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You may","page_number":15,"box":{"x":69,"y":415,"width":819,"height":12}},{"id":"d2fa78df-b9a9-46fb-b790-df748a9a0d51","block_type":"box","text":"request a copy of the 2026 Annual Financial Statements at no charge by calling (800) 441-7762 between","page_number":15,"box":{"x":70,"y":430,"width":802,"height":12}},{"id":"0d1cf913-104e-4d71-a387-da86e61801d4","block_type":"box","text":"8:00 a.m. and 6:00 p.m. Eastern time on any business day.","page_number":15,"box":{"x":69,"y":445,"width":441,"height":12}},{"id":"f3a894ae-e959-4fcb-bbf6-a0ba80986c37","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act”), or","page_number":15,"box":{"x":103,"y":468,"width":767,"height":12}},{"id":"ff90dd17-0942-4af8-9256-f0bd205e142f","block_type":"box","text":"other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or","page_number":15,"box":{"x":69,"y":483,"width":796,"height":12}},{"id":"56bd911a-e880-447f-a128-4dbdbc212168","block_type":"box","text":"modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including","page_number":15,"box":{"x":70,"y":498,"width":837,"height":12}},{"id":"737090d3-9b7e-4059-b873-a5dd44e1062c","block_type":"box","text":"court interpretations, and exemptive, no-action or other relief or permission from the Commission,","page_number":15,"box":{"x":69,"y":513,"width":749,"height":12}},{"id":"c6518862-e31f-4314-b3e7-3be4ddf1fa60","block_type":"box","text":"Commission staff or other authority.","page_number":15,"box":{"x":70,"y":528,"width":274,"height":12}},{"id":"04c17f08-46e0-44f5-adc3-e57431dc9577","block_type":"box","text":"Fund","page_number":15,"box":{"x":69,"y":557,"width":27,"height":7}},{"id":"7aea56a6-636a-427f-b1b8-4fee3d50f55f","block_type":"box","text":"Ticker Symbol","page_number":15,"box":{"x":827,"y":557,"width":82,"height":9}},{"id":"49926731-7cb0-4d09-9f52-07d972110aa9","block_type":"box","text":"iShares FTSE NAREIT All Equity REIT Index Fund . . . . . . . . . . .","page_number":15,"box":{"x":70,"y":575,"width":433,"height":11}},{"id":"69697033-4199-4765-8dc7-e7d5ab2b5f76","block_type":"box","text":"....................................","page_number":15,"box":{"x":509,"y":582,"width":287,"height":1}},{"id":"22eaeee3-48b2-4020-bbe6-7050d3dcf1dd","block_type":"box","text":"BREBX","page_number":15,"box":{"x":845,"y":575,"width":47,"height":8}},{"id":"309ed5f4-e1f2-4bf7-8e24-a1a777a8686c","block_type":"box","text":"BlackRock Fund Advisors — Manager","page_number":15,"box":{"x":256,"y":629,"width":468,"height":19}},{"id":"9cedb62c-9d5a-498b-9eb2-b2e1c0810529","block_type":"box","text":"BlackRock Investments, LLC — Distributor","page_number":15,"box":{"x":222,"y":652,"width":536,"height":17}},{"id":"e822529c-3354-40a3-94ad-5bcdd69e9ada","block_type":"box","text":"The date of this Statement of Additional Information is May 29, 2026.","page_number":15,"box":{"x":224,"y":712,"width":529,"height":11}},{"id":"a193c894-0edb-4925-ad2f-cd34617a0d34","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4e40df9-1ab3-417c-bf73-6fe284bf1739","block_type":"box","text":"TABLE OF CONTENTS","page_number":16,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"7e9fb42a-8ab6-48fc-8c23-3436bc41d2ff","block_type":"box","text":"Page","page_number":16,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"902f7f7d-3649-421c-82ed-b565fabd5019","block_type":"box","text":"PART I","page_number":16,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"05b94147-851e-4182-9f7c-e2095f9fcda8","block_type":"box","text":"Investment Objective and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1","page_number":16,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"7e96844b-7da0-49cd-9351-e4f368da6d8d","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-5","page_number":16,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"94ab2e7e-154b-46a4-b45e-36c29ff687d0","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-7","page_number":16,"box":{"x":70,"y":141,"width":838,"height":9}},{"id":"9563237e-7700-4705-a74c-8921866531f4","block_type":"box","text":"Management, Advisory and Other Service Arrangements . . . . . . . . .","page_number":16,"box":{"x":70,"y":158,"width":469,"height":11}},{"id":"b702d013-4236-4a7b-bf47-e17141e2379d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19","page_number":16,"box":{"x":545,"y":158,"width":364,"height":8}},{"id":"b70ed294-4795-4115-acd0-07c50f9ca219","block_type":"box","text":"Information on Sales Charge and Distribution Related Expenses . . .","page_number":16,"box":{"x":70,"y":174,"width":477,"height":11}},{"id":"6af2b75d-8dbd-473c-8c34-83964086879b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I-23","page_number":16,"box":{"x":358,"y":207,"width":551,"height":9}},{"id":"f4c3184f-8b3f-489f-bc0f-af37257815aa","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"6f58e082-3ac0-4b8c-8174-bb7865a05907","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-25","page_number":16,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"06f9a146-8954-4af8-9e6c-2b7dcb9fc7e8","block_type":"box","text":"Financial Statements","page_number":16,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"4d143ca7-2c98-4426-a7c6-d68da2080493","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I","page_number":16,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"c07e5cd9-65c2-43de-986b-71ba5c34e85a","block_type":"box","text":"I-122","page_number":16,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"3f4f80a2-a5c9-4603-8da9-92d4bafdbff0","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":16,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"e507f3a7-4e85-4c5f-a1ae-95b6887179d6","block_type":"box","text":".............................................................. 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I","page_number":16,"box":{"x":236,"y":418,"width":635,"height":9}},{"id":"661614b4-4c6e-41e4-a40b-fae63ffb44c0","block_type":"box","text":"I-128","page_number":16,"box":{"x":874,"y":418,"width":35,"height":9}},{"id":"dbf472eb-b8eb-4e92-9333-a7c23fc95e08","block_type":"box","text":"Per formance Data","page_number":16,"box":{"x":69,"y":435,"width":129,"height":9}},{"id":"d4217d91-0ac9-4d46-bcc3-78d78ab8f482","block_type":"box","text":"................................................................................. I","page_number":16,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"4dc11383-8892-43d0-8c69-73940c90b3d7","block_type":"box","text":"I-136","page_number":16,"box":{"x":874,"y":435,"width":35,"height":9}},{"id":"26b7f2d9-ebb3-4fb2-8703-41af301fbd7f","block_type":"box","text":"Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"73914209-cef1-42c2-986d-ca91558cda06","block_type":"box","text":"........................................... 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I","page_number":16,"box":{"x":219,"y":468,"width":652,"height":8}},{"id":"e5e5681c-8292-4ec0-9bbd-43bf2fe76986","block_type":"box","text":"I-138","page_number":16,"box":{"x":874,"y":467,"width":35,"height":9}},{"id":"b5cff60c-b701-4573-89f4-8eff4d81f2b7","block_type":"box","text":"Appendix A — Description of Bond Ratings. . . .","page_number":16,"box":{"x":68,"y":484,"width":332,"height":11}},{"id":"68759842-3a04-4435-af93-539ebbdc2641","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":16,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"67e172cd-17f4-4ed6-a9d6-37b20669f6a6","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":16,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"2f82fdf6-990c-49c3-8060-3188165018d8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":16,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"876cc526-1264-481c-bed8-9706d61f00be","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6de1db93-3ff5-482f-8744-39b5d98f7df3","block_type":"box","text":"PART I: INFORMATION ABOUT ISHARES FTSE NAREIT ALL EQUITY REIT INDEX FUND","page_number":17,"box":{"x":180,"y":45,"width":618,"height":10}},{"id":"cdd188d6-931f-4ade-a2b8-a83680867e69","block_type":"box","text":"Par t I of this Statement of Additional Information (“SAI”) sets for th information about iShares FTSE NAREIT All","page_number":17,"box":{"x":102,"y":67,"width":783,"height":11}},{"id":"f32310c8-1b2e-4956-b962-56ffc7a1501b","block_type":"box","text":"Equity REIT Index Fund (the “Fund”), a series of BlackRock Funds","page_number":17,"box":{"x":70,"y":82,"width":462,"height":12}},{"id":"3ec65314-7837-4230-a088-0756fa366a75","block_type":"box","text":"SM","page_number":17,"box":{"x":533,"y":83,"width":11,"height":4}},{"id":"71ca1319-7bbd-445d-87be-82e5c5475daa","block_type":"box","text":"(the “Trust”). It includes information about the","page_number":17,"box":{"x":550,"y":82,"width":330,"height":11}},{"id":"8eacf421-53a2-41ba-b78c-5c37379fe502","block_type":"box","text":"Trust’s Board of Trustees (the “Board”), the advisory and management services provided to and the management","page_number":17,"box":{"x":68,"y":98,"width":813,"height":11}},{"id":"5364be4b-f687-447c-9952-7886cb448a81","block_type":"box","text":"fees applicable to the Fund and information about other fees applicable to and services provided to the Fund. This","page_number":17,"box":{"x":68,"y":113,"width":817,"height":11}},{"id":"397dea04-2d99-40bf-921a-0cfb5a982c13","block_type":"box","text":"Par t I of this SAI should be read in conjunction with the Fund’s Prospectus and those por tions of Par t II of this SAI","page_number":17,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"00e02fdf-4015-4b87-a8a8-c206f1266b31","block_type":"box","text":"that per tain to the Fund.","page_number":17,"box":{"x":68,"y":143,"width":173,"height":11}},{"id":"5371180b-7103-4da8-bc44-05e7014f042a","block_type":"box","text":"I. 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Make loans to the extent prohibited by the Investment Company Act.","page_number":22,"box":{"x":135,"y":347,"width":506,"height":11}},{"id":"55f6cf1e-cf76-43a6-8e7b-04fa891aa93a","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":22,"box":{"x":102,"y":370,"width":494,"height":11}},{"id":"f4edea5e-e9e0-4e57-92be-59af709e8c22","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":22,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"d3247f89-e8c4-429a-954c-37f649bd2cea","block_type":"box","text":"subject to change without shareholder approval.","page_number":22,"box":{"x":69,"y":408,"width":341,"height":11}},{"id":"6fe98386-627e-4df0-b691-c66fdda53572","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, the Investment Company","page_number":22,"box":{"x":101,"y":430,"width":796,"height":11}},{"id":"9068cce0-c8b2-4ac5-84f5-a887627294b3","block_type":"box","text":"Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position","page_number":22,"box":{"x":68,"y":445,"width":811,"height":11}},{"id":"026383ca-556c-4a72-b72e-0e38844fadac","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":22,"box":{"x":68,"y":460,"width":833,"height":12}},{"id":"def2ea37-8783-4f60-8d52-19feb5155817","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":22,"box":{"x":68,"y":475,"width":836,"height":12}},{"id":"3c7d6776-7bee-46c1-89f1-0bf12b4b7325","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":22,"box":{"x":69,"y":491,"width":815,"height":11}},{"id":"c7e00ede-3322-479d-a898-9b565ec65c78","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":22,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"a9df1f63-9bb1-4b9c-84cb-5b1c62925910","block_type":"box","text":"securities of the U.S. Government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":22,"box":{"x":69,"y":521,"width":823,"height":11}},{"id":"e27eaaad-b03c-4ed6-bbb4-6248c50d19ea","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":22,"box":{"x":69,"y":536,"width":809,"height":11}},{"id":"b49d2e0a-9825-4baf-bd2c-cfcc61122777","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":22,"box":{"x":69,"y":551,"width":772,"height":11}},{"id":"781e9da1-7bb5-4e57-b2de-7d91e9011558","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":22,"box":{"x":69,"y":566,"width":824,"height":11}},{"id":"d9766c37-46cb-4a26-b288-2e5e98b08906","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":22,"box":{"x":67,"y":581,"width":829,"height":11}},{"id":"9c97134f-06bc-41d0-97a7-3a8b3219c178","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":22,"box":{"x":69,"y":596,"width":805,"height":12}},{"id":"820a7a11-541e-45b4-823a-e97c07971215","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":22,"box":{"x":69,"y":612,"width":840,"height":11}},{"id":"e9e13b92-2c07-43a7-8b0e-a4ea9af3b375","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":22,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"c1715143-6e83-4a86-95df-3a467b8f649c","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":22,"box":{"x":70,"y":642,"width":807,"height":11}},{"id":"010bad7b-3906-4a41-9d4d-de87774a081b","block_type":"box","text":"Fund as to how to classify issuers within or among industries.","page_number":22,"box":{"x":70,"y":657,"width":438,"height":11}},{"id":"4171c788-fc87-4768-8a19-1a4f17db2bee","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set for th in (2) above, the Investment","page_number":22,"box":{"x":101,"y":680,"width":750,"height":11}},{"id":"b195fd86-81fb-4ae0-850c-94ad78d0a2fb","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":22,"box":{"x":69,"y":695,"width":827,"height":11}},{"id":"a2d473fa-4423-49a8-a83a-a2c05570e11e","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":22,"box":{"x":68,"y":710,"width":781,"height":11}},{"id":"2085a1f8-9e97-4172-9cb8-b7801e12725d","block_type":"box","text":"purposes. (The Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing,","page_number":22,"box":{"x":70,"y":725,"width":815,"height":11}},{"id":"9b2e5f1a-b3c0-4de4-bd57-abe57cbc68d2","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":22,"box":{"x":68,"y":740,"width":825,"height":11}},{"id":"9d36ba03-0be5-46fe-8fc4-7d833abda74d","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":22,"box":{"x":69,"y":755,"width":777,"height":11}},{"id":"b844184f-4dcb-4c53-87f2-06ab9a331821","block_type":"box","text":"amounts borrowed), minus liabilities other than borrowings, bears to the aggregate amount of all borrowings.","page_number":22,"box":{"x":69,"y":770,"width":776,"height":12}},{"id":"508ac0a0-020c-4df0-8912-694e9b6f4ce3","block_type":"box","text":"Borrowing money to increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments,","page_number":22,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"6b9a81e5-4a24-4c18-8668-b5cc8841cfa7","block_type":"box","text":"such as reverse repurchase agreements, may be considered to be borrowings or involve leverage and thus are","page_number":22,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"21ca0b5e-e340-49e1-a924-07dbd3251f4e","block_type":"box","text":"subject to the Investment Company Act restrictions. In accordance with Rule 18f-4 under the Investment Company","page_number":22,"box":{"x":69,"y":816,"width":813,"height":11}},{"id":"2250b194-d750-43da-b0bd-68590e1336c1","block_type":"box","text":"Act, when the Fund engages in reverse repurchase agreements and similar financing transactions, the Fund may","page_number":22,"box":{"x":68,"y":831,"width":802,"height":11}},{"id":"7245f361-7277-494e-a0fb-31831d3867a6","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":22,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"cf8989ae-175e-4427-a128-93e2a9c3cd1c","block_type":"box","text":"aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to","page_number":22,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"62bebe88-ee2c-47f5-a696-361bbf743c61","block_type":"box","text":"such transactions. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":22,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"a45e506f-1f82-4389-8349-caebe13ce195","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that","page_number":22,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"734afbb9-7fbd-4c9a-9948-d0798f26e6c1","block_type":"box","text":"may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":22,"box":{"x":69,"y":907,"width":643,"height":11}},{"id":"2af20c40-8ec9-464b-b2cb-8980de006d2d","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"b1e2716e-7c62-4886-9a26-96d5047b8745","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"306de400-b55c-4e3e-a9ee-9962f3ba5047","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":23,"box":{"x":101,"y":45,"width":788,"height":11}},{"id":"a48316d1-962a-444b-ba40-6178a7be930c","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":23,"box":{"x":68,"y":60,"width":840,"height":11}},{"id":"afb30735-fa86-4d5c-bc9b-c88fb4af2164","block_type":"box","text":"issuers; in fact, in the case of diversified funds, the Investment Company Act permits a fund to have underwriting","page_number":23,"box":{"x":70,"y":75,"width":808,"height":11}},{"id":"c19bf61f-55ea-474b-b208-a0076f1b3d7c","block_type":"box","text":"commitments of up to 25% of its assets under cer tain circumstances. Those circumstances currently are that the","page_number":23,"box":{"x":69,"y":90,"width":811,"height":11}},{"id":"933ca562-c78d-4c1a-867f-fa066d83180e","block_type":"box","text":"amount of the fund’s underwriting commitments, when added to the value of the fund’s investments in issuers where","page_number":23,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"11f3cbc6-9377-41e9-897a-ea2528cd2ea8","block_type":"box","text":"the fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25% cap. A","page_number":23,"box":{"x":68,"y":120,"width":818,"height":12}},{"id":"dbde47e4-c4b2-432c-8eaf-1716b64530af","block_type":"box","text":"fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered to be","page_number":23,"box":{"x":68,"y":135,"width":826,"height":12}},{"id":"f876a5a3-3cb8-45fe-bac1-50769feed21b","block_type":"box","text":"an underwriter under the Securities Act of 1933, as amended (the “Securities Act”). Although it is not believed that","page_number":23,"box":{"x":69,"y":150,"width":822,"height":12}},{"id":"0f067558-92ea-40eb-b8b2-e4f4fb4e090a","block_type":"box","text":"the application of the Securities Act provisions described above would cause the Fund to be engaged in the business","page_number":23,"box":{"x":68,"y":166,"width":835,"height":11}},{"id":"5d964854-80a8-45c5-9d8d-6f25efa5535a","block_type":"box","text":"of underwriting, the policy in (5) above will be interpreted not to prevent the Fund from engaging in transactions","page_number":23,"box":{"x":69,"y":181,"width":793,"height":11}},{"id":"dfd1fbbb-ba0a-4e64-a086-8c92cade68b4","block_type":"box","text":"involving the acquisition or disposition of por tfolio securities, regardless of whether the Fund may be considered to","page_number":23,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"8940a7c0-4c0f-4a2b-8750-9ab7d7912b34","block_type":"box","text":"be an underwriter under the Securities Act or is otherwise engaged in the underwriting business to the extent","page_number":23,"box":{"x":69,"y":211,"width":781,"height":11}},{"id":"58001b91-b933-41af-82e6-c03974f2fc35","block_type":"box","text":"permitted by applicable law.","page_number":23,"box":{"x":70,"y":226,"width":195,"height":11}},{"id":"2e71f755-adc9-4f4d-b4f7-30332ded35fd","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":23,"box":{"x":101,"y":249,"width":778,"height":11}},{"id":"d1180c96-afae-449e-831a-2983254811f3","block_type":"box","text":"does not prohibit the fund from making loans (including lending its securities); however, Commission staff","page_number":23,"box":{"x":69,"y":264,"width":756,"height":11}},{"id":"113b42e6-8eee-4c08-9f64-ab7ebd908318","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":23,"box":{"x":70,"y":279,"width":807,"height":11}},{"id":"8a633e8f-fc46-4690-8ab2-deffbc08cd06","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":23,"box":{"x":69,"y":294,"width":784,"height":11}},{"id":"cdf5b45d-fb95-4b82-8db1-cf51e76bd7c3","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":23,"box":{"x":69,"y":309,"width":791,"height":11}},{"id":"e697eb21-c866-4479-9724-95d0491ebdbc","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":23,"box":{"x":70,"y":324,"width":803,"height":11}},{"id":"76933384-f661-491c-b61b-cb7e0c551881","block_type":"box","text":"loans.","page_number":23,"box":{"x":70,"y":340,"width":40,"height":8}},{"id":"8f1cfd1a-1563-4cc8-b16f-892fb3bdf167","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":23,"box":{"x":102,"y":362,"width":768,"height":11}},{"id":"06f958ad-8ecd-4cf5-b691-409cd6acbbd5","block_type":"box","text":"approval, the Fund may not:","page_number":23,"box":{"x":69,"y":377,"width":197,"height":11}},{"id":"87175900-a5b0-4618-b493-4bf2d67152fc","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":23,"box":{"x":134,"y":400,"width":742,"height":11}},{"id":"905e9534-c615-400f-bda8-1c6b99e8e126","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":23,"box":{"x":102,"y":415,"width":759,"height":11}},{"id":"a0b6e42b-7410-4c0a-9d7a-54d3bb9392f2","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":23,"box":{"x":102,"y":430,"width":779,"height":11}},{"id":"cf1eb763-896d-4a3e-9a81-d2c7cacf4587","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":23,"box":{"x":101,"y":445,"width":761,"height":12}},{"id":"2976019c-f384-43a7-a0ed-f0e59ff2411d","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":23,"box":{"x":102,"y":460,"width":795,"height":12}},{"id":"798778bb-51f6-416b-b9bf-d8d39a2e2815","block_type":"box","text":"12(d)(1).","page_number":23,"box":{"x":102,"y":476,"width":60,"height":11}},{"id":"0ec68e09-b764-4722-a847-ed96d59e7784","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":23,"box":{"x":134,"y":498,"width":765,"height":11}},{"id":"2ad7e4f0-6f08-4653-b755-741934ba1f7e","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":23,"box":{"x":102,"y":513,"width":509,"height":11}},{"id":"ac20a447-4860-48ec-9f56-55165e97022b","block_type":"box","text":"Unless otherwise indicated, all limitations under the Fund’s fundamental or non-fundamental investment","page_number":23,"box":{"x":102,"y":536,"width":744,"height":10}},{"id":"9b6955d5-95db-4d1a-86c5-299554a17c2a","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":23,"box":{"x":69,"y":551,"width":791,"height":11}},{"id":"f335e054-9916-490a-9a32-c3773ccdf8fe","block_type":"box","text":"assets invested in cer tain securities or other instruments resulting from market fluctuations or other changes in the","page_number":23,"box":{"x":69,"y":566,"width":827,"height":11}},{"id":"7ffba338-7fcb-4875-9ee3-482dfbcbec1a","block_type":"box","text":"Fund’s total assets will not require the Fund to dispose of an investment until the Manager determines that it is","page_number":23,"box":{"x":70,"y":581,"width":796,"height":12}},{"id":"5780a1d1-5fce-4dce-b3af-45f02bd2d25a","block_type":"box","text":"practicable to sell or close out the investment without undue market or tax consequences.","page_number":23,"box":{"x":70,"y":597,"width":642,"height":10}},{"id":"86f9d5b5-6388-43e5-94ae-4d5be6ffed3d","block_type":"box","text":"III. Information on Trustees and Officers","page_number":23,"box":{"x":69,"y":627,"width":290,"height":9}},{"id":"95034bc0-1f05-4b6d-be7b-3e9446a126fd","block_type":"box","text":"The Board consists of thir teen individuals (each, a “Trustee”), eleven of whom are not “interested persons” of","page_number":23,"box":{"x":101,"y":649,"width":789,"height":11}},{"id":"c05996ab-5419-41d4-8d50-93c28dc90b08","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":23,"box":{"x":68,"y":664,"width":779,"height":12}},{"id":"a48de772-0ced-4944-aa2a-dbfd19e230c2","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":23,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"ed7eedb4-a029-43f4-8392-ed9a41b7640b","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":23,"box":{"x":70,"y":695,"width":793,"height":11}},{"id":"8b75d5ec-4caf-4b31-a8ef-529897058ce6","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":69,"y":710,"width":822,"height":11}},{"id":"dc69a9d6-7b97-4569-954c-3d9d227563c4","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":23,"box":{"x":68,"y":725,"width":837,"height":11}},{"id":"72702214-252f-4a30-b8fc-f722209fc8f0","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":23,"box":{"x":70,"y":740,"width":335,"height":11}},{"id":"ff228f30-3a67-4881-b795-3a1acf12dd8d","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board is an","page_number":23,"box":{"x":101,"y":763,"width":769,"height":11}},{"id":"62a78010-b5da-4bae-ba48-edcd19dc1d90","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":23,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"a2665f50-cb00-4498-b127-559d949f03bc","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":23,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"ad911aa3-3123-423f-ae09-4c6626bbfd2d","block_type":"box","text":"Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":23,"box":{"x":69,"y":808,"width":835,"height":11}},{"id":"5cbc5c9d-6b32-40b5-904d-a15180a9a7b3","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":23,"box":{"x":70,"y":823,"width":830,"height":12}},{"id":"7e3f66a0-e1ed-47a4-93e0-2bcdfa79e4a9","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":23,"box":{"x":68,"y":838,"width":789,"height":12}},{"id":"80841e03-7bac-4199-a0fd-71a3ccaeb874","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions as may be","page_number":23,"box":{"x":69,"y":853,"width":810,"height":12}},{"id":"0ac8cfa1-460e-4f45-86ac-3da65781b785","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":23,"box":{"x":69,"y":869,"width":809,"height":11}},{"id":"90ea8ac1-df60-4132-b36b-691e6dac3f4f","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":23,"box":{"x":70,"y":884,"width":794,"height":11}},{"id":"6c77f4c7-333c-4a58-bf28-6bd45a9e86af","block_type":"box","text":"regular meetings five times a year, and may hold special meetings if required before its next regular meeting. Each","page_number":23,"box":{"x":69,"y":899,"width":816,"height":11}},{"id":"e464bd16-8a47-4450-ad50-1362cd899c06","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"ac28a6a8-6484-4448-9e33-d98f2acdf8b6","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"675a95e7-8084-458d-8ebf-2b6095ca65b9","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":24,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"220f6241-6fb6-486b-9c59-14e930514133","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":24,"box":{"x":70,"y":60,"width":811,"height":11}},{"id":"510e858b-a8aa-4bbc-b8cf-7ac59cffffd5","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":24,"box":{"x":68,"y":75,"width":809,"height":11}},{"id":"cb7a1a4d-864b-499b-bc2c-203d420b64d1","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":24,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"8263b52c-2d08-4ef8-a404-10a1c5b4154c","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":24,"box":{"x":69,"y":105,"width":441,"height":11}},{"id":"adb355c3-b765-4789-88a2-3bbd03578e8c","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":24,"box":{"x":101,"y":128,"width":777,"height":11}},{"id":"b9990afe-2c5e-44ba-ae42-6da29f1fc74b","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":24,"box":{"x":69,"y":143,"width":832,"height":11}},{"id":"71db288d-1979-4b5b-ac16-36a7d37ac8a8","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s char ter, and the Fund’s","page_number":24,"box":{"x":68,"y":158,"width":820,"height":11}},{"id":"8843bbfb-c124-43da-8192-7443f1391c9a","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":24,"box":{"x":70,"y":173,"width":812,"height":11}},{"id":"3438a09e-0789-4a6e-abd5-42c8431b8f92","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":24,"box":{"x":69,"y":188,"width":819,"height":12}},{"id":"acae54ad-912a-4dd4-ae5c-29fef850d26e","block_type":"box","text":"the operations of the Fund.","page_number":24,"box":{"x":68,"y":203,"width":192,"height":11}},{"id":"2cf91ab5-6bac-4163-9fe5-11cef7f642cb","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":24,"box":{"x":102,"y":226,"width":785,"height":11}},{"id":"de17ab67-4b16-45ba-817b-7819892b993e","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":24,"box":{"x":69,"y":241,"width":828,"height":11}},{"id":"70d47c1b-368f-44a5-8b06-c3479b96bf7d","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":24,"box":{"x":69,"y":256,"width":832,"height":12}},{"id":"d16e1ed9-3561-4219-bba9-e288f1281b70","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":24,"box":{"x":68,"y":271,"width":820,"height":12}},{"id":"c4320795-61d0-48e9-8a41-5a31f075d343","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":24,"box":{"x":70,"y":286,"width":811,"height":12}},{"id":"466ce2ef-27d0-4ef5-be2c-f7975a6e4779","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":24,"box":{"x":70,"y":302,"width":767,"height":11}},{"id":"d76ff5e7-4118-4dd4-9eda-11d4ed2936c7","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":24,"box":{"x":69,"y":317,"width":815,"height":11}},{"id":"9e27a6ed-42ed-42d8-8fef-0319299c554d","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":24,"box":{"x":70,"y":332,"width":803,"height":11}},{"id":"772f7509-4a88-49cd-bd93-0e43016d7d52","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":24,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"685f2f7b-f19d-4163-b6bd-58109eff5bd7","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":24,"box":{"x":69,"y":362,"width":812,"height":11}},{"id":"0cd38fb3-83d9-4c0b-9bc8-fa824399c0e8","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":24,"box":{"x":69,"y":377,"width":817,"height":12}},{"id":"dd45e4a2-b23f-4261-baa0-3772b5ceabba","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":24,"box":{"x":69,"y":392,"width":812,"height":11}},{"id":"d3707708-d0a0-4733-bf9f-025892656e8c","block_type":"box","text":"testing of the Trust’s compliance program and repor ts to the Board regarding compliance matters for the Fund and","page_number":24,"box":{"x":68,"y":407,"width":818,"height":12}},{"id":"d128e796-617d-4adb-bedd-7c8fda9c9493","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":24,"box":{"x":70,"y":423,"width":759,"height":11}},{"id":"2597af5f-5810-4bce-a2d6-b3781973d554","block_type":"box","text":"per forming their oversight responsibilities.","page_number":24,"box":{"x":70,"y":438,"width":299,"height":11}},{"id":"56324b93-7d18-43bb-a6d5-f0813e71b9ec","block_type":"box","text":"Audit Committee.","page_number":24,"box":{"x":101,"y":460,"width":122,"height":9}},{"id":"36123fbb-a43d-40a5-b8f7-2d60fa676b73","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":24,"box":{"x":229,"y":460,"width":673,"height":12}},{"id":"25bb78cc-0d52-4153-91d2-404ab387831e","block_type":"box","text":"A. Cotty, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees. The principal","page_number":24,"box":{"x":68,"y":475,"width":814,"height":12}},{"id":"df1b24c5-6343-4087-8990-d87efff38835","block_type":"box","text":"responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval, the selection,","page_number":24,"box":{"x":69,"y":491,"width":826,"height":11}},{"id":"d00aa7ac-fbec-42dd-81c1-ae9b208e02d9","block_type":"box","text":"retention, termination and compensation of the Fund’s independent registered public accounting firm (the","page_number":24,"box":{"x":69,"y":506,"width":753,"height":11}},{"id":"4548a138-ac68-48c3-adfc-8588528a76af","block_type":"box","text":"“Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":24,"box":{"x":70,"y":521,"width":797,"height":11}},{"id":"c2ca0638-ed4e-4c07-9517-be0a2a6eb955","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":24,"box":{"x":70,"y":536,"width":825,"height":11}},{"id":"43167227-3073-46c5-8856-1f53498f7957","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":24,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"60531312-76ad-4de4-91d8-ee4d2705ae5e","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":24,"box":{"x":68,"y":566,"width":781,"height":11}},{"id":"1b11519b-6065-42c5-a078-91770134a787","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":24,"box":{"x":69,"y":582,"width":834,"height":11}},{"id":"da31b0fc-17ac-4f02-b196-4c773d98a704","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":24,"box":{"x":69,"y":596,"width":838,"height":12}},{"id":"f44213af-aad7-4196-9d8d-5aee6eb3b2ad","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":24,"box":{"x":69,"y":612,"width":825,"height":11}},{"id":"3eaf1104-e91b-49e7-87a0-e8ea22f8a055","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":24,"box":{"x":70,"y":627,"width":809,"height":11}},{"id":"c0f67df4-bc5a-4248-bce5-171593864ded","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":24,"box":{"x":70,"y":642,"width":815,"height":11}},{"id":"585cd673-8bb2-4c40-b5b4-dcf66f757b35","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":24,"box":{"x":69,"y":657,"width":774,"height":11}},{"id":"68ca9a52-997f-4487-802f-233493a07423","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":24,"box":{"x":69,"y":672,"width":815,"height":11}},{"id":"7766a1cb-dbd7-48aa-9a21-6fdb06418e67","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":24,"box":{"x":69,"y":687,"width":819,"height":11}},{"id":"72e6cff2-48b6-40d1-a420-f030e860d4e7","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":24,"box":{"x":69,"y":702,"width":812,"height":12}},{"id":"d4fbc6b6-2d9d-4d00-b70b-52e7c7b244d4","block_type":"box","text":"During the fiscal year ended January 31, 2026, the Audit Committee met four times.","page_number":24,"box":{"x":70,"y":717,"width":600,"height":12}},{"id":"32934748-b4eb-4e5c-861a-2b46d5ab96cb","block_type":"box","text":"Governance and Nominating Committee.","page_number":24,"box":{"x":102,"y":740,"width":286,"height":11}},{"id":"49a4a1fc-dea9-4133-baed-3ba088ff4a92","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":24,"box":{"x":394,"y":740,"width":464,"height":11}},{"id":"12b74cb7-dc0c-4cc0-bd41-a4461badf7aa","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton","page_number":24,"box":{"x":70,"y":755,"width":833,"height":11}},{"id":"e060899d-0046-42da-ac7f-ee748abb270c","block_type":"box","text":"and Henry R. Keizer, all of whom are Independent Trustees. The principal responsibilities of the Governance","page_number":24,"box":{"x":69,"y":770,"width":769,"height":11}},{"id":"3720acfa-673d-4493-a4d5-f772b9366f74","block_type":"box","text":"Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and recommend","page_number":24,"box":{"x":69,"y":785,"width":802,"height":12}},{"id":"ca2c101c-b6ef-49ac-ba27-000110c2fcc8","block_type":"box","text":"Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the Board with","page_number":24,"box":{"x":70,"y":801,"width":819,"height":11}},{"id":"48ce6e4a-c48e-42d7-bd4d-7310fa0db0e6","block_type":"box","text":"respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee periodic","page_number":24,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"838a8266-a0b5-4c80-a551-d65db6c2f17b","block_type":"box","text":"self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review and make","page_number":24,"box":{"x":69,"y":831,"width":824,"height":11}},{"id":"78a62c0b-7e17-472a-9f6b-280717eebe2e","block_type":"box","text":"recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters and","page_number":24,"box":{"x":69,"y":846,"width":793,"height":11}},{"id":"44b9435f-0834-4b54-b300-2ca687adc816","block_type":"box","text":"develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to Board","page_number":24,"box":{"x":69,"y":861,"width":815,"height":11}},{"id":"9299a8d6-b3a9-401c-b33d-04d005afd7d1","block_type":"box","text":"policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of ethics as","page_number":24,"box":{"x":70,"y":876,"width":835,"height":11}},{"id":"5d0f3da5-38cb-4d12-ab2e-77be7b09e749","block_type":"box","text":"they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from time to","page_number":24,"box":{"x":68,"y":891,"width":815,"height":11}},{"id":"4894a3cb-1d9c-4e81-b65d-6190a98b83ba","block_type":"box","text":"time be delegated by the Board to the Governance Committee. The Governance Committee may consider nominations","page_number":24,"box":{"x":68,"y":906,"width":841,"height":12}},{"id":"86f07957-6a4c-427d-a29f-18c5866ea2a5","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"429d8801-6b25-4ed9-b10d-0d3c5dbd495e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6098c674-ae0e-4d79-b710-cf3efcaaf8c8","block_type":"box","text":"for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and Restated","page_number":25,"box":{"x":68,"y":45,"width":809,"height":11}},{"id":"cca4c669-c494-4951-9046-4645e7e9736e","block_type":"box","text":"Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for election as a","page_number":25,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"81acce38-7f32-4815-9bda-52a6532ca14b","block_type":"box","text":"Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice procedures,","page_number":25,"box":{"x":68,"y":75,"width":792,"height":11}},{"id":"af880bd8-1732-49f6-aecd-35b550ce27bc","block_type":"box","text":"notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and received at the","page_number":25,"box":{"x":69,"y":90,"width":798,"height":11}},{"id":"9ee3133f-45f3-49bb-8d8a-5d515b3923c9","block_type":"box","text":"principal executive offices of the Trust not later than the close of business on the fifth day following the day on which","page_number":25,"box":{"x":70,"y":105,"width":832,"height":11}},{"id":"f8d1f35b-00b0-4a79-bcc3-d22e7419a1a6","block_type":"box","text":"notice of the date of the meeting was mailed or public disclosure of the date of the meeting was made, whichever","page_number":25,"box":{"x":69,"y":120,"width":812,"height":12}},{"id":"9b104a44-cabb-478a-b746-27262c88f479","block_type":"box","text":"first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain information about","page_number":25,"box":{"x":68,"y":135,"width":832,"height":11}},{"id":"f83caa26-0601-42b3-9932-81e368de77af","block_type":"box","text":"the shareholder and the nominee, as well as cer tain other information, including a written consent of the proposed","page_number":25,"box":{"x":68,"y":150,"width":820,"height":12}},{"id":"728e8190-2ac0-43eb-b7ee-c0d4a72329e2","block_type":"box","text":"nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board has adopted a","page_number":25,"box":{"x":69,"y":166,"width":801,"height":11}},{"id":"323cb338-2c5a-40d2-a329-997dd33fc66f","block_type":"box","text":"written char ter for the Governance Committee. During the fiscal year ended January 31, 2026, the Governance","page_number":25,"box":{"x":68,"y":181,"width":791,"height":11}},{"id":"32c23e3d-ac77-4be1-b968-e0912cfb89bf","block_type":"box","text":"Committee met eleven times.","page_number":25,"box":{"x":69,"y":196,"width":208,"height":9}},{"id":"ad1335be-f006-48c6-a7e2-31c9e41600dc","block_type":"box","text":"Compliance Committee.","page_number":25,"box":{"x":102,"y":219,"width":168,"height":10}},{"id":"828ae79c-912f-4962-a7b6-b5a975d548cf","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":25,"box":{"x":276,"y":218,"width":629,"height":12}},{"id":"a38810cf-8bba-4308-ba08-86a8be21fb72","block_type":"box","text":"Walton (Chair), Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of whom are","page_number":25,"box":{"x":68,"y":234,"width":789,"height":11}},{"id":"e4a4d3df-6f88-4158-9aa5-0837924011a2","block_type":"box","text":"Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its responsibility to","page_number":25,"box":{"x":70,"y":249,"width":812,"height":11}},{"id":"6e7ccea3-ce44-48dc-b103-f1bc68b6f6cc","block_type":"box","text":"oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of BFA and any","page_number":25,"box":{"x":69,"y":264,"width":809,"height":11}},{"id":"2d903e21-163d-4883-bd65-38b55bbf8933","block_type":"box","text":"sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s responsibilities include,","page_number":25,"box":{"x":69,"y":279,"width":789,"height":11}},{"id":"e0cf09db-a016-4f1f-8327-86ae1a3c960c","block_type":"box","text":"without limitation, to (1) oversee the compliance policies and procedures of the Trust and its service providers and","page_number":25,"box":{"x":68,"y":294,"width":819,"height":11}},{"id":"51d21cf4-02de-4d60-b10f-bb64798879ff","block_type":"box","text":"recommend changes or additions to such policies and procedures; (2) review information on and, where appropriate,","page_number":25,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"c91f3d38-8276-47e9-b7c4-8636c0b660b3","block_type":"box","text":"recommend policies concerning the Trust’s compliance with applicable law; (3) review repor ts from, oversee the","page_number":25,"box":{"x":69,"y":324,"width":798,"height":12}},{"id":"d908d4b3-d5a8-4085-a149-d344c3761085","block_type":"box","text":"annual per formance review of, and make cer tain recommendations and determinations regarding the Trust’s Chief","page_number":25,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"97d9451e-380d-4915-9148-769ba42682a7","block_type":"box","text":"Compliance Officer (the “CCO”), including determining the amount and structure of the CCO’s compensation and","page_number":25,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"a95e4246-feff-4196-be5e-08449592a304","block_type":"box","text":"recommending such amount and structure to the full Board for approval and ratification; and (4) under take such","page_number":25,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"6241b1be-3147-40f6-adb7-2fba9f59c9c4","block_type":"box","text":"other duties and responsibilities as may from time to time be delegated by the Board to the Compliance Committee.","page_number":25,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"4e2000cf-0235-4647-907a-4762751a7ee3","block_type":"box","text":"The Board has adopted a written char ter for the Compliance Committee. During the fiscal year ended","page_number":25,"box":{"x":68,"y":400,"width":720,"height":11}},{"id":"57ee1476-8791-4d97-a0f6-6aa4c83c4a55","block_type":"box","text":"January 31, 2026, the Compliance Committee met four times.","page_number":25,"box":{"x":69,"y":415,"width":444,"height":11}},{"id":"92733aeb-3d5e-4d77-a9a2-8cca4f8def13","block_type":"box","text":"Per formance Oversight Committee.","page_number":25,"box":{"x":102,"y":438,"width":248,"height":11}},{"id":"f0b21ab8-c990-4363-bcbe-22c11d4a9156","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":25,"box":{"x":356,"y":438,"width":531,"height":11}},{"id":"198c35bc-6af9-4a9f-92c3-0f49699e3faa","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton and Neil","page_number":25,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"32d39ecb-6161-4e73-a014-9c7af4213c83","block_type":"box","text":"A. Cotty, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is to assist the","page_number":25,"box":{"x":68,"y":468,"width":808,"height":11}},{"id":"e22ac481-f0e0-4118-ad52-1622a2d8ca80","block_type":"box","text":"Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed-upon","page_number":25,"box":{"x":70,"y":483,"width":769,"height":11}},{"id":"d67792bd-6ca3-48e8-ac47-163c37ec6822","block_type":"box","text":"per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":25,"box":{"x":70,"y":498,"width":775,"height":11}},{"id":"af7cde3e-6ed4-4fef-becf-e7038cb1e400","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":25,"box":{"x":69,"y":513,"width":782,"height":12}},{"id":"5c4a8760-2b13-4257-be56-843c1e271b4c","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":25,"box":{"x":70,"y":528,"width":829,"height":12}},{"id":"c0110475-1a4f-450b-b7b8-781c3e968df5","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":25,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"a88b60d0-2aae-4305-b092-2ce6704f784c","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":25,"box":{"x":69,"y":559,"width":803,"height":11}},{"id":"fa9df709-6677-41eb-a02b-39f5e96f3f99","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":25,"box":{"x":69,"y":574,"width":827,"height":11}},{"id":"be11ebf8-1a46-4a9b-8f0c-03158e51cae2","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":25,"box":{"x":68,"y":589,"width":811,"height":11}},{"id":"f0f6b38f-b3b7-4cf5-9070-5d7f66c027eb","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":25,"box":{"x":69,"y":604,"width":757,"height":11}},{"id":"7c2cc1e5-b673-4121-ada8-e9630fc33837","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":25,"box":{"x":70,"y":619,"width":835,"height":11}},{"id":"b2c291bd-ecd2-4a1b-98a2-11552a469359","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":25,"box":{"x":68,"y":634,"width":800,"height":12}},{"id":"87bae4e6-e485-42b2-96a7-5dfa242fae51","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":25,"box":{"x":69,"y":649,"width":780,"height":12}},{"id":"aa9cc9ee-bb9a-46d1-a1d4-96817c2dd00c","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":25,"box":{"x":69,"y":664,"width":838,"height":12}},{"id":"a803c9f0-944e-43ce-a1f4-f7724e06bc33","block_type":"box","text":"ended January 31, 2026, the Per formance Oversight Committee met five times.","page_number":25,"box":{"x":69,"y":680,"width":570,"height":11}},{"id":"b1183b7a-50af-448e-bcb2-4fe5474ccc4d","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":25,"box":{"x":101,"y":702,"width":186,"height":11}},{"id":"4657dafb-8165-484d-9c82-ea918e87a585","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":25,"box":{"x":293,"y":702,"width":598,"height":11}},{"id":"a2d43560-fd47-4293-bb20-cf1fbd6a9e77","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":25,"box":{"x":70,"y":717,"width":817,"height":11}},{"id":"f4a5e53b-2d1a-437e-9256-0d41c9be4a08","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":25,"box":{"x":69,"y":732,"width":795,"height":12}},{"id":"ce82c0fb-0a4b-4273-a4f5-1c22bef2d41a","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":25,"box":{"x":69,"y":748,"width":788,"height":11}},{"id":"19a217e5-c8aa-4a7c-944a-b5f15d9bce8c","block_type":"box","text":"meetings of the Board; and (3) exercise such other authority as may from time to time be delegated to the Ad Hoc","page_number":25,"box":{"x":69,"y":763,"width":813,"height":11}},{"id":"46f5bfa1-1629-43b6-bb68-783388190213","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":25,"box":{"x":68,"y":778,"width":816,"height":11}},{"id":"b608e3a1-bebe-4d7b-be6c-6bba5ddfc4be","block_type":"box","text":"the fiscal year ended January 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":25,"box":{"x":68,"y":793,"width":601,"height":11}},{"id":"fbc5dead-450f-4b86-a508-8cf9c0103029","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":25,"box":{"x":101,"y":816,"width":771,"height":11}},{"id":"14bbc55a-25e4-4a4d-b0c8-6bd51859ee09","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":25,"box":{"x":69,"y":831,"width":827,"height":11}},{"id":"84b3e938-c7ae-414c-9b9a-6f571ce78155","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":25,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"9798ab7e-551d-41d7-9f8f-c9b4f1b82c35","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":25,"box":{"x":69,"y":861,"width":825,"height":11}},{"id":"ea9c7aac-66b9-406d-8d1b-1e1342483022","block_type":"box","text":"in