","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":211,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"e8757e1f-de27-4c22-a84f-8c272bfb70bd","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":211,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"68081a0e-dcbc-4d61-bcf4-b6d03231d2cd","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":211,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"877024b6-c9e2-40ce-93ae-7148622da5b1","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":211,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"d67c6082-172b-4c84-8e2c-c04c399d6c23","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":211,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"21954cc9-1090-4c73-87a2-22cfc081277a","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":211,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"d3c167b3-54a3-44f4-996f-e0615354ca63","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":211,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"b6c78a6d-59cf-44f5-82b4-cc6137e342e0","block_type":"box","text":"returns.","page_number":211,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"fb1f85b0-652a-41d1-9e02-85ee2d8b533d","block_type":"box","text":"KEY STAKEHOLDERS","page_number":211,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"52673408-3984-4b00-917f-7d36a2c1a7b2","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":211,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"5c7a15af-3fa3-46f0-9b9a-33eb092a8edf","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":211,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"7fb489a4-6c16-46c9-91ef-52341a2ab13d","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":211,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"12ac5888-dd85-4af9-a0c2-93ba90ec22f4","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":211,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"da24c3dc-84b3-4ad6-8067-6d8bc2ba0c64","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":211,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"54ef7ae0-40dd-4acf-8458-71ed8ba3ecde","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":211,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"8abbeea7-0943-45c3-ba08-5d64cb1b50b6","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":211,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"ce31c2ee-0458-4bff-aa87-714a5f8ba48a","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":211,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"c079a5e7-abc1-4133-b4db-bed9df47e3a8","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":211,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"d3f4b24a-4155-4670-b53a-87a10ddaf43c","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":211,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"32e67fc6-1d85-4917-a113-702a8b44acdd","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":211,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"6375e6b9-c4ee-4fcf-a33e-a94631059c76","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":211,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"6c392850-7fd1-47d8-a701-b2c6ab5d7e33","block_type":"box","text":"i.e.","page_number":211,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"68eb53f1-2274-48f0-8d29-6758dc56a07f","block_type":"box","text":", one in which global","page_number":211,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"5a73760f-1d4e-440e-ab94-08f24b077a86","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":211,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"e967aef3-4469-4b22-bff1-33d935799591","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":211,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"6bb07f8d-8516-49e8-bfc4-ef7d53e0981d","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":211,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"c782920d-d26b-4b18-a23c-6f4ac0649a0e","block_type":"box","text":"client.","page_number":211,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"b47ce069-f5e8-45a0-8a8e-d25dedb784a6","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":211,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"63885c9f-cab2-490b-b642-00fedd500cd0","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":211,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"ec1b36ab-2509-4ce9-9554-9ae13370dab8","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":211,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"504efdb2-aab5-4e40-96c8-cf84733d250a","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":211,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"f9d5ffc2-ffd0-409c-b265-17dbd6104382","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":211,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"78f5a4e9-dc41-4053-a103-abd6d076e0f0","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":211,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"4bedb1d9-a6ce-4c9d-901e-6bc6b5f64b13","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":211,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"31d41b3a-44bf-490d-b055-653fee30d9d0","block_type":"box","text":"1 and 2 emissions.","page_number":211,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"6c31553d-65d4-4fa9-86bd-20329f9d6d21","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":211,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"eabcba82-084a-4371-9ff8-9117f18aaba4","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":211,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"b055d0d5-a0c8-4a1c-b879-9b094044e64f","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":211,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"a0c987c5-8c72-41e6-bbac-c1f09f160dd8","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":211,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"c77accbf-6d11-4245-96dc-ce213c592ba6","block_type":"box","text":"11","page_number":211,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"2c07de10-1216-4a31-8ff1-cb92417af498","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":211,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"33aa4d38-a910-45e0-928a-91f8cf9d5458","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":211,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"eede61aa-0101-4d8e-b270-dcf86e520f7d","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":211,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"82104669-fa2b-47e6-a9bc-ff83265d49bd","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":211,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"84dc0d3d-9411-4da3-9cb1-a46c4fe91611","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":211,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"8e1ebfd8-805a-4261-8161-13be91a66c0d","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":211,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"a1d8bfd6-ac99-47a1-b535-4125890dcc0a","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":211,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"1ff34310-b352-4bfb-8ef3-3749c3830fae","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":211,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"9080352e-53dc-4d93-bdfc-f359f6243c0f","block_type":"box","text":"sound governance framework.","page_number":211,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"95cbbbb5-fd80-4fc7-be75-1caf7ab250cd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c49f154c-fc8f-444b-9320-d496929a9b2d","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":211,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"63d76918-dc39-4f11-9d91-2c80110d21f0","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"80afcd1d-2571-4f70-9131-13228fa9bc96","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":212,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"605fc52e-4c92-449c-bf91-f26340bb5592","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":212,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"80a86315-2289-471a-a9a1-ee51802900bd","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":212,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"a6fd2941-da27-4706-a310-3d8c9c06478d","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":212,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"b5ec2ebc-716b-41a7-8ba8-0effdc0d5dda","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":212,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"caa5215b-61cc-44e7-a3ce-310e06e52ece","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":212,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"fb3a762c-6005-49a9-88d1-34af5bb4f510","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d688333c-5488-4e2c-ab58-0eefff8cca46","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":212,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"42fb36af-da28-4138-877b-ad57d963afc1","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2de1a521-e893-40d9-b339-f83a77e92e8f","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":213,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"7a62ce28-4fe2-479e-89d4-760563d06658","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":213,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"0fb0213d-c9d9-487f-a4a8-8693c1cf05ed","block_type":"box","text":"Oversight","page_number":213,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"8d5eb6e3-d6bd-4ad1-9d4c-3b2072511c9f","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":213,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"dfe7117b-76b8-42dd-8333-e2bfc871f82e","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":213,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"bee52af9-a810-491c-b73d-e954ab0592e0","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":213,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"49195f0f-b8e5-460a-870a-928c97e39c66","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"7b7ecb34-33f2-4f57-b0a5-eb2768f6f2e6","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":213,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"2b17870e-22cc-4c4d-bbaa-9e9200362208","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":213,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"1f061431-fe8e-4623-a997-bcd04d7d296d","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":213,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"3f1ff33b-0590-42b8-9aea-6fe151ba5bce","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":213,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"80cf2f63-e17d-4e46-a3db-ccb327ba639f","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":213,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"ca0b3242-bfc4-44b2-9068-c810e7e555b7","block_type":"box","text":"relevant active equity investors.","page_number":213,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"29388c37-d733-41b8-b67d-e29793d08057","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":213,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"a7f4447c-210b-47ea-9543-4189ee083b9a","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":213,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"17d4ebc2-d827-4bd1-8841-60792251611c","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":213,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"57394682-96b4-4efd-ae93-86ff64c7ae0f","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":213,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"0de22db5-548d-4851-83d1-8ec2e0645e3f","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":213,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"2773e121-d60a-42f6-921a-8912f3b1712a","block_type":"box","text":"third-par ty vote services providers” below).","page_number":213,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"092109ca-a4bd-48cb-b75c-aafa999629dd","block_type":"box","text":"Voting guidelines and vote execution","page_number":213,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"5decae92-725b-4094-9759-86307fd30bb6","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":213,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"f042aed9-16c1-44fe-bb39-692d8752dbc6","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":213,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"472f1b94-518b-496e-a74e-26063b9365eb","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":213,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"1684a89b-8547-48f0-bf9e-e19fe00b338f","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":213,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"390c6d81-ddba-40ed-8348-c34e212ac14d","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":213,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"85258b09-c4c0-488b-8da1-ca62c7c6fd65","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":213,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"487049ae-13a7-4a54-b113-b43676826f04","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":213,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"d4340490-ca35-4721-ac26-1706a34f2999","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":213,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"24342f65-2572-4875-8870-a814fea3270f","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":213,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"2b15ee03-02f4-49b4-8b42-a79a84f507bb","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":213,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"3d6a5d64-f561-4b90-8e97-3db427a3e2a8","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":213,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"57396af4-ecdd-421b-a9c4-7d2ab2f0102e","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":213,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"3d5d2577-2d15-412c-8524-f0e686349f89","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":213,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"99750e0c-a300-4fa5-9a52-465c6617efe8","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":213,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"d81f2edc-244d-4e94-9f95-ec1c6d62e9f7","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":213,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"fdf06a92-cb15-497b-ad20-d6727fbf4129","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":213,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"d351594a-713e-43a8-a223-0ed29d6e996c","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":213,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"c5fb5c1a-e38d-4933-9b34-a1aaf629773f","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":213,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"c9a6aedc-5e85-4557-bf51-12484c8dc6d5","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":213,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"4a39a07c-965a-456a-a663-424981088f90","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":213,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"de412644-dcb9-4514-b19b-90368548a7d5","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":213,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"8270899d-669f-4164-887b-8fab8661b9f7","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":213,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"37797c56-27eb-4f75-8101-e60d945e0ed7","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":213,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"f0ca4bfe-2719-43c0-ae90-5158a8bab1df","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":213,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"9d7d97f6-8603-4341-b488-0c70fb8aee21","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":213,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"46f228c4-0844-420a-a7d3-7046ade0bb01","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":213,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"70809d1c-09bb-42de-8275-52fda4f58828","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":213,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"b2e4ff4f-29b4-47de-bec4-400c6d5b5cc2","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":213,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"6d386bfe-1c4d-4593-b5a9-40085f92aed2","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":213,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"8deafd8b-5ff3-47d6-98cc-4ce86daba7ba","block_type":"box","text":"Voting Choice","page_number":213,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"ac2b729e-e283-4305-be8b-a6e6a40d657b","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":213,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"0494b3e9-67c4-4d6c-8197-de3ef89ef299","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":213,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"2d783f04-ef82-4b88-9129-26918794210e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8ef15bde-3c08-4494-8e83-fdc64be2ef2c","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":213,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2038ca2c-d7c1-426d-a904-0ee5b6e65cbe","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b954fe3-c51c-4e57-bc10-8788a2ae5a04","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":214,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"0ac3fc84-95fa-474c-be59-58da43a12467","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":214,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"d2a9819a-9476-45ac-8e30-aec4a85d7d7f","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":214,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"678ca3bb-f0ee-41f2-8cb4-6fe7cf250587","block_type":"box","text":"strategies.","page_number":214,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"63fd7b6f-b111-4c91-a208-8d37d635dab4","block_type":"box","text":"12","page_number":214,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"e648053e-6770-49f1-a3ba-ddd30d236080","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":214,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"e81a2121-e9fc-40ca-8efe-218c4840ef97","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":214,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"2641146a-a69c-4d26-bae5-443aa8dc3214","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. 