determining that a par ticular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":25,"box":{"x":70,"y":876,"width":807,"height":11}},{"id":"911b23ae-664d-4846-80c0-1ce9ed31d670","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":25,"box":{"x":70,"y":891,"width":787,"height":12}},{"id":"3ff9782f-2e38-4951-a2e9-d52cab53bd3c","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":25,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"d197bfad-dc33-4165-a1aa-6f3131d753ba","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"84db2e92-aaf3-4ba7-9451-4e398b71512c","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99f7e714-aab6-499a-b899-d15e3db737cd","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":26,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"dbf2bfdd-8ffc-4e2b-b581-ba63b24b2294","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":26,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"1d137ef8-8313-467f-943d-c7107d027f65","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":26,"box":{"x":69,"y":75,"width":823,"height":11}},{"id":"d9e8a7fa-8720-40c0-bcbe-18e2f3776441","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":26,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"ae330bb6-cade-4f35-be13-967881405079","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":26,"box":{"x":69,"y":105,"width":473,"height":11}},{"id":"f052f757-b91b-47a1-be69-df3de94021c4","block_type":"box","text":"Each Trustee’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":26,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"a5bc32d2-2fc0-453f-91dd-51312f523f83","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":26,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"a3b6b029-0aed-4c2c-9006-dfe09c7143d3","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":26,"box":{"x":69,"y":158,"width":837,"height":11}},{"id":"801e90a0-d3f2-4417-a783-71d50a647192","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":26,"box":{"x":70,"y":173,"width":759,"height":11}},{"id":"27cd722c-77c1-419c-b854-278f59c59bd8","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":26,"box":{"x":70,"y":188,"width":685,"height":12}},{"id":"ed588013-3e6c-4bc9-aaa3-67ba06b8e0e3","block_type":"box","text":"ad hoc","page_number":26,"box":{"x":762,"y":188,"width":47,"height":9}},{"id":"027ef977-5116-4cdd-b490-fdd9ffd578ce","block_type":"box","text":"committees","page_number":26,"box":{"x":814,"y":188,"width":82,"height":9}},{"id":"ed345d68-46c8-4e2a-a896-d9097192e401","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":26,"box":{"x":68,"y":203,"width":395,"height":12}},{"id":"b4df5eeb-10e9-491d-994f-241238b4aae2","block_type":"box","text":"Trustees Elect.","page_number":26,"box":{"x":103,"y":226,"width":103,"height":9}},{"id":"b31a5207-9547-4c5e-b266-38280197610a","block_type":"box","text":"Jeffrey Jarczyk and Marc D. Stern have been appointed as Trustees of the Trust effective","page_number":26,"box":{"x":213,"y":226,"width":634,"height":11}},{"id":"2c4bbf28-6468-42a5-bcb3-5536d6cb5338","block_type":"box","text":"July 1, 2026 (each, a “Trustee Elect”). Each Trustee Elect is expected to qualify as an Independent Trustee at the","page_number":26,"box":{"x":69,"y":241,"width":811,"height":11}},{"id":"a11f59d1-72e8-42cd-8d4d-9ec32573aecc","block_type":"box","text":"time of his service. Each Trustee Elect has been retained as a consultant to the Independent Trustees to assist the","page_number":26,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"50bee70d-dce2-4d48-b077-cbbbe3808aca","block_type":"box","text":"Independent Trustees in the per formance of their duties to the Trust and is expected to serve in that capacity until","page_number":26,"box":{"x":70,"y":271,"width":816,"height":12}},{"id":"58eb651d-a618-4abc-af12-33ac09ae5d2a","block_type":"box","text":"July 1, 2026.","page_number":26,"box":{"x":69,"y":287,"width":92,"height":11}},{"id":"992860f7-9b50-4401-901b-0fd92dd7338e","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":26,"box":{"x":101,"y":309,"width":751,"height":11}},{"id":"26d4ff4f-3112-488c-9637-981356b7e027","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":26,"box":{"x":69,"y":325,"width":492,"height":10}},{"id":"3c062a66-7f39-41da-844c-2fc3aa7ab398","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":26,"box":{"x":68,"y":353,"width":409,"height":8}},{"id":"edb0f009-9cc8-4d8c-adf0-de43acdd609b","block_type":"box","text":"Independent Trustees","page_number":26,"box":{"x":70,"y":369,"width":154,"height":11}},{"id":"fc3ff8f7-be92-4b2d-9026-f9bbced01339","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":26,"box":{"x":69,"y":384,"width":781,"height":11}},{"id":"34e051a4-18fc-43b7-b4a6-ec3ecf87ba97","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":26,"box":{"x":265,"y":399,"width":604,"height":12}},{"id":"d327e8be-e635-4e37-944d-df4e030316ef","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":26,"box":{"x":265,"y":414,"width":623,"height":12}},{"id":"e9980539-8bf6-4e43-89c6-523b18036e24","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":26,"box":{"x":265,"y":430,"width":637,"height":11}},{"id":"59e0c2ec-b6f5-4279-a892-65b644c4dc09","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":26,"box":{"x":265,"y":445,"width":631,"height":11}},{"id":"8f35cb2d-2f11-4199-b737-7eb13c489552","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":26,"box":{"x":264,"y":460,"width":626,"height":10}},{"id":"fac59a79-e2d2-47d7-9a2e-34bd15eff87a","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":26,"box":{"x":265,"y":475,"width":639,"height":11}},{"id":"b9bc8f04-f49b-4888-b524-fb61d561d2a6","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":26,"box":{"x":264,"y":490,"width":637,"height":11}},{"id":"ccaa9a0a-11e7-4bb4-93b8-5adbe2621fdf","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":26,"box":{"x":265,"y":505,"width":586,"height":11}},{"id":"d0398d9c-7dd9-437d-b66b-832d6274ac8e","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":26,"box":{"x":265,"y":520,"width":640,"height":11}},{"id":"71702a89-743b-4e5a-85e7-3cd20e54dd6b","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":26,"box":{"x":265,"y":535,"width":389,"height":12}},{"id":"0cac2073-b7ce-47e2-97ae-2ca9a5e44cbc","block_type":"box","text":"Susan J. Car ter Susan J. Car ter has over 35 years of experience in investment management. She has","page_number":26,"box":{"x":69,"y":558,"width":806,"height":11}},{"id":"1276b8e3-7d2f-41d3-a6a1-7a680b0b3c38","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":26,"box":{"x":265,"y":573,"width":604,"height":11}},{"id":"e5ee6069-e377-4489-ada5-b302831ebc1c","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":26,"box":{"x":265,"y":588,"width":632,"height":12}},{"id":"3588ba5a-19c9-44ce-9f7a-292326c5c370","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":26,"box":{"x":265,"y":603,"width":562,"height":9}},{"id":"c2dd1de4-b79d-4c50-970a-42065c8cf91b","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":26,"box":{"x":265,"y":618,"width":616,"height":11}},{"id":"0e65231c-9146-43a6-8157-c986681fd65f","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":26,"box":{"x":264,"y":634,"width":591,"height":11}},{"id":"283cd40f-8ea9-4b89-bccb-b8d042806ad2","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":26,"box":{"x":265,"y":649,"width":641,"height":11}},{"id":"7c71bc44-9867-4b96-b85d-e155d9be842e","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":26,"box":{"x":264,"y":664,"width":638,"height":11}},{"id":"ae184d57-9f31-4689-bf90-b6bffd89e8a1","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":26,"box":{"x":265,"y":679,"width":584,"height":11}},{"id":"7f9aceb0-654b-4d70-bf07-832bc3900b8d","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":26,"box":{"x":265,"y":694,"width":630,"height":11}},{"id":"777e6163-942a-4ff0-bf36-774f20458e59","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":26,"box":{"x":265,"y":709,"width":634,"height":11}},{"id":"f18e7652-091f-4c24-91f0-672238c622c0","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":26,"box":{"x":265,"y":724,"width":599,"height":11}},{"id":"a81a038d-2288-467a-9a88-5c269161179e","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":740,"width":407,"height":11}},{"id":"d4a2b471-356b-4902-b255-f337701dc9a7","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":26,"box":{"x":69,"y":762,"width":837,"height":11}},{"id":"ddc3f294-09df-424d-8dc3-a0cd65aaf47a","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":26,"box":{"x":265,"y":777,"width":638,"height":12}},{"id":"76a539a6-2624-4652-adba-de6629687011","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":26,"box":{"x":265,"y":792,"width":642,"height":12}},{"id":"75e1380f-a21a-467c-8145-af76196de28f","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":26,"box":{"x":265,"y":807,"width":601,"height":12}},{"id":"b72da487-35ef-4b1d-bce1-b7253a9089e6","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":26,"box":{"x":265,"y":823,"width":595,"height":11}},{"id":"e8b547f9-e087-4ed6-b20f-085109b94b9c","block_type":"box","text":"perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":838,"width":323,"height":11}},{"id":"1c77b7ea-bf2e-40f8-b3f8-0ac911b1b807","block_type":"box","text":"I-10","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"598d3d80-edbb-4539-b1ae-91342916dccd","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"96d681b8-ed2f-456f-8c81-7836edbddb6b","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":27,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"0c9e5067-dc8b-4825-b5bc-c9beccbeede0","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":27,"box":{"x":70,"y":65,"width":798,"height":12}},{"id":"24d5bb40-32ab-4b81-83d3-dc08cfa5d163","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":27,"box":{"x":265,"y":81,"width":631,"height":11}},{"id":"7a0ee2e2-5259-4f9f-9634-1ed63c81ed89","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":27,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"5cf8fa0e-c32b-4753-b131-0855274cb5ac","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":27,"box":{"x":265,"y":111,"width":628,"height":11}},{"id":"84be2afa-3385-47bb-a226-da37fa67049e","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":27,"box":{"x":265,"y":126,"width":596,"height":11}},{"id":"05f63e18-07ab-4944-b4cc-6fa301f2a484","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":27,"box":{"x":265,"y":141,"width":616,"height":11}},{"id":"a7bbb12b-76b6-4935-a8a2-24d636a00ecf","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":27,"box":{"x":264,"y":156,"width":368,"height":11}},{"id":"dcc61ade-54b3-489a-977d-a150c2d0827d","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":27,"box":{"x":70,"y":179,"width":806,"height":11}},{"id":"d10757b9-e07c-4aa7-a14b-a69ecd6cac94","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":27,"box":{"x":264,"y":194,"width":584,"height":11}},{"id":"c5f63670-b7fd-4ba7-8ecf-d0aa1338f7f8","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":27,"box":{"x":265,"y":209,"width":622,"height":11}},{"id":"5e45e68c-448a-4145-8d39-b6fcb5184b30","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":27,"box":{"x":265,"y":224,"width":638,"height":11}},{"id":"1e25851a-408e-47e8-819a-35e03e9cacc6","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":27,"box":{"x":265,"y":239,"width":570,"height":12}},{"id":"b92da7e5-be3f-43a8-a250-6fde34ce2be5","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":27,"box":{"x":265,"y":254,"width":642,"height":12}},{"id":"64fa418e-dd24-48a4-9e2b-bfac633cbbab","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":27,"box":{"x":265,"y":270,"width":626,"height":11}},{"id":"5ee46fce-02d6-4bc7-be4b-9a259e0be45b","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":27,"box":{"x":265,"y":285,"width":630,"height":11}},{"id":"855e3720-d27d-4d0a-b88b-16cefd44c9df","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":27,"box":{"x":265,"y":300,"width":602,"height":11}},{"id":"adeaf24c-dd38-4796-9a57-312ce2bd9aa1","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":27,"box":{"x":264,"y":315,"width":643,"height":11}},{"id":"382e54ca-94d0-4d8f-89f1-a6520c349785","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":27,"box":{"x":264,"y":330,"width":639,"height":11}},{"id":"d0805e27-ab87-45c3-afd8-4506f95781eb","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":27,"box":{"x":264,"y":345,"width":641,"height":11}},{"id":"7aa4b412-f086-4684-b1e8-b4442e44cedb","block_type":"box","text":"applicable Commission rules.","page_number":27,"box":{"x":265,"y":360,"width":208,"height":11}},{"id":"59241b99-ab7a-4b3d-a667-24795deda42b","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":27,"box":{"x":69,"y":383,"width":769,"height":11}},{"id":"d22f3c0f-e794-4d9b-aaf8-86a8f3f5a869","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":27,"box":{"x":265,"y":398,"width":621,"height":11}},{"id":"85422bb5-5e1d-4f3e-824b-18c569a6700b","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":27,"box":{"x":265,"y":413,"width":599,"height":11}},{"id":"1e53e3f2-7fd0-4dfa-a1c5-02abb5582dc0","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":27,"box":{"x":265,"y":428,"width":641,"height":12}},{"id":"224de47d-daa2-448e-ac21-7d002eb33d82","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":27,"box":{"x":264,"y":443,"width":602,"height":12}},{"id":"007c7328-0a5e-49d6-8e79-48bde504ab00","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":27,"box":{"x":264,"y":459,"width":617,"height":11}},{"id":"519f7bae-75a4-4116-86d1-7b72c919000a","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":27,"box":{"x":265,"y":474,"width":629,"height":11}},{"id":"d24860e2-0f1e-4ba5-add7-933eeedb33fa","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":27,"box":{"x":264,"y":489,"width":628,"height":11}},{"id":"75024047-1f90-4301-85c8-86055e9e8640","block_type":"box","text":"ar ticles and books on these topics.","page_number":27,"box":{"x":265,"y":504,"width":251,"height":11}},{"id":"9f30346a-35ec-43b6-a325-bf63e7e485db","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":27,"box":{"x":70,"y":526,"width":764,"height":12}},{"id":"b9804172-98e3-4e76-89ac-212f81c87350","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":27,"box":{"x":265,"y":542,"width":642,"height":11}},{"id":"1f5aa431-8465-48f7-bab3-a2e85bdee642","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":27,"box":{"x":264,"y":557,"width":593,"height":11}},{"id":"fc9e150b-5655-40a0-9316-19cf7cbb8413","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":27,"box":{"x":265,"y":572,"width":603,"height":11}},{"id":"bd8fee78-e619-4e9f-a548-93cab28a11fb","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":27,"box":{"x":265,"y":587,"width":629,"height":11}},{"id":"22360166-cae9-4e39-aa47-506a6745056c","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0173a0c7-c922-44ac-9b37-19eae2901923","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7cb0272e-357e-438b-94d9-41e0112962b0","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":28,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"81f311c4-2c4c-40fe-8bb8-118fd29fc7f1","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":28,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"0efdc600-bcdc-46d7-bea1-757d42f73d43","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":28,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"4ca7b43d-b03a-4722-a1ab-b1b0f445e198","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":28,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"88d4faa7-7fe5-4bb7-924b-8eabeecca9ad","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":28,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"72cf327f-4175-48fb-8efe-f0dbdb1359c7","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":28,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"b88066b8-4915-43c3-adb1-d7ec7f9321d8","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":28,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"681c5cbb-8439-4a3d-a84d-9747e73ccb62","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":28,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"8becad30-ecbf-44a4-a303-fc7ff400a318","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":28,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"014df0ee-d0ad-453e-b500-8175fe260703","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":28,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"64f488ff-bd5f-4a3d-aec8-537b05103652","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":28,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"b91736a3-de02-4631-b4e0-be3765346dc3","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":28,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"ffc3fb14-cd09-4951-b4e8-5ce983ffa97f","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":28,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"79749f0a-5ac0-4323-bedd-71ffa250710e","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":28,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"12c94fdd-3f1d-4104-b479-44a22e2f3fc3","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":28,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"f15c9a78-7e5e-4e5c-8a19-3e14a432ddce","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":28,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"559089b0-801d-4f44-8206-8d4b7dca94ac","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":28,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"ee9b1606-7b9e-4e39-b386-bf4dca8f205f","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":28,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"62dc9dd1-8ba2-4c14-8017-836ae250a6e5","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":28,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"28ab3c35-5181-4ac1-b24d-ffd798278316","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":28,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"719e9db0-615d-4b76-8224-832c131ae3a5","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":28,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"9f7b0baf-33b6-4ca0-a838-2da7d32770de","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":28,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"b95fc37d-0209-49ce-adc4-94a898138b69","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":28,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"b5a49312-bd69-4988-9e1b-8b7beaa1011e","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":28,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"95594aee-d1bd-4dff-868a-d105a2bf4aa9","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":28,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"6f8edef3-4413-47d4-8a7f-c62305aecd85","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":28,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"9aa840b9-ae1e-455f-a3df-1474b834ae99","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":28,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"6b434898-e3b7-422e-a3f1-51b2bc2ef6d9","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":28,"box":{"x":265,"y":466,"width":626,"height":11}},{"id":"c9deaa76-d86b-4c49-8c75-b6f5e7262fdd","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":28,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"b46d244e-b073-4e5a-a2bd-50375832c275","block_type":"box","text":"various private and non-profit boards.","page_number":28,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"de32b147-77e9-45b6-9eb9-bb060abdecef","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":28,"box":{"x":70,"y":519,"width":807,"height":11}},{"id":"553dc145-209b-47e4-8652-97f1b75fa6ec","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":28,"box":{"x":264,"y":534,"width":641,"height":11}},{"id":"277b4c8d-4591-498d-8a3d-f29f57c4a1fa","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":28,"box":{"x":265,"y":549,"width":618,"height":11}},{"id":"c4808984-dab1-470d-ac6d-6d5ba57afe34","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":28,"box":{"x":265,"y":564,"width":594,"height":12}},{"id":"41cbc442-7f87-4a53-a7a6-2f0d55f2e2bf","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":28,"box":{"x":265,"y":579,"width":639,"height":12}},{"id":"bb50970f-0d79-4852-92a0-d0ebdb4c0001","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":28,"box":{"x":265,"y":595,"width":575,"height":11}},{"id":"cb48bcd2-323e-449e-b1d7-8ee16470dc5b","block_type":"box","text":"Commission rules.","page_number":28,"box":{"x":265,"y":610,"width":131,"height":9}},{"id":"115896ee-acda-4666-9601-f2d44fdd5335","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":28,"box":{"x":69,"y":632,"width":808,"height":12}},{"id":"45f379c4-b2d8-439b-8db3-17fb9951c7c4","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":28,"box":{"x":265,"y":647,"width":630,"height":12}},{"id":"fbc19598-e6cb-4475-aebe-c9ea87f60a6f","block_type":"box","text":"Management, LP / Steel Par tners Japan Asset Management, LP from 1998 to 2015, an","page_number":28,"box":{"x":265,"y":663,"width":627,"height":11}},{"id":"fc001eb5-c58e-42ec-9efb-1c690e7dac11","block_type":"box","text":"investment manager that specialized in long/shor t non-U.S. equity investments, and was","page_number":28,"box":{"x":265,"y":678,"width":632,"height":11}},{"id":"2a4a32a9-701e-472d-9e4f-973959c518fc","block_type":"box","text":"an owner and General Par tner of Neon Liber ty Capital Management, LLC from 2003 to","page_number":28,"box":{"x":265,"y":693,"width":615,"height":11}},{"id":"a564a3a8-7fe6-4f9e-a97d-8da244a5230c","block_type":"box","text":"2023, a firm focusing on long/shor t equities in global emerging and frontier markets.","page_number":28,"box":{"x":265,"y":708,"width":608,"height":11}},{"id":"893b8195-bc67-430f-8e6f-6f75ea2cde75","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":28,"box":{"x":264,"y":723,"width":620,"height":11}},{"id":"a56a9e40-e521-450b-b0c4-094557cf6243","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":28,"box":{"x":265,"y":738,"width":584,"height":11}},{"id":"05bb2b2f-aa73-4d06-8a6a-e51f6e1d4f3e","block_type":"box","text":"committee financial exper t, as such term is defined in the applicable Commission rules.","page_number":28,"box":{"x":264,"y":753,"width":629,"height":11}},{"id":"df612248-4b3f-418a-a2a1-eb62652d6f9a","block_type":"box","text":"Trustees Elect","page_number":28,"box":{"x":70,"y":776,"width":101,"height":9}},{"id":"df5eb26a-b5b2-403b-a24a-7137d7ebb7c3","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":28,"box":{"x":69,"y":791,"width":777,"height":11}},{"id":"85e741a0-aaa3-4e59-b62d-31bb887a1ef8","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":28,"box":{"x":265,"y":806,"width":613,"height":12}},{"id":"30eac34b-b1b7-4a82-8963-aaec0d5b622a","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":28,"box":{"x":265,"y":821,"width":563,"height":12}},{"id":"4ad23944-54db-4a08-ba5a-efbc89e39ab0","block_type":"box","text":"Investments’ parent company, FMR LLC. 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None Over","page_number":34,"box":{"x":213,"y":656,"width":618,"height":9}},{"id":"995fd39f-cbda-4c44-a21c-6374e17f876d","block_type":"box","text":"$100,000","page_number":34,"box":{"x":837,"y":655,"width":72,"height":11}},{"id":"5dc88c45-2373-45bd-96e9-09deb466fcfa","block_type":"box","text":"As of May 5, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially owned an","page_number":34,"box":{"x":101,"y":680,"width":790,"height":11}},{"id":"dcb5c63b-82ac-48fd-a462-1a65b9eb1891","block_type":"box","text":"aggregate of less than 1% of any class of the outstanding shares of the Fund. 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The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":34,"box":{"x":69,"y":884,"width":769,"height":11}},{"id":"e44a4ba5-7974-4c80-8dc9-989ff8702992","block_type":"box","text":"I-18","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"77eef6fe-a7f7-429b-8880-af7c66d6fac9","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f6db8e0-cbb7-42e6-a338-8988021bd9f9","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":35,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"ae3582b7-e49c-44a9-8954-509f7a6bf5f7","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":35,"box":{"x":69,"y":59,"width":689,"height":12}},{"id":"d049058a-d96f-4a01-bf22-c13367037abc","block_type":"box","text":"Each Trustee Elect currently serves as a consultant to the Independent Trustees in the per formance of the","page_number":35,"box":{"x":102,"y":82,"width":761,"height":12}},{"id":"cbe3e0ae-3767-45f1-b651-4550a355ec9c","block_type":"box","text":"Independent Trustees’ duties to the Trust and is paid compensation at the same rate as the compensation paid to","page_number":35,"box":{"x":70,"y":98,"width":816,"height":11}},{"id":"e57206a9-bba2-4ca4-b9f9-de9ac74cd403","block_type":"box","text":"any Independent Trustees who are not the Chair of the Board or a Chair of a Committee. This compensation","page_number":35,"box":{"x":69,"y":113,"width":768,"height":11}},{"id":"a2e238b7-5349-4cd8-bb63-2a046ee010f6","block_type":"box","text":"arrangement will continue until July 1, 2026, when each Trustee Elect is expected to begin serving as an","page_number":35,"box":{"x":69,"y":128,"width":747,"height":11}},{"id":"51651240-96a7-4ef5-930e-9cb998a295af","block_type":"box","text":"Independent Trustee and will be compensated in a manner similar to other Independent Trustees.","page_number":35,"box":{"x":70,"y":143,"width":695,"height":11}},{"id":"81315519-1c8c-423f-a71e-099b03a0ced8","block_type":"box","text":"The following table sets for th the compensation the Trust paid to the Trustees, on behalf of the Fund, for the","page_number":35,"box":{"x":101,"y":166,"width":776,"height":11}},{"id":"b6f19da4-ba02-46b1-93f3-73d142a6ed64","block_type":"box","text":"fiscal year ended January 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for","page_number":35,"box":{"x":68,"y":181,"width":840,"height":11}},{"id":"56e4bdb5-2df1-4d25-b367-0ef7c19ead73","block_type":"box","text":"the calendar year ended December 31, 2025.","page_number":35,"box":{"x":68,"y":196,"width":326,"height":11}},{"id":"b134894e-2a09-4946-a470-934a780d8c01","block_type":"box","text":"Name","page_number":35,"box":{"x":69,"y":265,"width":32,"height":7}},{"id":"c8ff8118-1faf-4b72-9e0a-716c8edd291d","block_type":"box","text":"Compensation","page_number":35,"box":{"x":551,"y":254,"width":83,"height":9}},{"id":"04954e21-3984-4788-b49f-1734120e123a","block_type":"box","text":"from the Fund","page_number":35,"box":{"x":552,"y":264,"width":81,"height":8}},{"id":"ed72c1fd-a8a4-46e6-bac7-bc7f565de55e","block_type":"box","text":"Estimated Annual","page_number":35,"box":{"x":664,"y":244,"width":102,"height":7}},{"id":"bb5a9631-b029-4e1a-b5a5-e6feee99c61a","block_type":"box","text":"Benefits upon","page_number":35,"box":{"x":676,"y":254,"width":79,"height":9}},{"id":"0e2da36c-23f4-46a7-8bda-e114bfb07efb","block_type":"box","text":"Retirement","page_number":35,"box":{"x":683,"y":264,"width":64,"height":8}},{"id":"2e33800c-4eda-4ec8-aab5-c1be5a59f59e","block_type":"box","text":"Aggregate","page_number":35,"box":{"x":822,"y":224,"width":61,"height":9}},{"id":"16f8c73f-fc77-4358-ab5f-60e76103a460","block_type":"box","text":"Compensation from","page_number":35,"box":{"x":796,"y":234,"width":113,"height":9}},{"id":"2c44a595-f7e1-4a39-8a7a-78fd53417e50","block_type":"box","text":"the Fund and","page_number":35,"box":{"x":815,"y":244,"width":75,"height":7}},{"id":"6f6b4e62-da3f-462e-ae73-23366307aade","block_type":"box","text":"Other BlackRock","page_number":35,"box":{"x":802,"y":254,"width":102,"height":7}},{"id":"7ce6f799-39af-4540-be4d-c137bd470e41","block_type":"box","text":"Advised Funds","page_number":35,"box":{"x":809,"y":264,"width":84,"height":8}},{"id":"69eba92e-8de3-44c9-98d1-a374cbf94f40","block_type":"box","text":"1","page_number":35,"box":{"x":893,"y":265,"width":4,"height":3}},{"id":"329bea16-86df-4dea-a173-a42455a8ed86","block_type":"box","text":"Independent Trustees","page_number":35,"box":{"x":70,"y":282,"width":154,"height":11}},{"id":"8596eafa-76fc-4b5d-8058-46785a4b20ae","block_type":"box","text":"Christopher J. Ailman . . . .","page_number":35,"box":{"x":79,"y":297,"width":180,"height":11}},{"id":"954467fa-e131-46f5-965b-0086089f43d9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,667 None","page_number":35,"box":{"x":266,"y":297,"width":467,"height":11}},{"id":"6674b165-9c60-4b99-b427-66612a56203f","block_type":"box","text":"$445,000","page_number":35,"box":{"x":817,"y":297,"width":72,"height":11}},{"id":"5b7eefd1-b498-4faa-9e89-63170a73ef5d","block_type":"box","text":"Susan J. Car ter . .","page_number":35,"box":{"x":79,"y":312,"width":123,"height":9}},{"id":"6f876407-2d6d-4e73-95cf-e38214b8f0d6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,667 None","page_number":35,"box":{"x":208,"y":312,"width":525,"height":11}},{"id":"0e75ef1e-db59-4d7e-a411-a4023060d6aa","block_type":"box","text":"$445,000","page_number":35,"box":{"x":817,"y":312,"width":72,"height":11}},{"id":"f3894aef-cdfb-412b-9910-79bd7a5c3595","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,667 None","page_number":35,"box":{"x":79,"y":327,"width":654,"height":11}},{"id":"09f873b0-d4ff-457e-b0a6-449cb8458d7e","block_type":"box","text":"$445,000","page_number":35,"box":{"x":817,"y":327,"width":72,"height":11}},{"id":"8a996c1c-3472-4f75-82aa-c3b5e679df61","block_type":"box","text":"Neil A. Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,712 None","page_number":35,"box":{"x":79,"y":342,"width":654,"height":12}},{"id":"17fa224d-79ab-4d59-b04d-fd89a28f947d","block_type":"box","text":"$467,500","page_number":35,"box":{"x":817,"y":342,"width":72,"height":11}},{"id":"e1aea72e-d6bb-4fe0-9f65-669cbfc725fd","block_type":"box","text":"Henry R. Keizer","page_number":35,"box":{"x":79,"y":358,"width":109,"height":11}},{"id":"0c2736a5-e96e-4c46-86a4-3c56c960d866","block_type":"box","text":"2","page_number":35,"box":{"x":189,"y":358,"width":4,"height":4}},{"id":"1806b0e4-8c1c-40dd-8a6c-fb2fe86a2fdb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,812 None","page_number":35,"box":{"x":200,"y":357,"width":533,"height":11}},{"id":"0f034107-8e67-4fe2-a07c-8f45658ec53c","block_type":"box","text":"$490,000","page_number":35,"box":{"x":817,"y":357,"width":72,"height":11}},{"id":"1579121d-e3c2-4c07-8392-79e62b2c6527","block_type":"box","text":"Cynthia A. Montgomery","page_number":35,"box":{"x":79,"y":373,"width":164,"height":11}},{"id":"ea27ea8b-8c1f-4e6c-a084-bf559dd27d3f","block_type":"box","text":"3","page_number":35,"box":{"x":244,"y":373,"width":4,"height":5}},{"id":"2729f663-9793-4df9-b83b-ebff33a6d00c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,801 None $490,000","page_number":35,"box":{"x":257,"y":372,"width":632,"height":11}},{"id":"9fc798ef-991f-4bc8-b041-6b6892b5ce66","block_type":"box","text":"Donald C. Opatrny","page_number":35,"box":{"x":79,"y":388,"width":129,"height":11}},{"id":"69b1059d-2958-4540-8aae-3aef7cf10c12","block_type":"box","text":"4","page_number":35,"box":{"x":208,"y":388,"width":4,"height":5}},{"id":"006ae852-43f4-409e-98bd-6df4153b9f28","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,801 None","page_number":35,"box":{"x":217,"y":387,"width":516,"height":11}},{"id":"b2112d8f-225d-49fa-ab38-80a3031799a7","block_type":"box","text":"$490,000","page_number":35,"box":{"x":817,"y":387,"width":72,"height":11}},{"id":"f9b616b5-0a8e-4824-afa2-447aec98e952","block_type":"box","text":"Lori Richards","page_number":35,"box":{"x":79,"y":403,"width":91,"height":9}},{"id":"a02b2743-d913-45b2-a473-8f40f73485c8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,667 None","page_number":35,"box":{"x":176,"y":402,"width":557,"height":12}},{"id":"d952bf95-ad2c-4c96-a032-f20211619d50","block_type":"box","text":"$445,000","page_number":35,"box":{"x":817,"y":402,"width":72,"height":12}},{"id":"adea4802-cf27-4adf-9289-2a7426dacae7","block_type":"box","text":"Mark Stalnecker","page_number":35,"box":{"x":79,"y":418,"width":115,"height":9}},{"id":"81814d85-1286-4bd8-aef6-2c69e619bb6c","block_type":"box","text":"5","page_number":35,"box":{"x":195,"y":419,"width":4,"height":4}},{"id":"ba4f01f1-3d33-4a37-90d6-a53e99eee043","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,113 None","page_number":35,"box":{"x":208,"y":418,"width":525,"height":11}},{"id":"0d84880e-12ce-4e6f-97a7-a82cd93c14a8","block_type":"box","text":"$595,000","page_number":35,"box":{"x":817,"y":418,"width":72,"height":11}},{"id":"13af8ad7-5f98-4224-a5b2-5a27138d9614","block_type":"box","text":"Kenneth L. Urish . .","page_number":35,"box":{"x":79,"y":434,"width":131,"height":8}},{"id":"829024ac-e111-4fe1-a90c-af1bf33a5b1b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,667 None","page_number":35,"box":{"x":217,"y":433,"width":516,"height":11}},{"id":"cd108c92-5215-44cc-bcb6-447e8ab7cf39","block_type":"box","text":"$445,000","page_number":35,"box":{"x":817,"y":433,"width":72,"height":11}},{"id":"5f8e2823-f39e-4ec5-9d4f-bf1c87c34989","block_type":"box","text":"Claire A. Walton","page_number":35,"box":{"x":79,"y":449,"width":111,"height":8}},{"id":"50cb9f57-2bcc-4e8d-8c95-49398f4c3e24","block_type":"box","text":"6","page_number":35,"box":{"x":191,"y":449,"width":5,"height":4}},{"id":"841f246b-5557-47e4-85d3-d84a3e5d9be7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,801 None","page_number":35,"box":{"x":200,"y":448,"width":533,"height":11}},{"id":"a00b9a1e-3b89-4b00-858b-45fda5bfa41f","block_type":"box","text":"$490,000","page_number":35,"box":{"x":817,"y":448,"width":72,"height":11}},{"id":"777a88cc-143c-4f77-a6a7-f120b538d36e","block_type":"box","text":"Interested Trustees","page_number":35,"box":{"x":70,"y":464,"width":138,"height":9}},{"id":"144f29e5-fdff-44e6-ba61-3ab0c0254707","block_type":"box","text":"Rober t Fairbairn . .","page_number":35,"box":{"x":79,"y":479,"width":131,"height":9}},{"id":"f89f3f59-575b-4b75-9315-b7403703efa3","block_type":"box","text":"......................................","page_number":35,"box":{"x":217,"y":486,"width":303,"height":2}},{"id":"2799e9b0-49cc-4cf2-9bf0-b6c33d231d09","block_type":"box","text":"None None None","page_number":35,"box":{"x":584,"y":479,"width":305,"height":9}},{"id":"86d7193e-6759-4e21-9721-7c54b8592084","block_type":"box","text":"John M. Perlowski","page_number":35,"box":{"x":78,"y":494,"width":127,"height":9}},{"id":"62e523c5-0669-43b2-8fd4-67ad77ce21e4","block_type":"box","text":".......................................","page_number":35,"box":{"x":208,"y":501,"width":312,"height":2}},{"id":"abc32a93-10b5-41a9-ae25-7568314ca020","block_type":"box","text":"None None None","page_number":35,"box":{"x":584,"y":494,"width":305,"height":9}},{"id":"7fe5da4f-ebb2-46d0-9817-56981ae284e0","block_type":"box","text":"1","page_number":35,"box":{"x":69,"y":518,"width":3,"height":4}},{"id":"84d83caa-9dc2-4919-b6db-642d5a827db4","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on\r\nI14","page_number":35,"box":{"x":94,"y":519,"width":786,"height":10}},{"id":"22954490-c88f-4b54-80db-48ae29f7f08d","block_type":"box","text":"page I-14.","page_number":35,"box":{"x":94,"y":528,"width":55,"height":9}},{"id":"942fdbbd-c8aa-44d8-a096-ac2e649ecbcb","block_type":"box","text":"2","page_number":35,"box":{"x":69,"y":541,"width":3,"height":4}},{"id":"b9c21011-e172-491e-a9f8-5bd012e14dea","block_type":"box","text":"Chair of the Audit Committee.","page_number":35,"box":{"x":93,"y":541,"width":168,"height":7}},{"id":"162305d1-3ff4-497c-82d7-2f4761b33b91","block_type":"box","text":"3","page_number":35,"box":{"x":69,"y":554,"width":3,"height":3}},{"id":"1ab566b2-4458-4bf4-a8e5-9de540cd7844","block_type":"box","text":"Chair of the Governance Committee.","page_number":35,"box":{"x":93,"y":553,"width":206,"height":8}},{"id":"7850d1d0-29c8-402a-985e-4d8677f26229","block_type":"box","text":"4","page_number":35,"box":{"x":68,"y":566,"width":4,"height":4}},{"id":"5ed8ad5d-bc22-45fe-ae3a-f9c4c29efc03","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":35,"box":{"x":93,"y":566,"width":269,"height":9}},{"id":"525d19ff-603d-4589-899a-83f8fe6a9ffd","block_type":"box","text":"5","page_number":35,"box":{"x":69,"y":579,"width":3,"height":3}},{"id":"fa79a108-943c-4409-9e37-52984157e434","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":35,"box":{"x":93,"y":579,"width":352,"height":8}},{"id":"06d94340-c364-4dfb-8c5c-7729c90c9226","block_type":"box","text":"6","page_number":35,"box":{"x":69,"y":591,"width":3,"height":4}},{"id":"3f6d0d5c-879b-4e2a-98b0-4508118ceba3","block_type":"box","text":"Chair of the Compliance Committee.","page_number":35,"box":{"x":93,"y":591,"width":205,"height":9}},{"id":"2edfa695-f5fe-4f19-8569-748155404f74","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":35,"box":{"x":69,"y":620,"width":432,"height":11}},{"id":"9a75aa97-c45a-4288-b6c8-60df8c73c25f","block_type":"box","text":"Management Agreement","page_number":35,"box":{"x":69,"y":650,"width":180,"height":11}},{"id":"aa742da5-5aeb-4107-b6e1-4f1c2b160a1e","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BFA pursuant to which","page_number":35,"box":{"x":101,"y":673,"width":803,"height":11}},{"id":"15632215-b6e5-4be9-92f2-3662546ba87e","block_type":"box","text":"BFA is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":35,"box":{"x":70,"y":688,"width":642,"height":11}},{"id":"f519d3db-e7bf-4569-b156-c2a72d5775bf","block_type":"box","text":"Pursuant to the Management Agreement, BFA may from time to time, in its sole discretion to the extent","page_number":35,"box":{"x":102,"y":710,"width":737,"height":12}},{"id":"ad3661c2-2c90-496f-b40e-8db9559436cc","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":35,"box":{"x":70,"y":726,"width":834,"height":11}},{"id":"3e021471-32e5-48de-b44f-2871f28a1905","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":35,"box":{"x":68,"y":741,"width":825,"height":11}},{"id":"3e55314d-53e4-4f12-ae6f-d344936dc0b1","block_type":"box","text":"its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":35,"box":{"x":70,"y":756,"width":801,"height":11}},{"id":"ebf3478f-2e3f-46ce-ae52-3677c7f953a8","block_type":"box","text":"permitted by applicable law. BFA may terminate any or all sub-advisers or such delegation arrangements in its sole","page_number":35,"box":{"x":70,"y":771,"width":815,"height":11}},{"id":"ed98e2af-b529-4032-a9d1-4e06f02bacbd","block_type":"box","text":"discretion at any time to the extent permitted by applicable law.","page_number":35,"box":{"x":69,"y":786,"width":451,"height":11}},{"id":"faf774c0-8efc-4d2d-a9aa-95bf76565973","block_type":"box","text":"BFA and BlackRock Advisors, LLC (“BAL”), the Fund’s administrator, have contractually agreed to waive their","page_number":35,"box":{"x":102,"y":809,"width":770,"height":11}},{"id":"aae8a6c5-e88f-406f-a631-3144c0a74688","block_type":"box","text":"management fee and administration fee, as applicable, through June 30, 2036. On July 1 of each year, the waiver","page_number":35,"box":{"x":69,"y":824,"width":813,"height":11}},{"id":"d7cdb9e5-f92b-46a0-8e87-6cc674f3137f","block_type":"box","text":"agreement will renew automatically for an additional one year so that the agreement will have a perpetual ten-year","page_number":35,"box":{"x":69,"y":839,"width":813,"height":11}},{"id":"e9a09c9d-e0c5-44c9-93ba-4920d2c895dc","block_type":"box","text":"term. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees","page_number":35,"box":{"x":68,"y":854,"width":841,"height":11}},{"id":"887c94ba-c19d-4f1e-acea-9eedbd67c1f0","block_type":"box","text":"of the Trust or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":35,"box":{"x":69,"y":869,"width":607,"height":11}},{"id":"38097541-b623-4aad-9319-f75e86469ff4","block_type":"box","text":"The fees and expenses of the Independent Trustees, counsel to the Independent Trustees and the independent","page_number":35,"box":{"x":101,"y":892,"width":797,"height":11}},{"id":"cf3ee92f-9cf8-43d8-ae76-97fd19f0baae","block_type":"box","text":"registered public accounting firm that provides audit services in connection with the Fund (collectively referred to as","page_number":35,"box":{"x":69,"y":907,"width":826,"height":11}},{"id":"915fafd4-d228-4634-b439-bc1cc5b08e02","block_type":"box","text":"I-19","page_number":35,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"5a67f76a-628f-48b2-974b-409502b3a310","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3324bd72-2cf3-4b0d-9fcf-16c37d270572","block_type":"box","text":"the “Independent Expenses”) are paid directly by the Fund. Each of BAL and BFA has contractually under taken,","page_number":36,"box":{"x":68,"y":45,"width":790,"height":11}},{"id":"61df3dc2-4aba-4894-84be-54659182072c","block_type":"box","text":"through June 30, 2036, to reimburse or provide an offsetting credit to the Fund for such Independent Expenses. On","page_number":36,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"24fd1642-17a7-41e6-ad04-be7c368a6b07","block_type":"box","text":"July 1 of each year, the waiver agreement will renew automatically for an additional one year so that the agreement","page_number":36,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"52f74433-f763-48a1-9dfa-acff625e8518","block_type":"box","text":"will have a perpetual ten-year term. Such contractual arrangements may not be terminated prior to June 30, 2036","page_number":36,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"16371fb2-424e-4f3d-a18e-37e7715884c2","block_type":"box","text":"unless approved by a majority of the non-interested trustees of the Trust (with 90 days’ notice) or by a vote of the","page_number":36,"box":{"x":69,"y":105,"width":809,"height":11}},{"id":"abbfd605-32e5-40d0-ac87-621a8f1f6ee3","block_type":"box","text":"majority of outstanding voting securities of the Fund.","page_number":36,"box":{"x":69,"y":120,"width":372,"height":12}},{"id":"e8184fbe-f806-46c8-8a48-a1f6887c5e2c","block_type":"box","text":"For the fiscal year January 31, 2026, the following table shows the Independent Expenses waived by BAL and","page_number":36,"box":{"x":102,"y":143,"width":780,"height":11}},{"id":"7c3097b1-9df6-421f-9335-506e6d24516f","block_type":"box","text":"BFA:","page_number":36,"box":{"x":70,"y":158,"width":28,"height":9}},{"id":"7d0ba46d-fcdc-45e7-878f-b7b2e3219aa5","block_type":"box","text":"Independent Expenses","page_number":36,"box":{"x":778,"y":186,"width":131,"height":9}},{"id":"0062d6e1-263c-445e-ba18-e6c63e36d8eb","block_type":"box","text":"Waived by BlackRock","page_number":36,"box":{"x":780,"y":196,"width":127,"height":9}},{"id":"f3a65fa6-9324-4aec-b247-9047c8c9ab64","block_type":"box","text":"Fiscal Year Ended January 31, 2026. . . . . . . . . . . . . . . . . . . . . . . .","page_number":36,"box":{"x":70,"y":214,"width":449,"height":11}},{"id":"19ceeab1-6673-4720-95da-c0095e4b4151","block_type":"box","text":"............................","page_number":36,"box":{"x":525,"y":222,"width":222,"height":1}},{"id":"7edb468d-e652-4435-9359-7152705868b1","block_type":"box","text":"$43,464","page_number":36,"box":{"x":813,"y":213,"width":62,"height":12}},{"id":"70d58c27-57cc-4ddf-83bb-f0e40fb3b8c9","block_type":"box","text":"Fiscal Period October 8, 2024","page_number":36,"box":{"x":70,"y":229,"width":212,"height":11}},{"id":"9dd7113d-24dd-41a6-9b77-068f398e3e2e","block_type":"box","text":"1","page_number":36,"box":{"x":283,"y":230,"width":4,"height":4}},{"id":"c3e46397-7ddf-4309-aff1-dbfd3e9d7b5d","block_type":"box","text":"to January 31, 2025 . . . . . . . . .","page_number":36,"box":{"x":292,"y":229,"width":218,"height":11}},{"id":"e0f81d78-8cac-43fd-b4e7-3d0238359ea4","block_type":"box","text":".............................","page_number":36,"box":{"x":517,"y":237,"width":230,"height":1}},{"id":"5f6f2760-030f-4454-8a4e-47c034162e0b","block_type":"box","text":"$42,395","page_number":36,"box":{"x":813,"y":229,"width":62,"height":11}},{"id":"084cb23a-9b82-4e0e-b721-5f4bb9782036","block_type":"box","text":"1","page_number":36,"box":{"x":69,"y":254,"width":3,"height":3}},{"id":"45df9612-a995-4337-a04b-6df6721e8c2a","block_type":"box","text":"Commencement of operations.","page_number":36,"box":{"x":77,"y":254,"width":174,"height":8}},{"id":"fcd06fc5-9154-4934-b637-1a8a1610fdc0","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust, on behalf of the Fund,","page_number":36,"box":{"x":101,"y":275,"width":806,"height":11}},{"id":"5707e88d-c9af-49e9-8035-10365cb488bc","block_type":"box","text":"to BFA, pursuant to the Management Agreement, and the amounts waived and/or reimbursed, for the periods shown.","page_number":36,"box":{"x":68,"y":290,"width":836,"height":11}},{"id":"ed9a0b3b-ddd0-45dd-a77d-54fc32075e08","block_type":"box","text":"Fees Paid","page_number":36,"box":{"x":591,"y":318,"width":55,"height":7}},{"id":"c27e1fe1-d791-499c-a2d3-fb47922e4112","block_type":"box","text":"to BFA","page_number":36,"box":{"x":599,"y":328,"width":39,"height":7}},{"id":"9da8ee40-1dfa-40a0-9ab7-d20552459e51","block_type":"box","text":"Fees Waived","page_number":36,"box":{"x":700,"y":318,"width":72,"height":7}},{"id":"ad4191ea-fcaa-4a75-b234-5573e7100405","block_type":"box","text":"by BFA","page_number":36,"box":{"x":716,"y":328,"width":40,"height":9}},{"id":"8a9d476f-0ed0-4308-9ade-7dfbb759c107","block_type":"box","text":"Fees 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$0","page_number":36,"box":{"x":342,"y":360,"width":526,"height":12}},{"id":"2f3278d7-fa29-437b-87b1-78fa01fe8cb8","block_type":"box","text":"1","page_number":36,"box":{"x":69,"y":385,"width":3,"height":4}},{"id":"8e34c8ff-9ea0-4ef9-8d20-3bbda009021a","block_type":"box","text":"Commencement of operations.","page_number":36,"box":{"x":77,"y":385,"width":174,"height":9}},{"id":"552690b7-0cf0-4a49-8cb9-30fc5c4d3486","block_type":"box","text":"Administration Agreement","page_number":36,"box":{"x":68,"y":414,"width":191,"height":11}},{"id":"dcfe16da-69da-477e-a8f5-09a77eaf7ece","block_type":"box","text":"The Trust has engaged BlackRock Advisors, LLC (previously defined as “BAL”) to provide cer tain administration","page_number":36,"box":{"x":101,"y":436,"width":791,"height":12}},{"id":"7555437f-cb95-4e64-a97e-3965b94c5005","block_type":"box","text":"services to the Fund. BAL and its affiliates provide the Fund with administration services, including management","page_number":36,"box":{"x":69,"y":452,"width":803,"height":11}},{"id":"63fdfcba-35fb-4b47-b214-a5af90f5aa35","block_type":"box","text":"repor ting and treasury administration services, financial repor ting, legal and tax services, and supervision of the","page_number":36,"box":{"x":69,"y":467,"width":805,"height":11}},{"id":"a28f1e7e-b4cb-4a6e-8238-09a2e370019e","block_type":"box","text":"Fund’s administrative operations, preparation of proxy statements and shareholder repor ts. BAL is entitled to receive","page_number":36,"box":{"x":70,"y":482,"width":834,"height":11}},{"id":"8ae9b750-d378-429e-96d3-91eca413cd62","block_type":"box","text":"an annual administration fee of 0.06% of the average daily net assets of the Fund for providing administrative","page_number":36,"box":{"x":69,"y":497,"width":781,"height":11}},{"id":"26540719-bf91-4cdd-91af-ebda7d9da5a2","block_type":"box","text":"services.","page_number":36,"box":{"x":69,"y":512,"width":63,"height":9}},{"id":"141e9720-183b-4010-ac6b-806108818a93","block_type":"box","text":"The Trust and its service providers may engage third par ty plan administrators who provide trustee,","page_number":36,"box":{"x":101,"y":535,"width":708,"height":11}},{"id":"137f70ed-0092-4627-a496-71893aa9910b","block_type":"box","text":"administrative and recordkeeping services for cer tain employee benefit, profit-sharing and retirement plans as agents","page_number":36,"box":{"x":69,"y":550,"width":838,"height":11}},{"id":"72788e47-74da-4d14-9579-cd0d0068e96c","block_type":"box","text":"for the Trust with respect to such plans, for the purpose of accepting orders for the purchase and redemption of","page_number":36,"box":{"x":68,"y":565,"width":800,"height":11}},{"id":"4ff057dd-8402-4637-801d-aa19c0757b72","block_type":"box","text":"shares of the Trust.","page_number":36,"box":{"x":69,"y":580,"width":138,"height":9}},{"id":"f56184ff-8aba-480d-a0be-09a2e6c935e3","block_type":"box","text":"The table below sets for th information about the administration fees paid by the Trust, on behalf of the Fund, to","page_number":36,"box":{"x":101,"y":603,"width":798,"height":11}},{"id":"9a974bfe-3390-49fb-bfd8-55800f841bdd","block_type":"box","text":"BAL and the amounts waived, for the periods indicated.","page_number":36,"box":{"x":70,"y":618,"width":392,"height":11}},{"id":"0253c83c-da46-4e4f-a9e0-98c1bf1e1e86","block_type":"box","text":"Fees Paid","page_number":36,"box":{"x":591,"y":646,"width":55,"height":7}},{"id":"171e8aef-6f98-4dfb-ac48-f32dda7b96b5","block_type":"box","text":"to BAL","page_number":36,"box":{"x":599,"y":656,"width":39,"height":7}},{"id":"84b51351-2906-4c0a-9f54-f3972c43909d","block_type":"box","text":"Fees Waived","page_number":36,"box":{"x":700,"y":646,"width":72,"height":7}},{"id":"04663f76-db52-4260-a07c-c5f3b8867151","block_type":"box","text":"by BAL","page_number":36,"box":{"x":716,"y":656,"width":40,"height":9}},{"id":"a2871198-b0ef-4bb6-a195-82130966b514","block_type":"box","text":"Fees Reimbursed","page_number":36,"box":{"x":810,"y":646,"width":99,"height":7}},{"id":"c35fd345-a68c-4c4e-9674-fa0bb01a05e5","block_type":"box","text":"by BAL","page_number":36,"box":{"x":840,"y":656,"width":40,"height":9}},{"id":"0e896ef9-6d4c-43fc-b03f-39f61b59cd55","block_type":"box","text":"Fiscal Year Ended January 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,143,084 $1,143,084 $0","page_number":36,"box":{"x":70,"y":673,"width":798,"height":12}},{"id":"2aed48d2-a178-42ed-abcb-4af7e800130b","block_type":"box","text":"Fiscal Period October 8, 2024","page_number":36,"box":{"x":70,"y":689,"width":212,"height":11}},{"id":"b8a0c5fc-feb0-4406-9a6e-968679f1eb68","block_type":"box","text":"1","page_number":36,"box":{"x":283,"y":690,"width":4,"height":4}},{"id":"750197f8-3a6d-463f-b1d6-b64cf489126d","block_type":"box","text":"to January 31, 2025 . . . . . . . . . . . . . $ 232,020 $ 232,020 $0","page_number":36,"box":{"x":292,"y":688,"width":576,"height":12}},{"id":"def313c4-9fa8-45e2-bf7b-3650fcbfe22c","block_type":"box","text":"1","page_number":36,"box":{"x":69,"y":714,"width":3,"height":3}},{"id":"c6fd9002-27c6-47b6-a96e-153105902185","block_type":"box","text":"Commencement of operations.","page_number":36,"box":{"x":77,"y":713,"width":174,"height":9}},{"id":"14ce47f9-eaaa-47fc-9309-953606fc2854","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":36,"box":{"x":69,"y":742,"width":335,"height":11}},{"id":"8bcaa2bb-a9f9-4550-8d45-28b910bb83b5","block_type":"box","text":"Jennifer Hsui, CFA, Matt Waldron, CFA, Peter Sietsema, CFA, and Steven White are the por tfolio managers and","page_number":36,"box":{"x":101,"y":765,"width":787,"height":11}},{"id":"2c57fd0b-721d-476c-a6c1-db713f2514cc","block_type":"box","text":"are jointly and primarily responsible for the day-to-day management of the Fund.","page_number":36,"box":{"x":69,"y":780,"width":566,"height":11}},{"id":"589b74fe-3b4d-4314-bf1d-0054a801a5b9","block_type":"box","text":"Other Funds and Accounts Managed","page_number":36,"box":{"x":70,"y":810,"width":265,"height":11}},{"id":"6dd566a4-8215-4fa4-b481-e77858bd5818","block_type":"box","text":"The following table sets for th information about the funds and accounts other than the Fund for which the Fund’s","page_number":36,"box":{"x":101,"y":833,"width":806,"height":11}},{"id":"bd38dbc2-4eab-428a-afa8-9b450dd539e3","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of January 31, 2026.","page_number":36,"box":{"x":70,"y":848,"width":781,"height":11}},{"id":"62ba9d5d-7da5-4cd4-a960-fa964eb9b9bb","block_type":"box","text":"I-20","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"15cb2f4f-93bb-4f8f-b4ca-e210acf2e644","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8ee61a29-19ab-4060-894a-4b9e29589688","block_type":"box","text":"Number of Other Accounts Managed","page_number":37,"box":{"x":362,"y":49,"width":211,"height":9}},{"id":"094a3bff-a6a8-4ef5-82f2-b0661b1d2c52","block_type":"box","text":"and Assets by Account Type","page_number":37,"box":{"x":385,"y":59,"width":165,"height":9}},{"id":"ead7999b-eab8-4dbd-bf20-b241b1b8d652","block_type":"box","text":"Number of Other Accounts and Assets","page_number":37,"box":{"x":656,"y":49,"width":222,"height":7}},{"id":"7f1f952e-c66d-4197-aaf7-c9990373ea3f","block_type":"box","text":"for Which Advisory Fee is 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Pooled","page_number":37,"box":{"x":735,"y":82,"width":74,"height":7}},{"id":"11967d32-1b74-4800-9d4d-7bc207a2c454","block_type":"box","text":"Investment","page_number":37,"box":{"x":740,"y":92,"width":64,"height":7}},{"id":"4563f1b7-f947-41ee-9bf9-e5bea631c732","block_type":"box","text":"Vehicles","page_number":37,"box":{"x":748,"y":102,"width":48,"height":7}},{"id":"2887467a-9d8d-4422-b8cc-cd845a3b5f19","block_type":"box","text":"Other","page_number":37,"box":{"x":852,"y":92,"width":31,"height":7}},{"id":"4adbeedb-55c4-4521-88c1-82fe8badc04e","block_type":"box","text":"Accounts","page_number":37,"box":{"x":840,"y":102,"width":54,"height":7}},{"id":"d102a4f8-b260-4ff4-8e67-5be4f04e315e","block_type":"box","text":"Jennifer Hsui 371 92 0 0 0 0","page_number":37,"box":{"x":73,"y":116,"width":798,"height":7}},{"id":"d42ceca6-d7d8-40bd-a05f-52bff99938e2","block_type":"box","text":"$3.34 Trillion $111.59 Billion $0 $0 $0 $0","page_number":37,"box":{"x":321,"y":128,"width":553,"height":8}},{"id":"e4cea408-aff5-4e59-b368-f8177ba45cb4","block_type":"box","text":"Peter Sietsema 369 213 138 0 0 0","page_number":37,"box":{"x":74,"y":141,"width":797,"height":7}},{"id":"6b01145d-cd22-4ca4-89b4-303fa259d4c2","block_type":"box","text":"$3.34 Trillion $1.30 Trillion $910.77 Billion $0 $0 $0","page_number":37,"box":{"x":321,"y":153,"width":553,"height":8}},{"id":"a6ce1264-850d-420a-a89c-f08f90d5c865","block_type":"box","text":"Matt Waldron 364 3 9 0 0 0","page_number":37,"box":{"x":74,"y":166,"width":797,"height":7}},{"id":"edfbd954-d2c0-4e3b-a0fc-ec22dd72eab0","block_type":"box","text":"$3.34 Trillion $5.12 Billion $9.01 Billion $0 $0 $0","page_number":37,"box":{"x":321,"y":178,"width":553,"height":9}},{"id":"3d5379be-77d2-4116-99be-2c96dcc1731b","block_type":"box","text":"Steven White 366 109 0 0 0 0","page_number":37,"box":{"x":74,"y":191,"width":797,"height":7}},{"id":"82405e53-def9-4a32-bde3-66a265a7359d","block_type":"box","text":"$3.34 Trillion $113.94 Billion $0 $0 $0 $0","page_number":37,"box":{"x":321,"y":203,"width":553,"height":9}},{"id":"0d148417-7840-4045-8080-1ad892d40610","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":37,"box":{"x":69,"y":238,"width":304,"height":11}},{"id":"541d33d7-6711-4343-bf9a-5e596dbc0e06","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of January 31, 2026.","page_number":37,"box":{"x":101,"y":261,"width":682,"height":11}},{"id":"3b9e3fc3-b421-4188-8ce5-1b8e2b11d73a","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":37,"box":{"x":102,"y":283,"width":774,"height":12}},{"id":"692cb428-0039-46a1-99e3-97927c9fc30b","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":37,"box":{"x":70,"y":298,"width":837,"height":12}},{"id":"7332fed7-e514-47cd-8e11-02b65d695759","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":37,"box":{"x":69,"y":314,"width":823,"height":11}},{"id":"a9c61be1-6743-4874-86e6-75c6444cb169","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":37,"box":{"x":69,"y":329,"width":799,"height":11}},{"id":"64c03106-36dc-4a8e-9dfd-ad3caf1fe417","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":37,"box":{"x":70,"y":344,"width":670,"height":11}},{"id":"ec16296b-0cb8-4b4b-aa5c-350865a8d4d9","block_type":"box","text":"Base Compensation.","page_number":37,"box":{"x":102,"y":367,"width":148,"height":11}},{"id":"4f60c7de-65f6-4372-9de4-6e2d4704564f","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":37,"box":{"x":257,"y":366,"width":640,"height":12}},{"id":"c6388f0c-8b06-470c-a150-6d5ccb3be78f","block_type":"box","text":"firm.","page_number":37,"box":{"x":68,"y":382,"width":32,"height":9}},{"id":"fca5ba85-4f0b-40e4-9248-7da463248980","block_type":"box","text":"Discretionary Incentive Compensation","page_number":37,"box":{"x":69,"y":412,"width":277,"height":11}},{"id":"9dbfc98c-94e1-4637-a22d-807430ed5b0d","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the per formance of BlackRock, Inc.,","page_number":37,"box":{"x":102,"y":435,"width":792,"height":11}},{"id":"8e49d2cc-f828-4ad4-8638-2ee567b7e257","block_type":"box","text":"the per formance of the por tfolio manager’s group within BlackRock, the investment per formance, including risk","page_number":37,"box":{"x":68,"y":450,"width":800,"height":11}},{"id":"ca2b7e88-b186-4a5f-bab6-e5754771bc0a","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that por tfolio manager relative to","page_number":37,"box":{"x":69,"y":465,"width":777,"height":11}},{"id":"fc4702a8-8874-4a84-a3e6-4ac89d23ce36","block_type":"box","text":"predetermined benchmarks, and the individual’s per formance and contribution to the overall per formance of these","page_number":37,"box":{"x":70,"y":480,"width":817,"height":11}},{"id":"0caf854a-ae03-4a25-bfe8-78fe45df9d07","block_type":"box","text":"por tfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against","page_number":37,"box":{"x":70,"y":495,"width":830,"height":11}},{"id":"6335d27e-f811-4978-94ea-79bccc7ded3c","block_type":"box","text":"which the per formance of the Funds or other accounts managed by the por tfolio managers are measured. Among","page_number":37,"box":{"x":68,"y":510,"width":809,"height":11}},{"id":"15845cc6-a706-40b3-a789-30bfeda455fa","block_type":"box","text":"other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each por tfolio","page_number":37,"box":{"x":69,"y":525,"width":819,"height":12}},{"id":"cfce2bb9-74e3-4231-90a7-6aba02ea01f0","block_type":"box","text":"manager’s compensation based on the per formance of the Funds and other accounts managed by each por tfolio","page_number":37,"box":{"x":69,"y":540,"width":805,"height":12}},{"id":"f87a35a7-d4ee-4118-81f7-dd34b0d1a957","block_type":"box","text":"manager relative to the various benchmarks. Per formance of fixed-income and multi-asset class funds is measured","page_number":37,"box":{"x":69,"y":555,"width":821,"height":12}},{"id":"20c55334-ce20-4d34-a49c-53c63ebfbed1","block_type":"box","text":"on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5-year periods, as applicable.","page_number":37,"box":{"x":69,"y":571,"width":782,"height":11}},{"id":"bb1d50da-cbcd-4658-b2a8-f381379bce69","block_type":"box","text":"Per formance of index funds is based on the per formance of such funds relative to predetermined tolerance bands","page_number":37,"box":{"x":69,"y":586,"width":815,"height":11}},{"id":"fe41e0f1-da92-4815-812a-ba279c429006","block_type":"box","text":"around a benchmark, as applicable. The per formance of Messrs. Waldron, Sietsema and White and Ms. Hsui is not","page_number":37,"box":{"x":69,"y":601,"width":824,"height":11}},{"id":"0d38080c-fb29-4852-99ba-22ed3bdab459","block_type":"box","text":"measured against a specific benchmark.","page_number":37,"box":{"x":69,"y":616,"width":288,"height":11}},{"id":"e093108f-9440-4e89-8ec1-317e7c3a0d40","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":37,"box":{"x":102,"y":639,"width":389,"height":11}},{"id":"7dc042a0-6423-450e-9ee8-2b71798d6608","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":37,"box":{"x":499,"y":639,"width":383,"height":11}},{"id":"c8ff3ba3-c515-4846-8d6f-9aecb032db23","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":37,"box":{"x":70,"y":654,"width":815,"height":11}},{"id":"7b4ab534-6780-4480-bb60-404ac3182f9a","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":37,"box":{"x":68,"y":669,"width":522,"height":11}},{"id":"2e84db80-faf6-47c3-8773-417d0eb3bc83","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":37,"box":{"x":102,"y":692,"width":760,"height":11}},{"id":"3a2cefcf-4108-41e9-adab-acc09a91e4b3","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":37,"box":{"x":69,"y":707,"width":795,"height":11}},{"id":"0a189589-9d5c-4ac2-bc61-9703709c96d0","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":37,"box":{"x":69,"y":722,"width":805,"height":11}},{"id":"40a6d326-9992-4bda-b1fe-ddd457e1e9a9","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":37,"box":{"x":69,"y":737,"width":822,"height":11}},{"id":"c15082c9-3bdc-40d9-9b46-02d222a0b365","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":37,"box":{"x":68,"y":752,"width":839,"height":11}},{"id":"bc15d425-4270-45a4-8a8e-80dc9e3f19e1","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":37,"box":{"x":69,"y":767,"width":802,"height":11}},{"id":"44269538-50d5-45b2-9876-44b4363401c5","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":37,"box":{"x":70,"y":782,"width":820,"height":12}},{"id":"fbba21bb-e0df-431c-bc3d-39ba6d907fcd","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":37,"box":{"x":70,"y":797,"width":801,"height":12}},{"id":"b40a362c-c79b-4b1f-a0d9-877f22c39567","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":37,"box":{"x":70,"y":812,"width":831,"height":11}},{"id":"7c1c3406-21de-4d1b-9175-0d6a99ea5422","block_type":"box","text":"managers of the Fund have deferred BlackRock, Inc. stock awards.","page_number":37,"box":{"x":69,"y":828,"width":476,"height":11}},{"id":"9b793a39-77f9-478e-bc42-5c9422a195ec","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":37,"box":{"x":102,"y":850,"width":785,"height":12}},{"id":"d412ae53-1b80-4304-a11e-3cc67563b9d1","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":37,"box":{"x":68,"y":865,"width":836,"height":12}},{"id":"7c253386-b77e-46a5-9e03-fadc956b1c0f","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":37,"box":{"x":68,"y":881,"width":821,"height":11}},{"id":"0e599785-bd96-4ebe-a112-f010aa72b4a6","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":37,"box":{"x":69,"y":896,"width":829,"height":11}},{"id":"057910a5-ff73-417c-9ca1-1e621df06472","block_type":"box","text":"I-21","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"55edb69a-23c3-4663-9373-bd5b13c54743","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2fc1e5ec-ada5-461f-80f4-e624719abdd9","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":38,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"58b7ee2c-8345-41b8-bd05-e232f8a49b12","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":38,"box":{"x":69,"y":60,"width":414,"height":11}},{"id":"e6e5bc66-70c9-4d7f-8e3b-043c3110e295","block_type":"box","text":"Other Compensation Benefits.","page_number":38,"box":{"x":101,"y":82,"width":218,"height":11}},{"id":"1f22b632-656d-4a0c-a688-95b40db56b51","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":38,"box":{"x":327,"y":82,"width":552,"height":12}},{"id":"216a654b-b303-4c7f-8843-2b7207aa4b1c","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":38,"box":{"x":69,"y":98,"width":582,"height":11}},{"id":"520c656e-3f41-4da2-acb9-32eb062153f0","block_type":"box","text":"Incentive Savings Plans","page_number":38,"box":{"x":102,"y":120,"width":167,"height":12}},{"id":"9dfffc69-abd9-4e3a-ae0e-6f5cf781f2f5","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":38,"box":{"x":274,"y":120,"width":614,"height":12}},{"id":"dafc4358-24cf-4fa4-bc7e-4036c1cccab0","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":38,"box":{"x":69,"y":135,"width":831,"height":12}},{"id":"69a96ae9-f89f-4826-8a2e-0e91c4f899cb","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":38,"box":{"x":70,"y":150,"width":785,"height":12}},{"id":"e382bc59-48c0-4b27-baa1-7d8e8ce4928e","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":38,"box":{"x":69,"y":165,"width":830,"height":12}},{"id":"d7368fbe-adb3-40a4-af80-6c458db36cc8","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":38,"box":{"x":69,"y":181,"width":799,"height":11}},{"id":"83f3f66c-e126-4a5b-8df3-5bb74338d4f5","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":38,"box":{"x":69,"y":195,"width":831,"height":12}},{"id":"567e4311-fe5e-4a57-987d-fe2da269c596","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":38,"box":{"x":69,"y":211,"width":798,"height":11}},{"id":"05b4cdf1-e7d5-4ce2-b1ab-1966b12ed05a","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":38,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"9df9496d-0195-45e0-a15c-ade13f196a02","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":38,"box":{"x":68,"y":241,"width":793,"height":11}},{"id":"980ac2cd-8a71-40b3-8a32-d9676a6c4373","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":38,"box":{"x":70,"y":256,"width":832,"height":11}},{"id":"f1bc4077-ca18-49a6-8a33-25d7f010adb4","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":38,"box":{"x":68,"y":271,"width":805,"height":11}},{"id":"0b78a4aa-312d-497d-aa2f-4ec754d865af","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":38,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"ca0c757f-340c-4e37-a690-5a5b08b893db","block_type":"box","text":"par ticipate in these plans.","page_number":38,"box":{"x":70,"y":302,"width":185,"height":11}},{"id":"f1e5c16d-3335-48d5-a4c8-9b1df07a3bbe","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":38,"box":{"x":69,"y":332,"width":268,"height":11}},{"id":"60889b09-d24c-4278-bf17-201b7c85c519","block_type":"box","text":"As of January 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":38,"box":{"x":101,"y":355,"width":758,"height":11}},{"id":"92c822c0-fafa-49d3-a05e-cd65cf1546be","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":38,"box":{"x":69,"y":370,"width":519,"height":11}},{"id":"f31fe8d1-814d-4c63-aecf-73e720c0b9a7","block_type":"box","text":"Portfolio Manager","page_number":38,"box":{"x":69,"y":408,"width":105,"height":9}},{"id":"2adcbc66-72c6-4256-8a4a-17c02c8314ca","block_type":"box","text":"Dollar Range of Equity","page_number":38,"box":{"x":759,"y":398,"width":129,"height":9}},{"id":"06429cd4-078a-4ba2-9e52-f640d1baa7df","block_type":"box","text":"Securities Beneficially Owned","page_number":38,"box":{"x":736,"y":408,"width":173,"height":9}},{"id":"028e20b9-c9ef-4b9c-b2da-b115275b4933","block_type":"box","text":"Jennifer Hsui, CFA","page_number":38,"box":{"x":69,"y":426,"width":128,"height":10}},{"id":"6b6b17bd-237a-4b4f-ba37-43373b372cd4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":38,"box":{"x":206,"y":426,"width":635,"height":9}},{"id":"3d06f7fb-452f-451d-9e20-1a97dc777a01","block_type":"box","text":"Matt Waldron, CFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":38,"box":{"x":70,"y":441,"width":771,"height":10}},{"id":"cb179a7f-5964-4e0d-9e1a-53f80ca4f9e7","block_type":"box","text":"Peter Sietsema, CFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":38,"box":{"x":69,"y":456,"width":772,"height":10}},{"id":"8e2c7143-a2cb-485c-a988-a61aab5dcfda","block_type":"box","text":"Steven White . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":38,"box":{"x":69,"y":471,"width":772,"height":9}},{"id":"c5097ec5-e6bc-467b-85cc-367cc76c082b","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":38,"box":{"x":69,"y":503,"width":403,"height":11}},{"id":"2dfe4169-0c36-49fa-8ce5-961fdea2813a","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":38,"box":{"x":102,"y":525,"width":727,"height":12}},{"id":"88818fb6-0e57-4d31-8f53-a92127704edb","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":38,"box":{"x":70,"y":540,"width":814,"height":12}},{"id":"1d1a2321-ed2e-4f04-a150-bb8914c0e932","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":38,"box":{"x":70,"y":555,"width":837,"height":11}},{"id":"0a65f7a3-1086-4694-bb89-815564fb628f","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":38,"box":{"x":70,"y":571,"width":810,"height":11}},{"id":"ae62489b-251e-4e51-b558-d2103742b59c","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":38,"box":{"x":69,"y":586,"width":782,"height":11}},{"id":"90b8d7e3-9210-4fc9-ae15-10fb3eb5584d","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":38,"box":{"x":69,"y":601,"width":830,"height":11}},{"id":"975f60a5-aa00-4dfa-95ba-19f4e2de4033","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":38,"box":{"x":69,"y":616,"width":828,"height":11}},{"id":"6aec0895-902d-4716-b327-f56c2416e51a","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":38,"box":{"x":68,"y":631,"width":834,"height":11}},{"id":"b4e7843e-0135-47c3-9f86-a83f5122e5d6","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":38,"box":{"x":70,"y":646,"width":777,"height":11}},{"id":"a25ca43d-e5fd-4796-85af-f93e633c5158","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":38,"box":{"x":70,"y":661,"width":821,"height":12}},{"id":"5c652a49-a30a-4e3b-bbde-b8570c063605","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":38,"box":{"x":69,"y":677,"width":819,"height":10}},{"id":"a99be492-eb30-4e62-9ae0-7017ef472525","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":38,"box":{"x":69,"y":692,"width":832,"height":11}},{"id":"4660d111-d33e-4212-9548-c744178cf4d9","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":38,"box":{"x":68,"y":707,"width":804,"height":11}},{"id":"29e20014-b712-4b70-a266-e1c24ccd9c3a","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":38,"box":{"x":69,"y":722,"width":760,"height":11}},{"id":"8a5a44b0-b06b-4c6a-b1e4-e82d93246293","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":38,"box":{"x":69,"y":737,"width":834,"height":11}},{"id":"50d9106f-2046-4147-a299-9dd8ce6b0a57","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":38,"box":{"x":69,"y":752,"width":836,"height":11}},{"id":"b35c82dd-873e-47b8-a00e-967e0db706c6","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":38,"box":{"x":69,"y":767,"width":822,"height":11}},{"id":"026c7dae-93e0-4bad-96b8-bd3895183793","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":38,"box":{"x":70,"y":782,"width":835,"height":12}},{"id":"3fedd7ad-cb06-4c2a-977d-d9b0f2dadbaf","block_type":"box","text":"be opposed to the strategy utilized for a fund. It should also be noted that a por tfolio manager may be managing","page_number":38,"box":{"x":69,"y":797,"width":803,"height":12}},{"id":"9e883cc6-ce91-4414-a190-c08aac562f0c","block_type":"box","text":"hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only accounts,","page_number":38,"box":{"x":69,"y":812,"width":811,"height":12}},{"id":"9d3283b4-0098-47e3-90c2-04e7478ebb37","block_type":"box","text":"subject to incentive fees. Such por tfolio managers may therefore be entitled to receive a por tion of any incentive fees","page_number":38,"box":{"x":69,"y":828,"width":839,"height":11}},{"id":"4ddd672e-4a15-4ce1-bb1c-0f0a7fa51ff9","block_type":"box","text":"earned on such accounts. Currently, the por tfolio managers of the Fund are not entitled to receive a por tion of","page_number":38,"box":{"x":69,"y":843,"width":787,"height":11}},{"id":"886d7a92-f6f2-4eaa-9ed4-482eb46493e4","block_type":"box","text":"incentive fees of other accounts.","page_number":38,"box":{"x":70,"y":858,"width":231,"height":9}},{"id":"9cc1f4dc-4fe3-4ab3-9276-c62fa5ad9fb0","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":38,"box":{"x":101,"y":881,"width":788,"height":11}},{"id":"84a86478-e961-4bc1-80cf-678c99a41a3b","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":38,"box":{"x":70,"y":896,"width":839,"height":11}},{"id":"97fa72ff-73fc-4b0b-92b7-c6ae4e723789","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":38,"box":{"x":68,"y":911,"width":823,"height":11}},{"id":"e7b71bd4-431f-4739-84dc-007cb9a82ff2","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"014fe276-c2da-4040-8ba5-d4391884939a","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e809943-0eb0-4a70-a2b0-1778e513956d","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":39,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"9d224db7-e3eb-4016-95f5-9a7f8b75288a","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":39,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"e9d593af-db1c-45f0-9e90-2c93abb62ec5","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":39,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"74db6155-04d3-48b2-bc75-86fc78025e26","block_type":"box","text":"Accounting Services","page_number":39,"box":{"x":68,"y":105,"width":150,"height":11}},{"id":"84cd17e0-8b3d-46dd-9725-31e8f258bf66","block_type":"box","text":"State Street Bank and Trust Company (“State Street”) serves as the accounting services provider for the Fund.","page_number":39,"box":{"x":102,"y":128,"width":791,"height":11}},{"id":"6c26dba7-bf37-4dc2-8b9d-4b2ffbbbbc68","block_type":"box","text":"State Street maintains the books of account and other financial records (other than those maintained by the Fund’s","page_number":39,"box":{"x":69,"y":143,"width":824,"height":11}},{"id":"3e740134-4d02-4482-a689-2d03c1fe037e","block_type":"box","text":"custodian); records general ledger entries; calculates daily net income; reconciles activity to the trial balance;","page_number":39,"box":{"x":69,"y":158,"width":779,"height":11}},{"id":"ad4dfad0-da6d-4e0a-8882-ec75083066da","block_type":"box","text":"calculates and publishes daily net asset value; prepares account balances; and provides such other accounting","page_number":39,"box":{"x":69,"y":173,"width":796,"height":11}},{"id":"f2eb08ae-3d71-4d55-a63b-98344f716299","block_type":"box","text":"services as may be required. In connection with its accounting services, State Street also provides cer tain","page_number":39,"box":{"x":69,"y":188,"width":760,"height":12}},{"id":"266bfa85-2441-4dfd-bef5-60c4fbb08495","block_type":"box","text":"administration services.","page_number":39,"box":{"x":69,"y":204,"width":170,"height":8}},{"id":"c43fc08f-6dae-4377-b88f-205ab40c1828","block_type":"box","text":"Custodian","page_number":39,"box":{"x":69,"y":234,"width":72,"height":9}},{"id":"5ce99437-0cfd-45a0-bdd3-ed40f0abae40","block_type":"box","text":"State Street, which has its principal place of business at One Congress Street, Suite 1, Boston, Massachusetts","page_number":39,"box":{"x":102,"y":256,"width":797,"height":12}},{"id":"2476d7b7-5c0a-4603-b06c-8428ebf272c6","block_type":"box","text":"02114-2016, serves as the custodian for the Fund (the “Custodian”). The Custodian, among other responsibilities,","page_number":39,"box":{"x":69,"y":271,"width":822,"height":12}},{"id":"35ba5c64-d1c5-4cd6-9032-1af4a38cf945","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":39,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"4069b103-2efa-4075-8d92-ccefe863f810","block_type":"box","text":"purchase and upon sale or maturity, and collects and receives all income and other payments and distributions on","page_number":39,"box":{"x":70,"y":302,"width":813,"height":11}},{"id":"c0b7ed14-ba27-4ff5-8566-8657d5b73ed2","block_type":"box","text":"account of the assets of the Fund.","page_number":39,"box":{"x":69,"y":317,"width":244,"height":9}},{"id":"89f4abd8-7913-469a-a5b3-c363598f6843","block_type":"box","text":"Transfer Agent","page_number":39,"box":{"x":68,"y":347,"width":107,"height":11}},{"id":"9f0d8f38-01b6-4b4b-bcf6-0104d8695d42","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), which has its principal offices at 118 Flanders Road,","page_number":39,"box":{"x":102,"y":370,"width":799,"height":11}},{"id":"af39f1ea-0d63-41a4-b0c7-be0808140719","block_type":"box","text":"Westborough, Massachusetts 01581 serves as the transfer and dividend disbursing agent for the Fund.","page_number":39,"box":{"x":68,"y":385,"width":742,"height":11}},{"id":"890f43d9-d85d-4114-a62a-4beb97c850b3","block_type":"box","text":"Credit Agreement","page_number":39,"box":{"x":69,"y":415,"width":129,"height":11}},{"id":"30fffe45-1314-49ce-b0c0-d5e5cc4e3d0c","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":39,"box":{"x":101,"y":438,"width":757,"height":11}},{"id":"7ac14da0-1821-4ab0-9d0e-7c476709a3c8","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":39,"box":{"x":69,"y":452,"width":817,"height":12}},{"id":"ea0e5884-56c5-48cc-8fc4-91dd5d57ca8c","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":39,"box":{"x":68,"y":468,"width":743,"height":11}},{"id":"aaf187c6-c7b0-479f-a2b2-7c6c129f5eea","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":39,"box":{"x":69,"y":483,"width":825,"height":11}},{"id":"0461334f-a6fe-444c-8f86-ae4f35a94f7d","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":39,"box":{"x":68,"y":498,"width":818,"height":11}},{"id":"30c996ee-b3e1-4f87-a5fd-832b20351a7a","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":39,"box":{"x":70,"y":513,"width":761,"height":12}},{"id":"1553f521-b5c2-4c01-9006-ccbbe17c4a3a","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":39,"box":{"x":69,"y":528,"width":768,"height":12}},{"id":"0b953941-37e4-4f10-9202-980e28a06180","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectus and","page_number":39,"box":{"x":68,"y":543,"width":838,"height":12}},{"id":"4d6063a6-61e1-4f2b-9e0a-2afceef1714c","block_type":"box","text":"SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other","page_number":39,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"df6c7944-986a-407c-ba98-8ace3ea3905a","block_type":"box","text":"fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the","page_number":39,"box":{"x":68,"y":574,"width":825,"height":11}},{"id":"f6ca0473-4352-4247-878f-b200ce18408d","block_type":"box","text":"Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":39,"box":{"x":70,"y":589,"width":771,"height":11}},{"id":"14368813-de91-4b7c-b68e-b62ff129ef05","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":39,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"5f72baf5-3777-40df-bbcc-51028e55d6ca","block_type":"box","text":"charged interest at a variable rate.","page_number":39,"box":{"x":69,"y":619,"width":245,"height":11}},{"id":"0d40d30b-1ee9-4090-91f9-c9746175b620","block_type":"box","text":"V. Information on Sales Charge and Distribution Related Expenses","page_number":39,"box":{"x":68,"y":649,"width":482,"height":11}},{"id":"a1369cf7-6469-403d-afe1-49eb0f8c6263","block_type":"box","text":"Currently, there are no sales charges applicable to the Fund.","page_number":39,"box":{"x":102,"y":672,"width":430,"height":11}},{"id":"e6e94683-f65c-408f-85be-ed43d0754ab7","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor. BRIL is a registered","page_number":39,"box":{"x":102,"y":695,"width":802,"height":11}},{"id":"feac7d76-b24e-4e88-b972-2fb7d57a5a80","block_type":"box","text":"broker-dealer located at 50 Hudson Yards, New York, New York 10001. The Trust has entered into a distribution","page_number":39,"box":{"x":69,"y":710,"width":795,"height":10}},{"id":"586e4156-7f1d-4f4f-9c75-1a1517d48d1d","block_type":"box","text":"agreement with BRIL in connection with the continuous offering of shares of the Fund. During the fiscal year ended","page_number":39,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"3f49e215-c244-48a3-a0b4-16bfd6d76f56","block_type":"box","text":"January 31, 2026, the Fund did not make any payments to the Distributor.","page_number":39,"box":{"x":69,"y":740,"width":530,"height":11}},{"id":"c222a246-94ca-4c34-a506-38cf30f34c6d","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":39,"box":{"x":68,"y":770,"width":318,"height":11}},{"id":"833015a8-4916-4135-9c67-bce0a0f4a1c9","block_type":"box","text":"The offering price for the Fund’s shares is equal to the net asset value computed by dividing the value of the","page_number":39,"box":{"x":101,"y":793,"width":775,"height":11}},{"id":"7b649610-39b4-49e5-be9a-886d959339bf","block_type":"box","text":"Fund’s net assets by the number of shares outstanding.","page_number":39,"box":{"x":70,"y":808,"width":398,"height":11}},{"id":"b7ad0720-a0e1-4b00-a719-d09ed1af1831","block_type":"box","text":"For more information on the purchase and valuation of shares, see “Purchase of Shares” and “Pricing of","page_number":39,"box":{"x":102,"y":831,"width":747,"height":11}},{"id":"2e18823c-a20c-48c0-9022-87b5bc959178","block_type":"box","text":"Shares” in Par t II of this SAI.","page_number":39,"box":{"x":69,"y":846,"width":205,"height":9}},{"id":"e86f52cc-cc17-4f7c-be0e-872697705905","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":39,"box":{"x":68,"y":876,"width":302,"height":11}},{"id":"6e34b821-ae0d-4064-9c92-00f9bf1b7c87","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":39,"box":{"x":102,"y":899,"width":609,"height":11}},{"id":"1bb47629-bd6c-4483-83be-6346b399f018","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"fd09b8c3-cb11-428f-aff1-b1d26c1f6284","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"224af9f5-49aa-4eed-ad83-dcf1570f051e","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, is set","page_number":40,"box":{"x":102,"y":45,"width":794,"height":11}},{"id":"54dbdad6-ec9f-4856-bc5f-037db7053c5e","block_type":"box","text":"for th in the following table:","page_number":40,"box":{"x":68,"y":60,"width":191,"height":11}},{"id":"a249d8d8-4c6f-427e-b31c-9c6d9cabaa7c","block_type":"box","text":"Aggregate Brokerage","page_number":40,"box":{"x":613,"y":88,"width":125,"height":9}},{"id":"0bd3f59b-7b6c-41f0-b251-7e1cf7c97fb3","block_type":"box","text":"Commissions Paid","page_number":40,"box":{"x":623,"y":98,"width":106,"height":7}},{"id":"1591978c-ec3b-4ab3-9a15-5cc0f9f57ec0","block_type":"box","text":"Brokerage Commissions","page_number":40,"box":{"x":769,"y":88,"width":140,"height":9}},{"id":"99cefeee-9e18-49a0-970a-0696d48b7be8","block_type":"box","text":"Paid to Affiliates","page_number":40,"box":{"x":791,"y":98,"width":96,"height":7}},{"id":"1d64d34a-1bdf-4c4e-829a-12eb89213a52","block_type":"box","text":"Fiscal Year Ended January 31, 2026 . . .","page_number":40,"box":{"x":70,"y":116,"width":284,"height":11}},{"id":"ee7edab5-0d63-4abf-86d6-d59e36d3df40","block_type":"box","text":"............................","page_number":40,"box":{"x":360,"y":123,"width":222,"height":2}},{"id":"9fa21163-3c19-4d67-a8e4-14a483f74eca","block_type":"box","text":"$130,982 $0","page_number":40,"box":{"x":640,"y":115,"width":208,"height":11}},{"id":"b7759463-6929-4e95-a44b-3bae31ca8a44","block_type":"box","text":"Fiscal Period October 8, 2024","page_number":40,"box":{"x":70,"y":131,"width":212,"height":10}},{"id":"d7b2bf14-1b43-44d1-88f3-f741e882883f","block_type":"box","text":"1","page_number":40,"box":{"x":283,"y":131,"width":4,"height":5}},{"id":"d4d1b965-0fa9-4ea1-9def-e3a0ee3f22ae","block_type":"box","text":"to January 31, 2025. . . . . . . . . . . .","page_number":40,"box":{"x":292,"y":131,"width":241,"height":11}},{"id":"7224bde8-f512-4a13-a167-f57ef66fdabd","block_type":"box","text":"......","page_number":40,"box":{"x":540,"y":138,"width":42,"height":2}},{"id":"fc6a9a76-2a83-452f-875e-ea7f06ff3528","block_type":"box","text":"$210,716 $0","page_number":40,"box":{"x":640,"y":130,"width":208,"height":11}},{"id":"1c130c6a-cd66-4d1e-8a49-75623874f8ef","block_type":"box","text":"1","page_number":40,"box":{"x":69,"y":156,"width":3,"height":3}},{"id":"c301cdac-e58a-4b7f-b2ad-499f2e36ce02","block_type":"box","text":"Commencement of operations.","page_number":40,"box":{"x":77,"y":155,"width":174,"height":9}},{"id":"432b7c85-c44d-4b93-85a4-36cdb481f010","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":40,"box":{"x":101,"y":176,"width":770,"height":12}},{"id":"1b4755fe-1659-4871-8769-04a722656d98","block_type":"box","text":"28(e) research/brokerage services under Section 28(e) of the Securities Exchange Act of 1934, as amended, and","page_number":40,"box":{"x":69,"y":191,"width":814,"height":12}},{"id":"e99498e0-03d2-4462-9fe5-9443d3e191f0","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended January 31, 2026. The provision","page_number":40,"box":{"x":68,"y":206,"width":836,"height":12}},{"id":"d530f22e-5e06-4db4-908b-be313a528ca4","block_type":"box","text":"of Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage","page_number":40,"box":{"x":69,"y":222,"width":771,"height":11}},{"id":"1921f15c-8552-430f-9ab5-20fbda2a44dc","block_type":"box","text":"business with such brokers.","page_number":40,"box":{"x":69,"y":237,"width":198,"height":9}},{"id":"d47eb34e-59f3-4055-b75d-1f78675c2169","block_type":"box","text":"Amount of Commissions","page_number":40,"box":{"x":357,"y":265,"width":141,"height":7}},{"id":"31b0ce42-2a91-429b-b5e3-20978c6489fe","block_type":"box","text":"Paid to Brokers for","page_number":40,"box":{"x":374,"y":275,"width":109,"height":7}},{"id":"d63b4c2d-a612-4748-a949-45c7cd3c7da0","block_type":"box","text":"Providing 28(e) Eligible Research Services","page_number":40,"box":{"x":304,"y":285,"width":249,"height":9}},{"id":"3f1445d9-4b53-4006-98f3-7b7c4330c5cd","block_type":"box","text":"Amount of Brokerage","page_number":40,"box":{"x":593,"y":275,"width":124,"height":9}},{"id":"c7753d44-4b2f-48ff-992a-56d0ee842fc7","block_type":"box","text":"Transactions Involved","page_number":40,"box":{"x":592,"y":285,"width":126,"height":7}},{"id":"1e8d99d1-9f28-42ec-afab-3c0ce9514652","block_type":"box","text":"$0 $0","page_number":40,"box":{"x":419,"y":302,"width":245,"height":11}},{"id":"bcb380de-d7a5-4def-8837-e4e2f45bd795","block_type":"box","text":"As of January 31, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1","page_number":40,"box":{"x":101,"y":327,"width":789,"height":11}},{"id":"20dbeecc-0c13-4a77-bb8a-d1485e3ac9e2","block_type":"box","text":"under the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":40,"box":{"x":69,"y":342,"width":792,"height":11}},{"id":"104c32ea-ae99-43fc-9dfe-634aec109c6b","block_type":"box","text":"January 31, 2026.","page_number":40,"box":{"x":69,"y":357,"width":131,"height":11}},{"id":"44ecab89-de61-47f7-8e6a-329d34b026b2","block_type":"box","text":"Securities Lending","page_number":40,"box":{"x":68,"y":387,"width":135,"height":11}},{"id":"48684671-82c2-48fd-a9f3-d510259e1b04","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":40,"box":{"x":101,"y":410,"width":807,"height":11}},{"id":"7252411e-491f-4a44-878e-855477daa89b","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":40,"box":{"x":69,"y":425,"width":817,"height":11}},{"id":"a79eb169-a08a-4f5d-ae1b-226f9d57d886","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":40,"box":{"x":69,"y":440,"width":813,"height":12}},{"id":"f4414fa4-d8f9-4028-9003-bb296308077b","block_type":"box","text":"lending, BlackRock Institutional Trust Company, N.A. (“BTC“) acts as securities lending agent for the Fund, subject to","page_number":40,"box":{"x":70,"y":455,"width":832,"height":12}},{"id":"d0974ba6-30e8-4b1b-bdb5-9690dcd3ba30","block_type":"box","text":"the overall supervision of BFA, pursuant to a written agreement (the “Securities Lending Agency Agreement”). BTC","page_number":40,"box":{"x":68,"y":470,"width":814,"height":12}},{"id":"d8803825-b65f-4b29-a697-3bb2edaa4b89","block_type":"box","text":"administers the lending program in accordance with guidelines approved by the Board.","page_number":40,"box":{"x":69,"y":486,"width":614,"height":11}},{"id":"b0b1cd1d-2fe2-4230-aee4-2c9064b2de29","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BTC as","page_number":40,"box":{"x":101,"y":508,"width":735,"height":12}},{"id":"6668bf69-7fa3-40e4-b2ac-6052b7ae79f5","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":40,"box":{"x":69,"y":523,"width":834,"height":12}},{"id":"2ab3b61c-f475-4f26-9c21-038e1bcd9bd2","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":40,"box":{"x":70,"y":538,"width":822,"height":12}},{"id":"19e0543e-02e0-4544-96b5-829a80decb7d","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BTC bears all","page_number":40,"box":{"x":69,"y":554,"width":788,"height":11}},{"id":"9b40646c-2225-46d9-b449-f12aae250916","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":40,"box":{"x":69,"y":569,"width":783,"height":11}},{"id":"e53ff19b-8721-47dd-92b1-46454a3373e0","block_type":"box","text":"investment of cash collateral received for securities on loan in money market funds advised by BFA or its affiliates,","page_number":40,"box":{"x":70,"y":584,"width":817,"height":11}},{"id":"4d89417d-beef-4200-86b1-e900be1ed6a4","block_type":"box","text":"and such fees will not be subject to any waivers (the “collateral investment fees”); however, BTC has agreed to","page_number":40,"box":{"x":69,"y":599,"width":791,"height":11}},{"id":"4afd951e-d5de-464e-b3aa-fb21a5955f0d","block_type":"box","text":"reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees","page_number":40,"box":{"x":69,"y":614,"width":825,"height":11}},{"id":"a08a5aff-ff5d-4a71-a6d3-fbb9307e9f82","block_type":"box","text":"the Fund bears to an annual rate of 0.04%. Such money market fund shares will not be subject to a sales load,","page_number":40,"box":{"x":68,"y":629,"width":793,"height":11}},{"id":"993cf04d-1323-4924-a9af-2ddac6f504d6","block_type":"box","text":"distribution fee or service fee.","page_number":40,"box":{"x":69,"y":644,"width":213,"height":9}},{"id":"7bb37808-8f24-4728-b060-f5a7b6a86220","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":40,"box":{"x":101,"y":667,"width":776,"height":11}},{"id":"e4adca1e-bc90-4f3d-bb5f-df1ad8ce219c","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":40,"box":{"x":69,"y":682,"width":831,"height":11}},{"id":"2b8a0f58-28d7-4484-9b9e-d47d97ba6616","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":40,"box":{"x":68,"y":697,"width":812,"height":12}},{"id":"da69abb6-92a4-4a5f-a48f-520b5c969a7f","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":40,"box":{"x":69,"y":712,"width":799,"height":12}},{"id":"7fab7807-b62a-429f-826a-5cc90e125426","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":40,"box":{"x":68,"y":727,"width":835,"height":12}},{"id":"d4c659a3-be7f-45c2-94a3-7c0468ccc23d","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":40,"box":{"x":69,"y":743,"width":818,"height":11}},{"id":"f053f12a-a56d-498b-a18d-9121bb62d178","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":40,"box":{"x":68,"y":758,"width":789,"height":11}},{"id":"6c8c2b54-f00f-4ae8-8da5-6516f6e0fcbd","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":40,"box":{"x":69,"y":773,"width":829,"height":11}},{"id":"6f04b803-6454-4d19-8754-d7634a5f064a","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":40,"box":{"x":69,"y":788,"width":839,"height":11}},{"id":"b61ab38b-096d-42ce-9a41-5ae48174446c","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":40,"box":{"x":69,"y":803,"width":802,"height":11}},{"id":"3f1352e3-b671-4cdf-991b-84ecf7fc4574","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":40,"box":{"x":70,"y":818,"width":830,"height":11}},{"id":"52a408b7-c71c-47cf-b519-8d24260dce92","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":40,"box":{"x":69,"y":833,"width":838,"height":11}},{"id":"4d1a54f2-3bbc-4922-91ce-57755beac5c3","block_type":"box","text":"Fund’s returns on securities lending.","page_number":40,"box":{"x":70,"y":849,"width":258,"height":11}},{"id":"8dd41694-eece-4784-be0a-c3e208e13292","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a42b7640-6cb6-42d3-b969-4007b6fd5b22","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ec4a1eca-94af-4ce7-97fe-10d510fc7742","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":41,"box":{"x":102,"y":45,"width":774,"height":11}},{"id":"837defc0-c8c8-45a6-bbf6-c3c09982f67d","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":41,"box":{"x":69,"y":60,"width":790,"height":11}},{"id":"e45701d9-e153-4184-ad40-81b56b928c00","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":41,"box":{"x":68,"y":75,"width":809,"height":11}},{"id":"758779cf-0319-4b0b-8f3b-4b75026bd701","block_type":"box","text":"Trust and BTC.","page_number":41,"box":{"x":68,"y":90,"width":104,"height":9}},{"id":"51861020-dca2-4aa5-a9c6-18091a74c14c","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) the Fund retains 81% of securities lending income","page_number":41,"box":{"x":102,"y":113,"width":761,"height":11}},{"id":"caad9d62-2ded-4b83-a83c-7c46f39ef8a0","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":41,"box":{"x":69,"y":128,"width":832,"height":11}},{"id":"cbc517cd-9d85-4ad2-b5c2-678bd45f2c7f","block_type":"box","text":"lending income plus collateral investment fees.","page_number":41,"box":{"x":70,"y":143,"width":334,"height":11}},{"id":"d430e4d0-a96d-468b-b50d-5cc745b29d90","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":41,"box":{"x":102,"y":166,"width":753,"height":11}},{"id":"a3c08c6e-5cff-4979-8954-2dd39ee21555","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":41,"box":{"x":69,"y":181,"width":778,"height":11}},{"id":"ccfd8b8c-6795-48bf-98f2-c6bc13a78bbd","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":41,"box":{"x":70,"y":196,"width":817,"height":11}},{"id":"080d96de-ab21-4fac-b00a-c0ac729d7928","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":41,"box":{"x":70,"y":211,"width":794,"height":11}},{"id":"ba2af2e8-6098-4a48-9dc2-0f485c9f67e4","block_type":"box","text":"(ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":41,"box":{"x":69,"y":226,"width":825,"height":11}},{"id":"8e9038a8-7f05-483d-80ec-e34f4477afe9","block_type":"box","text":"The services provided to the Fund by BTC, in the most recent fiscal year ended January 31, 2026, primarily","page_number":41,"box":{"x":101,"y":249,"width":766,"height":11}},{"id":"61866a63-15ea-405d-91f7-6d1e13044ace","block_type":"box","text":"included the following:","page_number":41,"box":{"x":70,"y":264,"width":156,"height":11}},{"id":"7414ab31-93ba-4cfb-956a-8bd268e3ab92","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":41,"box":{"x":69,"y":284,"width":818,"height":11}},{"id":"5a75b46b-a3af-4f8a-bf04-e1652682043b","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":41,"box":{"x":102,"y":299,"width":333,"height":11}},{"id":"cb5246a1-d401-4aae-a304-89ac2e930dd0","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":41,"box":{"x":69,"y":319,"width":538,"height":12}},{"id":"651464e5-030b-48ea-95bd-d63a70e33dd7","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":41,"box":{"x":69,"y":339,"width":330,"height":12}},{"id":"b6f038e7-184a-4b0f-9520-2e7ac6adfe35","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":41,"box":{"x":69,"y":360,"width":834,"height":11}},{"id":"d006d39c-ad21-48b8-b155-bdefee12a142","block_type":"box","text":"of excess collateral, as necessary;","page_number":41,"box":{"x":102,"y":375,"width":246,"height":11}},{"id":"7aa5de33-bc20-4a80-b652-8e11f2baa74d","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":41,"box":{"x":69,"y":395,"width":562,"height":11}},{"id":"56720e87-0501-46b1-8023-52646fa57e6d","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":41,"box":{"x":69,"y":415,"width":665,"height":11}},{"id":"451e1bbc-079b-4a72-9c02-31c1c44135fd","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":41,"box":{"x":69,"y":435,"width":822,"height":11}},{"id":"fe94c120-fffd-474c-84cc-b1466c182ab7","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":41,"box":{"x":101,"y":450,"width":803,"height":11}},{"id":"c64fcd66-d62c-4ffa-b960-b984e21b59d1","block_type":"box","text":"of the loaned securities; and","page_number":41,"box":{"x":102,"y":465,"width":203,"height":11}},{"id":"5ffcc708-c410-44ce-baa8-728ed22ef206","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":41,"box":{"x":69,"y":486,"width":808,"height":11}},{"id":"d458ca7b-806e-4fa9-a67f-c210d5f42cd2","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":41,"box":{"x":101,"y":508,"width":805,"height":12}},{"id":"6a45b8b4-bb4b-4df9-9000-3e78f62eb9ed","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended January 31, 2026.","page_number":41,"box":{"x":69,"y":523,"width":573,"height":12}},{"id":"ad72db56-bfe7-47fd-91cb-5de20fc5b6e0","block_type":"box","text":"Gross income from securities lending activities","page_number":41,"box":{"x":69,"y":551,"width":343,"height":11}},{"id":"7e41d469-b200-40d6-97ee-8689741ae6bd","block_type":"box","text":"..................................................","page_number":41,"box":{"x":414,"y":559,"width":401,"height":1}},{"id":"bf572904-746b-4ef7-a0e3-3330836ac783","block_type":"box","text":"$157,217","page_number":41,"box":{"x":837,"y":550,"width":72,"height":12}},{"id":"2ba5a596-7f30-45f1-939b-bcf977bd92cc","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":41,"box":{"x":70,"y":571,"width":565,"height":11}},{"id":"fa4c0304-ed3a-4b66-a3e2-c49ea209f468","block_type":"box","text":"Securities lending income paid to BTC for services as securities lending agent","page_number":41,"box":{"x":79,"y":586,"width":556,"height":11}},{"id":"cd2de20e-0094-4581-aa1a-36c586006b8b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . $ 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Financial Statements","page_number":42,"box":{"x":69,"y":735,"width":179,"height":8}},{"id":"607c4319-8143-4a77-b14f-b156888998f8","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":42,"box":{"x":101,"y":757,"width":726,"height":11}},{"id":"077fc476-73ea-4385-b3cd-6bb1d4ad45a3","block_type":"box","text":"Statements and Additional Information for the fiscal year ended January 31, 2026, as filed with the SEC on Form N","page_number":42,"box":{"x":69,"y":772,"width":826,"height":11}},{"id":"281ec277-4a71-491e-b98a-4c644b2518b8","block_type":"box","text":"CSR (the “2026 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the 2026","page_number":42,"box":{"x":69,"y":787,"width":835,"height":11}},{"id":"2c5ff973-a6b6-49a0-9d13-a58a18b37ef9","block_type":"box","text":"Annual Financial Statements are incorporated by reference herein. The 2026 Annual Financial Statements have been","page_number":42,"box":{"x":68,"y":802,"width":833,"height":12}},{"id":"0f01c77d-1179-4f17-ad2c-119a735c6464","block_type":"box","text":"audited by Deloitte & Touche LLP. The repor t of Deloitte & Touche LLP is incorporated herein by reference. Such 2026","page_number":42,"box":{"x":69,"y":818,"width":839,"height":11}},{"id":"a387ca50-0e2a-47fd-9d51-8da2a3855d68","block_type":"box","text":"Annual Financial Statements have been incorporated herein in reliance upon the repor t of such firm given their","page_number":42,"box":{"x":68,"y":833,"width":790,"height":11}},{"id":"8589ce6c-bd0c-4e2d-aca6-0d693c3ae205","block_type":"box","text":"authority as exper ts in accounting and auditing. Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":42,"box":{"x":69,"y":848,"width":815,"height":11}},{"id":"f87dd4e3-924f-4ff3-9699-2395b8072a92","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":42,"box":{"x":69,"y":863,"width":785,"height":11}},{"id":"5d3037d4-0947-4818-9ca9-6b66939cddef","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":42,"box":{"x":69,"y":878,"width":836,"height":11}},{"id":"6d06b6d4-b8b3-46e8-9f4c-1efdd9135d26","block_type":"box","text":"I-26","page_number":42,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"938c249e-e441-4708-b6f5-f1d24fb575a0","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c913854e-bd16-4ad8-9db9-abea4063dad7","block_type":"box","text":"PART II","page_number":43,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"f058b49b-bea4-4357-b23a-d5ca53176e7e","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":43,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"e94bc6e5-f6fb-4082-9574-d0a95d6b3b56","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":43,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"43e712d6-a57c-490f-9bde-c306f0abff1e","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":43,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"130bbba2-a320-4b3f-b288-591a760e8ea5","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":43,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"3d7f851c-b19c-4030-b37b-6c256ce376f5","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":43,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"eb242557-b0ca-4876-bc21-0e6ac35f0f0f","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":43,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"329cfdad-cd68-4099-9e59-4d99cd739107","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":43,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"bdf03563-69b6-466e-a6f4-25fd0a0cb801","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":43,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"2311d453-4f07-4689-a625-2a6d60ffef5f","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":43,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"85bd4a54-2afb-4f45-9330-e16e11d6039b","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":43,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"1f37006a-ff97-4be8-a3c7-6c3cd1ae07dc","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":43,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"05c98313-406a-48fb-abce-c045dc03c69e","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":43,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"477b3d5f-d095-443e-9a26-1ffa29be25f3","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":43,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"4ab6e882-e268-4716-9df8-320f2612ea5f","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":43,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"da5e2243-c63d-45bb-ace4-2dde09358a57","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":43,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"f617bfa0-a9d0-47d5-9fd9-7ad70768deff","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":43,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"f6261941-354b-463e-9fc5-8d7610544bbb","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":43,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"7d13c867-6f40-4249-b3b9-acc8dee3f24e","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":43,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"7edd7e3e-4736-443b-9836-ebe944192fb4","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":43,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"83430067-2143-4d26-b953-c52fa512dbe1","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":43,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"cc1adcff-b3a8-4f4f-9169-5b67458e8acd","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":43,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"76b50c9b-e5b7-4229-9f3e-e0f2596482ac","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":43,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"4e553857-a46d-4646-ad4c-1131de5caaf9","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":43,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"a61857b6-cf9d-4a29-9311-abe73d92977d","block_type":"box","text":"par ticular Fund.","page_number":43,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"7948b8fd-307b-46a2-a56a-d77530e4c8c5","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":43,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"bb627934-9a11-4b05-8e47-f817dcc0a72e","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":43,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"4cd61c75-d7da-418f-887e-4331fbadcc5a","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":43,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"de226e77-4a91-4553-8b8e-bd66d9205074","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":43,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"6e2dee12-5d41-4ce3-8938-64bf6efafb86","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":43,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"5226c906-4b6b-4c27-b1e0-8372100978eb","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":43,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"efd81519-c875-4565-82e2-e2656659f5f1","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":43,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"fe84bd5f-9305-4d1d-9960-95864507b514","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":43,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"af858c9f-29cd-4f63-8015-b95fa2cfc9f1","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":43,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"53561c5d-e0c7-46c8-b2a7-eec572b55400","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":43,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"19971503-51ec-4c15-acdf-e45b57a2d118","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":43,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"37451d8f-af8d-43f2-9373-04eac53c0ccd","block_type":"box","text":"Asset-Backed Securities.","page_number":43,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"9b24e1d3-375e-472f-887e-a40fe848a50f","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":43,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"5aa4be59-5126-4073-928b-c830fa855c94","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":43,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"8de07bba-b573-4790-9b5b-5403974d4be1","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":43,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"77dc0936-9e67-4e5a-b82c-f42d3010763e","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":43,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"0dfdbd3d-29c8-4492-871f-23abe16007db","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":43,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"fdbc1357-ddd1-4443-8cea-33d1197a3756","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":43,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"de8a65bb-2aa0-484a-b538-3bc1c1738df2","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":43,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"0b346c92-4aa4-461e-b201-5f87889c5f21","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":43,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"5aeffdc9-0bbe-411f-b826-503701f09f88","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":43,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"3fddc569-5d44-4b94-9e1f-c544c1747ab4","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":43,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"98904d42-bd29-48b1-924e-fb396a39b026","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":43,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"90231b1d-3dca-48ad-8c5f-9773153d031b","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":43,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"7cad3f7a-8dc3-4cbb-98ea-99bea8c708ec","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":43,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"95aae259-7e17-47a4-92e6-2900ff963ed2","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":43,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"66b3dd39-70b9-4b3e-b134-fc9706ef9c97","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":43,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"a7b36328-3e00-4b55-9a26-8ce1d716b536","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":43,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"523fd8dd-a78d-409b-99d0-8e333e88c073","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":43,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"3a7d06a0-ce64-43a8-ad9a-990aa2a69b68","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":43,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"c316f2e7-75ad-45d6-a8dd-3bd096b080f9","block_type":"box","text":"II-1","page_number":43,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"caef07b9-0fe5-4bad-9d49-d3bf2ca44498","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8bf03d4b-7109-4752-aaf2-7d819e75e10c","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":44,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"d4f7c2a9-0222-4aa1-a3bc-44a0f2d3c2cf","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":44,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"0abdada7-b320-49ff-b5c2-f8c1f7fdc75c","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":44,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"1a77ef5a-95d2-4b50-a7cc-d3bdf68a751c","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":44,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"3d153d4f-4dd8-4bdb-ab24-913fb7bc4864","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":44,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"7c2395aa-8a4d-4707-b237-e9b1294a49f7","block_type":"box","text":"Asset-Based Securities.","page_number":44,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"3b317215-21db-4eb9-ac0a-5ab85e7940e8","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":44,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"aad79d0d-3642-43ac-9ddf-d7e4c1ec3373","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":44,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"6b25f1d3-947f-4b52-8a02-01dbfdc10031","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":44,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"1912eebf-3aba-4623-a5ba-da7d51d8e7b9","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":44,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"412f0309-32b2-4b0e-8a7f-bcf21514c628","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":44,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"d091f5a5-f857-4cc9-a3c3-c8e7116ece20","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":44,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"218d945d-9d81-451d-8ccf-76cacfc2bcc1","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":44,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"35786aa7-144a-4c47-80f8-af076751fc84","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":44,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"e00e89e2-928d-4642-ac31-b31fb0413aaa","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":44,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"62f3c88b-ba08-4395-8425-f31246ae36f5","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":44,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"38fbe465-313b-4e7e-88e3-67faa3cab617","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":44,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"92ba0c9c-b491-4941-8cd3-c0c042eec0b5","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":44,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"1384489d-a401-4433-8d5a-f1baa3d0a5bb","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":44,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"c023f4ab-9ece-40da-ba92-f1bdf3014e65","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":44,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"6f2b306c-b8f3-45ad-b8df-d958159f93bc","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":44,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"317724fb-ac5f-417e-8910-debc999329eb","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":44,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"8a6f6b66-2549-47fd-b418-a2b657466073","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":44,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"0520a5dc-be8e-41dd-9d2b-dfe2d3fdf28b","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":44,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"5801ea5c-8470-4c43-bd2d-fb50af0ac446","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":44,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"437d03f5-486f-4a5f-b3ae-3dbacf67d9d8","block_type":"box","text":"appreciation in the underlying asset.","page_number":44,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"218fe128-97d0-473b-94bc-77fdc6e9427f","block_type":"box","text":"Precious Metal-Related Securities.","page_number":44,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"4c83082e-bc3d-4082-a360-059bed27acf5","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":44,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"e7083eb4-bb2f-46a4-b1d7-9520a73b5571","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":44,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"746aba68-8cc7-4ba1-99fa-38270f2f362c","block_type":"box","text":"e.g.","page_number":44,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"e5d65705-8707-4fe1-b14e-5fcccf7efc84","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":44,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"dc02deac-f7e8-451d-9a5a-874bf20a7aef","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":44,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"8599724a-72a2-43de-8063-4b04cc9c06b0","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":44,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"07332a4c-0160-4de7-ad25-a39b6e6cde6c","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":44,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"3b1f4bb3-85cd-4baf-8106-a667e932a008","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":44,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"7d93a5a4-3741-41fa-aacf-462a435ece4c","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":44,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"a07236df-5a76-4ac6-b924-f83ba6483b94","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":44,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"3dbed925-9e8b-47d3-94bd-4112965a1c91","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":44,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"6812d733-3580-448f-99a9-613d1587000a","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":44,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"0fcb2769-7d10-48db-8b61-346aa8332a87","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":44,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"46aa2c13-782e-433c-906a-00ca2321d9e3","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":44,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"c8609bd0-de6f-403a-8951-369bc48d665b","block_type":"box","text":"South African gold production.","page_number":44,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"2799641e-7018-482e-bdb8-f3d0e80a357c","block_type":"box","text":"Borrowing and Leverage.","page_number":44,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"f08d689f-b47a-481d-b65b-48813a03c60a","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":44,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"b11a8128-1bac-47d2-9971-111d4ec947f5","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":44,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"2ddeed86-fb7c-49e2-9e67-b4d323289734","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":44,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"035338e8-c600-49f1-ae5b-17301e321c38","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":44,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"bd7e9731-61e3-49f3-9d8f-99d75b0068ef","block_type":"box","text":"other securities transactions.","page_number":44,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"5b360074-9b16-4b6d-9872-1bff4fc831a8","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":44,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"7476b9f7-a6ba-4de0-8c03-42018a88d2a7","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":44,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"15eaa455-f604-4628-9922-a940e7631e28","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":44,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"3f574148-5718-41e5-ad98-e3795e61b55f","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":44,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"e1b7eec0-df19-42dc-8a1e-543436629b7c","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":44,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"8bc0cb76-3022-4ac3-95ac-383c27e2d887","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":44,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"7376927b-08d8-4aeb-ad23-242619deac96","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":44,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"6e195ffb-630f-4c8e-b3c5-af276cfabd60","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":44,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"dbf2495f-c823-4f4c-851d-922ac4e875a9","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":44,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"b5621eaf-2abf-4ad2-930e-20c465d47ebc","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":44,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"0c274581-7611-4e32-8522-1b01848bf704","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":44,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"85e6a0c2-3f33-4206-a1d3-0788053b9d81","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":44,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"630c5874-f173-45b3-9734-c2c712d22c0d","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":44,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"d7ac534b-584e-4865-bd1b-75bf4344ac78","block_type":"box","text":"II-2","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"f9be2f2f-2c24-4d6c-b513-cedc069f3c6f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e38a9214-2d04-4937-b3c7-4a0b7657c2da","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":45,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"9db8966e-1ac8-4b12-9ab6-2151abd5b877","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":45,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"8d0fde94-6e9f-4f78-a2fd-168197680b00","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":45,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"846057e5-abfe-4f22-951e-89a3bcddcdd5","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":45,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"55848456-041a-41a9-b19a-fcf51d9b45e7","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":45,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"c2d2db4b-0bfd-4e27-bf5a-516e4e741337","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":45,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"3c1bf153-15fa-49a2-b298-0a77cbdb323d","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":45,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"6c5f6d0a-6995-4ffd-9ee8-06b70af04990","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":45,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"908c882b-316a-4ec8-92f5-ddcc974caf25","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":45,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"26af0407-b8cf-4ec5-8365-cf2d9a1f5721","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":45,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"da15b860-5224-4d07-99e7-a68d2bcee3c5","block_type":"box","text":"Cash Management.","page_number":45,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"4a12ca5f-891e-439b-9380-a79abed113d3","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":45,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"e5328a3f-d93e-41fb-9829-7b89349eac29","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":45,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"a9c53974-4be1-456c-834e-87e15b033874","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":45,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"3cf3916f-9d19-44e7-9407-16668b64de32","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":45,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"56135096-9467-4cce-b4cd-7521e76a86e1","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":45,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"1f612288-c6a8-48e7-9700-eefd417bd51b","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":45,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"5298a17d-bf78-4717-8529-6b84a6daa134","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":45,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"b98f9521-5503-4414-bdd3-fc0fb671a5a7","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":45,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"d1c69552-6f29-4300-b533-77f8cb265556","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":45,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"c5aa584c-e5a1-4cd1-9e70-3e8f54ef7640","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":45,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"065e8a36-f3a3-487a-85c9-a71409c0b10c","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":45,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"1f972567-d7b6-4542-88e2-6c60d51fe67a","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":45,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"04e142c4-5182-46ca-8dc3-9a0ab367df71","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":45,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"e985d9b8-fc3c-4a26-8a83-e8382505bf11","block_type":"box","text":"Collateralized Debt Obligations.","page_number":45,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"6c565846-adf3-4407-9ff9-755a7bd773f7","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":45,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"f1e3b869-9018-47c5-a212-706f2a80817d","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":45,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"fd5d3775-03fa-4e62-9cdc-467f1abaa3c7","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":45,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"740dbcd6-fe6a-4b86-885e-1f2b3f2229cd","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":45,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"1d87f395-2841-4d26-8798-dac0c783426f","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":45,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"8d6c8891-1022-425d-807b-58b82acbaf21","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":45,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"f95854ac-3dc9-4bb3-8a42-cc7133b20dfa","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":45,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"bafd7347-290a-4b77-b307-993ecbbde833","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":45,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"51438cad-cfb6-4666-9376-8e52107f4384","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":45,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"4e479ac2-5670-4685-a6e4-3f522dedfa50","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":45,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"c6fa08ce-c059-4ee1-81c4-b34d4e547ea7","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":45,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"9d25bcc7-0e20-4fa6-96ed-7d495b2bd46f","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":45,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"c3354f86-3a7a-4e75-b391-8c8ce14b0454","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":45,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"fd590868-bfbe-420c-be52-fb4b53301c9c","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":45,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"39060e38-4b48-4a5e-9a3d-70b75a13d289","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":45,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"c83e9471-2c55-4315-ab2a-840abe98b477","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":45,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"2410215b-6c2e-4c2c-b773-e593e8684520","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":45,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"2cd51853-c5b1-4e96-9685-620f2276ced5","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":45,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"f44f48e8-0796-43d3-b516-05997fdc6a15","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":45,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"acc99e2a-5316-4653-b81a-382f513e8f97","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":45,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"a695b53a-2746-48ad-9c9c-d167665c302d","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":45,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"9b54af96-a856-4e24-ad98-f1ac834263a5","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":45,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"78289ca7-8761-40f4-9019-98963ec7e1b8","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":45,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"c8298276-bdab-4fdf-9776-3f3968b45746","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":45,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"d43ec90a-69f4-4f30-94e3-9788909866d1","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":45,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"1003d7d5-add3-488e-ad0c-fbdca1db6d8c","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":45,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"b51da389-7100-4ef2-ae3e-5fd983b8dd15","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":45,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"cd054bef-85ff-403d-9527-d900868753f3","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":45,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"91f1a5c4-8264-48f6-b792-dcb0d5184aa9","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":45,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"4fbfc39f-ed92-4fd4-ac45-69df3d79304e","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":45,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"4d9e9fcb-423c-4b33-a04c-994da3e0e09f","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":45,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"2e49ff9f-257b-466c-b469-581e55b708ff","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":45,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"71afb29f-be45-4c94-ab75-d2b2b0b227f2","block_type":"box","text":"II-3","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"7c189d19-4f83-49cc-b710-9121d447a05b","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"13c89208-9860-4322-b51b-b46fa8975251","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":46,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"207bbb78-9ab9-47ab-ab11-8a505a532420","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":46,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"012735f8-5d2f-40d7-ab3f-fdb9e4b49c13","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":46,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"cd960848-4216-4cd2-a08f-ea54030769c8","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":46,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"7f9384bc-c2c0-4153-ad8d-5013e57d6f78","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":46,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"1c0a77ec-e57a-45a7-b514-cc7da8a8c352","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":46,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"1a136ebe-9cd2-4e70-8242-2e4e8d68ecd9","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":46,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"f0d7168f-b171-4b2c-9746-c1c771705715","block_type":"box","text":"Commercial Paper.","page_number":46,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"bad2526e-e3a7-4b1b-89b7-bd7b0362155f","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":46,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"89ba144c-cd8c-44ed-af41-cf48602b4301","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":46,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"cc22eaa6-8301-4f49-9b6d-31729155ea27","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":46,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"21ed41f2-39a3-4e79-86d1-0faea95bf7ba","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":46,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"0fb6f742-ccf8-4764-b3be-e637fb34fb87","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":46,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"0274825f-c681-45be-a026-09573a84295d","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":46,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"8c83d2b7-e0de-45b3-83ed-98c632a12698","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":46,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"30079d54-f414-4006-9cfa-d6aca01ac912","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":46,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"d8b8f59e-2ace-44d8-8be9-f9dcbb5af8f1","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":46,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"9a64cd9d-cea4-4cfe-b346-2d2ef37533d5","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":46,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"11395155-d348-4a1b-8174-bff717ec03e9","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":46,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"eb1c099e-ef3d-465e-9330-a86d95d00418","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":46,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"a456e374-5876-4e89-bb95-f1cc03d73a15","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":46,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"410ba66e-672e-4964-a96e-f90b29e24468","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":46,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"b73187aa-9625-4659-b79a-6eab325a3609","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":46,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"bb79fbd0-c775-4e09-a5f2-466af85e602c","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":46,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"29c41aa3-d3dd-4754-b859-35b1ab22bb7a","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":46,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"dfa7ae87-ed59-4a9f-aee1-d14c26779f67","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":46,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"33305ca9-fa57-4633-be07-660872772cb6","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":46,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"9ec31e67-eb4f-4290-9d75-b9acd65f6ae8","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":46,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"377e62aa-298f-463a-af78-807c492f24af","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":46,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"cd712676-4b3f-4d48-b1d7-30669b89220b","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":46,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"5b82164a-2737-43e8-8beb-327297d83549","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":46,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"2ee347e0-6ff6-432e-aa8f-1dad2ab4b2dc","block_type":"box","text":"variable.","page_number":46,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"ce861a99-478c-448f-baa0-850acde46444","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":46,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"69803158-51cc-4259-bb4f-6f29ff249f32","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":46,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"122d0e7b-fe44-4ebb-8033-a8b0e5976839","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":46,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"8115677e-dbb6-4e07-99e3-8caecd323258","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":46,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"93041b2e-6c9b-4000-b537-8198a934b8b5","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":46,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"2e1a3223-054c-41a2-ad00-263cd4c9058d","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":46,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"34936525-5d6c-4443-ac62-3f50d2ec6567","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":46,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"fc7fa0db-8f40-4921-b068-6787f5260012","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":46,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"e09524c0-4c28-4981-b349-07b4c0f2e28d","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":46,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"ae0e9f39-cffb-4721-adac-9476abbb3e33","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":46,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"0f370c43-ebd8-4c26-9813-593dc7d04080","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":46,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"678f8a25-4d98-4d49-adf2-2207b8842c90","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":46,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"89057e47-24de-4e16-a398-1b72096e9a68","block_type":"box","text":"correlation with stocks and bonds.","page_number":46,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"5570c939-79ba-4b15-8801-4d34d4cf8a0d","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":46,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"94276b97-ae92-477b-a070-9d4ed62b2887","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":46,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"bcb3b5fa-50aa-408f-b329-0ba9643fa9ef","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":46,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"d12fbf94-b1ef-410a-bfc2-5a92850f9d66","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":46,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"83c1a739-a5a8-4f89-8a9e-1ba525d0d673","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":46,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"2499315d-9f99-4109-a591-2c8036659d6e","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":46,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"af8b539a-33bf-4493-9099-1e53351ce437","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":46,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"4c0c417e-d25a-4d7a-b966-6e3cf4504de7","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":46,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"fa0a1c04-6d5a-4035-bb69-7e8b13c22afb","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":46,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"0fcbc158-8615-4919-8dfa-d0bcd809b6f3","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":46,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"dead953a-a293-4d74-8c32-0f2d75e2f9a5","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":46,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"7b16c4ec-7554-4b87-898f-c2675523042b","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":46,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"b37252e6-2956-435c-850e-db14b7579a73","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":46,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"e88238b5-95e5-433b-b67c-8255b8c5fd28","block_type":"box","text":"II-4","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"275ab9ed-2f45-4aef-b2dd-2f1b3249b8f5","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"afff0080-4f1f-4765-a216-0cece504019a","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":47,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"8c5964d0-54c0-469b-b141-0ee8e864483e","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":47,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"b1e15c01-24bc-4a57-ab1f-dfb167269cac","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":47,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"0130b175-37a7-48e6-851b-e549264c6787","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":47,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"c3590b1b-9766-4991-8a3e-0b066f2795ab","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":47,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"c4a3d5db-3c78-466c-aa3a-ef09791b94f3","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":47,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"709b927a-a4e0-4fff-96d3-96983dd495b4","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":47,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"bb06fe9a-645e-4b1a-b42f-128bc5419a79","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":47,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"fad9bb3d-f9e3-4bb7-a920-e2cea61430d0","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":47,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"f65a09d5-1bd5-4ec7-9a13-06beff963fdc","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":47,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"9675d5ea-9a0d-4ce6-b103-c59c01411383","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":47,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"9badc526-f17b-4d8c-8e4a-d99b9171c948","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":47,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"b22b1866-2247-48b8-bbd0-fd089a18e054","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":47,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"365531eb-f99e-4a3e-93d2-19674a2868e7","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":47,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"779e46df-9074-4dbf-8d99-12b283e4408c","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":47,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"a0f003c0-4fd2-4be0-83df-227cafc17f5d","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":47,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"7b5cf225-a11a-4508-b6e6-68cdd67f0d96","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":47,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"fe2c508a-673d-4f3f-9cae-6cdebe38f31c","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":47,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"74ee08f7-f44f-48cf-931e-08d7057b657b","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":47,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"ca55c355-4035-4b04-b51b-8eb0a02136a5","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":47,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"4d87e54d-b4ac-478f-bdd9-cae4ca6c34e8","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":47,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"a00ddbf8-74a3-47d3-9323-fd312df0b6d3","block_type":"box","text":"the Manager believes are relevant.","page_number":47,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"20a8d139-0459-4217-9be3-27bf91f42bef","block_type":"box","text":"Limitations on Leverage.","page_number":47,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"fff0b5e2-e63e-44c4-847f-77d9852303ce","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":47,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"b2eb6bb2-a0c2-4049-9d07-3310e67a5487","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":47,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"05cb2c0e-db58-4a28-8655-15f35254247b","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":47,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"0a1fc441-a1ce-465e-a052-c4f908d9c8b6","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":47,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"9d2ee6e3-8168-4782-882d-d3451f3d5f5d","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":47,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"988be303-33d0-4ab3-b432-ca5c1c2d26d5","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":47,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"7357bbca-3e6b-4efe-afa0-64a82c6200b9","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":47,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"3ca1d159-f3dd-425e-8f92-bac032891c79","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":47,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"fd153867-41b1-4eec-a2c2-a740648a8067","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":47,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"b9626bff-8f5c-4bba-a40e-94a92a398a1d","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":47,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"cdea96c9-2dc6-46b5-8f3a-4b88815d4406","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":47,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"01c3d37f-fff0-4ec8-88c6-03eaf170b48c","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":47,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"3d7760b9-04d6-41c4-822b-7354a45bb7bd","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":47,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"bc69421e-ab5e-43d7-a799-953a466a3efa","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":47,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"97ffd585-752b-40ea-bf32-34732ea02096","block_type":"box","text":"Counterpar ty Risk.","page_number":47,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"ecd9ba92-5c88-4579-9e25-a4844ae8c506","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":47,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"eb9ce1f8-0197-408c-9e5d-6232e76343f4","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":47,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"481409a9-3cc0-42c5-adfe-b2ec83645e0a","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":47,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"709de1dd-37cc-4bf8-b22f-cf84b950dc67","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":47,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"fd23a32c-d1c2-4ee8-be38-c2812cbedf26","block_type":"box","text":"e.g.","page_number":47,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"b2559d49-cd8d-4b93-8e34-86d6f41d5637","block_type":"box","text":",","page_number":47,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"2d44d0f7-8139-4167-b888-59af26655a13","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":47,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"0ddbc31b-dbf0-4835-b172-05283584f5b2","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":47,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"262fdb70-e803-4ee8-87fa-45c4b5c244d5","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":47,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"315734f3-bde0-466c-9693-0ebb1838bfb1","block_type":"box","text":"obligations