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Reliance upon this information is","page_number":216,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"5ed3afd1-6f0d-4f2d-a74f-602227761f14","block_type":"box","text":"at the sole discretion of the reader.","page_number":216,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"5a681ac8-ff35-4ea5-b1a0-339cadf2eb6f","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":216,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"d49d39d5-bfbb-4d46-9836-dc8aecb88b29","block_type":"box","text":"©","page_number":216,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"e8931912-4e7a-428d-857e-9b94ad7a5386","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":216,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"c1fbc770-63fc-4f96-a062-f0af2ba240d1","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":216,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"7741eed1-bc58-4df5-95b3-8de4d4219119","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8fe4e4df-9943-45bd-a8f7-32dde4ff17c2","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":216,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"00322819-da8a-4e66-8435-673bf52b0a8d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a452666e-d0d3-4af9-9c66-ef7b91a5c0b0","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":217,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"9d9de7e8-915a-43a6-9046-65eede6ebc80","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Funds","page_number":217,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"6c3b3897-d7b5-465d-b113-8acb8ae0a9bb","block_type":"box","text":"□","page_number":217,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"54e355e9-9f80-4ee5-aea5-5079162e5632","block_type":"box","text":"Money Market Funds","page_number":217,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"9edefc87-f5d5-47e0-988c-4d8a17f5140e","block_type":"box","text":"□","page_number":217,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"b03f22a1-e3e6-4574-a6a8-ecec9c2072ff","block_type":"box","text":"Closed-End Funds","page_number":217,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"7d1c4b40-d654-4f75-9eb6-7e4ff1ff3be7","block_type":"box","text":"□","page_number":217,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"2bd6cd91-6e30-40c9-b36c-b40b0bc825e4","block_type":"box","text":"Other","page_number":217,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"e0f23e98-be07-44c7-91df-a35b4509e92c","block_type":"box","text":"Objective and Scope","page_number":217,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"975497bf-5d43-4487-a66d-d9c87ab4b255","block_type":"box","text":"Set for th below is the Index Equity Fund Proxy Voting Policy.","page_number":217,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"a48cf5b3-afdc-41fa-814d-1f1d71a849f5","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":217,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"ed5afc7b-7d82-4b71-8d2c-e56fce6d9922","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":217,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"cd40a2bb-c707-4b1f-ba75-be404a637b5e","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":217,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"776d369f-71c3-4901-baa2-6e5d9af49e33","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":217,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"27d427a8-1ec9-4c4a-ba5e-4dba4b44ac63","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":217,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"b1c60059-9bb3-40a6-96a6-b7b780576e44","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":217,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"5daa7772-43af-4a26-a3f2-7d39e37ba094","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":217,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"95ee5a0f-461e-4390-9de6-a8b8380fdca8","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":217,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"0b30d3a8-fd10-4293-a2a4-2afb5bbbdab2","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":217,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"c2f7debe-16fd-4c88-b506-34b337f16964","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":217,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"c158a2ef-4392-4498-b76f-ec3bbaecf926","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":217,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"6b75db0d-2912-47df-8bbc-6029af5e0dea","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":217,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"ae5c7e93-3d60-4740-b2f5-cf87c8c5c484","block_type":"box","text":"Appendix A.","page_number":217,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"5e5f4d96-334b-4384-b1f5-b4fcb0c165fe","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":217,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"549e9ffa-cf81-477b-a229-34e49244b672","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":217,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"5d1e50a4-188b-4878-b57f-286d66d9e85e","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":217,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"d87f8d65-5604-48b3-a88a-8402561c79d6","block_type":"box","text":"Conflicts Management","page_number":217,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"27065d95-99fc-43b6-a390-244cce657427","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":217,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"61986721-d731-4276-a030-e5e8709f5b57","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":217,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"eebece28-12d7-4962-b817-ce9b1b23ea5f","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":217,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"ce53f8ab-f0b5-4aba-b805-487198a6c711","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":217,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"55aca7ad-06b7-43ae-99b3-3bf03ce1370a","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":217,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"f3de755c-711f-42d3-9e95-ddfb772d0eb3","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":217,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"1191097b-fb61-4307-b525-8c2b246ad259","block_type":"box","text":"connection with proxy voting.","page_number":217,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"d426c2a9-0dc0-4fcd-b009-f579844d7929","block_type":"box","text":"Reports to the Board","page_number":217,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"9053e9eb-719a-42fd-b063-5b991310f159","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":217,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"109054c6-ca55-4e68-b7a9-860f985627a0","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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These are topics that shareholders may have","page_number":222,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"c3f1ed66-f55a-4135-9d54-1dd491bf3fc9","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":222,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"1b8958af-3a3c-420e-84c3-0b67e5ba7e10","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"2f8089f6-fecb-4fba-a65e-8c4c488d4c9e","block_type":"box","text":"Boards and directors","page_number":222,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"4b61e4b9-d9bb-4246-a17d-405a99dbe1cc","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"de91fc30-b262-4955-ae7f-6fb7200112ef","block_type":"box","text":"Auditors and audit-related issues","page_number":222,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"418da574-956b-4f8f-9c1c-8782389c49b2","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"396ab38f-5ae9-47a8-a81e-bbf70ad60b4a","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":222,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"611ffaf3-9ac5-423e-83fe-e17febea6d98","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"a7b0cc09-f35a-4bdc-af5a-d66f20363e64","block_type":"box","text":"Executive compensation","page_number":222,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"f54ae2c7-d069-4f0a-b3e5-fd62a1a09cc8","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"fe7db0e6-e9c9-4f36-84ea-1f66987052a6","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":222,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"71b75bd5-509c-4407-9def-6923419c8323","block_type":"box","text":"•","page_number":222,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"54864eac-ee99-4574-aa43-777102beab42","block_type":"box","text":"Shareholder proposals","page_number":222,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"e53704cb-74d2-4089-8327-59c25919cd62","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":222,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"8e07a0cf-89ce-400b-ba7a-13c0d6027df9","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":222,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"264aa122-4569-4f0e-874a-a08da865accc","block_type":"box","text":"which companies operate.","page_number":222,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"3421229e-4701-4b28-b89c-3e0d9a005d5d","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":222,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"624cf466-e423-4e09-9452-affbaa4dfaa7","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":222,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"0dc1892e-a5b8-43c4-b367-c83a5368642c","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":222,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"e18cc3a9-1a11-4af0-b683-1bfa6d89d466","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":222,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"76dc2880-4345-46a7-b04b-08fb50aa3985","block_type":"box","text":"4","page_number":222,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"eac12645-a74e-48dc-b4db-f6b64ee2fe64","block_type":"box","text":"3","page_number":222,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"de45af36-9a8a-4a35-a6de-834b85f3d8c9","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":222,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"16e84425-bb7f-442c-a3f4-5aa7cf6440e0","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":222,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"89e951f8-4fea-4cbb-af03-ad77f00703a2","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":222,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"221b64ca-a385-42a0-af6e-318a0f4576cd","block_type":"box","text":"4","page_number":222,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"6859d97c-fe74-4f5c-be1e-e94549324c6c","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":222,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"050d2009-aa0f-495e-928d-810307792084","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":222,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"8be53762-fdeb-45d3-8791-153473fc682c","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":222,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"dbb966dc-6da8-40b2-a7f8-ac66a2ab624f","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":222,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"a9564156-c559-435c-a508-6471ff9043e9","block_type":"box","text":"guidelines.","page_number":222,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"9f653f70-8553-40e7-8ce5-c81fa703c92b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4c881967-9b57-4870-9428-b6c73046e900","block_type":"box","text":"Global Principles | 4","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"6b55440e-0c50-4f1e-80e3-13d876f5ed34","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e5197691-c175-44b9-af4f-4bd38d542ca4","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":223,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"f992325d-c137-483a-ac65-62b4bdc25df9","block_type":"box","text":"Oversight role of the board","page_number":223,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"8fd72d43-bd71-49bb-aab5-16bdeea6a0fd","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":223,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"2673fe46-23d6-4549-8d4a-626a07e7991b","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":223,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"96a539f5-498c-4ed2-b9bb-3d6dd356df6e","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":223,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"5b1419f9-13d1-4cf5-b629-a986d63eb3e0","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":223,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"3546e9eb-644b-4f09-8bb6-98624713d99d","block_type":"box","text":"long-term financial per formance.","page_number":223,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"2cfaa73b-b1a8-4c8b-a004-a6b9bdd1d354","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":223,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"2b4904b9-f749-498e-99b4-ab984bd3b1f7","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":223,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"dafe1932-f707-40b9-ba83-56d383debcb6","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":223,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"3f734ed5-d693-4db1-8a3a-7410448dd4be","block_type":"box","text":"the business environment in which a company is operating.","page_number":223,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"1128ae2b-890b-4c59-8f8f-d648fcde26d2","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":223,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"10f95866-88f0-4ef0-a4e6-be675063cc74","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":223,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"bbdb788f-4dd0-4502-a376-c3ce8619d084","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":223,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"3458fd64-b15b-437d-8929-51d8e0a5d3b8","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":223,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"a73abd18-cf70-468e-a8ef-4e67f2195a89","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":223,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"3302f8d7-af98-4448-a184-19a21d5ac9e8","block_type":"box","text":"mitigating such risks.","page_number":223,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"e76f2c98-d8b6-48ee-9be3-c41f0ff05bd6","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":223,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"79f27fb0-3715-4011-a4ee-9e93745e6767","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":223,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"b777cbfb-cc1b-4302-9733-872aa7491c68","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":223,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"b9793569-1d0a-4ef7-976e-01caa0f797e3","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":223,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"b70237ca-7f8c-4b3d-8177-45f553fd6aab","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":223,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"0cc610a5-5425-47d0-a5a6-37e932db52eb","block_type":"box","text":"strategy.","page_number":223,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"6acbf5c1-d2e1-4dbe-aa2c-85aa643baf21","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":223,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"1e075a74-348c-468e-b086-289a30bf20fe","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":223,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"50814d03-68f3-4c4c-8d2d-9a65aaa9a1b3","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":223,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"654ececf-e5e9-4c91-8265-e67080a50758","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":223,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"b07ed310-9007-458b-b3c2-40c3ef9685bd","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":223,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"dad9d586-6eef-4832-a7bb-15a23970ddf7","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":223,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"339b1533-1d75-4eea-b395-9cf5952a3293","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":223,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"93e107b1-6c9d-483e-b630-536df21c98ef","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":223,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"fff02803-9622-43ed-b28d-9b519547628e","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":223,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"eb06110b-197c-46d6-b243-cf8f238c20c4","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":223,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"f21f5f9d-3eb0-4b84-b045-c399e4eaeb98","block_type":"box","text":"Regular accountability through director elections","page_number":223,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"7b7b03b1-70f5-43db-abfe-02ba4353d4c2","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":223,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"5e776825-c16c-4b69-bf59-565d2351470d","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":223,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"6c1a9afb-75db-44b8-816f-5d0c621ebf4d","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":223,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"bc32b0ff-da34-4480-8b4a-e413fd0fbf6b","block_type":"box","text":"5","page_number":223,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"de3edb62-c07a-459d-a819-97bf020340c6","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":223,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"bc9a6c11-9683-40d9-baa4-4cff9830f549","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":223,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"b9747d31-678b-4c40-9dc0-7811c0457f08","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":223,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"cfb471dd-cba1-4d46-a6c4-fe28caecfa9d","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":223,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"b3ac4b37-633f-4959-859c-4555f1f425cf","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":223,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"53a8bb87-5318-4491-a209-29c7ee53e922","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":223,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"d42622cd-8869-4b86-9ea3-6ba70b304268","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":223,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"7a1d1952-467c-4b67-bd26-be7a9b0bddec","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":223,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"c94f771e-37e0-41c0-8ccc-7888d56ab670","block_type":"box","text":"5","page_number":223,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"bf1fd228-0cea-43c6-962c-99129d09bfd8","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":223,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"6060da9c-1c4a-453b-a386-40e04bb3fe72","block_type":"box","text":"market