under the structured note.","page_number":47,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"91e6c106-0774-42be-821c-fef1a923ef77","block_type":"box","text":"Convertible Securities.","page_number":47,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"c8df4aa8-f1a1-47be-9680-cbe8a83c4892","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":47,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"80ade051-768d-4f2c-8605-1b07cda57fad","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":47,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"d4c57c34-a1e9-4ba7-82c0-e559f2e47f08","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":47,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"e9446275-4093-4be5-9d79-15eba6f32a47","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":47,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"6694d9d6-954d-4996-aa3b-7250297575f7","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":47,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"dd7e6e18-de12-418c-8471-78e0769a638b","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":47,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"82c551c1-c132-4e9e-8cc3-811834d9b144","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":47,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"9a61f432-292a-4b60-92cd-b2ad2d428f5a","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":47,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"25126449-60ac-4bc0-b15c-f2de0a1b174e","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":47,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"d52854e7-8f19-4d45-b4a7-bdd9a688460d","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":47,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"7fa92786-a565-47ef-8160-b90ee66bf0ae","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":47,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"67a6ece4-ec73-4146-88f4-72ad290355f2","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":47,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"4669c1a9-3949-456b-898c-af7a82c733fe","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":47,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"7029ee0e-4f15-4266-8596-83dbae6b0ecf","block_type":"box","text":"II-5","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"c1aa28c3-3fde-4d90-9ab0-517ee4cc37d0","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a7be574-285d-429a-8d06-bc305038ec37","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":48,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"dbdd7a64-c774-4a56-8f27-6497ecebe3a8","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":48,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"bf7a7af6-a4c6-4ea5-b627-1935c8273715","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":48,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"4b85cc3c-5d0a-4cad-9986-a482d2a6297b","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":48,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"ca83a282-27f2-4719-bc28-12d5286382bb","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":48,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"ce021eec-ab9c-4008-a044-8d6353fa6d01","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":48,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"410fc6f0-5e6c-4128-903b-3e622d034c9b","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":48,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"62554941-4404-4a69-81c1-535d5713d48e","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":48,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"eb9f165b-c61e-43e8-908c-3868629efaca","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":48,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"e5a80c35-3836-45d2-9dd3-870a093d0cdb","block_type":"box","text":"things.","page_number":48,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"6d8c33e0-89c9-49ae-b83f-a81e9c6470b0","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":48,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"049ac60d-29d4-4c68-83c7-90efaf31c963","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":48,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"ef71369f-0e83-4518-a044-57ff8d52494d","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":48,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"863b0f40-71de-4b38-b58c-e648370573f6","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":48,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"610cdf07-0d6e-4826-a4fe-849e4c375452","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":48,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"9300bdcc-bf5a-4a2e-9b35-3094c54054c3","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":48,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"0f787e21-8f2c-4843-ad9b-2d5278037d42","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":48,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"e709ec5f-5bbe-471d-8bc1-312dee067922","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":48,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"3fe766cf-56a8-47bd-96f5-8f06731dd08c","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":48,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"ca79cb31-30fd-4c82-b67e-c206db7637db","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":48,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"776ffe9f-9211-4d5f-91ca-fc572dec5026","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":48,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"0b83c7a2-48b1-4d6d-863b-134a93bdcdb9","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":48,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"12726297-ae05-4d5c-a2fe-4ded1221955f","block_type":"box","text":"i.e.","page_number":48,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"7ac1ff3a-205c-4ce2-855e-a1cee654bc81","block_type":"box","text":", strictly on the basis of its yield) is","page_number":48,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"08d70d80-2419-470c-8496-377d956426e4","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":48,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"34a1605e-28d9-4007-840d-a6fdb6a950d9","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":48,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"a6e36363-683c-4ed1-8f9f-5e13b3a1afc2","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":48,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"4637d1b1-7ae3-40b1-9f2c-aa5d3a079967","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":48,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"c28453d1-43cc-4004-b859-536442339ecf","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":48,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"413010e3-6751-4978-8edc-afedb674c8b5","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":48,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"b5872eb7-e613-41e4-a3e2-16ec799207e9","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":48,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"a787007a-1680-49d3-bdf8-ad8376cf5d5f","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":48,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"ed47b186-581d-433f-ae4c-624744d8b459","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":48,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"3a5a100a-442b-4deb-ba6a-0138d5c96e67","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":48,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"db7dff63-54bc-41f3-9eed-79257efaae79","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":48,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"4f0cb5f5-3d42-41d6-aa69-0b8e3a61e1dc","block_type":"box","text":"than the securities’ investment value.","page_number":48,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"26f2ab8b-5857-42ae-9052-8e2ffcbb98d0","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":48,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"d749c555-9c0b-4389-bd51-4bec8058a331","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":48,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"4cc27e34-998a-4d5f-8016-c6ba7e6dcc5c","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":48,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"ae33e2ca-042c-4da1-8568-25880ffc7d8c","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":48,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"584e29db-42c0-4d54-b804-5644392e7369","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":48,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"b6d5a14c-93dc-4384-bcb9-09d0211a6f70","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":48,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"8edab40b-7191-4b14-bfcd-53ee9afb916b","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":48,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"d57cc24c-4f3c-4753-91c6-5664489f88a8","block_type":"box","text":"security under cer tain circumstances.","page_number":48,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"d3e0e4a5-d59f-4406-be9d-f54321cc7eb1","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":48,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"3665fb47-bc5d-4a37-8245-390c8b708458","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":48,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"a576eba0-97d6-493c-b507-25fdf263adf4","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":48,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"9851c21d-0b6d-4a4e-a8db-79371be08be6","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":48,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"fb99c96a-034c-4197-8ebf-865e421fcd57","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":48,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"4d6d4871-6b74-4396-b91d-6c4c0f924a38","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":48,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"607a3816-2a27-4003-8136-e93cb69dada2","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":48,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"d8708dfd-85b9-4674-8c86-93feb6f9ca8a","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":48,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"451b73e2-7b7c-48fc-944e-2dac9eb3d6cc","block_type":"box","text":"i.e.","page_number":48,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"b7585a05-8776-404c-84e0-f3ffd4e9d6c8","block_type":"box","text":", fixed-income (“fixed","page_number":48,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"ed9f4e73-2e95-44a9-b679-8c5e1cb7e232","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":48,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"5dbb3750-4885-4c8d-8e54-91afe7f5e46c","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":48,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"cd20474f-e6af-4121-ba25-3e1fb27b8273","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":48,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"9d66b079-eee1-4ed4-a164-6dc695a3f7e2","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":48,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"f23490c1-54d5-4da4-be45-4628e9e7d295","block_type":"box","text":"II-6","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"66ec4101-99df-4d2a-babb-7fd2132d595d","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4c18226-e8b8-4e4f-a5ad-e5b8e98c39c9","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":49,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"c5d9adec-85e2-4b17-9fc3-4c1d1825f6d8","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":49,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"d259d6b1-3af5-4ead-a25c-f20570f45b92","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":49,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"903e1d76-b1b8-44bc-b236-82d5a1fcfcbd","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":49,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"25e3c763-c0ab-4583-af37-3b88139e203e","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":49,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"4c84eae8-a786-4d46-9082-8f55b2beac28","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":49,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"385f2cfb-dd50-411c-b605-c4fe3fdcc4e5","block_type":"box","text":"component.","page_number":49,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"0972ca17-82b6-4d26-9286-1059265c2375","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":49,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"4814b277-68d2-4299-ad2a-443bd3b70e44","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":49,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"3f9988cf-d643-43a8-a04e-0c50575dda40","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":49,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"08699404-af10-4cb8-8971-ee53a23e8d3b","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":49,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"6f914aa2-e04e-4b73-83e2-73b6c17d0251","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":49,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"28ebc49e-58bf-4ba9-bceb-f59f4d464d3b","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":49,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"54bbeab1-5f98-4264-b52e-a9337bb2659e","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":49,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"7f888f4f-6baf-4132-82eb-ae2ec0580bb8","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":49,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"583f55fd-8b13-4100-a422-7d5aa78bbd5e","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":49,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"c8b2afb7-f572-4266-ab2d-cb62e67c095e","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":49,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"dfa5dde2-9350-4661-aece-a5969d7918db","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":49,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"17c70b38-62d8-4d0f-a93a-0cb20f825c5b","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":49,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"04c9fa00-bfe9-407a-b9e2-5c521f3ef88b","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":49,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"38ba47b4-81bb-4746-b4f8-cf0de6eddb49","block_type":"box","text":"favorable market conditions.","page_number":49,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"ff74bb37-fa0d-4223-959c-618b0cafdfb9","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":49,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"a62ac4ca-9412-45cb-8f88-09ddc2deebde","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":49,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"b057fab8-3b27-41aa-b99d-043662f72cd4","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":49,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"a93d7deb-2ec9-4db7-a28e-89d9bef6181b","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":49,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"80af07b4-6409-4e24-997a-2e2bc050698f","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":49,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"c78d0649-0b29-450b-95b5-5c3f5bd988d9","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":49,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"26c2f550-28ec-468e-8643-9c6fee201895","block_type":"box","text":"Corporate Loans.","page_number":49,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"ad50c22f-0c4e-452c-bc2e-7a7c4891b543","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":49,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"100732d0-3126-4514-bb05-4d88123eee08","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":49,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"97af0617-053a-4a9c-8e75-d68074fb77a5","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":49,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"57006201-6f24-4c1b-8912-466e823df3f5","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":49,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"06447936-f52d-4636-80f2-340f7208d29c","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":49,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"9a68585a-0806-4ba6-9af1-c9c7eee1d109","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":49,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"531e15d8-a73c-45c1-a31d-594c1831239e","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":49,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"aba6fb02-170d-476e-ac94-0e23d7f7df18","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":49,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"adc6ec0d-ce39-44df-b526-014ba54c5eef","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":49,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"8037e509-d45d-49cf-af83-33bcf8c1b074","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":49,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"48dd6e51-6313-45e1-ad90-dccc1df26c82","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":49,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"043c2bcb-ba88-4cb6-a981-36f89b4c1521","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":49,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"d9d4b542-763c-4cf4-a00d-1a52cc2a81a4","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":49,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"9171b9e4-dd93-4645-9e09-b9e9aff2f020","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":49,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"7b5066a0-c510-48fc-9f38-c7e69d35f210","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":49,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"a8b3507b-ee37-4ed4-91b5-71bf0a2f6392","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":49,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"fa86113d-6c1d-40ea-82fe-eb394d108de0","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":49,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"fe8ec4f6-d7aa-4ca9-bb94-26f252fbe44e","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":49,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"a9b07011-07b7-4e7b-af40-6649a39aae19","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":49,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"6cfda0a6-325a-45f0-8069-32a169b73c28","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":49,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"a82bfe44-0ab0-4798-8f36-d2f24a5e7a3e","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":49,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"1809ae93-2867-4f49-9360-935d3acd65d8","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":49,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"64e875f5-6627-4e51-83c0-3fcdcac16130","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":49,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"234f0542-1297-4f62-8c3b-8610fc340f0a","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":49,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"d78f035b-4af0-4c33-90fb-b3c14da257b2","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":49,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"226c1ee0-3e36-4c6e-a691-cec890724f63","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":49,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"4f8c7a7a-8995-42f5-bd10-f8f24b4eb869","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":49,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"13ffe8e9-ecb9-4b98-8ce1-21c516f0a515","block_type":"box","text":"of the borrower.","page_number":49,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"1b212417-05ac-4c2e-8887-4bfc61bf4eaf","block_type":"box","text":"II-7","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1679270d-b2f7-45e6-971d-94875d017784","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12bc5858-fe3f-4a30-8f99-a37bcd5ddb03","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":50,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"535bb05c-8569-4d4b-841e-30acf126812f","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":50,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"d6417c2c-b38a-4e8b-bed7-5e7a08ca60b0","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":50,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"4b93c036-3104-42b6-9a93-ff1bec323722","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":50,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"13a25acc-017b-4fec-9cc3-6a25c6deba25","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":50,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"335bb5f5-3226-4b7d-a86c-1bf8d8384910","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":50,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"6c1fa552-21a8-4172-828f-079eda74396e","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":50,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"5354f64d-602a-418b-a5c4-616cde7792d2","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":50,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"606d2156-410d-415e-a8ba-b740ebf114c6","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":50,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"e6704e43-e828-4175-b197-7b5fe57660d8","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":50,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"19bc53ed-87c3-4909-ab8b-d8013e7fc740","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":50,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"e9136e55-600c-41a5-8d39-c203fb34fdd2","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":50,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"7e40b367-7c39-46c9-a7fa-5380797470a7","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":50,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"79660de2-8de3-46d7-9d7f-db6b665531a4","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":50,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"7de184fe-e228-4a01-924e-4b6eca40ece3","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":50,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"c2581d53-1c1c-4535-8dcf-b3ee91c78408","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":50,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"b0ed8992-04fc-4eeb-94d9-1cbe4fc8b1d3","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":50,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"3765a0e1-a4b7-46cc-a215-81e7d2a1dd67","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":50,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"4ae819b3-2d86-42d3-bf5d-e22cadcda986","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":50,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"9b576b09-d695-431d-8e69-9894bde91bc0","block_type":"box","text":"state law.","page_number":50,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"11445833-671e-4fd4-bca6-8e981eb6dfa3","block_type":"box","text":"Direct Lending.","page_number":50,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"5d2e9ad4-b830-4411-89c3-cd3cd37e0293","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":50,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"c95159a1-97cc-4967-b71f-84e5740ddb68","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":50,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"5b59433b-d08b-4049-882f-aefeb5d0772a","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":50,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"110a56a4-46b2-4571-9f9a-9dd43ae2b6b8","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":50,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"d2b6009c-598a-4f46-a29a-64e9945b02a8","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":50,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"3f4adf9c-06a2-43ef-aec7-201532e31186","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":50,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"757696e8-8517-419c-81b4-0210119ce482","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":50,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"82140fae-0db9-498a-add1-88ed4cf3a092","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":50,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"e8d4e6ef-ac2c-4692-889d-550a0ec13aec","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":50,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"6b21ddb6-f20b-4f70-a326-d5976cb61f74","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":50,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"c14bd80e-5b2d-490a-97bf-1a1287d4549d","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":50,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"d5c7dad1-f201-4bf5-beb4-322fa7891be7","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":50,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"9151d1b0-85e2-47ca-9240-fd3c4113af79","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":50,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"2a9b7b5b-6907-47a9-901a-42728b2e36d3","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":50,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"ed326175-1489-43f5-989b-40fa13997202","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":50,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"40f067c6-99c4-4892-9810-e5d157475156","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":50,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"49e57b52-a154-4983-9622-8fdfdef51918","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":50,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"32f4eaaa-bc99-4baf-ad4a-eadd3a46dc0f","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":50,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"6235a078-3384-44cc-b419-cea773de7f3c","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":50,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"71883967-d253-40d2-af82-5a796a1cd095","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":50,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"40cebf51-cbf2-4ec0-9cd8-362b2e456cfa","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":50,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"fcd644cf-c021-4d0a-a9fc-a3d69993e4e3","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":50,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"a7f12783-e04c-4e8b-a27c-af7c5a9b16ba","block_type":"box","text":"Credit Linked Securities.","page_number":50,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"90df6214-303b-41ef-a0a3-0e1cd75572da","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":50,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"0456cd58-6243-4193-afcc-46bc73b3d026","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":50,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"589ae907-7371-4044-b960-8796685d2f11","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":50,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"dfa4d51a-8f01-4cec-a6ed-5546b5d3d0a5","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":50,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"f0eb8855-5d36-4faf-9a98-4fcb00b44dc7","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":50,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"5704a73a-e45f-4012-9ead-7450246c7a58","block_type":"box","text":"traditional income producing securities are not available.","page_number":50,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"cfcd8035-d6fe-4e61-adea-0f35808a3515","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":50,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"940116ba-7686-4074-a51c-183d97526d89","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":50,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"766375eb-cf77-41c3-a3b2-bdf8e03dc118","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":50,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"a83406a2-53b4-49bd-ab5e-4c29fbc7358f","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":50,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"e61be587-42a5-42ea-af81-fdca1220219b","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":50,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"7ec10980-8e18-4e4c-83fb-6393e249c378","block_type":"box","text":"II-8","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"41545dcf-bee5-4a43-8645-ba906d15248d","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fcc3b3bb-87d0-4456-bb0a-a300d43f9c00","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":51,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"027f3dd4-f27c-4e92-94c6-e805776d982b","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":51,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"8cd246de-e9d5-4610-a6f9-acadf43526f5","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":51,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"0e4d2cfc-5ec4-4f35-aed2-bc75780d648a","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":51,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"bbafcde9-cb1a-4cac-b584-6765817f3529","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":51,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"0c1a7100-1e3f-45a0-8514-34c5ea76054f","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":51,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"e6d74f96-341c-4168-b5e4-108307eacf55","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":51,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"d89142ab-2b3b-408f-938a-2483b65f5615","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":51,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"f5020b25-c2f2-4e8e-8654-939b803e7370","block_type":"box","text":"investments.","page_number":51,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"5ad29879-eea1-43e6-a86f-77019434ea1d","block_type":"box","text":"Debt Securities.","page_number":51,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"5a779e3e-ab09-4baf-b9f7-de172b3cb16a","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":51,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"0c0ad7ca-33b9-44db-ac73-879ea132cfe6","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":51,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"356ea61e-e6e6-4672-8109-df4dc6886c99","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":51,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"fec56812-305f-4d28-916e-874c843a1b26","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":51,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"70ff8c1d-61c6-4f16-b0b3-c83450b2f8df","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":51,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"52b4b3fb-4b42-43a1-8579-c746f06dbe41","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":51,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"7240d2e9-c23b-470d-b33e-f1853dcfe3ac","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":51,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"3d03fff6-ba99-4fff-a680-1c9a5f593acc","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":51,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"35ecc18c-1876-42c4-af15-e97c1ecafbb4","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":51,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"97892560-9c68-497f-8322-983136171c89","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":51,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"7330e71a-765e-4826-990b-a5bc8a3e22ea","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":51,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"4484c73f-697c-4074-9698-a6bb4c5cfe2f","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":51,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"cdfd5588-ec7d-42dc-89ab-c9d87a6ec328","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":51,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"0f42a741-a210-4387-8f9c-34c3a5eee395","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":51,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"2c514c4f-050c-499c-a115-d2ef9ea0934e","block_type":"box","text":"lose value. This is known as extension risk.","page_number":51,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"73685713-3cb4-49e0-a8d9-d393ab8bc65c","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":51,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"064acacf-c576-4258-910e-f36d9574f931","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":51,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"3a782a57-95ab-4f13-bc48-4ef0b65ab0e2","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":51,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"269340bd-8a57-4e7a-be5a-3a105d04dc5e","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":51,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"7b41a8e7-5894-4711-988c-4532c286e1df","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":51,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"04b96e94-124d-4067-993e-d0a7dd1592ae","block_type":"box","text":"Floating and Variable Rate Securities","page_number":51,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"1006a8c6-435d-49b6-a07b-51f00dba3d75","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":51,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"22e865bf-ad8f-4335-9649-3d4e2728210a","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":51,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"8b42bc1b-ce7b-4000-89d1-627e99abbecf","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":51,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"fef4f873-4b4f-4f31-b97b-d5330130ee8d","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":51,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"b5ed9a82-e726-422b-b574-ba7bcd4b208d","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":51,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"ad0830d2-e985-4996-b5b8-75dae0ac3e44","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":51,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"83cff22b-589d-4949-a2c5-26dbd05d93c4","block_type":"box","text":"market interest rates.","page_number":51,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"fb0d40ae-475f-4850-9f11-4cc4288f07ef","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":51,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"fec317cf-86ca-4165-aff7-4ed77f112f8d","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":51,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"3849b0b1-998b-4899-a02d-ddfeca29249a","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":51,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"a50c88d4-b051-493f-933d-626b993800f2","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":51,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"4157f341-a7fd-4449-b135-8d025fa8763f","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":51,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"b275d290-2598-4509-8416-c7e0f6e218db","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":51,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"ff51ca1d-3ae2-4820-8a06-72fa8ec06e04","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":51,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"26a634b0-4a48-40b8-8cfd-95956333f57d","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":51,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"34988116-d6f2-4326-84de-357573204eee","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":51,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"572ff8db-a2f7-4a4c-b26b-627ecce3a8fe","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":51,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"86d24ba1-97b3-4ed8-9a0c-9ead30e8b1fb","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":51,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"68f0dc3c-a4f5-46d3-8040-9782aa9e289a","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":51,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"3e007d34-3ee3-48ab-8b8f-7a2e721e7b39","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":51,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"0a5ef9fb-3406-4f11-8514-866226e59a0d","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":51,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"427ff8f5-9c01-4104-9af7-8db3fb8c68ea","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":51,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"06248b1c-3dab-4239-a7a3-f3332fb54937","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":51,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"d15d9923-c14c-4064-b52e-4d285fa70fdd","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":51,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"82bc5a00-505a-4041-ae7d-6da40fd0de7b","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":51,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"bc80dc9d-bb5e-4d28-99a8-b4e71a1c4303","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":51,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"53d62dbe-7bc4-4c44-9d85-3fa30ed41751","block_type":"box","text":"II-9","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"00ed9481-3c72-4dd4-8f37-853af0aca664","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ed4b9a43-5154-4ef4-9360-44f83ad3c927","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":52,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"8e3ce83d-06e1-4a49-8e59-cdd6a3e8cad7","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":52,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"28b12fcc-d9fd-478a-950d-5798992a414d","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":52,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"ee2f6553-2f06-4e5b-acf0-0967070bf3c7","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":52,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"688057d9-2a1e-4955-8834-2bc1a6d8aca0","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":52,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"2b0ccb66-0465-44da-b5ee-9885afca284c","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":52,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"822d6dfc-9009-4973-9ced-2facb9ecd9db","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":52,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"c7548b5f-82b5-4d73-bc7f-db4d6646116e","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":52,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"720a908a-f261-4c45-b04b-9a37e111682b","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":52,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"21a66d4a-1d7f-4f79-a7f7-8a864c1f4255","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":52,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"d563719b-81f0-4800-b24b-6f26bca355ad","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":52,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"8ede4f73-f237-49aa-bac2-5afd203afc1d","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":52,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"42abcd3a-bb15-4149-88de-181df45fb6fc","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":52,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"89e3d3a7-db0c-4cd4-a53f-202cb49d7d59","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":52,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"35090adc-7374-40d4-b465-efceeae53502","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":52,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"4be84236-02fc-47dc-aa5a-0b8d8f18d3af","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":52,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"0d430e34-af31-46cd-beb6-5f89a579379d","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":52,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"53ab53ac-8c68-4c09-8629-f3d2d33ba1ea","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":52,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"822cab1f-5ac8-4902-9cc2-06bdf1d68fc3","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":52,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"70dc5a64-536d-4864-acad-7cae63714e55","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":52,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"9a6eaa86-ebc9-43f6-bfdd-2e402cfde2b6","block_type":"box","text":"United States.","page_number":52,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"9965cbe3-37bf-484b-affc-093babcb1578","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":52,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"60146d05-bed5-4647-852e-5c3ea4511a3c","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":52,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"1be2bc98-8538-4807-950d-99885ce298f3","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":52,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"cd02e5a0-aad7-44a5-9afe-40effcfc2281","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":52,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"6388caf5-50f1-4a5a-bb6d-dffbe661bfed","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":52,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"af0c3ce9-aa12-420e-84f2-9d1630b53680","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":52,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"aea1b53e-4380-4533-8d7a-75e918af5020","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":52,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"b9243a00-15ce-4d64-ba3d-6591c50cb090","block_type":"box","text":"i.e.","page_number":52,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"a8542eb3-25ab-4493-99c8-1cce8874a89c","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":52,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"449b259a-a10e-48ee-a78d-817afc687615","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":52,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"5495645a-4719-4db2-a2a7-28b41d289a7c","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":52,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"8c88c4ce-f882-483b-a44c-63793014307f","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":52,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"dd0d0b1e-d776-4566-945f-8f9f9244bd18","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":52,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"fe06d3e2-3fd3-46f6-90d5-8af7f20c834f","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":52,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"53ff3baa-1275-4826-96eb-b5f290019b38","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":52,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"a4e0c248-2bee-4e80-80e2-27afe64440b2","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":52,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"2f769db1-03fb-4f5b-ae05-1549cc39075e","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":52,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"49b6ee62-23ae-48ee-84af-ba0bd9fe608b","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":52,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"572b4d6e-5b35-49c0-b691-79d5180fae70","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":52,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"66df0484-dd09-4930-893c-dd693ece99f6","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":52,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"d9c9402b-1355-4808-af87-c79204685b01","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":52,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"7240210e-8915-44aa-b374-d781daf281ae","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":52,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"da8f09a2-e8f8-4854-931d-514e39b58615","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":52,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"9b203cdf-802d-47df-88d9-155a65fe39a3","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":52,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"62b53396-f175-4210-b9ce-bfebbdbce34f","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":52,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"20ed6122-2a15-43e3-b60f-3994967959e7","block_type":"box","text":"risk than higher rated securities.","page_number":52,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"c4f9e742-fe9f-432d-b45f-a38c03355f62","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":52,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"c1617f16-7482-4144-9e57-a4d986ca9cd9","block_type":"box","text":"•","page_number":52,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"c694e909-f5ef-426e-8742-16cf7829ce92","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":52,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"6c76e9eb-c4cf-4690-8933-1fe338282092","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":52,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"80784485-7941-499a-89f3-03ad86d1993d","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":52,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"299bcbb5-7b31-4915-86c0-74539e320197","block_type":"box","text":"unavailability of additional financing.","page_number":52,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"17eb490a-d101-42e6-a558-21bf87499bfb","block_type":"box","text":"•","page_number":52,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"c250b7d8-fbc0-4454-884f-998187c8ccc4","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":52,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"80af7eab-0805-4af2-b23a-d631070d468a","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":52,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"db029291-60f5-4887-b986-4cd39f6b64b4","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":52,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"df438e60-9f7d-4d0c-964a-00bb4c3f9e29","block_type":"box","text":"II-10","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"22b3c91c-641a-44e2-abce-4fcb5fc4582e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"25ad41fd-b55e-4044-b2e4-c74d768406a4","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":53,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"c4bfa884-875a-4e23-890b-aed27a7bb0b0","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":53,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"66525fb5-b233-4c0c-9e93-db68fb0507ef","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"202f4090-a2cc-439d-b3dd-052c464fa671","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":53,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"e1c644dc-6a3c-44b5-b314-74978c6c8ac3","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":53,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"6433f50f-2163-4dbb-a9f2-e3500255cb4a","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":53,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"82ce86e8-7387-4ee1-95f7-2609e76a2172","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":53,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"4e344636-4f0d-4618-b3fb-c2f0747abf6f","block_type":"box","text":"investors