regulation or voluntary best practice.","page_number":223,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"66bd2e88-61fc-4d0f-90ac-899567b6d992","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d1c48e69-7ee4-4cd0-a46a-660bb7811be3","block_type":"box","text":"Global Principles | 5","page_number":223,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"5c54412a-c382-426c-b089-7db28b314e2c","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6cc68bab-a9e6-47fe-9a5c-3c5a759c7c92","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":224,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"d9de64cb-1108-4adf-aa66-9d8aab53e49a","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":224,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"d67dc1f0-c2f4-48dd-922c-cd6bffe4cbd7","block_type":"box","text":"recently.","page_number":224,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"49fb0fee-6ea4-4801-9e0b-f44b1755bf2e","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":224,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"65f1cc8f-d3c8-4e68-9847-d59bd8edb2ed","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":224,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"46dafe2f-763a-4081-afce-de630a50dc8e","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":224,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"ccc2b59e-0180-4d1f-ba35-7ece4787242d","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":224,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"411e533a-f5fc-44c4-9606-a7e3b455c679","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":224,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"9bf36fc9-5213-4f1e-8290-96a9e6aa0d47","block_type":"box","text":"Director independence","page_number":224,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"afc55ed3-dd7d-459d-987e-af618d55453e","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":224,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"3c2e8f67-2d15-4d74-b6aa-a50430a7505a","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":224,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"1d5f5d53-994b-46e4-bd20-4af70748e706","block_type":"box","text":"6","page_number":224,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"3303ee56-7c4d-4aa8-ae46-991a04624e8c","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":224,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"2b429f50-b16c-45a6-b4a1-cdfef603332d","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":224,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"230381f2-262f-42ed-89f3-ebffbe7bf83d","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":224,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"9d4e2607-b038-4c94-afd2-4029f427a7fa","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":224,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"30d2aa16-aec8-42b7-beaf-50a5673f29e3","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":224,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"780c439c-6b13-4da8-88af-176fcdbcade3","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"439b3050-3119-45b7-813f-e5af03f2a352","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":224,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"b262341b-73c8-48e9-ae67-b41d653ed4b1","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"0434d213-fb29-4116-9bb4-37339c63cc20","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":224,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"fcd90fd0-e9cd-4a34-822e-a439e793f348","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"a6cb316a-637e-4b2b-ae71-c513e09f4f7b","block_type":"box","text":"Interlocking directorates","page_number":224,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"002591ef-900e-4eb0-b35b-d760ab6f2110","block_type":"box","text":"•","page_number":224,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"509c390e-68cf-4865-b514-72af6676a663","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":224,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"b240606b-9c14-4cf6-9b48-b5c542106a11","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":224,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"bb36660f-cac1-4c73-95f6-071ebdaf2615","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":224,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"93d74790-fb07-4995-bd06-fcc0069fa817","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":224,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"5e75106a-f0b9-4b8a-815c-3a6f3ee6e70f","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":224,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"7e7f7f7f-79c7-4ef7-8d02-613265c88814","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":224,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"3cd59f83-2312-4db2-9944-5682c320976e","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":224,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"5dde845c-ebd0-42b2-8112-a5d1d65b8ec8","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":224,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"8046bddc-cca5-44a4-9c4d-8d3f309d3a40","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":224,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"dea2eb7b-f03b-4e06-9e11-3ff2e61d8a56","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":224,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"5f68a04f-b80c-480e-8d65-2f27af940dba","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":224,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"700949f5-c5b8-40e6-b349-403d78d480bd","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":224,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"935e7b16-84fd-44bd-87dc-696ac6d96d5b","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":224,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"f1951d55-c392-4ca3-a05b-940f09c9d2b6","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":224,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"52249946-112d-4662-830a-644835b63c13","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":224,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"b7f46ae4-8d96-4ff7-8003-7e4d4d48caeb","block_type":"box","text":"Sufficient capacity","page_number":224,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"127a26ba-1c75-4fd0-b78f-1d2bcd9b212b","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":224,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"df3bc6b4-0e0d-45b4-a036-7ef939feb1b0","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":224,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"c16d4b72-2ca6-4ee8-986f-3732b0d53a1c","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":224,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"6bee2379-06bf-4855-989c-f470bb4d69be","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":224,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"6234dc72-dde7-4dfc-be6b-f0e659e6e50c","block_type":"box","text":"Board composition","page_number":224,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"24d6dce2-6fc5-408d-a71f-3c696ffd4517","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":224,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"0fa43a49-450b-4a5a-846c-07bf064f8fc4","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":224,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"81c01493-c2bc-479b-8819-28b29c47f7b2","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":224,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"3ba40fd1-355f-4a93-af05-30e92bc6e6a5","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":224,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"7d26e1fe-3628-470d-aebe-eda2c2b7c41b","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":224,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"b3f34344-474c-4a83-89a4-fa0b73cb355e","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":224,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"7b2a51a4-cb8a-40db-ba1b-1c67ba5a1483","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":224,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"8c79ca78-2a9d-479c-b368-63a3762b428f","block_type":"box","text":"6","page_number":224,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"d2d0a902-af9a-4953-ade8-f055ad5719c2","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":224,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"e08e60f2-13c6-4c46-ab39-1d0f9fd289e1","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":224,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"4fa929d6-65ab-4683-bcda-99f6530b68bb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"84c03659-7a71-4348-b07d-f2c14817abbb","block_type":"box","text":"Global Principles | 6","page_number":224,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"9716aaad-e8e8-4592-81c7-cc9175a3b757","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a241a1bc-1175-4e14-9f4e-3122974f3199","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":225,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"cbdd2ff6-2087-4f22-af71-0ceeb311d697","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":225,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"f6d1a2df-e12c-4431-893f-31ade713514c","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":225,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"971bb510-cbab-451e-b728-11ce1fb4ff07","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":225,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"6913ba9a-5aff-40e2-9a06-fcfb208f268c","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":225,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"7363aa86-3b98-46d8-ab27-059cf6ea1749","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":225,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"2b468cf8-5ccd-4e92-9e8a-16f0c8e6c290","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":225,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"fcca1707-04f5-426a-bcff-ac8cc6f7a812","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":225,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"3293626d-a97b-4735-8b77-504099d64b29","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":225,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"632e654e-5034-4455-9d00-1e322e6f9d1a","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":225,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"9b485f6d-02bd-4cd0-afe3-ca464467d843","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":225,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"40591db3-c312-49be-b44c-c486af26fa0e","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":225,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"689a1c9e-5c0e-4808-a284-89f6545461e6","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":225,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"897b4276-0b12-4841-a90d-8e519c7d78b9","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":225,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"46356bf5-092a-4343-bc9f-032f5c1dd196","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":225,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"a16b1896-2f3d-4bb6-8b83-4f7d67bef94c","block_type":"box","text":"systems.","page_number":225,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"4526b795-17d1-4a9d-9fc2-2db5f27e95e8","block_type":"box","text":"7","page_number":225,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"c870c13c-30eb-4984-aef1-77d235e1678c","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":225,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"1c9ccc52-4dc7-433f-a07a-54b9919d3e8a","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":225,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"f6b93db0-5c3e-4d92-a3f0-9a588e5b1420","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":225,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"b8332dbb-39cd-46f8-9f2a-8247157d749b","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":225,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"a66a5fde-b0cc-4522-a757-5381ab490eea","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":225,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"331530eb-10e6-4bf6-8354-15b26f288775","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":225,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"8f175090-c7ea-4614-a353-0f30a5ae6436","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":225,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"8751a841-4a39-4bbe-b7a9-44861aaf2cc4","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":225,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"d4f824b0-d776-48f7-b349-60ad10c63c0e","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":225,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"8722a684-e3ee-4b05-a1cc-f66dddf931d1","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":225,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"c7e83779-d626-4b07-a36b-4be8246ed659","block_type":"box","text":"or internal audit function.","page_number":225,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"6fd2f177-7a82-4a65-9724-b6327840e7b8","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":225,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"246b1425-2121-4dfd-aca2-79b71d679dff","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":225,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"1e87bed4-5019-4e9e-aa98-d6df2ba786b1","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":225,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"44b96528-132b-4674-b57f-41f7e3a7b526","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":225,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"ecd1204d-9137-42f8-b195-ed5123567fbb","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":225,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"9f4168fe-99b0-40ff-a602-a7255067ca39","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":225,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"2aa1b15f-bd9d-4870-a1e3-4223b4171a83","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":225,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"e634ed6f-4ebf-4318-9bcf-0cef34d345f3","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":225,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"6949b9ea-aa77-47d1-9345-9eebd1ecb663","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":225,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"53e750be-7ffb-48ca-9418-377bc99cd13c","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":225,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"7f813e23-5770-4ead-9157-e03a3a6d3c5a","block_type":"box","text":"risk.","page_number":225,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"fa878a84-d739-4a5c-8b16-b98b6fac3397","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":225,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"51bf8d1f-c133-4e15-9af4-7ac36cbc15cc","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":225,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"4e0b4154-e517-46e9-9094-ccb5261dc332","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":225,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"f4fe616d-38e3-48f9-9e11-e10292795833","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":225,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"32bd0dd2-0982-4b5f-b648-4c94b2769445","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":225,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"8f660cc9-f6c0-4bdb-88a5-cba19cd073fc","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":225,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"4a052d76-c2be-4308-94b7-3b32063bd2be","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":225,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"9d480207-1dd9-49d5-aaae-f08992add93a","block_type":"box","text":"7","page_number":225,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"f6d71db2-66a6-46eb-a926-cf0c7b20ddb7","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":225,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"df5b5f6d-afe6-4f81-beb0-1a1b6abf12c5","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":225,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"78ac6790-1b18-471c-884c-7eddc7d60f7e","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":225,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"03bb76fd-b438-46f1-9a5d-4991a53b7be2","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":225,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"3f22bdaf-794f-48cf-a770-de85d2def57f","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":225,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"6ae2aeef-53c6-4054-8a47-ec14a06ef6b4","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1de2d76a-aa4c-49b8-9220-4e1ef957bfae","block_type":"box","text":"Global Principles | 