in higher rated securities.","page_number":53,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"04ba992a-5809-4dbe-866a-e69125bf72b9","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"aba1d76c-7a20-49be-afe0-6c462a19a1d4","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":53,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"636806a8-3a0b-42f6-ab74-b3ec23094b9e","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":53,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"d78cad22-3bf6-4d7d-84ad-51276e297f6d","block_type":"box","text":"lower yields and may lose income.","page_number":53,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"d86635b9-d597-4c47-875b-2a75c73b6bb2","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"6ce32fe8-5595-4251-93df-47fba8d2a80e","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":53,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"f626481c-fcbf-41dd-8f57-02ba380fd05c","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":53,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"20d489ec-09aa-418f-a1f2-c36aed17e8b8","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"0570a7c7-0681-4153-8607-2de12b35c4c3","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":53,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"077de772-40e8-4195-9a24-521af4838276","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":53,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"c29b33bb-cbf7-41d5-ac77-a97f9ec47ca7","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":53,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"bfd076f1-e07e-4166-90e6-a10e0ba229d5","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":53,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"454911d6-d1a7-4e88-bfd4-18c2e3084733","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":53,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"92cb20be-3289-4743-a578-daff9eba0d71","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":53,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"e932bfaf-b8a0-42b8-9e50-ec55112bdd98","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":53,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"72270572-2c03-4027-be1e-4deb0bf62ca7","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"8959e086-e8ae-4b66-99da-905177a6ca00","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":53,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"24747390-f335-4891-9fc0-f5df4be89c8e","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":53,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"43dc870a-dcba-40fb-967e-2511338bb955","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":53,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"ba3d50af-2151-4ba2-8044-845eb0cd718b","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":53,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"b7e13273-b0e3-4130-ae68-207207f7b3a5","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":53,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"9f8fe89f-a175-43ec-823d-12a6f8b664a3","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":53,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"81729d03-dba4-453d-8575-c6d1f0e2f211","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":53,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"c43d0d55-ffc4-4b4a-a0df-2e3cf1156755","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":53,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"75dfadc3-5c7a-4bb1-bb3d-04d5c66b8a80","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":53,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"d4a0c978-bf9d-4777-b5e7-b9667c3f3f41","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":53,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"531667d4-919a-40c6-b651-408c45db6856","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":53,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"0a0d4fb7-9a92-4e35-be5d-8f24f4e4db1a","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":53,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"3b0e7acd-1bd6-459f-975f-2837dde89524","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":53,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"d2ac1b43-df3a-406c-ba05-a1a94a72f2db","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":53,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"0738978b-7df1-4f16-8554-72c38d3e59f8","block_type":"box","text":"role in determining such valuations.","page_number":53,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"c1f974ef-4ccf-4cc1-b1fe-409ace75a638","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"952c00d9-3807-4fc8-8917-2f6ef9f6f2f1","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":53,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"4acfd3f5-e977-4842-bf91-cce9274a9315","block_type":"box","text":"a defaulting issuer.","page_number":53,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"39b7d242-1957-4a54-80e3-6d309f91af59","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"b2963ad4-fb8b-4841-97e6-3b7472ec4d5f","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":53,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"2da13937-dff5-4039-9250-0550eefcd67e","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":53,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"f3760b9a-f3a3-44c1-b459-ec0daa343965","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":53,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"7bcd6b69-a39f-4ae2-b73d-0f145bbee45a","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":53,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"2d6760f1-256e-4f7e-ac18-9a507561516b","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":53,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"3569ccac-bda1-4cbc-bc39-0201b74641c6","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":53,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"6e148b5f-fd3e-4d35-9883-0f6ff18461a2","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":53,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"712d43f7-09f1-4b88-855a-7732387f2079","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":53,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"2f1befbe-1f3a-472e-a3b3-5a4516f1096e","block_type":"box","text":"•","page_number":53,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"b5e66685-5e76-4636-83fe-14ceb6372399","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":53,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"a7df2a39-0351-4401-ae7d-be7442feaa83","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":53,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"1bb03fd9-75c9-4c88-a049-188eae0bb865","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":53,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"ead41d19-6a64-4043-a5e8-6950f1b74edb","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":53,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"52360b30-8083-4052-a914-390bb82c1263","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":53,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"26fd499c-c78c-4eb5-bf73-c0550ab3bf59","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":53,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"5d9b0c0e-55ef-488b-a6a3-797aff7483b3","block_type":"box","text":"higher-rated securities.","page_number":53,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"c4af2c56-3845-4bda-be54-9d71b770f579","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":53,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"2d94ba88-73c2-4839-bc95-24d362ba7aef","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":53,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"22673b25-baa2-4598-9b06-f36d474a0ec1","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":53,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"a4d449f5-9ea7-47e7-971f-56d9bf02c92b","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":53,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"d0f148ae-eb91-4251-a7d4-2e4d78842db2","block_type":"box","text":"II-11","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1849be11-b5ed-402d-835a-f188ab29e44e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b9b6782-f7bf-4279-abef-c60fe90cf16b","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":54,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"7886ed3c-c81a-442d-a579-db2ed0e69148","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":54,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"7be81027-59bb-44d5-9ab2-5ce86b529cfd","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":54,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"386c0269-14ce-4f68-b793-92a85bafc93b","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":54,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"b5a18aee-5ca7-482d-98f4-81eb59232d82","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":54,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"8c363da5-25ee-4209-a4c2-ecded55b1855","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":54,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"6caedfa8-5323-449c-8ef2-41f7fc715038","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":54,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"fc3dc64b-596a-48d1-9a3f-d90dd749f50a","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":54,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"48e3f494-8106-4f0f-8dc8-ec7ffb131b54","block_type":"box","text":"Mezzanine Investments.","page_number":54,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"a6076dea-045c-40e5-a417-e7cebeea2672","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":54,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"8392b835-1209-48f3-8c93-0ae6ec25dad7","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":54,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"08868e97-10a6-495e-bf48-94803bf22908","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":54,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"3c19d4d8-c213-4681-8100-bd2d15eefe25","block_type":"box","text":"e.g.","page_number":54,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"155b69b6-7ecc-4be4-ae18-d93555387abc","block_type":"box","text":", with","page_number":54,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"531dfa59-a578-4dd8-8465-0bb46e49fd4f","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":54,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"368447ec-8478-4971-b8fa-054e8e4ecea1","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":54,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"dc9e4bc0-7e69-4bb6-9cca-8b8cfa65e87a","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":54,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"e34e84d2-b929-4344-a952-238edacb54f0","block_type":"box","text":"other obligations of the issuer.","page_number":54,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"cc694af1-f697-4a4c-9740-3d299bb51672","block_type":"box","text":"Pay-in-kind Bonds.","page_number":54,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"16a6c502-8323-478c-aff2-574e08cac0d0","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":54,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"8ea03e84-cd59-404c-a1f9-71629f3f8fa0","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":54,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"f0ef06ec-e6b9-4a15-a1d1-d740cfc61ee8","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":54,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"742f9106-df2c-45d4-937c-972e718cecce","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":54,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"63c0d5e9-dc55-482b-8af8-f31f78dd653d","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":54,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"ea6c6ba2-c983-4e74-b28a-d34fe3961161","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":54,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"2065dbde-351a-4275-b26b-860916efc594","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":54,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"5d77a2e8-5bb5-4b6a-9533-398dfd98cd14","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":54,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"468ba05f-94cf-4649-94fb-9572ec058b56","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":54,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"26e8b706-eb2e-4bbf-a66c-0c229fcfaa4c","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":54,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"1607caae-3e34-43f3-9df4-294afbf4c85c","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":54,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"7e7f2622-cc03-441c-83d0-ef4be4a98f71","block_type":"box","text":"Supranational Entities.","page_number":54,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"66386ba1-cfe4-4974-aa9f-8c9d65dffb40","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":54,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"8749c1e8-2812-4f0f-9280-0cda62d72221","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":54,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"f3386d8e-6142-4d45-90bf-52d338ca2d51","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":54,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"3ea2ef47-f578-4c77-9ae7-603b616a34a4","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":54,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"9eb1f607-f4fe-4a7c-8fec-70d76c5ee024","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":54,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"b684bc94-722c-47eb-9ea9-5942ad0cab69","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":54,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"3f06b40e-9fa1-48cb-ad23-6d9217dee39f","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":54,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"14867530-1259-4297-95ee-4e8470de9ded","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":54,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"954bf00d-4d43-482f-abe2-f8b6cdb41d95","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":54,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"a0586c7a-f960-4887-9f22-8c8276ddeb17","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":54,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"9c49295c-eea9-44c6-a5b2-a033b4ce9531","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":54,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"beb6fbe6-6337-48c4-bfd0-2a6a03cd1390","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":54,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"1b8fba41-0e35-4f79-b521-b4e80a2656a8","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":54,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"4f039e61-dbae-45c1-90a6-43025be2e036","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":54,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"1ceb5421-f4d4-4ff0-a4fe-aaa4381f84aa","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":54,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"ff23b1da-6d6e-4d2f-9301-a23f1f2110ce","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":54,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"ad188b96-fece-4ad5-b2e1-40830a135d93","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":54,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"150d2fba-9dd6-4cbd-86a8-75825660149d","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":54,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"bcda4646-e703-4e3d-9fe2-f2f52c871e20","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":54,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"de1d39c2-b329-4e24-ae71-e0f37f57d765","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":54,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"3fe74e9f-8fc5-4852-bd0c-d67014202052","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":54,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"47a29d81-59a6-4b1b-8d37-6e18f7d9e8d0","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":54,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"420fe5c5-884e-4f1e-8b59-e9b01d48883b","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":54,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"ab2504c0-1a6e-45b8-b27b-765fa9a34f6c","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":54,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"68ee1954-88fb-41ba-bdaf-fb8d0da24457","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":54,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"be339ade-efeb-4f74-960b-e5310744d4c9","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":54,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"28ec95a8-bb6a-4ec1-a9c3-f4a583c73628","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":54,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"e4b104ee-0766-4309-b90b-b83f78f98f34","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":54,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"eb6c05eb-b9b0-418d-8f46-933009d0426b","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":54,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"ec29e367-7fb3-4fc6-a8b9-680d94777a75","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":54,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"7a1f32ee-e163-4ba7-9f53-6bd327f658a2","block_type":"box","text":"II-12","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ac827aa4-5bb3-412e-bfed-f9801d3f1a4f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b384ae30-d658-4726-a716-1da0b3a92d46","block_type":"box","text":"Derivatives.","page_number":55,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"2e300844-0576-4d85-a39f-da3707edfad7","block_type":"box","text":"General.","page_number":55,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"5fb4a9a5-de25-457f-9a5e-9fd8202b676d","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":55,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"f7af934e-6e69-481c-a5ee-51635ac4c056","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies, interest rates, credit events or","page_number":55,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"5bbb6ffb-7a18-46bd-9061-3a4e9f1c84e8","block_type":"box","text":"indices (a measure of value or rates, such as the S&P 500 Index or the prime lending rate) or other reference asset.","page_number":55,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"4ab90e5a-7658-4822-a5e3-fb462cd8acb9","block_type":"box","text":"Derivatives may allow a Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and","page_number":55,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"7e4a78e4-68d3-43b5-8567-874d274607a2","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":55,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"857cc52b-06c3-49d6-b305-6cd5ac9717fd","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":55,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"8b17bfbc-2035-446e-9404-8507cb7dbe5b","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":55,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"4460ec9e-0268-42f7-bd2f-3c23ef802602","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":55,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"6ea4f901-eeed-4630-b4f0-fb20a262e7a9","block_type":"box","text":"i.e.","page_number":55,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"a05ccd9b-9fde-4a19-be75-e19782206911","block_type":"box","text":", the payment","page_number":55,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"e367b294-2a63-47a2-a8c5-b61fd693a52f","block_type":"box","text":"obligations of derivatives contracts are netted against one another with the Fund receiving or paying, as the case may","page_number":55,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"9e959d07-d070-449f-bfa4-0248b88e1605","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":55,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"3ec88d22-90f4-41e6-84f4-408ffd9b45a1","block_type":"box","text":"Hedging.","page_number":55,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"2af13365-2af5-42f2-88aa-61aed6c27aa4","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":55,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"1554cf21-9fb2-404c-85b0-554571ea7643","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":55,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"d822ac9f-c712-4085-9781-c8ca61c76ea6","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":55,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"cefba80d-d098-4ba5-804e-e0d2600f7916","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":55,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"5f4b49f5-53fc-4143-a7d1-05109f289196","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":55,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"1e18f0e9-2a63-4918-b122-8882f17f34db","block_type":"box","text":"correlation risk,","page_number":55,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"be764873-0f66-40e0-a4c8-547536fff143","block_type":"box","text":"i.e.","page_number":55,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"9287aa7b-9918-40f4-b3d2-7e1f932c879f","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":55,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"4bb71be0-d689-45e4-a7c8-30319c825e7f","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":55,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"de2b3e00-8035-4a21-b202-fb886a173d99","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":55,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"dada18c5-5702-42a5-a5b5-541d365c2c2a","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":55,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"45a47eac-c207-4a48-8b7c-af71844fab47","block_type":"box","text":"Speculation.","page_number":55,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"15fb4eb1-05d4-487e-8aab-0676c472569c","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":55,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"d708f8d1-ccee-42f6-a3cc-ceb086a5e27f","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":55,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"0ac0c5f5-a2af-4e51-92aa-a5bcf85f0cef","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":55,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"05509b74-4639-40c7-a6db-2485f1673b83","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":55,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"15e19f0c-781e-453f-bcb5-04f6d7fa1a68","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":55,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"4b68b0ad-7b2b-410b-81a9-b64c9a8fcc3b","block_type":"box","text":"Regulation of Derivatives.","page_number":55,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"6421fd3b-bbd9-4fd8-ada0-0b2e4c4a5f23","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":55,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"2cc0ab3a-2f6c-46c8-9b85-186fe4034f3d","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":55,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"292213df-e081-481e-b0a4-790f30b31c6c","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":55,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"7b8ba96b-409c-4584-8d60-6043500281d4","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":55,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"7834381a-99dd-4d0d-b512-dce152c560ae","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":55,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"a66b330f-de60-4a49-9145-d27771b9d68b","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":55,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"7ba0f213-3da1-499c-95c8-0a04fcb84232","block_type":"box","text":"coverage”).","page_number":55,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"fb6e1f76-b99f-45a6-9d69-bcd8a5b89333","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":55,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"0599d075-c65e-47b3-9db8-1ac3d7591349","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":55,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"231cae36-49f3-4e38-9390-ea1f549658af","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":55,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"3ad0d783-d706-4e5a-b2dd-3a0db28f52a8","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":55,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"90efcf04-47a1-4317-bb99-c46a2d348192","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":55,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"94bf7861-6ae1-4ce6-b718-3c1bf8d2aa04","block_type":"box","text":"financing transactions (","page_number":55,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"bca2ed78-df88-4f28-bbfc-495073b2d20f","block_type":"box","text":"e.g.","page_number":55,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"0094acb0-3ba9-4828-8189-172b550bf534","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":55,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"856cf534-d26b-4056-b8d9-d2feb76187f7","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":55,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"2beda97f-6af6-4912-9139-0761f916df2c","block_type":"box","text":"securities (","page_number":55,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"efe65344-a356-42fb-be1b-f1b40b279f75","block_type":"box","text":"e.g.","page_number":55,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"442e538c-f86e-457b-b69b-acef0a34cf14","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":55,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"9b928b82-a1ed-4705-b0d5-2cdca5c38031","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":55,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"fd161571-db49-431e-81e6-48bf7c16e093","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":55,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"6e69ec5f-f669-43b8-8a76-8341c93715c0","block_type":"box","text":"Commitments”).","page_number":55,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"c7aeda88-8f06-49a4-8239-fddb1fe6686e","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":55,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"c0703fa4-6462-4858-b59a-4abafbff2682","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":55,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"c9b570f9-5c08-4fa6-8c10-47d5099716a9","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":55,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"39fb894d-5c53-4b72-8eee-b71904f2ef84","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":55,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"ebcfe908-de0c-4653-9c05-ffe5efc3c3d5","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":55,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"a03526e2-c854-489f-899f-5af532ed3f3a","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":55,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"ae7e24bd-f946-4f80-ae56-8407ff538b25","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":55,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"ee5236fd-9689-4068-8b3b-cc5b17bf89ea","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":55,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"72daa90d-b9a4-4a0d-a5d2-d880923a427a","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":55,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"e0fb1a8b-5b54-4dce-ab3e-ddec0d02ad75","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":55,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"27b5248a-b8b7-420f-bd4b-22c751c89c3d","block_type":"box","text":"II-13","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3aa7acf8-abdb-4c05-bd79-208d86e160b0","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4ed2045-3f3f-494c-a144-d68893c9b66c","block_type":"box","text":"Dodd-Frank Regulations.","page_number":56,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"81e58540-b072-4d62-8021-82b767451648","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":56,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"436ac1ae-95d5-4d60-b477-c88c844e2d77","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":56,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"0e51c0da-b986-428b-9bf7-3ea4928be90b","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":56,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"7074c254-2899-4117-8262-9efe3cc210b7","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":56,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"702d3a16-372a-4d91-bfc6-527a6cc11c13","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":56,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"b6b51a10-b14c-4244-8643-805e7d5d0037","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the SEC as","page_number":56,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"61aa369d-46e7-42d2-89a8-b183419fc93b","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":56,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"0b237f86-39a8-4152-ada5-418904e074ba","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":56,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"dc7d1704-c8c9-4dea-90f1-fcd3ba5f1185","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":56,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"659fa0da-4987-4898-9bc4-b24f630d2d9c","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":56,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"7edd040b-0f59-43d0-b31d-424e9c4808da","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":56,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"2ed66c4d-f1c9-40ec-bb2f-fd774cc249c2","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":56,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"15eea064-120d-4e5c-b27b-0638bd025edd","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":56,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"7b7997aa-36e4-4d2b-bf8e-c3f209e9e19c","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":56,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"44f0ce07-0e98-43c8-9c2a-789dc36837a4","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":56,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"0bee5201-c54e-4975-9b3a-692d60b5e945","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":56,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"dc72b50f-e1b7-41f3-b6ce-7178191e7cb2","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":56,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"eadbae20-fb0e-4c83-a795-4ad4f7c31c7b","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":56,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"2962b0d4-4e54-45e2-897f-7d6a8335b1b0","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":56,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"dab5e9a2-a1ff-41db-b118-278f9e596283","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":56,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"d3123f57-2257-488e-bb97-0cc08548078f","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":56,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"997e4b6d-72ed-4bd7-b1b8-e4566c0bd9f7","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":56,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"ed7ceb62-afa3-4e97-b619-fd0b19210161","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":56,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"346288c0-01c0-4468-aa37-dbd8d30583dd","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":56,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"ed58a2c6-c58f-424b-8aa1-642ff68acba0","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":56,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"8e8021ce-6386-4ead-ab06-c68b1caa3345","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":56,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"b4e8c4af-a70e-4b3e-82b0-b47023f78df3","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":56,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"fccd96ad-e401-434f-b949-bd8cb38d6193","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":56,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"abc4f9b4-20e5-4120-9e4e-c1e33c9d977b","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":56,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"b9768fc4-3d00-44ab-8ddb-0c6d19076fd9","block_type":"box","text":"member.","page_number":56,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"fc7c75bf-6e34-4e42-81e9-dee158ddba48","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":56,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"4d02a2e5-7511-4bd2-b8cf-0260e43f3b71","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":56,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"6214a795-346c-4bef-a12d-58b05e40f254","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":56,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"3fe8f5ca-4eb2-4995-8f8e-4e3a130940cc","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":56,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"bf9de037-ab00-4129-847e-a2bd31873f22","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":56,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"ad16752b-e64c-4479-9cd6-0d34333c74f4","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":56,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"8131e4ff-f007-449e-9cfb-1da13dc9b603","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":56,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"7762dfbb-9529-4891-80b4-05bf85794f90","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":56,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"7cdf91df-0b59-417e-b27e-efa0f95d6391","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":56,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"f4b8e8ff-7a41-43ed-bbdb-78280534673b","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":56,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"9b0921ec-4fc5-4742-955d-a5d4c0f03fda","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":56,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"4d817999-cf62-4125-8559-7305082e4e95","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":56,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"334651f6-93a4-4d94-9b7e-330d5f928d07","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":56,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"0e6fc29a-a982-4cd7-ba7f-a74b02f4c76c","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":56,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"248a3f82-02cc-4b10-aa5a-97ce83cc9245","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":56,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"d9efd6e0-48aa-4c70-9218-d2398be626d5","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":56,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"7cfd7e8c-c0e9-451c-8192-8b2a739bc012","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":56,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"cd1f8901-7aaf-44b7-abca-53e1adefb43f","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":56,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"9ba4dea8-c75b-4a13-b909-de70797b2b1c","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":56,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"9fe1a5e8-2488-44c6-af80-c32a672dc0d7","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":56,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"d093c4e8-c517-400b-bf97-ef50086570b3","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":56,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"a505e961-bf9c-4038-a97a-ea59190e9e55","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":56,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"031864dd-299e-4461-845c-b64f65c64040","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":56,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"7193b431-0cbe-4020-9770-d4cfc0a9b1a8","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":56,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"d8084bab-7d42-4c29-bf1d-694fc72e80c5","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":56,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"68690996-5734-45d0-be14-6bdeb71f64ff","block_type":"box","text":"II-14","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95f88ab4-4b50-4ed9-8e0b-7948a2b26db4","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"54f1448f-86a6-4b59-b068-b5509977825e","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":57,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"3cd46c68-c480-495d-8b3f-b222c7a594e3","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":57,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"4f9c8d2b-fb28-484e-bf80-18dcb3f8d2dd","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":57,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"51d6b2d1-bb21-4f5d-8acb-eeb9e19be85b","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":57,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"06c4fb66-764a-4e40-a8c1-7eb4dbc8e49d","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":57,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"84c2b9a6-c7ef-47ec-914b-115829179b42","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":57,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"220dfa67-9710-4347-9dd7-50bfc559a522","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":57,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"d286c191-8637-4e07-a6b1-eb7ad8ceb0b8","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":57,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"3c237173-94d4-419d-b6f2-1ed03e3b017c","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":57,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"e55bb745-eb3d-4a36-9240-b158c1c98838","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":57,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"4a97d396-aa23-4950-89d4-bcc9ac29ce76","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":57,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"26072db6-bcdd-471f-827c-9cdd79a90c78","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":57,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"84ba0ca6-a457-4804-a52e-31b4cc811f3e","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":57,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"545c1201-df11-4158-8ed2-e577f0b02cd2","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":57,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"c8a421ab-7c12-4eab-a48f-f25994cd617b","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":57,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"e7fd27c8-71e0-46fd-acc7-3d98d3ce03e3","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":57,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"0de9fff6-67a4-4cfd-b854-e33926cda584","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":57,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"5de0f12b-1a59-41c4-92a8-273871fcf746","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":57,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"2484f2cd-d6cf-437c-980a-3557a1cb0802","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":57,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"1f31746b-69da-4640-92e9-4e2a8bc0f68e","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":57,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"dc89a317-efdd-4036-95ea-6c9c303c5fee","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":57,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"51f6840b-a61c-4be2-8ebf-cac707fc1346","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":57,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"6ff35b99-1c5a-4946-bd1e-3d1a0cf00d6f","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":57,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"07896d3a-4e12-48fe-9243-a6875a05c019","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":57,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"26450233-7726-46c5-b2cb-696480952719","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":57,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"6a589579-60f8-4fe5-a7ec-67de03165e14","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":57,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"1cb1cf5f-0e8e-4998-8f94-640c1d861514","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":57,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"ae4a3310-d727-4392-9c7b-ec57e462c6f7","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":57,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"739f2992-c963-49ad-948d-6ce7d31a494d","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":57,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"811ff65d-9307-419e-b76b-a2880d5b1cc1","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":57,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"14cc52e6-2343-44c5-8bdb-07f8e1b3f20c","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":57,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"151bf9c9-20ac-4e59-92d8-37ef01df57c4","block_type":"box","text":"collateral received under such contracts.","page_number":57,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"6aab03ec-6a21-4fca-8948-a31107c45d96","block_type":"box","text":"Risk Factors in Derivatives.","page_number":57,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"46b0f20c-8af9-45d0-9256-a06fe16e6460","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":57,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"9f62ada5-bb0d-4fac-abbc-35d16c75458d","block_type":"box","text":"Correlation Risk","page_number":57,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"2b22795b-8191-4d61-aceb-5029fa74906c","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":57,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"8999562e-758c-4e93-a7c9-b9ad2e3c2ce0","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":57,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"c9449b92-8eeb-4da3-a85e-0d3a4aeb07e1","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":57,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"e5d015a9-47b8-4990-a92f-00d14ea25622","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":57,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"4f3365de-7a74-4a55-9a13-75dabcafcd50","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":57,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"d1b1d0ae-e011-4247-82ea-cee6eb927b17","block_type":"box","text":"Counterpar ty Risk","page_number":57,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"ab4e4d9f-359c-47d2-a2ff-960a4188f03e","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":57,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"bb9b387a-8c62-4617-bb0c-4cf807d2a93c","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":57,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"d5927dcb-a113-4916-ae5f-ebbd77691eff","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":57,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"a5c5bfb7-0c98-483c-93dd-e125306425f1","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":57,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"49bc6be8-904a-4593-9490-b2c4b0add984","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":57,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"5aac1a0b-19cc-4bf9-8994-31b322d8dd37","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":57,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"e66fc2ed-4518-4b2c-b199-046f62c84028","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":57,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"d0663cdd-6b05-4e19-9fc9-17c39b3dbf8b","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":57,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"7cd611a5-e7e1-4f05-a645-74b1990a0d93","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":57,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"f02eee58-7ecb-4d10-8fa2-033817ed0fcb","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":57,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"7df3eb6e-6e5f-4e52-9d8c-1e03d6028048","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":57,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"933b87cd-bc95-476f-a9ac-f1619998853f","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":57,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"b2244367-7145-4d12-b0bf-f27872f9b947","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":57,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"09b4429f-720f-46d4-933c-5e4b412e0724","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":57,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"61a02df7-d7f8-4764-a14b-f44d7688c3db","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":57,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"f14fa673-5c32-41bc-a8ad-aa0ca1e5c8c3","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":57,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"09befd5d-03d1-480f-8abe-a37eaf564d12","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":57,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"c775c27f-f0b4-4d89-960c-2b60acd3f395","block_type":"box","text":"II-15","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf2253de-9729-4488-b4f2-e8e0f0400872","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"35097085-5d7e-4778-8ce2-7e260ef0d406","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":58,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"da88254e-7a53-4338-a76c-8ad0c6f3123f","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":58,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"4c550290-ebfe-4b32-8088-7477522193db","block_type":"box","text":"by the clearing member.","page_number":58,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"8eec81a4-4a9c-413b-badd-8996c38d2d75","block_type":"box","text":"Credit Risk","page_number":58,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"1b2cde85-84f2-4074-9918-4e7e355e3c5a","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":58,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"a16afe27-4f46-438f-9715-2d6ec465d2e3","block_type":"box","text":"honor