7","page_number":225,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"81b87fdf-4e1b-4d6a-82ab-eb1926d526a9","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2d0e176-19b6-4b63-ab75-c1738374aa53","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":226,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"2ddcf0dc-51bf-4709-8dda-419ac35206fb","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":226,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"79525dd4-d0a0-482e-8ff2-234ae1fa3819","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":226,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"af2e2448-6f59-4b6d-9273-75a91f0163d6","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":226,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"63640b9b-81e6-4304-b3c2-d4506fc1d1fa","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":226,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"9b7abf4d-81a4-45bd-8f91-7d6f71e6794f","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":226,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"c2653e73-79dd-4200-8744-36c533c3f05e","block_type":"box","text":"minimizing costs to shareholders.","page_number":226,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"cbc01712-49b1-4b89-8294-a78f28d4c3a4","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":226,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"fd58403d-876b-482c-a45e-8f8a0916ba6b","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":226,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"49960c7e-df90-4f5b-b619-aa370d377d83","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":226,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"39e95bc6-4c33-4d1a-aed1-e76104c1e421","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":226,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"d7841887-4402-4102-9ba6-011e6b0cfec1","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":226,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"33163a9b-7fe2-4b04-a202-dbdba76d0649","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":226,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"eb7949c9-d0f7-45a8-8542-9a25e39e90bc","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":226,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"837b2e2c-0273-46b1-a8cc-453599bd83d4","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":226,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"edf981e9-a8d8-4458-872c-e16114c7f29b","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":226,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"ae1af01a-617c-4e48-8ce6-23f098c80c76","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":226,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"08d3808e-a36c-4845-bec2-58c1c4a3c70c","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":226,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"4fd0415e-b195-490e-b9c9-ce1fd5507023","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":226,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"d61bf96e-e481-4bb1-964b-fa9537a3c1a6","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":226,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"dc74da42-041d-4ffd-962d-f8d643dff5ed","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":226,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"79508f42-6c8d-4130-b6e2-e413c051dfe8","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":226,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"507aad87-05ed-40ef-ae83-7ceca25c84e5","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":226,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"b6f5f25d-7dcf-4dff-9224-89dceb13e6c5","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":226,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"d7ada09e-dcff-4a09-811d-814e7f080d5c","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":226,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"803bd3e6-3cbb-42c7-8908-a0dc350ca6fb","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":226,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"5f9e9039-6424-4b4a-9a08-fe48055a137f","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":226,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"19e71616-a954-413c-873f-ae4552e0cf5b","block_type":"box","text":"ownership.","page_number":226,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"a1b1ba77-334d-419c-b7ec-ef3455a906a4","block_type":"box","text":"8","page_number":226,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"56bbae5f-fb16-4779-b274-717aa4686f20","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":226,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"a3a85aa6-51bf-4e7c-a1fd-e7e8d69e94b2","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":226,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"7c3e3f26-ff54-49de-9d12-bf8e0951fa05","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":226,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"dc9a5396-960f-47eb-8190-bc2929cd5632","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":226,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"1e5a218d-37f2-4464-bf36-95ca71d6e24c","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":226,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"f9aebcfa-71d9-4ace-ab78-81a50dc5e3e9","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":226,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"83d75d4f-7a55-4ede-8f02-77d6b0d9abe3","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":226,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"5ef37b8b-22aa-4927-bedd-5d88c2bd24ae","block_type":"box","text":"results over a period of years.","page_number":226,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"f751e3e4-b4f0-497b-94b3-34f19d8f7edd","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":226,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"975b7590-e8f1-464a-bb69-d82dc617489a","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":226,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"5f177708-2968-4ea4-a523-0426c1943953","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":226,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"db1b0a38-b7a3-46db-b469-b0d6ca5fc91a","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":226,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"bacdc00e-e467-46cc-9c7f-b310961a2dd5","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":226,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"237a8905-3e21-4ab1-89a5-09be4e3a2aa4","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":226,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"865d7fd8-361b-4f9b-902d-4ca43ba0ed6e","block_type":"box","text":"executive compensation strategies.","page_number":226,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"df7bc3ae-aacd-4b33-a43b-6ae52c9ce47e","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":226,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"7147253a-eb54-4522-91a7-0b420bea68fc","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":226,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"4af831b3-46ab-46c3-83c2-95f8f8f602b6","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":226,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"30ad9e97-ecac-4b44-ab77-2699809701c1","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":226,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"52188d77-5c32-4516-a6a0-a014c157eb9e","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":226,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"79fcaf38-9fc9-4700-afe3-9235c1af62c0","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":226,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"20bb5131-77f4-40df-885d-b9c07870ea46","block_type":"box","text":"8","page_number":226,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"335bb3e2-16b6-44f7-852f-ec6e6f573990","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":226,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"aa400e42-0696-4163-b0d7-bb14cf5826ac","block_type":"box","text":"different markets.","page_number":226,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"130a6a73-b11c-4959-a044-041d2659fb0b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a8a3f811-230d-41a1-a031-d3648f56ff29","block_type":"box","text":"Global Principles | 8","page_number":226,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"6ff83cac-9170-4ed6-aeab-ab87cc762f85","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b019f231-75ef-454c-9caa-11f0ceacd6b8","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":227,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"7852af8d-8062-4491-9f0a-010699994ab3","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":227,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"865ffd47-5af7-46c1-a505-03d86551e93f","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":227,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"1526b08f-6fca-4cd3-bdfb-a55d38b7976f","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":227,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"bcad84e8-db04-41f7-a465-5f341c03501e","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":227,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"6b87cafe-2add-4118-ba7b-69b90a43e0ff","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":227,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"d461fdfa-1f5a-4549-90e0-53ee35645ee7","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":227,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"effc1c17-43a4-4c7e-9ae7-88b2d83e17e0","block_type":"box","text":"whom they are charged with overseeing.","page_number":227,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"54e88d25-2d2f-4e3e-8dc8-453b3afa8869","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":227,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"f1e962c8-ed5e-440d-9ba6-6e65feaf5517","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":227,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"18ad51e9-d793-497c-a928-4311f6007987","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":227,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"a7b78ef2-4f07-4bb5-9a7f-b98185b0afb4","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":227,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"9e86bbfb-375d-4c40-8865-f5bd774511ee","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":227,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"b218eb5f-11a2-4d71-9206-a476d0123de2","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":227,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"cc31210c-1ff6-4cc7-b761-74b7bd15770c","block_type":"box","text":"structures.","page_number":227,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"a83c20cd-2798-40a1-9e95-ae32ce51dd33","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":227,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"0f24bfe7-faac-4672-91c9-09e5e257f442","block_type":"box","text":"Corporate form","page_number":227,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"5c425ec3-ab35-4d88-8069-7b6f41434227","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":227,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"44c023c5-8760-49af-b8dd-b4dd746bdfa1","block_type":"box","text":"the company’s purpose and business model.","page_number":227,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"d4635ca6-ab09-408b-81b7-d600e6e6c850","block_type":"box","text":"9","page_number":227,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"8394ec3b-7f39-4ac2-ad0e-da6afae73000","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":227,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"f37ec9e8-4465-454e-aeac-de0a7645cbe2","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":227,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"07e19acc-48a9-407f-a84f-5fce5de4b24e","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":227,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"6cf0a8e7-faea-4e7c-9ca9-b4a460083c82","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":227,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"825111c4-8c42-42ce-8148-ff332769a701","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":227,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"92ea096c-0d18-4d5d-8c9a-c4018ce33744","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":227,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"7812aa58-dc78-4f2b-ba8a-37083aff4bcf","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":227,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"2909388f-6a66-45a0-9161-b0cfc5a1d83a","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":227,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"0a9f8fb9-f276-414e-a3f9-4670458a4d66","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":227,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"f8786cbc-b731-4d56-b44e-7639d2033fe1","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":227,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"8f7e90f0-5bd3-4408-aa81-dfa0a2324aeb","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":227,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"51e6e2bb-e5b1-46e1-b4ad-4907fb3e43a0","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":227,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"46ecb571-4801-46b6-b9e8-0daa0274f71c","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":227,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"59a3f0ab-b9aa-42ce-9b2c-4d8809d1b90e","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":227,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"8a4d764f-83b2-48a4-ac6d-04b279126a88","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":227,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"193d21f9-15c8-4da6-92be-9232d3e5a0ab","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":227,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"6226c6ba-fd9b-4b52-8b1f-5e36ff718d06","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":227,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"650d9a6b-cd6e-4846-b506-c6c96eb9793d","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":227,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"04dca0c9-df78-4b9c-accb-34274d70a7cc","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":227,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"f9d32c81-49d0-49d9-8a45-6bc29c003fdc","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":227,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"05468551-a47a-4117-ae66-97e05b42dca3","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":227,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"ffaf5c68-64d4-4bc1-92b0-f8afffc0e69f","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":227,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"2d489555-e327-4465-9469-656bf7ea7c1d","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":227,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"1b3a69f8-8d54-4ebb-9f2a-ed2483481668","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":227,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"99f4e225-cbbf-45c8-9d6e-5236b1592d84","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":227,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"0668a4fb-36e0-497c-b8af-7c43a545960a","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":227,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"dfc8815a-412e-4a3c-a292-68220cd453c1","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":227,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"b9531538-cbc5-435e-bd42-6d5323672fd1","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":227,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"1f932392-7e47-4d1b-9bdb-4c8b40bc3a33","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":227,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"6bdbd48e-309a-4085-b8b9-46b7c0f8d146","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":227,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"7adfeb89-db8f-41bb-8c82-63fec26219ae","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":227,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"385b1c0d-d821-4702-8e2a-2eabd22be1b5","block_type":"box","text":"9","page_number":227,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"77d2f4e4-82b7-449b-b74e-a2127b2498ea","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":227,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"6dc7413e-867e-44cf-a985-525bde92b564","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"47afd3ee-320a-4103-91d2-a60327d87419","block_type":"box","text":"Global Principles | 9","page_number":227,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"b2d72e68-ad51-429a-9749-746526a5e5c1","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86812533-355e-4cef-a2c7-f3666de978f0","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":228,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"7def4590-3aa3-4e15-95bd-f31a85db3f59","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":228,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"2230c9dc-dfaf-49e5-a7d0-98106c39a99e","block_type":"box","text":"long-term financial interests.","page_number":228,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"55bfe392-b8bf-4d72-a5c7-1e9d2764bbd4","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":228,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"f55fc0b9-e184-4fc1-b07c-f74f3183cc8c","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":228,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"4a8ca0e5-82ca-45d4-9ccf-3ecc972918c3","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":228,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"dfaba07e-9759-4dfc-9190-03d554f4aa9f","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":228,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"19c66230-7ee6-4bd5-9321-54cf268cd069","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":228,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"8567d4cd-b289-4464-9d54-f1e66819b092","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":228,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"dd6ede02-f361-4030-9315-832152be795a","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":228,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"f51cfe96-e5a4-4057-91b1-4225329d2566","block_type":"box","text":"term financial value creation.","page_number":228,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"7a5ba0e8-3180-4d69-8082-28c0be0da5c2","block_type":"box","text":"10","page_number":228,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"7bf2e595-35be-4796-ac95-5dc683c67960","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":228,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"5dbdf7e6-d808-4d6a-b99a-5d5dd371e0f6","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":228,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"fcab0a11-b47a-4c9f-be1b-7b5a1e8e8f5d","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":228,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"58df16a0-16f8-44ab-80d1-be2fc9ca73bc","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":228,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"a49758ef-6b8b-48d3-926e-8dfab4da6a8b","block_type":"box","text":"industry-specific metrics.","page_number":228,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"d02f2459-a798-4f22-a3e5-0b8b1bd53641","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":228,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"28d20c19-afa9-4eb1-9a5e-0e2d2a2f5e36","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":228,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"3263d95c-228f-4f5d-bd7d-396496656576","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":228,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"79b24b32-3ca4-4b5f-a48f-09f666676e9e","block_type":"box","text":"11","page_number":228,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"7724fe6f-3b48-4014-9a8f-b397843965cf","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":228,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"b2755bfb-fdce-4f08-a369-09513bb6a285","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":228,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"067c3713-0af9-4ac8-8f11-592572072fb4","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":228,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"f786e268-1304-4f6c-80e0-6fdb12aa21a5","block_type":"box","text":"specific.","page_number":228,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"41cec320-99ab-44fe-913d-33a27746cac0","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":228,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"305f0c23-28ff-4c6b-b24e-9d9ce67cf464","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":228,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"63e26371-2cf8-46a6-8791-c5fe6fac6d66","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":228,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"2d80e32c-d90a-4fa0-8f7c-f5c1c77a09ee","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":228,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"520b88ba-4e47-4bc5-b361-1bee2ca9b72b","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":228,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"474fb3f7-7ef8-46c1-bd8e-1383b94e136c","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":228,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"694e5bfc-0f43-4db7-aea3-9695acde17c5","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":228,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"a954c99f-3566-4505-a887-e3838a0eca80","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":228,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"631615ce-3120-47c9-a820-54a959d51366","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":228,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"0414ba3a-22e1-4211-985a-9f7e648f02a4","block_type":"box","text":"10","page_number":228,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"c2851078-6a7f-4a00-92c0-ded96b9a6907","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":228,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"c5176505-abb0-488c-9b60-c5fe71b78986","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":228,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"abd181f0-5fb1-4f71-8869-47f950626a15","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":228,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"21df7372-2bfd-46f3-aee6-7bbadc62f000","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":228,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"5e79293b-bc6a-443a-bd68-f8442dde4946","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":228,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"a90481ae-5d1a-462c-849a-925f9f503028","block_type":"box","text":"11","page_number":228,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"aff76475-9ac2-480e-8ac1-36451457724a","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":228,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"28bbeed0-e922-4ef5-ae1b-d2d63342c793","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":228,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"079d35fb-8bb7-4bd9-9688-1a86c960b83b","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":228,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"68ab8854-f0bb-479d-bb61-c857e191481a","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":228,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"4ea68b80-826f-4bc0-a61a-4d80377889d2","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":228,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"acfd54e5-dca3-44a9-902a-d744754ff149","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":228,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"031c8aac-cf42-4801-a753-fdbc05789605","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e8206c6b-ab4a-4edb-9f58-e2e96b6c3781","block_type":"box","text":"Global Principles | 10","page_number":228,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"59bf7701-86e0-4a7b-9b2e-16bf08299974","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4eef00fc-d451-461c-87b8-dae8767b00f7","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":229,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"1a1e20fd-1438-440f-8534-7c0cc7f829b6","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":229,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"d25006da-0a5d-48f0-a9e9-759aabd9b36a","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":229,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"897b4a5f-2209-40ab-8b5c-55a8aed7f414","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":229,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"99d18b99-1509-4f80-bf21-6e9f928bc507","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":229,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"44e205de-3805-41ac-915c-f59042269fa8","block_type":"box","text":"12, 13","page_number":229,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"9d2241b9-ff4c-4aa6-b0f2-35fdaafb7292","block_type":"box","text":"From company disclosures and","page_number":229,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"e4a51969-21b1-41eb-a2d7-6a3eabe13a5d","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":229,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"32327f5e-2aa3-4e48-abc9-9a41c32f9797","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":229,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"b00b455b-8420-4da9-bf82-5cbb050439b2","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":229,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"69d2c7ec-dba3-4ed4-9351-7d52c03e21b0","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":229,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"a593543b-569f-410f-a8a9-9d2273e069e6","block_type":"box","text":"viewed as best practice in the market.","page_number":229,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"49e4de9a-ae8c-445b-b1fa-6c49930b92e7","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":229,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"7d138b76-60d1-4ac5-946c-1e02646fe3a0","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":229,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"bed62c81-0737-43be-a2ff-17ece2d83e50","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":229,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"4b101427-ba08-4a38-8057-8254103c5f03","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":229,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"45846ed7-1be4-408f-ba0d-ebd9f9fdb789","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":229,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"b081f8be-cccd-418d-8b02-9988720e99f0","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":229,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"c11f7987-4532-402b-8463-d347d7cb2093","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":229,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"cb56e9ea-4810-48a6-9204-0c90ccd8e051","block_type":"box","text":"interests of their investors.","page_number":229,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"d4ff8f3d-540d-4a78-a528-6683e005711f","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":229,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"3ef65b9b-dedf-4ffa-a47b-a037e85b0fba","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":229,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"0ceff167-323a-4449-9fe3-6157d936ea5e","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":229,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"653d277e-29e6-49dc-9f23-4cfd31f3a043","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":229,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"9dc304b1-a2df-40ae-96f0-e7d0eef185bd","block_type":"box","text":"good-faith basis as methodology develops.","page_number":229,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"3233fc16-a880-4478-9f4c-b9dc98ffd70b","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":229,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"35206bb1-2dec-4ecd-90cf-fddc0bb79f28","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":229,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"1126967e-76eb-40c9-9e1b-4615b6b467c6","block_type":"box","text":"generate long-term financial returns.","page_number":229,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"6fde7dbc-8a57-4b5f-95c4-a225525737d4","block_type":"box","text":"14","page_number":229,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"3315abad-722c-40d1-804b-d5417ce190a9","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":229,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"c0b8cc20-ed13-4817-9414-a32cbf717ac1","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":229,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"08e5b1b1-f85f-48a6-982e-d6b47b90b9f2","block_type":"box","text":"15","page_number":229,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"e9c74ccb-99c1-4fae-8a52-8a0e7608ed72","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":229,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"5c78c753-5dc1-4293-9e23-22415a28587d","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":229,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"4c470102-6133-46dc-ba28-0a2d1af9177c","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":229,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"54ed076b-1f77-4294-aece-113ad629a948","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":229,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"22823e1f-6786-497a-a5fa-209ed1fade99","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":229,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"2009690a-7b28-40f8-8600-26811253b0ca","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":229,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"de683275-899e-4a20-a66e-10423e0f4dce","block_type":"box","text":"12","page_number":229,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"ce832e84-b7c8-42c9-bf04-28bf83e78526","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":229,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"a7520954-6d82-4036-a171-35c6b6e57b04","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":229,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"a6fc62bd-b937-4389-b1e5-bff7eb1218f9","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":229,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"8c91e284-f655-4ba7-9a53-5b9cae5bef5c","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":229,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"e08fd769-ef28-4cec-a93c-25cdba9369d2","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":229,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"00c5870b-32b6-4f6d-aa51-f2375e0cb66a","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":229,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"306afccc-1095-4007-a82f-d3e2aaeae93a","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":229,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"615b0342-9233-4dc0-8aae-671ba5d9067e","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":229,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"2ddcdbf1-ff42-4e73-89c2-31e015b2976f","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":229,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"3c11cfb8-b132-4c45-a783-0d7f05921bf1","block_type":"box","text":"13","page_number":229,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"097eda36-bf66-488a-a22b-30b3359a71a6","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":229,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"87b63388-700b-48a1-a13a-355302c04d05","block_type":"box","text":"2025.","page_number":229,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"7b266c08-2c07-4908-849f-57ae93406daf","block_type":"box","text":"14","page_number":229,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"a3c3afb4-18f3-4eb5-8793-04593eb4b400","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":229,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"9fd9e5ff-3c27-493a-b180-5b996623a16e","block_type":"box","text":"2025.","page_number":229,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"58c98337-8620-4434-b0b0-e47d5cf203a1","block_type":"box","text":"15","page_number":229,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"2d1e9390-4276-4b3b-aab4-e4290a963bf8","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":229,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"462e7ce4-04b3-47d6-b326-6a54fdaaa796","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":229,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"76a03f16-bc6b-4279-8ad0-978e22ba5a87","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":229,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"e5a48ac2-8967-4b8b-8d17-2a3a820fa66a","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":229,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"0b5fe09f-cb56-4cbd-ae06-03a2627acf0c","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":229,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"23d6098e-afcb-4902-a9e7-28fec0729994","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"23c099b6-7323-4c62-add2-59626e3be31b","block_type":"box","text":"Global Principles | 11","page_number":229,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"489cb50c-e114-4d9e-8b00-ca1244a982c1","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b175e2f-8e74-414e-8a5c-85309425c8ef","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":230,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"54561e6f-7957-43c3-8119-2dcbad7536f9","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":230,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"183a8b5e-27c8-4410-922f-7c5e37d96308","block_type":"box","text":"16","page_number":230,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"3aa11cae-975f-4f11-aff3-7276b62fd436","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":230,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"786731e2-0cbf-4564-98da-a1db47a6d820","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":230,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"1d1729e3-9842-4ad3-b211-56b741ae35bb","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":230,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"07725962-cab6-4c0f-b805-d74a584f6276","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":230,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"c4a52c2b-e5d8-44a8-9ab5-f137f106653b","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":230,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"63560953-3dbd-4a1b-bdd1-40c88b4cc661","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":230,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"3e871fdc-101d-44c4-bd75-726a431a84cc","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":230,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"26fe1812-d0a6-4c1a-a265-8808a442cb33","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":230,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"35f487c0-dca6-469c-89ff-3b61b36c6713","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":230,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"4b25c52d-f3e6-464e-995a-f1f84b49c4da","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":230,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"4acf0c2a-ab40-445e-814c-ea137ba99fdd","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":230,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"a74e22f6-fab9-44ba-8408-c582a6e7eac1","block_type":"box","text":"impacts.","page_number":230,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"85ff56e0-5d69-496a-b3d6-76969b3ae821","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":230,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"98745ea1-2cb8-48e3-b953-cb915180ea8f","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":230,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"68b02f3d-78ad-40b1-b7e0-2cc66a4322ed","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":230,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"1969ab48-dc16-4cfe-9c18-51d535dded81","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":230,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"f29af6b3-2d6b-4e9e-9781-d4274fbc8058","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":230,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"bccd6bb0-4ca7-41d1-8f00-33949d8769ac","block_type":"box","text":"clients at the global and regional