its financial obligations.","page_number":58,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"8d424cb2-fa0e-40c9-b089-ee60d2c171e1","block_type":"box","text":"Currency Risk","page_number":58,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"60d3b09a-89de-4f43-aa46-5d9af5ba0059","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":58,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"ff56d11d-4f4d-4778-82cb-1bbfbc5da3bf","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":58,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"c5b4b628-2283-4e06-89c2-110a2cccf004","block_type":"box","text":"Illiquidity Risk","page_number":58,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"46984da3-31a9-44e2-8ea4-caba1c1c2f8b","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":58,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"e3191006-ea7b-497b-822b-8b814606db75","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":58,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"112cd087-1f89-43f5-875a-70169fbfc5c0","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":58,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"d39c9cb7-6163-42c6-9dad-23a7d08d0ca8","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":58,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"741836ed-d455-4948-b642-d2dab36de753","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":58,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"724ba398-96d0-48ac-8cb7-b4b132d84b8d","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":58,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"48128262-6521-4da4-81b9-31c32c8c853c","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":58,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"12540a13-7a44-4508-97c5-ca76effb7e95","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":58,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"e12d694d-1be2-47a1-b926-89de8ab24c95","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":58,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"2b3a87ea-24b6-4d31-9177-937dcf18251c","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":58,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"1b2e97d3-c168-42b5-9fc5-65aadb7f0176","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":58,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"0c781368-b528-46e3-b304-17b0bc0545d9","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":58,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"bc0a595e-8802-491a-971c-08711f7fce6e","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":58,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"0b80548c-36ae-4d92-9b09-96c83415971c","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":58,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"5885b8a4-9c69-40ec-92c0-0e2074890b50","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":58,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"d2b71009-5a7f-4487-b061-447efd01fb1a","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":58,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"9d2a9e95-98ec-41f2-baa5-808c5696a70d","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":58,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"43ff34e4-0d10-459a-9afd-5b62102db7c0","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":58,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"8a712522-fb0d-4699-ae22-8976155aa832","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":58,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"8675a6b8-90c3-495d-ac85-2766c48bb869","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":58,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"339da72a-88e3-4e6f-8ca1-1f2eca13f435","block_type":"box","text":"may be disadvantageous to do so.","page_number":58,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"45e52b19-7ec8-4148-8676-2c5a01e8bd31","block_type":"box","text":"Index Risk","page_number":58,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"3e28a97b-0bf1-4496-8251-e8f3d7c82adf","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":58,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"7a9dee9c-dd2b-488f-9800-af0125794f5b","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":58,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"69607478-52f4-449a-91d1-5dc4540bf586","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":58,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"b052f88d-e23b-4e67-801d-16a31b787615","block_type":"box","text":"Legal Risk","page_number":58,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"faec1c40-53af-4fed-9dc6-25cbf79afb2b","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":58,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"97166ef6-82f8-4bc8-b450-bf428548c25d","block_type":"box","text":"or enforceability of a contract.","page_number":58,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"b10f91a8-ac5c-4071-b43b-3bfcfe464d6a","block_type":"box","text":"Leverage Risk","page_number":58,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"1c1c299f-c4d6-47df-b184-1264d270b460","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":58,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"f0e2ebab-d0f6-432b-b51b-8aa9430e0c7c","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":58,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"1c6d4a78-68a7-4243-9876-cea488742f04","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":58,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"e4e47e6a-676d-4672-b4a4-014cd54a7cd9","block_type":"box","text":"Market Risk","page_number":58,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"e846b25c-87bb-48a3-b80d-f32c0a199698","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":58,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"24118d1e-0ada-4936-a81d-cbf2f4ebaece","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":58,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"62a35a76-d7eb-4b83-b5ad-5f48ae310d71","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":58,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"3cf194ac-73f6-4a61-b3f2-4363fdfbc577","block_type":"box","text":"affected.","page_number":58,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"b7f30b87-a548-4701-86d9-b60b9d697f71","block_type":"box","text":"Operational Risk","page_number":58,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"03af2217-dfda-4a7e-ae3b-5168d1448a77","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":58,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"333017c6-e350-4f84-bcee-4c5b8185a848","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":58,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"2e229e87-9ac7-48de-b0a6-0ba104c3584a","block_type":"box","text":"Valuation Risk","page_number":58,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"fa728a6c-d769-4ac0-affa-fa929b78af75","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":58,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"73686f7c-e5a0-4b54-b8ae-a2b7649d8cd0","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":58,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"9bdfc46b-cc90-4cc2-b6cd-7770f3975f18","block_type":"box","text":"complex instruments or quote prices for them.","page_number":58,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"2e76b5cf-a33c-4ee0-9761-af21bc380539","block_type":"box","text":"Volatility Risk","page_number":58,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"33f0e9d8-d522-4f1a-bf19-3949f9402e1e","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":58,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"d797542d-0f3d-44fc-94fb-caa2d5bc3b4c","block_type":"box","text":"Types of Derivatives Transactions.","page_number":58,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"f8bf2741-8db2-4c5b-b6f3-a4d5474d2338","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":58,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"f425ef31-aeca-43c1-820a-ed42d3d30285","block_type":"box","text":"including the following:","page_number":58,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"52bf733d-e252-4425-9ae7-680c1fb51c82","block_type":"box","text":"Futures.","page_number":58,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"0755734d-160e-40bd-95f7-0a75020c9235","block_type":"box","text":"II-16","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fc4d5de7-8c5d-46ea-a09d-baca10f40d22","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d04a3ec8-8d6e-49c9-9ada-64c2aeb12f11","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":59,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"31722219-2127-462b-b419-7e3a112a5d39","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":59,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"4b614391-8ebf-4e3f-bbe4-802da4992a54","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":59,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"821bd8b0-6dd7-4d50-b690-08c2228620da","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":59,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"69d5d489-17df-4b94-8dbf-e52c4cb3bc6d","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":59,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"9d047b3f-276e-4856-b6f7-d07c2d64479b","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":59,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"e21a20df-601a-490a-907c-61b113c839ca","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":59,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"414f52ee-74cb-4549-8484-f7fe03ae4e95","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":59,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"a9af7803-5f4b-4795-b2b7-1c71e2ceb75f","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":59,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"04d09054-2c4f-4e96-a6a8-d524d8a031cc","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":59,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"44d66fef-9c44-42a5-83a3-c9c42324a4a1","block_type":"box","text":"of the futures contract.","page_number":59,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"29df0152-b779-4841-b7c9-f0e2e3a311d2","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":59,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"7fd21dda-ce4d-4147-9186-774c64a1e418","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":59,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"716b0963-d11c-413a-9c8b-9d0a105e22a5","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":59,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"3caef31c-01e6-4050-af01-54d57f48d287","block_type":"box","text":"relating to the futures position.","page_number":59,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"6477a5d8-0cec-4f0a-8ab6-e8160dadc0fc","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":59,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"51d33060-a2b4-482a-be43-bb6f551ad6c5","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":59,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"fd42b177-65b1-4a07-9115-f1a51668f5e9","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":59,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"ba9dff02-3b12-48ff-b36e-cd9713bc2e7b","block_type":"box","text":"Regulations” above.","page_number":59,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"15d4cf0b-0d51-4219-aca9-8b1ec11cf627","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":59,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"e5270265-7f84-401e-857c-b6d60e1e9b0e","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":59,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"d3ee70fa-a945-4297-a30a-5ae24085be7b","block_type":"box","text":"(","page_number":59,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"4d40da5b-2713-4fce-a475-2f7516cb4202","block_type":"box","text":"i.e.","page_number":59,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"cbff6cf4-e161-4c4a-97a5-4b145a161c5a","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":59,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"6c3f5e67-9059-4551-822e-6a1f2e9bdaf9","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":59,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"d97dc917-b3cf-4c21-b292-bc289b85ebcd","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":59,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"ab39fbfb-7c40-46ed-ba35-6ef66f7d6503","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":59,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"a6d8754e-30c6-41b7-9aef-0a6290bdb0bc","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":59,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"4bc547c5-d309-42bf-b49b-3e1cce3a647e","block_type":"box","text":"Fund intends to purchase.","page_number":59,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"2496cd4a-c7a5-473a-b3a2-99c25616cce3","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":59,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"64680db9-bab3-482f-be1d-aa9cf82ba3d6","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":59,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"2ff00dfb-1e77-4a85-adbc-1ccc89f6ff59","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":59,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"6c95cce1-8a30-4fd0-9a96-e5944176fc15","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":59,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"4c9819d7-d368-4934-854f-6d14861978f7","block_type":"box","text":"illiquidity.","page_number":59,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"4eb5c939-10d9-4df6-bf9b-c85ed5dce0ea","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":59,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"1ba663f4-e150-435e-b524-627244283e6f","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":59,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"220b7118-d5d4-4825-98de-924cda459c82","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":59,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"f9688b5d-82da-4fc4-bb07-f16dd0087f2b","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":59,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"1cb155da-a0f6-4a2c-8fd4-9bfd3f1d9e85","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":59,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"c2a4d806-f27a-4961-a23e-23c6a2eaa68f","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":59,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"46a60652-02f3-4553-9053-0e1f0184e27f","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":59,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"b384633a-2d37-4c0a-98fa-1c21a7f4a4da","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":59,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"6e39a851-ecf4-4955-b459-656458054cbd","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":59,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"fa1e74c9-815d-4e2b-973a-c6e4f0aaf35c","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":59,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"41fe24ae-75f9-4b93-aced-6f45e3dbd14e","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":59,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"e7a3aa53-cdbc-449d-beae-7008ab02a5d6","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":59,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"e2356717-9efd-464b-b815-c05e5c8e0c72","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":59,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"d7f9470f-4149-4f7a-b532-b511fd5ec68e","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":59,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"d65da8be-4abf-45ef-9403-2b440613c9cc","block_type":"box","text":"Swap Agreements.","page_number":59,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"be9c7425-0328-49a3-a5b2-86cda2bfe0bc","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":59,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"f7343616-3230-4c4b-8242-e3f62bea8c2d","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":59,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"baf8619a-461a-433d-9b20-0cf40d5d7121","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":59,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"3b3ef6c2-e394-4ae8-b682-c4544b488e52","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":59,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"04d831f0-4700-4841-9c14-2b6ebb8d954b","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":59,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"d4889423-f698-4ebd-82d1-43287b25c105","block_type":"box","text":"a “notional amount,”","page_number":59,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"1681050d-94a0-4877-ab87-947a4b400e48","block_type":"box","text":"e.g.","page_number":59,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"27386c4c-697c-4670-aa3b-1383ba88b58a","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":59,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"e42aaae4-f752-42fd-b407-8e40194db5f5","block_type":"box","text":"II-17","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c17dc3a1-5ba6-4ce4-81ab-0048273453c1","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e12c0929-1de2-48ca-b947-11006a84e389","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":60,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"53bf0c65-3195-40a1-ac74-52d03d8d6b6a","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":60,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"f17f1f65-f881-4ffa-93f2-c01622861144","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":60,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"1523c786-b3a3-45d9-ac31-cbc9ade181a5","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":60,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"09aee25f-ed98-4d19-a36c-714a272a13ea","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":60,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"df28338a-e816-461f-b57a-d04eb77b74db","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":60,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"e8496630-5762-4b6c-b58d-5a2c1feb1dec","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":60,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"131e0460-18a9-4151-bb4a-a630d3d04971","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":60,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"df970aa8-21b1-4d29-814d-ffd5651ec9db","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":60,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"4bf1b8b9-06d0-4e2d-9808-12ede8175898","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":60,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"bd16c8e8-028b-4eb2-8386-2798d6e01ee4","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":60,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"88aa15b0-9671-430b-a6dc-8516edebd818","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":60,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"0d9beef9-346b-4465-8f98-46c8deb7e0c0","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":60,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"89a05375-d09f-4165-9fb8-def830041efc","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":60,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"aae30b60-6b69-46a9-b1b0-fea028871fd7","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":60,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"bf5cddbe-6d0b-4d9f-9f0f-43b7f15672cb","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":60,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"e0380b14-1920-4324-bd73-cbdc2b50673f","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":60,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"6d613c42-71a4-4e83-9ba6-ce5bdc61acb3","block_type":"box","text":"index CDS.","page_number":60,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"cf41410a-6f33-4b00-8059-f17e2dc8410e","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":60,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"cbe1fd92-2864-4db8-9d8b-574fa5c8ba3d","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":60,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"0a66242f-aecb-4202-b859-50b239d1639c","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":60,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"bf576338-f802-4fc3-941f-432acc81367b","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":60,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"eca13962-75b8-43e4-9ca8-6d95a0578e2a","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":60,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"cf64881b-f47d-4823-9b9c-0df8061609c1","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":60,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"a0143b7a-5191-4f19-922c-61eb67962798","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":60,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"32594f5c-5238-443b-b399-a1a70aeec66d","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":60,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"8e9f5c0e-ad02-4839-99e1-91f8d8f45c51","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":60,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"ae32e5fc-0fcb-4f61-836a-422e80c3474d","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":60,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"5900027e-507a-4209-aafa-397d1a62ce6e","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":60,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"61a88f5d-1cea-44fa-b2d3-fc1c58e27274","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":60,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"69727989-7a4d-4e72-a2e9-855c4a1244dd","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":60,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"97395d09-0ab7-402d-a6b3-3e022d63b5f3","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":60,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"0742a092-007b-464c-8673-87e34855ed14","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":60,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"9111a7ca-b512-45fd-a29b-0f50c5f5541c","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":60,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"c3808e98-9e3e-4bf4-a307-dbe323c156f4","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":60,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"68a4f1ed-5d59-4205-946a-9b30b1e60ac4","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":60,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"6f6efcda-0367-41c9-bb34-9192c46a1c2f","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":60,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"2a07cd39-28a0-4692-89c5-1a55336b930d","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":60,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"231d76b2-dfc9-4c73-a730-302795c07863","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":60,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"bf1a731d-af75-46f9-857a-1aaee5276964","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":60,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"62bccb1a-20e0-4428-84af-6cfd612c61d3","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":60,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"ab9b914b-04e4-49bf-b186-b6d0b3660458","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":60,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"5c678fb1-9cd1-49a3-877f-279c8f604a31","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":60,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"e671777e-d165-4ff5-bd98-2ee231a59475","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":60,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"25859cfc-d097-4483-96dd-d0c2c9a99a95","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":60,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"45f6c175-a5a1-4df1-820d-bfdffd3fb7c2","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":60,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"887ccc27-8583-4091-b010-4fdb0ed1d436","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":60,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"9341e959-0697-4a4d-8555-d2f730955d2b","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":60,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"8dc7d28d-486d-4e0d-a60a-064c74cbabe5","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":60,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"296bcd7e-7073-47b0-bfed-94810f0c6eb8","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":60,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"25c33872-4c51-4a3a-a759-a253a7e155b0","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":60,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"63fe4c47-5920-48fa-99d2-37dd1c147bc6","block_type":"box","text":"conditions.","page_number":60,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"dc94bdbe-ae74-4947-b5f6-09ddd23d41a9","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":60,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"a140b9b8-5bb5-427f-8503-bddb5887a9ec","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":60,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"b441aaca-25aa-49cd-b4af-32d9e4ef33c3","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":60,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"ce6a5a12-16ff-45db-ab3f-650054ca916a","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":60,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"196516d4-ebb8-4425-ba8c-4f923bc26031","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":60,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"93e07755-0789-4153-bac9-23d0966afb2b","block_type":"box","text":"II-18","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0059d988-f3d4-4aeb-bc5c-abc20b4d2f38","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"906a6df8-9500-4739-b9fe-d14cc24a5e8d","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":61,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"f87d9a9f-b13a-48bd-8066-bccb56651a94","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":61,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"512f7b00-c97e-4eb5-941f-29725bfa0f18","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":61,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"35a13828-9837-4b0c-9009-4fea7649863b","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":61,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"4a3df85d-fe17-445a-bafe-3aacf8775903","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":61,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"8f986894-ac07-4385-a54d-b557a09a8f53","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":61,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"22251e55-afcd-443b-a07d-882353c689ba","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":61,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"46fcc0ad-214f-481a-b0fc-202e226adcad","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":61,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"bb1db792-e7a4-42fc-8043-004a00bcb831","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":61,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"dda69c6e-1032-4130-9564-59876823e1ec","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":61,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"1644e93b-8bbb-4754-93f6-ab2b33574c43","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":61,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"a4f644d7-0cf9-4c58-bb2b-0b0d2cf5d965","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":61,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"ddba6b60-66c2-4ab3-816b-366596f8eb2b","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":61,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"5cae8058-df08-43d5-ab42-382e641b6e5b","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":61,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"cf604759-3e3f-4f9d-9299-cfc7fe04643d","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":61,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"cd3a4463-6229-4762-8746-19246588e53e","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":61,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"346de618-920e-4422-945a-f68120792d50","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":61,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"472534da-df9a-4b64-aed8-87f35b3da44c","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":61,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"b98174f7-e66c-4a42-943d-a46f64df8d71","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":61,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"bdab75a3-4dd7-4341-831d-aaf906930a3e","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":61,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"a25d108d-2690-48e7-9a01-226867409ab2","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":61,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"2df57130-9fb9-4b21-b5ca-74a774faed36","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":61,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"fb44a3b8-99c0-44f7-976f-f232f995f061","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":61,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"cf4447f2-327c-4151-aa34-d3b745e7401d","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":61,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"0ecd776a-51ed-4336-bf02-7a0116612d8e","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":61,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"73e3d84e-2bb7-42b6-9602-d303d1086dc7","block_type":"box","text":"cleared interest rate swaps.","page_number":61,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"1bcc6401-efd0-4688-9b36-90a0fcf9a033","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":61,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"2b0b7076-d942-432f-a8b3-aa8bf5313037","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":61,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"506b672c-183e-4c7d-89b0-a3a935954267","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":61,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"ba6fd503-13fb-4a58-93c2-b61402fe24d5","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":61,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"8e3c8217-b550-4d79-8031-3acbda796a7b","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":61,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"b7005ed3-b274-46f5-bcee-dda38e1b16ae","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":61,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"7b3c9cdb-479a-4651-9994-b03ef49bdb2d","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":61,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"95693c8e-9f9f-415d-a698-f9ea964cde97","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":61,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"525b6258-8216-40b4-9343-f6e29b75f2ce","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":61,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"d78f878a-6864-4cee-a648-0984e6dc5dad","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":61,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"bb16af66-23dc-4ee5-b8cc-18281e54fa26","block_type":"box","text":"or variable interest rate, index or asset.","page_number":61,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"7bc2b784-dae2-449b-9466-35546a725115","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":61,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"a7d8fb6b-dd5d-47e2-a8d3-378446858cac","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":61,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"ed3bd953-2af8-4cfc-b8ab-e61c4e0a6ff5","block_type":"box","text":"such interest rate floor.","page_number":61,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"ba286701-2cf1-448b-bdbe-6128f363bd84","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":61,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"a3920e03-eebd-49cd-ad71-29de1436cb79","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":61,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"51c2ebc8-451b-46a6-b7d1-93de1f40ca6e","block_type":"box","text":"such interest rate cap.","page_number":61,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"2eb156c3-45fe-4b97-8c8b-d519f0c07429","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":61,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"db8b138b-9adc-4f2f-8937-21566e2a9bba","block_type":"box","text":"commitments to pay or receive interest,","page_number":61,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"4231f064-26c5-4ab8-8a2d-3813e4f5f61a","block_type":"box","text":"e.g.","page_number":61,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"cba30675-6d93-4c03-a088-f0117b970ba9","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":61,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"ca23c98c-7f9c-4032-8fe4-8495f49623f8","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":61,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"5fcc153b-524b-4173-9a33-150dee13f461","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":61,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"fd8349ba-1419-430d-a7c9-9503a27beee6","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":61,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"d754cd39-a454-42d5-89a4-f5e92a58fd1f","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":61,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"50292bce-b4c6-419f-92c4-e92cbca0e0a8","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":61,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"84229761-07ad-492c-8c42-e46b7f8f3ac2","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":61,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"f98d971c-cba6-481d-9c88-59d6b5b16b9b","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":61,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"3161ae84-14f6-429a-9b88-dac48bf40905","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":61,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"fe9577f4-8eee-4af5-b36d-83f9a36c715b","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":61,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"b25c5f7a-bc39-4045-88c9-234c91a0e176","block_type":"box","text":"II-19","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c51c8908-33fa-4945-b44c-882de889320a","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f71c41b-45c6-40f9-aa30-d3ed2f15f80b","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":62,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"188406f6-1a79-45fb-8b6a-cf246bf4ed1b","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":62,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"1e6b58a5-c0c1-42ec-975c-43ebc79e5741","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":62,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"2fb9da94-fe92-4320-ac20-de67e8230ccb","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"bad6a5be-1ee3-4b5d-b0ca-9a28ebbd43f4","block_type":"box","text":"Total Return Swaps.","page_number":62,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"4a0dedb0-bc3c-453f-b6f1-9adbe1ffa8a7","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":62,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"055b83ad-7437-46a9-8efd-d401103dde69","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":62,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"a6b4a4e4-575a-4023-a962-3c39d1558b34","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":62,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"dc17d9b7-d90e-488c-878f-abf230310f82","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":62,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"8956bf87-0a32-4166-86a1-8dfb6f014f36","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":62,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"fa0a2efb-eade-4f9e-a31b-436b26efe763","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":62,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"ad07c1c4-3cbf-423b-887e-cc727a930700","block_type":"box","text":"“contracts for difference.”","page_number":62,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"61e6742f-a99d-4ac0-b8f1-f13f9befa8d0","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":62,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"e750b8ed-b932-45d7-bf7e-afe148d0f8d2","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":62,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"7ce7f4cd-17c1-4fff-8484-1be6fb441b8e","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":62,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"d8cd39f3-b92b-40e6-9ef7-6d0acfcda057","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":62,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"ae3cb610-12a5-4657-837d-f457ea8a78cd","block_type":"box","text":"the notional amount of the swap.","page_number":62,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"1a8f5361-3fa9-4b35-9023-b1b60b4a737d","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":62,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"2c790b1d-2875-4dee-9b2a-434963971213","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"200710dd-e7d6-4a5c-916f-b8d9ae213020","block_type":"box","text":"Options.","page_number":62,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"3b379d7d-c18a-4c0e-b30a-4f0a391142a5","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":62,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"6792ff57-81b4-4501-a688-f5560469fa75","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":62,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"e6633c0e-d8e6-4b9c-a482-3a793bb0125b","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":62,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"af3f9efc-d872-436e-9bff-20f90c5a4ba7","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":62,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"c30b4eb0-fbab-4191-ab35-6e8cba6ddbf8","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":62,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"a8b29301-8829-408f-b931-e605edd5fa7e","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":62,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"f89f43ed-b190-4bb6-b440-83ce3aeabc60","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":62,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"cbd751bb-2001-41bc-821f-75f8b89f9df3","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":62,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"681c9090-c648-427b-8b59-0210e9d75feb","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":62,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"c1e30d68-1561-444e-85cb-7015d10bc8e5","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":62,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"8fa5b6b4-05d5-400e-afe5-c0f0af7c43c7","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":62,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"24fa47fa-6288-4222-8e4c-d686db5e5bd9","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":62,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"39940994-e14e-4dfd-8ab8-181aacc34fb5","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":62,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"b7ee49d7-f2c1-4eca-a640-0b6ba14b123c","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":62,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"ded552b9-befd-49b8-b7ac-7858436dee6e","block_type":"box","text":"OTC markets.","page_number":62,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"02bb5636-af93-4428-8c26-32cb69481521","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":62,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"26d405ea-c7f8-48cb-b588-2b77992316a5","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":62,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"0087530f-254a-4109-a441-5619c0e8c88f","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":62,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"e0277316-a9a7-46a4-b80e-4a6335fa49b0","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":62,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"c781d44a-b9e8-42c0-ae7c-23d2c6460309","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":62,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"99c3910c-dc14-4b17-894e-1fc3a6914fa3","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":62,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"68b82397-53aa-48d2-87b0-6abdec92e8f0","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":62,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"01c20827-b638-4f34-8c16-d920b2137e62","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":62,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"fb9e253a-4fa1-4497-952c-47523e87163d","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":62,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"2c999476-7304-4326-afb9-fe0e399ab4d0","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":62,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"3aa6c3e3-002e-48a7-8bc9-aeaae92822e3","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":62,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"67465b9e-1cf5-4d99-a760-aef75da957cb","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":62,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"5787177a-9821-495c-8d4b-14f7e3895017","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":62,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"32ce1ad2-4c2a-492a-b208-280d60928ffc","block_type":"box","text":"terms.","page_number":62,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"0251ec3e-9fad-48e4-a482-48728c5a5d58","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":62,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"702d2c4c-cbbb-40c2-bb27-42877eb64613","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":62,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"9f8f5481-c809-44cf-b3a1-3592c6688a34","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":62,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"e6699f8e-a85e-4f52-b239-8a5449992e58","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":62,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"8edbcf3e-f0c1-4d5f-b11d-e90153a4f6b8","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":62,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"dd1f20cb-64ca-4551-811c-5bdf1eecf7c2","block_type":"box","text":"II-20","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"80a3bcea-d127-4fec-bbac-612433310c0f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"45b4db1a-5536-4a44-9cad-7b9e66dce7e4","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":63,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"824e48ef-3d8a-427d-8020-41b06e0d7353","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":63,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"23a68209-1b2f-4b32-9f94-d962ab1a2e58","block_type":"box","text":"Call Options.","page_number":63,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"05506d73-c406-402a-8f07-dacc5f7aaad8","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":63,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"9fcf4524-7b05-49eb-bd58-c67cd4354b4a","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":63,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"a72ed6c7-2aec-4595-8b43-c3aae833a5b0","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":63,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"c98e369a-4b9b-413a-9e04-cb6d562aca54","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":63,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"896a4c31-549f-4ffe-a04a-aa4c10351399","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":63,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"be4cdc7f-52b8-45b9-afb5-00727a5f792a","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":63,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"be9bcd3c-f2d9-44e4-b4e8-17137dcfaa6c","block_type":"box","text":"of the option.","page_number":63,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"96d63da9-d12c-469b-a59b-600b9dbc20e8","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":63,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"aab681cb-73f1-4b48-b11d-d378e6e5bbd1","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":63,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"a6c25519-e170-48c1-855b-1c2c135c3424","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":63,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"992078d3-855c-45d8-95a9-4832f63592ae","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":63,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"eabfaba4-1418-4b89-99df-ffcd077f75a6","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":63,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"737d59c8-80d8-435e-a570-107c57eec247","block_type":"box","text":"A Fund may write (","page_number":63,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"b3ad5828-247c-4adb-83a9-e9a56d7a2c14","block_type":"box","text":"i.e.","page_number":63,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"bae6223e-523d-46e5-8747-56c9ece519a8","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":63,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"adb23507-3a0f-46e8-88ed-7621653c8e7a","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":63,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"72eebe0a-78e6-4ed1-a4a2-b392ee46aeb9","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":63,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"5de9ad23-07ba-4e37-936b-93700344ef94","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":63,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"c75cc7ca-6c42-4d81-a906-8a64841562bc","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":63,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"3335b3f1-2380-4e1f-8904-7de2d382f27a","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":63,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"be2f9e3e-1fa2-494a-80f3-581efb9a7729","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":63,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"2e194cb3-e668-49bb-8fb4-777b0af8b87d","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":63,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"177c43d7-6824-41df-bf6c-5c9b340a2708","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":63,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"e054f05d-97a4-48f9-928e-cdd47372b02f","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":63,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"ee2d7830-022d-4318-b8f8-b894d30aeb12","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":63,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"87a31dd9-64cd-40f0-ab76-18f32a48934b","block_type":"box","text":"A