level.","page_number":230,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"caf4cf12-dccd-436c-951e-4be5597464c4","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":230,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"49f17114-ab9a-4e0e-848f-e8241027a1bd","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":230,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"65a75117-6725-40f8-9984-bd6907a6cbe3","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":230,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"a213d880-5878-4e66-b9bf-7939da0f298c","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":230,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"3ce9bdad-c76d-4d5b-8c44-fbff90621902","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":230,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"fd28a5d3-a6d3-4c49-8e9c-071613255c70","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":230,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"74f3dfcf-8832-4cd2-b832-6707712a72b1","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":230,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"33e31f49-2d4a-4743-82ac-49a742b08f3c","block_type":"box","text":"are independent from the investment stewardship function.","page_number":230,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"f946b1da-9019-4d91-9101-745201c47961","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":230,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"b2829550-47f1-4efe-8267-e1c9e1668613","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":230,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"75b4ad15-e831-4462-976e-ede8e3663896","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":230,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"630047a7-94f3-4298-83e1-a93414729b81","block_type":"box","text":"VOTE EXECUTION","page_number":230,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"00b6dc1c-489d-4df9-ba5e-2e2821a47a19","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":230,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"979dac86-5786-458f-8534-a9dc3d42a596","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":230,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"01d7771e-c702-4e52-8f66-693e118d70f2","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":230,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"9b56dbfd-0830-4e4a-95a8-cfc7ffbbea31","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":230,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"d0e25394-e04e-4163-8b1f-2539c0c0aa17","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":230,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"f6a7cd50-5306-4376-a84b-62e77e30038e","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":230,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"580e31cb-c140-4c23-a49d-ad86e236345d","block_type":"box","text":"management policies and procedures,” below).","page_number":230,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"ee9636f2-7d28-458c-ab29-6f1fdf46a880","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":230,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"fee397c7-70e7-4264-8cd5-f25067b435a5","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":230,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"9621eb98-0226-4edd-bb6c-3fb418e36c37","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":230,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"3f3d7a8b-7bda-4dc4-8c69-fa10872771c8","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":230,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"83715dc9-66c1-40a2-aa69-dbdb1175d38a","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":230,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"bc6650a7-3137-4c9b-85d2-e8d5fe1a8103","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":230,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"455a722a-d373-4a7e-8ba1-5eb7a2327b05","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":230,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"f3bd9fa7-a089-478f-bb89-7e6a43318d7b","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":230,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"c67bf4dc-f5f3-4c23-91a2-678de0bd2e30","block_type":"box","text":"16","page_number":230,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"9fdea891-f0ec-4550-bb4f-9ae67f7174e0","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":230,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"8234cd29-1f3f-4cc3-ae5f-b6bc149825b7","block_type":"box","text":"December 2025.","page_number":230,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"9308b30f-ac46-4347-899d-68afdb9a9fb6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"06ff0b48-e2c4-4658-83b8-4735d152d9f6","block_type":"box","text":"Global Principles | 12","page_number":230,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"33110fad-258d-40b2-81db-85626aa85c7f","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8c39f623-90c0-42a2-bf4a-9a9a071f159b","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":231,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"72a88a09-4e61-4467-9077-59648f36f0e9","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":231,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"cf6625c8-2bee-476d-8e04-80db413e05f6","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":231,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"f518bffb-cfe1-445f-a4db-4b12f208f014","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":231,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"d70e3ca5-a93a-465c-ab39-293621bf377a","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":231,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"63cde43b-f975-4fed-8ed2-e5c4f02f20cd","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":231,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"55a7d546-c1e0-494a-8e5a-3dfed9eed56e","block_type":"box","text":"enterprise-level vendor management activities.","page_number":231,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"a4019f82-cd8a-4ee2-a813-e2848c78dfb8","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":231,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"56bc7e3c-736b-4a1a-8fa0-4094bea9a9b2","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":231,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"3323dc76-2dfa-4d6a-b5ab-f02f62d60f42","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":231,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"966b86cf-94ee-47fe-92d2-935a6eb07f70","block_type":"box","text":"BlackRock employees.","page_number":231,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"aad1ea7a-eca4-48b0-b9b2-9d9b6e1246c2","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":231,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"57bd1bd9-9eed-4ffb-a555-eefc48fabba4","block_type":"box","text":"SECURITIES LENDING","page_number":231,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"1097b63e-d232-42d3-8913-17762c85fe57","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":231,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"4c9e8682-aa73-46ef-abd0-af8df024c497","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":231,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"eed7f0af-96f4-4c94-934f-e6f38d674940","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":231,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"0137989e-b173-4230-8e89-e6d909872923","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":231,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"ac2ab94b-973e-4ff6-8695-85f41211c367","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":231,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"db6a1aff-3c68-4033-b0e7-c3bf81e1765e","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":231,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"fc960629-ff91-4483-b70d-a2ec7dca2b87","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":231,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"34acab5e-71fa-4d7f-81ee-1a7c42523ad6","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":231,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"8fe4cc17-27dd-4b85-ada1-4d7a77a12eb1","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":231,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"7924543d-ccb3-4792-a168-7b82acdc8771","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":231,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"df909d6b-2ad1-413d-8ffd-6adb93d30c92","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":231,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"0bf2f7e4-ba3e-4fb6-bf3b-50e58dfc5bc0","block_type":"box","text":"of recall consideration).","page_number":231,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"6d2ba5fb-62fb-42df-9fe5-9f83cd47b78c","block_type":"box","text":"17","page_number":231,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"b0275e23-6e8d-403d-afb5-55fdf3d3a5f1","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":231,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"d70ae7bd-f4db-48f1-8949-f7d580dc7d1a","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":231,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"b1c5ad93-282c-4db5-bc2c-c007a96ebd1b","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":231,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"5ae6ef7a-25d9-44c7-949d-1771d8ff1410","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":231,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"f9e2258e-b5a6-42d2-949b-e5bdf5fe6ffa","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":231,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"76e5bb06-096d-4cb6-8dba-e29b7dbbb9c0","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":231,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"3d3776ea-3092-41ad-a03e-0dc064f29b99","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":231,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"06effcac-acca-48df-b0fe-99fd86cc8337","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":231,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"c3e2438b-bea3-4264-be82-e1fbc69f809c","block_type":"box","text":"and may modify it as necessary.","page_number":231,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"837830e2-5957-4e03-928a-adf1ba582d6a","block_type":"box","text":"VOTING CHOICE","page_number":231,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"f3d2ae3e-9e0c-480d-8be3-d48b65c93813","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":231,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"25cba04b-8855-4ce7-aab6-6e69559363f9","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":231,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"c87cfae3-568a-498a-8805-b3beb6fccd29","block_type":"box","text":"18","page_number":231,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"cf3bf401-0c87-48a4-ad70-543a96bae8f8","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":231,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"f5715c97-2c89-4896-8130-b5821c9f8505","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":231,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"ce4fa1ea-7eed-488c-aeae-ff5ae0ff74a5","block_type":"box","text":"17","page_number":231,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"516e8561-4879-4903-b3ae-1dccbffd7f6f","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":231,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"4751ef7b-667d-4f3b-bd4b-6ca0b5be7b56","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":231,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"4b20c1b7-575a-4677-b473-a19657bc0e5c","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":231,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"f0e8c65c-ba87-436e-a06f-a2083d80b8ad","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":231,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"98e23ea3-ae96-4e72-889f-a956d67784d0","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":231,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"48f5c2ea-3f8d-44e8-a3ca-d2e4ca1d0b66","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":231,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"9e3b8365-ad7a-4762-9ca3-530d31cfcada","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":231,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"da18bd6e-69b7-4fc7-b858-14dcc594c4c3","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":231,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"ada29cb7-ec96-4638-8539-aaa7380d058e","block_type":"box","text":"18","page_number":231,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"895a29cb-be24-439d-b98a-b5176b7a88d7","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":231,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"bcffc3a2-f41b-4dc9-846c-32c58895ac9f","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":231,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"c10b208d-078a-40c5-862a-f4d1a24e04d6","block_type":"box","text":"including the decision to lend securities.","page_number":231,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"03859af0-b7c0-4a8c-ab27-e651f3e05f3a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":231,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9a7bb14d-8980-4f68-bb39-f73cd3cb82eb","block_type":"box","text":"Global Principles | 13","page_number":231,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"2819456b-c3d6-4ebd-bc49-502535fb42c3","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":231,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1f6c5896-d5e5-474e-bf18-a73f103a6793","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":232,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"1e55ccde-09ba-40b3-a71a-96aee16821df","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":232,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"4a0e25cd-d4be-461f-a1be-01e5496d217b","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":232,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"680f07d8-3dba-4875-be4e-48e632772560","block_type":"box","text":"19","page_number":232,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"4573f2d3-1367-4f9f-ab59-cb12e24bf040","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":232,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"05774b35-89f5-49fc-999e-a0c700c547ab","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":232,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"30dc70e3-7ce4-46f1-8440-e1e38a5665ad","block_type":"box","text":"20","page_number":232,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"5ed5b123-7044-4244-9e68-3a1c23ba0677","block_type":"box","text":"As a result, the shares attributed to BlackRock por tfolios in company share registers may be voted differently","page_number":232,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"9b019203-3f86-4d16-af8d-7a75603354cd","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":232,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"a283e7ca-30c9-4719-b710-413192cc79a9","block_type":"box","text":"accordance with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":232,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"4cea4b9c-4541-4a41-9643-07684cc559cd","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":232,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"b992d9e4-2d82-494a-952e-89d17c5345f1","block_type":"box","text":"21","page_number":232,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"58052920-61aa-4970-a196-dfb6fac9837f","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":232,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"2e7a6ca4-f3d0-4286-828a-3623aa1be96e","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":232,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"06dfce50-4b23-4e08-8fc6-066259f858e4","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":232,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"01649ff6-a814-4964-b313-e4648a3291a2","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":232,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"5c2ba694-f7f3-4952-81ca-5ac82e2149b7","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":232,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"743c69ad-7560-48c4-8b79-465fe13c107a","block_type":"box","text":"priorities, as well as quar terly repor ts detailing our proxy voting and engagement activities.","page_number":232,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"35f16d24-010b-41fa-a405-d61250a6561b","block_type":"box","text":"19","page_number":232,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"11ae1e07-909a-4ece-bde6-8968db4ef5c3","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":232,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"163400b8-ed47-4606-8502-a1e59d48f581","block_type":"box","text":"preferences from a set of voting policies from third-par ty proxy advisers. BlackRock can then use its proxy voting","page_number":232,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"4b8d46b6-daff-4eeb-a873-c4b4f373db92","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":232,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"7d19c46e-c632-4b1f-b572-b76f3999e189","block_type":"box","text":"20","page_number":232,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"1322bed8-07af-4aa9-b341-968926246ec5","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":232,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"9daa6ea9-6ab1-4a1e-9d0b-bf38bccf7ac3","block_type":"box","text":"21","page_number":232,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"4ae22ca9-0a51-46d2-9c55-72159b1c8b58","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":232,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"219b091f-e84c-4bd3-b7a6-30e349eafa49","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"27110e7b-31db-4c3d-9133-67d5f119c7cd","block_type":"box","text":"Global Principles | 14","page_number":232,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"689c1777-9fef-4058-8ed2-3e098e1a9b82","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e86edcce-deec-46df-9878-3886bf5c39bb","block_type":"box","text":"Want to know more?","page_number":233,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"758508ab-3c2a-43c5-88a4-046a05b62ab6","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":233,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"726bb6f0-1024-4600-934e-1e3060bdbb63","block_type":"box","text":"This document is provided for information and educational purposes only. 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They also incorporate the more ambitious","page_number":236,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"240f06c8-05df-464b-9035-35ad6538e4fd","block_type":"box","text":"goal of the Paris Agreement - namely to limit average global temperature rise to 1.5°C above pre-industrial levels.","page_number":236,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"0666f8b3-9934-45c6-9d40-8eb4b61cb6b6","block_type":"box","text":"6","page_number":236,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"0f43d956-c323-4515-8e25-311cd8d8167c","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an impor tant role in the transition to a low","page_number":236,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"1656d0c2-3ea2-4cd6-bc07-8dc338acace5","block_type":"box","text":"carbon economy. 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Fur ther, the Guidelines consider the","page_number":238,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"50a76649-e481-4a77-84b7-9c115fa6ca64","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":238,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"dc03a4ae-dd2a-49e6-9308-f6643a48033c","block_type":"box","text":"does not.","page_number":238,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"e127729e-b4d7-45ef-a1bb-783dfb7e3a6c","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"c7dc1f2a-812d-4c5f-a9e3-b62284926202","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":238,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"094cf319-b011-4505-9936-1cb59cb8888f","block_type":"box","text":"limitations:","page_number":238,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"61f9a229-3d74-4a8e-8757-6bc6b5c8d058","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":238,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"b3c0de8e-e37c-4ef6-b91f-98fef246f8e2","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":238,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"42642837-4281-40a0-9690-a4c3c22bc4a7","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":238,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"7e14428a-f08d-475f-9f64-262cac05a5e9","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"151b77ac-ca80-4ac3-8b08-c9ac35478062","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":238,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"58859688-a114-4465-98a7-d40ef1229281","block_type":"box","text":"The boards and executive leadership","page_number":238,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"2c7aaa2d-c4d4-469e-8641-287543ca96f2","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":238,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"4c9ddf67-e840-4c70-b1c0-42e8c3968dec","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":238,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"b789bb0e-a896-4f64-ad71-d561ba914330","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":238,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"e8bfb480-398a-4862-8188-213f4e15719a","block_type":"box","text":"Voting approach under the Guidelines","page_number":238,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"ea7f5edf-3cd4-4884-999d-e69cc7ffe13e","block_type":"box","text":"12","page_number":238,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"725919c9-d43a-44d6-82cf-5c1053b17688","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":238,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"b71b0e65-1908-4e20-88a7-72ce006e55ff","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":238,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"a883c242-a381-4de4-b95c-bc2707244e85","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":238,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"29771b0f-8ca6-49df-bb11-e7db7528ca9a","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":238,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"b1ff8351-c73c-4377-9ac6-9b769bc3ee72","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":238,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"dc470e22-2466-48f3-8d5d-c52163a102f5","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":238,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"404b4bcd-aae8-4cfa-aa45-e1b6dfc7fa94","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":238,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"f3998645-84db-49ff-b480-c45a45061805","block_type":"box","text":"Corporate Disclosures","page_number":238,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"a7f0e223-2e80-48d7-a27a-356f32f53649","block_type":"box","text":"13","page_number":238,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"0a1fd323-eb85-4ada-a29e-f4190a9170ae","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":238,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"aa736fd2-6cf4-4c2f-977e-d5f228e67152","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":238,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"82c7c280-f900-42be-a1f6-b31d35563a87","block_type":"box","text":"to companies that are impor tant to the transition to a low-carbon economy to explain the strategy and governance","page_number":238,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"012fc09c-ea34-4889-97d1-801ed5743911","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":238,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"fc719707-7c28-454f-abc2-335249a49017","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":238,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"d82da4b5-ab9b-4ae5-ab1b-c2f1aff29726","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":238,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"56324d9c-ab63-4988-b7f1-53f3d1ec74c1","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":238,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"ad9046ab-157c-4017-bbd6-16c5ecbed84d","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":238,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"df6d5576-591c-44af-9e7c-575332044b31","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":238,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"d33ca050-a9b9-448e-8475-2c3186a89f58","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":238,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"a6425859-c6ae-4d73-8bf5-ee98f2b3bf2d","block_type":"box","text":"14, 15","page_number":238,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"d68f5750-a0b1-43a1-9e48-5f603d452587","block_type":"box","text":"IFRS","page_number":238,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"d9a7df5a-d5aa-4c61-9808-8fa19dee6b61","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":238,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"2223fc60-5c72-4ee2-94fd-ebc01d3aaca2","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":238,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"65e4157f-e28b-4c6e-a2bd-cd1b4701f42b","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":238,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"bfc87ff8-c4e8-429e-ae24-907dfe416b9b","block_type":"box","text":"and assurance standards are developed.","page_number":238,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"9dd411fb-7d86-4da8-8cba-aa544ce40683","block_type":"box","text":"12","page_number":238,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"bd4cbcfe-36e1-4d94-be69-c7352e7eafc8","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":238,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"7b289475-6a96-4f45-9ce3-64cad9dede5f","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":238,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"cd93c315-be9e-431d-804c-cb14b870e498","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":238,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"d6118434-22e7-4126-ae31-99776b701662","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":238,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"813511cf-e9fb-41d5-8660-aa4557c5249f","block_type":"box","text":"13","page_number":238,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"b12685a1-48f7-4f62-8b0e-7a8e9131f0d1","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":238,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"c0c52cd7-8c57-4ac8-9b22-1392f36a2da5","block_type":"box","text":"repor ting methodologies are nascent. In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":238,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"d844ce19-c3af-4cc0-8096-b66633c4d314","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":238,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"7a8264de-4acd-468a-8d6a-6901f9933828","block_type":"box","text":"14","page_number":238,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"268b2f5e-d60e-4d64-b388-ab6933daa509","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":238,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"9b7d0196-bda8-4999-b538-b7b2a152cb99","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":238,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"17a4a4fb-de59-42b3-aef9-5b0e80cef89d","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":238,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"b25f3c35-a90b-436b-9580-8da874cdefac","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":238,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"e19153e4-43fc-4050-9eff-57c2facb7f39","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":238,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"9596cbd9-107e-472f-992d-f97a6db02641","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":238,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"bf4c6ad0-c88f-4217-93d2-78e78e90ecb2","block_type":"box","text":"15","page_number":238,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"4a63d552-639a-432b-9471-e9907a910e20","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":238,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"76f5358d-2719-42f9-b6af-4a9dc389895e","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":238,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"d4f4c7db-2ef6-45b5-aaa5-a6513e4cd226","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":238,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"0a6727e8-3c1f-4b9f-8f1f-b64afeef6269","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":238,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"2ef3e4cc-1f12-4eb1-80f6-2c3c161d06c2","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":238,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"876473ae-f2d5-4db0-badd-a473816cac39","block_type":"box","text":"BlackRock Investment Stewardship","page_number":238,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"38ecfb89-4e88-4277-b65c-0c6de9ca246e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":238,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"714aacda-6b09-47ae-944d-fa1dd7dbce4d","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":238,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cafe44dd-67a5-4e88-a58b-bf6f2fe04707","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":239,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"02df590b-9671-4142-bc06-23be595e9cb1","block_type":"box","text":"16, 17","page_number":239,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"d12ef651-ba9f-4b2e-82ea-b3ae054667d8","block_type":"box","text":"In addition, the dedicated team looks to","page_number":239,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"c2bf90bc-fc8e-4005-8ca8-1b5e3210574d","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":239,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"e1b6e697-93ec-48af-a565-de58961f9796","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":239,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"94eef0ea-5b2d-4d2c-8d2b-a101f4d38284","block_type":"box","text":"scope 3 emissions reductions. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":239,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"2825dbb4-d2f4-4946-b182-bc5c4f8a78eb","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":239,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"fa8b208e-ed40-462a-aa45-ecd483d83ecb","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":239,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"877a71cd-201d-41b6-8cd8-4299ead92226","block_type":"box","text":"18","page_number":239,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"1206acb3-bad4-469a-8dd0-5eae085391c4","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":239,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"cd5a9337-81e4-4748-a9bb-58e60e56809a","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":239,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"62682fa0-8e45-4af0-a3eb-f44fac017baa","block_type":"box","text":"complexity for scope 3 emissions and the lack of direct control by companies over the requisite data, we find it most","page_number":239,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"69f354a2-2b05-468b-82c3-a72ddc2594d5","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":239,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"543593b6-2de4-4610-839c-3db82eb2ea49","block_type":"box","text":"material to their business models.","page_number":239,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"62e67cd0-fb21-4fd2-8e97-b4f8982ef2a0","block_type":"box","text":"19","page_number":239,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"a501b410-73fc-46a6-9283-967b84cdd445","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":239,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"73838152-3ee3-4093-929f-b145ffa5de37","block_type":"box","text":"December 2025.","page_number":239,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"d605510a-3d5f-444d-bf22-dfd99eccae4d","block_type":"box","text":"20","page_number":239,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"2c588caf-c606-4cd0-a2e2-634ea83bf31f","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":239,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"7faa8c7c-d1ec-4314-a52d-a962dd40e898","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":239,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"aa8f4ca3-d8ba-4088-9a0e-912994679dde","block_type":"box","text":"(please see the International Transition Plan Network for information). 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The directors most likely to be in focus are the chair of the board","page_number":240,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"3eb5dbec-6c00-4104-a5f3-372261995532","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":240,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"84c3f9fe-577b-4491-829a-ca173dd653cf","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":241,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"e44fa4fe-5b70-46b4-a6c5-39f0eb0ebd58","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":241,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"20edb09c-de7f-451c-bfc7-ee2773688aa9","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":241,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"ec081a20-a272-47ee-ab8b-68c47f4a6f99","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":241,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"b85f4a78-124c-4d09-a355-da4822543e5f","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":241,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"62ddea9e-5a80-4391-9bdf-ea5d9f36a148","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":241,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"c6d5cf99-9b9b-4a48-afbf-3e7e73736494","block_type":"box","text":"transition plan and targets.","page_number":241,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"684e6210-590c-4268-9503-95fa6c28f636","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":241,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"9712f707-78ce-4369-b92d-5b8ec7814860","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":241,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"e8530904-b4ea-4fb7-918e-245002132864","block_type":"box","text":"long as cer tain requirements are met. 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When the dedicated team votes in suppor t of a proposal, it is not necessarily","page_number":241,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"c3def9fd-c4cb-4864-b478-dac2ea34a325","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or suppor ting statement of the proponent.","page_number":241,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"09273f29-fbd6-4b18-b1db-5b864615bf03","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":241,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"a6cab340-bb07-4fec-8837-8484bf66569f","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":241,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"c5a45fd9-fd9b-4118-9816-6f58895e245a","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":241,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"259a91d4-04ad-4962-8e26-c7ebf3e015f8","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":241,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"b6ce8fec-e7d3-4c55-886e-7ac28cf43a34","block_type":"box","text":"•","page_number":241,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"aa386bf8-522f-48ad-8d94-f63b7b591c14","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":241,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"0df26c6e-f7c3-4dce-9a28-b6c8288259f9","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":241,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"3a60a684-750f-4c2c-ab7c-e215e62aeae9","block_type":"box","text":"•","page_number":241,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"3e47f16b-5b69-49fa-8d33-3edb3ae3ecce","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":241,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"eb920071-623b-4d54-9a69-ce307d3a568e","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":241,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"7ad09b63-7605-435b-b0be-07aa44397ff2","block_type":"box","text":"•","page_number":241,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"59181c90-ed13-4f61-9f46-5f71e81346ec","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":241,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"7419fdd3-7ed6-4589-9d15-f903bd53f69e","block_type":"box","text":"•","page_number":241,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"e303edf6-654c-49ac-b4de-f24cc4d25394","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":241,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"2f7428e7-6057-4e94-a8a9-2a7df98947b8","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":241,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"baf34655-377f-43d9-812c-79864a935743","block_type":"box","text":"25","page_number":241,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"85b99c23-42fc-41df-ac93-605851414c3a","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":241,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"608cdae4-658b-484f-b018-e3243efcafbd","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":241,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"3b7dc823-5560-4269-aad8-fdf5a533809d","block_type":"box","text":"RELATED MATTERS","page_number":241,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"e471a26b-6fe4-447f-97c3-49cd236f3880","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":241,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"fe36279a-571c-41bc-bc1c-0b33dba5c822","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":241,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"caad4219-2377-4e84-ace2-c20a2985a3bd","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":241,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"c9541335-27bc-4c71-a776-3b5e78a5843d","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":241,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"d694288e-f913-404d-9bab-75aaaea2d3e8","block_type":"box","text":"Executive compensation","page_number":241,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"c4510caa-daaf-4779-a261-69b0c2218337","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":241,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"a3b7f6e0-51cd-4c2d-81e5-d6fd517f4e08","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":241,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"36b72b44-4f5f-42ac-b108-f75a1c38ab5a","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":241,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"9df34bc5-45ff-40e6-9be4-ab1a9fa05ea3","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":241,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"e9dcc88f-59eb-4cd9-bd6f-7e2128dba4f9","block_type":"box","text":"24","page_number":241,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"89453a50-08ef-4e2a-9e0d-ee8f2545b9ba","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":241,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"9169e5fb-5b47-4444-b58c-e58f0a7e027b","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":241,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"37edc616-8181-4a5e-a77f-25e362848d96","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":241,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"fcbd2faf-f908-4aa3-9acb-9be7d09735a4","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":241,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"fd1021f6-6132-4511-8a81-ae2f23d1663d","block_type":"box","text":"25","page_number":241,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"1db5eda9-137f-42ec-8561-be01b95764cc","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":241,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"59d5daef-308c-475b-b4bf-ce7a7f28bdfe","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":241,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"5b44c9ff-855a-4c00-af38-f18a786f621c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":241,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"68a8646b-a162-4d4a-b995-defb531174aa","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":241,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"31f985c2-217d-407b-82f4-d3307d1c9953","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":241,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c3c9a7a7-7ff0-4e7b-9d95-93441ef2fbd3","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":242,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"fe725dd1-af1a-45eb-a43c-ac78d4a39592","block_type":"box","text":"strategy and risk management.","page_number":242,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"b2451695-9bc1-4a5b-8794-0c620a8c8876","block_type":"box","text":"Auditors and audit-related issues","page_number":242,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"66095654-42fe-4c63-a7de-2ed927c18baa","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":242,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"87526b48-395d-49ea-aebf-f9d759f8d69d","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":242,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"7840449c-d7cd-4f6e-afac-18fd27fc07f2","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":242,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"48e82793-279b-43fd-bc78-b499dff1ee7e","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":242,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"88a9ad4e-c49c-4bdd-9c00-7cdcfa09b054","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":242,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"c2c58999-8371-49f0-acd0-9f2056b33560","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":242,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"6007240d-0cc2-4f55-b752-ea9f3c31cb49","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":242,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"43757e23-b030-400b-b7f6-0c7051bc201b","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":242,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"aa1b4811-e476-4ec2-83d1-ed21704e8890","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":242,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"7a0fff55-32be-4bdf-8901-d136f147ed4d","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":242,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"9a90eb43-928b-48fa-a449-ff18848b6c1f","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":242,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"31f23b9d-5ee3-4825-8672-06a51a362dfe","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":242,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"039d98d6-f235-49f9-ae3f-8d7ffb6fa653","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":242,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"33c8c5cf-9d22-47d1-b4ef-3475ca2d342d","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":242,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"eab8e33e-02da-4aa4-8850-5aabfee53393","block_type":"box","text":"stakeholders.","page_number":242,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"6a66fc1a-d8fb-499d-9c9e-6d7142cb98fc","block_type":"box","text":"26","page_number":242,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"51542522-fc0b-4c69-869f-80693b0dc6ea","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":242,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"b8ebd2f6-2106-469d-8031-84b493af2cdb","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":242,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"450bee3a-49a9-4a26-8df4-cc4236313d2d","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":242,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"887a9ae1-642a-4d84-b491-4afaebdc7d8d","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":242,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"a51098d9-0349-496e-956c-55a5232a0594","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":242,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"1b7941f2-1f31-41fb-9a97-ba3fabc3b125","block_type":"box","text":"26","page_number":242,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"7e99075a-7796-484d-b9c3-dc28dd678e5f","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":242,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"a0414206-0d73-4357-8dec-34cce5a8fadf","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":242,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"b5ab6169-be9d-420c-9e5d-a161fcfe0c42","block_type":"box","text":"BlackRock Investment Stewardship","page_number":242,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"74ffe2a1-1619-44e5-a9e4-4213f8a565c4","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":242,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"74b25e20-05b4-4918-b54b-450731d0979b","block_type":"box","text":"BNM1026U-6033397-19205812","page_number":242,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"56ea071f-f6ab-475a-9b40-3fb3ca839388","block_type":"box","text":"Appendix 1","page_number":243,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"4e7c954b-d2cb-4a9b-b987-eda374314c59","block_type":"box","text":"Terminology","page_number":243,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"652f1ab6-dadb-41af-86c5-31a0af90dcce","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":243,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"a34752f8-dad0-40cf-8c89-0e2983922f33","block_type":"box","text":"Climate risk:","page_number":243,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"68242e0d-be60-4f04-bd8f-fec8a8b7f1e5","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":243,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"58e18cec-5021-404a-bed2-bb0d2a8d4681","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":243,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"e87454cc-f675-426c-83c7-bac1fa13452b","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":243,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"609e6510-6f4f-4ceb-a9c1-50ddefe0a2e7","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":243,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"eda2e4ff-87e5-4fb8-b58a-ee011e30f329","block_type":"box","text":"The global economic shift toward lower","page_number":243,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"9e75b5c3-0a1b-4bdc-819c-6a777121ae87","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":243,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"c8c4546e-b1f1-42df-b939-0559bc1708f7","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":243,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"efb1dcef-45d7-4efd-a6fd-855533511744","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":243,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"0c507649-c187-4fd6-b9e6-e3841204aa4f","block_type":"box","text":"Decarbonization:","page_number":243,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"6103c844-3a76-4429-a6dd-c79375828e47","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":243,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"99696c76-79a4-45d3-a360-dce0e21d61bd","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":243,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"fb77785d-e443-49fd-af7e-89d8e25d5874","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":243,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"3581604a-1e4e-461c-bbc6-04c0bc1ddeea","block_type":"box","text":"e.g., methane.","page_number":243,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"6108efd0-1b42-4ed9-9098-ba0c1d9f2543","block_type":"box","text":"Climate-related risks and opportunities:","page_number":243,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"c9e8bd55-baa6-40c8-8921-2384b0def520","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":243,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"38bdaaf7-ad79-4131-be9f-db1fb6020274","block_type":"box","text":"to a low-carbon economy, including transition risks and oppor tunities and physical risks and oppor tunities in adapting","page_number":243,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"11e1f166-600c-44cc-bdff-79e9b65e5266","block_type":"box","text":"to physical climate change.","page_number":243,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"00e652d2-ea1b-47cf-9336-247aaac11a78","block_type":"box","text":"Climate-related transition plan:","page_number":243,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"f3e13b1c-8d20-42b5-ab69-b201d693c0d0","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":243,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"0541edfe-b8e1-4006-a668-75bab462a954","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":243,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"078d791a-4887-4c76-a061-edb66874f191","block_type":"box","text":"greenhouse gas emissions.”","page_number":243,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"65a9bf63-9f47-4917-ba86-447fa2dc3eeb","block_type":"box","text":"27","page_number":243,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"cba45972-2f8e-4387-b4ef-0ae5bb649d45","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":243,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"10c32985-b00c-46d0-86fa-d54818d8309e","block_type":"box","text":"Targets that “","page_number":243,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"9ef197e6-cf9e-49bf-90ba-9858676953db","block_type":"box","text":"are in line with what the latest climate science","page_number":243,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"3ca103a2-2403-4e1a-a9b5-7e8f8b0ffa08","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":243,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"5df2c180-8f28-4477-9c1f-4d091cf10e30","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":243,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"ecbe5b9b-fce2-41e0-b61a-f7b31fc47519","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":243,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"ebefb899-367d-4cd2-a086-1e95ab3c269b","block_type":"box","text":"with the Paris Agreement goals.”","page_number":243,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"ffd53fbc-a4ec-4442-81fb-9052f93e3ee9","block_type":"box","text":"28","page_number":243,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"3e750714-91ff-4534-9552-79f73278176d","block_type":"box","text":"Scope 1:","page_number":243,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"af889791-e899-4c64-8cc9-941af8a8d435","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":243,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"e6c0a20d-923a-4a22-8668-09151bfb2816","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":243,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"1e2880fd-3553-4afe-9da5-21577259e404","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":243,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"b7ba5ead-f078-4788-b61e-2973a79cec8e","block_type":"box","text":"29","page_number":243,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"98f66e22-1e58-4f42-b0d2-74dc0dc80136","block_type":"box","text":"Scope 2","page_number":243,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"4bc74bf6-0d57-4961-9ed1-10b35ce0f49d","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":243,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"93665c2f-2050-4553-aebc-fd71b2fb313f","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":243,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"77dbe2f5-520b-4cfd-a22e-fa23d4ef3985","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":243,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"3f4d2ca6-a915-47b1-91f0-b60705b3f7f8","block_type":"box","text":"30","page_number":243,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"c7dcdb0f-2467-4074-919f-7bc3a531d2fe","block_type":"box","text":"Scope 3:","page_number":243,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"ebd7c259-3722-4e43-b8ce-9993e3f040a2","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":243,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"ddd4cc52-c5cd-4102-8770-ead753115b50","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":243,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"d37c5475-62d1-42b1-9047-9ce5bdabfe56","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":243,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"c77a9c28-0784-4178-8342-94649b04c4db","block_type":"box","text":"31","page_number":243,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"26482775-5f4c-4817-834f-b38c8aa4f3cf","block_type":"box","text":"27","page_number":243,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"023058de-5546-4a60-bd29-a5f1d5735008","block_type":"box","text":"As defined by the International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":243,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"e1a7d2e5-4dce-4f55-9587-4a794fecf0c3","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":243,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"7d35f9ff-74e3-4edb-92bb-b3d9147f2c7b","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":243,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"f2cc5ca6-3df5-4127-b270-e8cc634106ed","block_type":"box","text":"28","page_number":243,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"3e38eaef-a055-4930-83a2-b2b2a86878bd","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":243,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"63599b22-6cd7-43f4-a540-4835dd39b3a6","block_type":"box","text":"enables companies and financial institutions worldwide to play their par t in combating the climate crisis. We develop","page_number":243,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"ed5cf85b-04e3-4c94-9383-2a944b7a5669","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":243,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"ddcef768-4c70-43aa-afc6-a4b3aeee067e","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":243,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"b3db0c5c-a43d-4d29-b672-0a3e52377b11","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 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