Fund may write","page_number":63,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"457b72c7-957e-43a8-bd78-63cdcf8b222b","block_type":"box","text":"(i.e.","page_number":63,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"55c73e30-29f1-43da-8625-5f09f2289d8c","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":63,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"56d93d4a-d943-4cb8-80fd-f0a62314c9aa","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":63,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"bfc93dcf-8af9-4440-b60a-92c8cbcc180c","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":63,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"985e064e-f2a7-4602-8340-5f92d635e076","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":63,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"9dc608aa-af1d-45ea-8c7d-2f2b977ccfe4","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":63,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"c72006b4-28e4-42e3-9c2d-d6147ad12e19","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":63,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"b5994170-7b2f-482f-8369-346103062f4a","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":63,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"c2aeed15-1dd9-43e9-986f-7d7bae52a0f2","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":63,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"0fdc9b5d-c0e6-44aa-889f-6e0597747f8e","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":63,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"3e288c9e-fc2d-4a26-ae3f-f6ae09392a34","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":63,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"29bb772c-75d8-46aa-98eb-a79ce232d4e6","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":63,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"4a0d71e5-d8c0-43cb-ac9d-9122c4206bcd","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":63,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"e1e60049-dbaf-41d1-8852-88950f5cfd41","block_type":"box","text":"Put Options.","page_number":63,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"b87dd2af-947b-445e-be2a-f6d5958b0102","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":63,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"0e6cb465-d026-437f-b345-1989c9160371","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":63,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"bef72128-ce41-4517-bd2b-9c8386665263","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":63,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"ed15a9bf-50ba-483e-a4d2-b913ebb16288","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":63,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"3bf1599b-721f-4f8f-ae9f-abbe010b5e2d","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":63,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"425dffe1-0740-4f38-b618-e089ea103557","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":63,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"4be4f3c5-e8d9-4f40-a93d-df66ca3a3dc3","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":63,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"e4f05eb7-3658-4a11-8ba7-2301146541e0","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":63,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"d2d63ae1-8dd9-41f9-b7e7-8e79787d773c","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":63,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"fd7fe11a-325a-4ff0-893e-0ea629c99dab","block_type":"box","text":"purchase uncovered put options.","page_number":63,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"6895ff8b-113a-4631-b4fc-463a031bc209","block_type":"box","text":"A Fund also may write (","page_number":63,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"44dfdf82-b9c3-4d52-812e-c3bb1907a656","block_type":"box","text":"i.e.","page_number":63,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"f8dfe4be-3a68-4c18-8662-b99855dbec3f","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":63,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"5f7b07f0-178b-49df-9078-ce9b89b360c4","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":63,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"47364e17-8fe3-4e1f-8df5-d4498f1d3d24","block_type":"box","text":"A Fund also may write (","page_number":63,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"feab5e27-9340-4d09-b51e-a8b358dc01c9","block_type":"box","text":"i.e.","page_number":63,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"fb432073-c9a4-498c-ab5f-86c3d26602f5","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":63,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"23328354-71fa-419d-b093-9ec0ea2eedaa","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":63,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"a8d9ac9e-bdf2-4a8e-b935-362635898bce","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":63,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"595343e0-c7e5-4715-bcd5-d6ad554e1ee6","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":63,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"26a18055-3b72-45ab-95b6-4c5f083e0262","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":63,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"f9f2da51-2c26-4c89-90b5-4e241a01e86a","block_type":"box","text":"II-21","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bde80926-aa72-4919-87a5-da79f93c833c","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db0dc3b2-81ff-4feb-9a5b-d2d8daf77d1c","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":64,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"b352073b-fc08-4f3c-8fd5-016f03893749","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":64,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"49d2508b-6d4d-488a-a297-1c68a25b5c98","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":64,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"3b126fbd-0598-4735-b916-f8feeb7f2f83","block_type":"box","text":"the exercise price.","page_number":64,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"f9eb820c-0f75-43ee-a08f-cdc8c06ad66f","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":64,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"2b9c3f27-b002-4cdd-bce5-707d79829486","block_type":"box","text":"The following information relates","page_number":64,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"2bee7433-409a-4e59-80dd-89f15c3cf0d3","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":64,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"bdc85c97-2fcc-45ae-b0cf-300f54018b6d","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":64,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"d4695ec4-f681-43e0-9fce-72d4de28d020","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":64,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"87fb4ff6-3f47-46de-9828-451f1e5c0d1b","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":64,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"d4ccab10-c143-413a-97f8-881ced376a4b","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":64,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"98dd3227-86ee-48df-b93d-a5febb68e8d7","block_type":"box","text":"market in order to maintain its “cover.”","page_number":64,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"fb2c4908-bf02-4f1c-a4bb-a750d0f5aa3b","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":64,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"a01fa520-be91-42ea-8857-997180738036","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":64,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"a4a6ccc1-049b-48ef-a410-4a4b60630216","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":64,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"b406d737-4eac-4e4b-8015-2c94ca3ac6bb","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":64,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"40a72ff8-45b9-4fcf-ae5c-61b17b23b00d","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":64,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"dec5d985-4f81-4d96-b1e9-8b98c6226b66","block_type":"box","text":"and incur transaction costs.","page_number":64,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"7ee4653a-e81b-42b0-b1ce-7c2b67381ede","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":64,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"b645488f-2597-4039-b9b0-74ecb44b832e","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":64,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"940d66ff-ec1e-4592-898f-362736c93965","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":64,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"cb7f3e8c-0a78-477a-a9da-65ad07caa04e","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":64,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"060cbe75-7b0e-4fa7-abfd-eb8db710b478","block_type":"box","text":"i.e.","page_number":64,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"1a44fcb9-ad20-4507-a991-aa4e27dc1310","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":64,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"3a6c1ba1-ffbe-4cc9-9fc2-72f8f3b50dd3","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":64,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"f3eb47df-00c3-4362-8319-4cc7201be52a","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":64,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"ef6e34ab-5872-451a-95d6-00c2a66ea237","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":64,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"03316f90-3758-4db2-ade1-4f6bba5c66f1","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":64,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"bc4b53e2-7054-487f-a202-ab972a8bbba2","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":64,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"93c2ccc8-f70f-403a-be39-8045c7bace8a","block_type":"box","text":"required, to be cleared.","page_number":64,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"45b72065-e019-4507-975b-db59a726e398","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":64,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"2af6a95b-95bc-4f77-90e4-928872b510de","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":64,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"226fd9c9-0079-4524-9c9f-f94f9884b87d","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":64,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"7d03e3b5-c4df-4971-a675-dc633c10402e","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":64,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"79a0e665-c6ab-484c-9212-89fd0c422bac","block_type":"box","text":"Derivatives” above.","page_number":64,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"41fe87e0-d875-4830-b741-10b86d7d8c2b","block_type":"box","text":"FLEX Options.","page_number":64,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"2cb99245-585c-471c-8554-ecad0fcabdaa","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":64,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"612a6060-3729-4ce2-8a74-ed2776dce074","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":64,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"3854e036-2d64-49a8-a0f1-ac38e2a734f5","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":64,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"4b7ac9c6-58eb-432a-a098-4f4525269b07","block_type":"box","text":"exercise prices, exercise styles (","page_number":64,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"d46ee28d-350d-4ae0-8a38-de727515185e","block_type":"box","text":"i.e.","page_number":64,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"4a95144d-ad94-4278-8783-8eaaa7bb2e6f","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":64,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"b08ad0e4-12ea-415f-a8a3-e4cb153140b9","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":64,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"143cb0f3-3102-4eed-8c8e-6204fc26a3d3","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":64,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"da0a034f-87a0-498e-86cc-a1de4dc8548c","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":64,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"3d5502af-3b70-42e5-94f4-0c9e73ebcdad","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":64,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"20e803fc-6fca-474d-97c6-55ddf413bf20","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":64,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"67dcdd08-b364-435e-8b86-066cfd2a88e0","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":64,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"07a1c45a-aa29-4309-a795-c16d41c5523e","block_type":"box","text":"FLEX Option’s expiration date.","page_number":64,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"320513f5-c635-4a8d-9de8-75bef0dcbacd","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":64,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"bc8f45ee-7a45-47bc-a991-957f88ae8d1a","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":64,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"ce39aa20-3be0-4899-b4b9-8f35dcd23947","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":64,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"153701b0-8b64-4101-99ee-672ce4bed6a0","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":64,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"6dd53f03-1395-448f-b7c1-d454d72e18ad","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":64,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"26d77153-69ba-4a38-8b37-6ceef21b2c0b","block_type":"box","text":"FLEX Options contracts.","page_number":64,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"de83a02e-5a8b-4dc1-b5ac-38f9a3fd10d4","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":64,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"13a856cf-7cbf-4e28-ab03-c06a2a604857","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":64,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"1dd83617-e289-406e-bb9a-5661fccbd9d8","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":64,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"e83464a8-fba3-407d-9b72-0429cd62d13b","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":64,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"b814a869-53f5-4194-8df7-746907dd12d2","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":64,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"bd88078c-0994-431a-a964-cfab2f007b83","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":64,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"0e077127-2c0d-463f-8aba-9abd0c033571","block_type":"box","text":"II-22","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e19cbb2d-b52f-4304-ae1e-74cda5287526","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"57985ee5-5c10-4382-b4fb-ec15233e6487","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":65,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"366a57ea-7622-4bac-9e95-57718c220d80","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":65,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"a1253671-a38f-4aa5-9013-1623aeb9e24b","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":65,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"07364ac1-25ec-4e39-9fec-61b3642268df","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":65,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"003c68df-4732-476e-a3d3-66af29933967","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":65,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"7fd906ab-7a57-4d21-9291-40d226679a12","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":65,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"d64bd4f0-eb76-4f04-9ca8-39ca12000acc","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":65,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"6fd2c595-5f0f-40e3-8f00-63c64889ac32","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":65,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"de3d2efc-a400-474a-8ab3-ae1349966446","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":65,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"eeb0663d-b4f6-4a07-84a9-eedf4db7ee8f","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":65,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"6b8bac2a-8ea4-40cb-9f14-6b5164afa858","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":65,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"2fab454d-08c4-4d58-91bd-62822c76b45d","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":65,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"2f574fe0-1a66-4454-8ce4-531f1100b0c7","block_type":"box","text":"expire unexercised have no value.","page_number":65,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"ac85151a-3571-477d-8ba9-d115e21d7a5f","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":65,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"b3b6a392-238f-4e56-a6a2-ffa999ebf66c","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":65,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"4b880d0d-a789-4dd3-8c5b-65f3e01cbbc9","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":65,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"911c54e5-f1eb-4047-bdcc-9eea0f4f2fab","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":65,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"6012757b-5c51-4560-8a14-7c37e4f5c4e5","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":65,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"4db5152a-180e-4423-8c2c-07751a6eca23","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":65,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"b34b1a1a-9e2c-480b-a95d-d50fd4fc89cf","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":65,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"c5ad4f12-3474-4863-bea6-84a1c798a299","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":65,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"a83448bd-14ac-4d3e-ac5a-087631baa010","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":65,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"ab46fe60-8d39-4b83-9da7-a0c5ac858db1","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":65,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"ddc00c96-351c-4995-a23d-3fddd4474262","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":65,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"79466886-82c9-4cbe-bb4b-ec24b57ed2a5","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":65,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"31c069d1-b70b-4a0a-a131-d2b1f64ec42f","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":65,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"e9d6933a-d916-401e-be05-ce9c8a170ba4","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":65,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"b4ef4412-8cae-4a4e-8b30-248567c4b921","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":65,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"647173f6-b0b9-4dfb-b823-3c6aec10dee6","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":65,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"71303e15-5ada-437a-92f7-bd5d722d943d","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":65,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"01ca2fb6-83a6-4ede-8d11-2360f4c9e434","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":65,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"71df684f-f098-46ce-90ea-e71ba7a635f1","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":65,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"34a950f2-63c7-4013-ab28-a386e1693c69","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":65,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"6d4f2022-6fb7-4583-96ae-dccb36b8f6d1","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":65,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"3de48479-faa3-4e48-a934-49c132e8f70c","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":65,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"77457442-31ed-458d-b963-a2dfd6c90c24","block_type":"box","text":"Foreign Exchange Transactions.","page_number":65,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"1b8f230d-3d0f-4841-b308-4de14a8f2b80","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":65,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"53ca96e4-45b8-47da-95c7-f47cb7b46d8e","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":65,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"391d710e-f2ff-475e-bfd8-c571154ee41e","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":65,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"00b99042-f6a8-4591-a12e-8f47535cb2cf","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":65,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"f6aa5c11-12ef-4085-9514-7e09dfff324f","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":65,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"122cd25d-6f7b-4daa-9888-3bf8f9e2e0bd","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":65,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"c53c7859-9a69-46fb-9351-6e0b6976dac2","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":65,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"10dcabc4-7377-4dbe-91d5-47ab523a54f5","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":65,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"5a84ff65-9c33-4304-bb40-406f183ee312","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":65,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"0f3f5400-0180-43c3-a22f-2f94dc87ac9a","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":65,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"82184615-2670-450e-8537-e4a7592575e6","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":65,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"00acd4da-0885-4f2b-b5de-df750900a9c2","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":65,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"64288237-730c-4b98-96d2-ba7080b7a441","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":65,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"eca6ff3d-d614-4ad3-8b30-fc5b24037a13","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":65,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"6a41bbf9-9277-4469-a3b0-e42b86bf3ad4","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":65,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"15233399-76eb-47df-b604-12a5e783f447","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":65,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"95a06a0a-bb7d-4091-bcd9-b25239059f4e","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":65,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"d72b6f92-c63e-43d8-ba47-544f2708cef9","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":65,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"4fc4fe20-da14-44ca-b170-0fc139238be7","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":65,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"2dd4ece7-f6ed-4c41-ad64-ca1b592022d4","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":65,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"610f7261-51a9-41fa-9e37-753766570533","block_type":"box","text":"II-23","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f73e9bb7-4fda-4b21-bc66-f02573b3099b","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"461a2445-df03-4cdc-8493-626da9f85956","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":66,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"73b73472-de21-443e-a250-13136b8afd82","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":66,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"342d734e-fdbc-4c8a-adf5-5cbb32a1e676","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":66,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"f3f74c0b-d913-4a2c-adb3-1734e9495ef4","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":66,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"6201b567-fc69-453a-9f9e-3d600e8d2e80","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":66,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"1f92552e-5d40-429c-9337-cfc344f3e01e","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":66,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"612fe4f7-b3a6-4512-91b2-23369c1581c0","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":66,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"8e39b486-49ce-44d0-bd8e-f1a167e63d8d","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":66,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"45d7756e-e616-4a6f-8f15-12bb60daf858","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":66,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"4f2e0bbf-2387-433e-8890-e0ebedb1f195","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":66,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"0d34c2ec-aa08-41b9-8961-42467b03d1a0","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":66,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"56cc4faf-d297-473f-bfdb-de3aecc41bb0","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":66,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"8654c918-9ed5-4571-89d0-26daa19b0e75","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":66,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"f00dd1d4-9db1-45e4-bdf5-0d4cd67568eb","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":66,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"b25857b2-42ef-4c0d-a574-045ee2636db3","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":66,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"18fe17be-3996-40b2-ae44-1b169c9380c4","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":66,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"1c5d5af6-6043-4591-be1a-a81aba07753d","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":66,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"c403cefb-061e-4a65-a6e8-9866a8e30687","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":66,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"1b69455a-0a5c-468b-9765-1de985db9bae","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":66,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"fb6a0397-e60d-4d37-85ca-02fc3cc44f4a","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":66,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"af75e8b5-6991-4949-b933-d6db2422a7ce","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":66,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"c3cdeec4-4f84-41ec-8302-bcb2b7553a71","block_type":"box","text":"involved.","page_number":66,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"9a635851-b091-4dfe-955f-c2ab5a0937b4","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":66,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"de15d23e-9d9e-4a8a-b85e-04a781cd161d","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":66,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"19e5d0a6-b4da-4e27-bf81-afeb871298f3","block_type":"box","text":"denominated in such currency.","page_number":66,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"4562477b-ae2e-419c-815e-44c6558cdc5b","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":66,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"5349c555-8415-42e2-8344-cb4db6d7ec8c","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":66,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"45fd6643-e6cc-4f72-b448-204521bf91d0","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":66,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"3fb89940-fa7d-48cb-8ac6-a0450f40ef0f","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":66,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"8b4a9bb7-ed68-4119-80e4-7cbd18e4a973","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":66,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"411b2ad5-44d6-490f-aaac-4cdc5e70a574","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":66,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"dc16644c-3187-41f9-86f0-eaac9b8bc780","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":66,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"d7e602d4-a591-49ee-9d15-a970e84023ac","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":66,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"cf14ff98-3f69-4971-9560-84dc64f93814","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":66,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"a5e0b714-ead5-4bfd-a854-af2879c2bfa6","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":66,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"93de048b-d31c-4be3-9af6-e43c8a13f214","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":66,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"bc7571d6-5b0d-4d86-bd23-545b4d8cb6da","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":66,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"8312de8d-4865-4634-90c0-220298d97cc8","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":66,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"8a19cd03-f195-45e4-9555-baddcda493cf","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":66,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"60455a0c-046b-4065-94c0-64335ff65657","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":66,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"1f984589-e381-4a69-aa1c-386141c4ebc5","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":66,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"c44d63d9-648e-4741-a01d-8c7648f0c28e","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":66,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"cb9906fb-6b65-4391-b913-3e0994578ac4","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":66,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"9df9a103-e5c3-4e8c-ae4f-b0c6d87706b8","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":66,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"a95bc743-3c25-44ac-9d8d-7e31ca8a1197","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":66,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"32d60b53-8987-485e-a2a4-4d72bac4c722","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":66,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"c74ae077-1f42-4075-99c5-f56a1b5937c7","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":66,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"e21e2ba5-3ade-4b59-ae58-01a22f90cc4e","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":66,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"664faf17-c2ce-494c-8cf4-e512c8b3ba2c","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":66,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"9f33064e-ed59-490b-abf0-5ca7c6289df3","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":66,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"1c87eff9-8ebd-4474-93f1-0c71bd884d02","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":66,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"4c1d6cb9-2eff-469e-9383-38c1afd6e8e2","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":66,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"b25e7849-7162-4a0c-959a-7779ba3f6910","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":66,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"70854d73-5e54-4ce5-a3b0-535398f2a40f","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":66,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"7f08ff3b-eb4d-4a23-9d1c-f91879ce06b3","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":66,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"ee9d60d6-2f7a-4c95-9fa8-3c94962f81a6","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":66,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"fa1e985c-f4a0-4fe2-82b3-8ea70f05ca47","block_type":"box","text":"II-24","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"27354676-d83b-45e1-83e5-393b483e9794","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ef568fd-a31e-428f-9da0-d7cc5abe7e15","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":67,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"d26eb871-8d70-44f3-aed8-2ef557dd5fb1","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":67,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"7e455dca-1cf0-467e-a959-38fdb2d610c0","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":67,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"a410ef84-aabf-48ce-8e86-e9b7f6a2ef15","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":67,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"5e758286-7816-466d-b0c5-e3ea26b9fd08","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":67,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"1a30adc8-f62e-4ed7-8363-ac080c4a9716","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":67,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"b0c8ac20-e77b-4da9-97da-a52d0a3516dc","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":67,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"bc32c7e8-d5cd-49ca-b6f6-53cc2072a646","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":67,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"592a77f6-f163-48c1-8ad4-191b01b23818","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":67,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"07583921-d76c-4380-8d11-cc6e50c7efb2","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":67,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"acb9d66b-a757-43dc-8d3f-f61669d11166","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":67,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"c9da9b65-3907-418d-b7ce-741ead17a4a3","block_type":"box","text":"traded.","page_number":67,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"157c5414-546e-4893-88fd-b7535e3c9ca5","block_type":"box","text":"Currency Futures.","page_number":67,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"a4ccb163-20a4-43fc-bca1-c4fd7776e18f","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":67,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"71cdb1fc-1517-4337-9f79-56709673d9aa","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":67,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"6c863210-a3f5-4ff1-953f-bc56562ea849","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":67,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"fed1262e-edc4-4ef4-875f-335b399409bb","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":67,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"ba6e7e62-36f2-47dc-bd2f-a349c258fb9b","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":67,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"98b43fc7-925d-48ca-b17b-e22866c89265","block_type":"box","text":"Currency Options.","page_number":67,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"f9249367-da43-47cd-9fd0-dc34ab7d87e8","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":67,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"2a25725a-51ea-44fd-8c63-e726960c88f5","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":67,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"ced52dfc-ef83-4e57-9d40-bca53d037f23","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":67,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"3f35f708-00dd-4f53-8a64-1d2b2199a4a3","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":67,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"44a27e49-09ba-458d-868b-d55f4cdd7f1e","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":67,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"cf837fa9-3352-4c5d-a059-703887c3ee83","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":67,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"98061fcd-f7de-40f0-b2e7-c187546f289c","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":67,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"c26d8aa2-800b-438e-ade0-149c0144f9e8","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":67,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"9d9f920e-68f0-4de0-aa49-66c7d1252801","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":67,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"1b7ac461-a37f-44e1-b8b3-d63ade8b8232","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":67,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"3e5c76e9-a28c-4a5e-a4d9-77c9a4729cab","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":67,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"f9699202-d5ac-4784-8ea5-22d6587972ee","block_type":"box","text":"Currency Swaps.","page_number":67,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"47d46976-1489-4999-91a5-90b3e71a0542","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":67,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"e3615e8f-875e-4ecf-a6ef-ac3cffa36c80","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":67,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"653f2437-f08e-4e72-a790-765be73493e9","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":67,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"1c4a0d03-4212-478a-996e-365290ba8899","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":67,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"fb0e6b9f-297a-4678-b6ff-5289689ee86e","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":67,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"06f3a765-080f-4898-a0c9-67a0dcaf79f1","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":67,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"cc0a0d34-9c48-4f74-9d17-650476e1233d","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":67,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"797130b3-db4a-4b06-90a5-dbba4d02c285","block_type":"box","text":"Distressed Securities.","page_number":67,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"b3c147c6-2485-4f2c-bce6-15c4b34c4ac1","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":67,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"3c5ebb8c-ec76-4d74-bb33-57aa0c8d8de1","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":67,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"7b34b973-3301-4572-adac-4e120f9ce4e3","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":67,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"b52b7b73-4916-4aee-a218-aac941dba9c1","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":67,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"962b4280-2f22-4bba-8df2-efbb6f8774df","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":67,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"2f6392bb-6204-4ac5-8bbc-a96ba701502c","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":67,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"24d9a251-59e4-4c2d-ba35-e2b8c7c8e0e8","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":67,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"008c549b-4472-465d-8dc2-738df9b81a25","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":67,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"59d4b2a2-ac29-4cc1-b87a-939b521733b3","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":67,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"de3713aa-72d5-45a7-b240-a457cd11fce2","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":67,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"5640eb04-f893-4492-9140-9be0d143f3a8","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":67,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"342510ad-256f-4983-a957-35ddaf04ca5e","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":67,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"9b134755-c7e4-41e1-bcb0-bfa06861b49a","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":67,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"a2132197-46dd-41fe-bd8b-f0fe584025f5","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":67,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"e9caeb45-ec0d-4c0f-b7f1-7af498d1524b","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":67,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"7a7bcfc9-871d-4b68-95f0-9b34b1ffb918","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":67,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"866f391f-a39b-4274-8e9c-a936e71cfb5f","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":67,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"1ad7b951-99de-4fdf-b9ed-5dd5b45cea3e","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":67,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"850ebd03-b62b-4668-848d-85e9fd9a413c","block_type":"box","text":"satisfied (","page_number":67,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"bf3adf23-5df5-4b79-9956-7ad1da0a62f9","block_type":"box","text":"e.g.","page_number":67,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"74137bff-17ca-407b-bac5-dd8979a79cfa","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":67,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"3265d821-7243-463f-8976-2a8a9c5df65f","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":67,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"20fe985d-4ae8-4aa5-81ef-5c7ebcba7da3","block_type":"box","text":"II-25","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bacc301d-58a5-4eee-8f48-589c926b9a56","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"89a2791f-9ff3-48a0-bebb-c3fb3eb6c86b","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":68,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"703ea5b0-7f6f-4324-9736-31606c026436","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":68,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"53ce68f1-1a86-48c9-ba81-842d06bbbc70","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":68,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"52220283-b8a4-40e6-8884-b348e8322633","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":68,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"50f75201-c1b0-4cf3-be97-160d6541e747","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":68,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"d7fe159f-e326-4d64-9a6b-480acc299c30","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":68,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"b3a5c620-3305-4e18-aeeb-8b700102f3c9","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":68,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"445a7248-81e9-4fc7-9746-07958faae6cc","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":68,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"a69f77a9-2b82-4856-ab2e-9ecebd6fe520","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":68,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"c1a24e42-f01c-4ec5-84fe-0f0f0abed25e","block_type":"box","text":"affairs.","page_number":68,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"8daafb03-729a-4c49-b37b-2ffc121d7967","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":68,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"2d45b0c3-04e7-4d9d-aac5-7b1645b4e436","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":68,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"64d4cf7b-d735-4750-8bce-eb1c827a819f","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":68,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"11bc2b10-fc89-4fa8-907f-596c1e0ac9b5","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":68,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"789d1103-28dd-42b8-9b85-6ef060d05080","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":68,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"fd414a0d-ab26-4aff-87e4-d32b0cdfbeaa","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":68,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"7726a508-2df8-4bf3-9856-7cc0532c9933","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":68,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"34f9b723-b939-4684-93bf-3b8f59af402e","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":68,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"ce4a6ed6-f912-41f7-a5ec-91665586253d","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":68,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"2f1bd36a-8fba-4c7f-8cf5-fee8ed93712a","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":68,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"fe8dfa9a-f0df-4dfa-ad42-d81468e798f7","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":68,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"0795048e-9b3a-47a2-b573-0d00fab15856","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":68,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"eda04033-2bd4-4931-a0db-b57f98371ef6","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":68,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"ddc1ec5e-2f70-422f-9262-fa9c629d0c34","block_type":"box","text":"Equity Securities.","page_number":68,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"9ac153b1-02ec-473f-9549-d244e3546691","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":68,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"95ff5bc1-2a95-4cdd-b598-a81ae6cc4c7a","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":68,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"ebd2e9cd-1cf7-4306-84d2-70496b9747bb","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":68,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"81c2ac06-d80f-4b78-b552-94af11efe68e","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":68,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"2b97f064-2b1f-47b7-bcad-d6440858ae12","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":68,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"49d54c7f-2527-4c91-b19a-a14e6dea517b","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":68,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"797a81c0-278e-404d-8bd9-34a75b435926","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":68,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"3c3e8879-2a4f-4673-b0cc-2dfbcae600ab","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":68,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"de77986c-ab80-4b3e-83ec-c29abd6639e1","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":68,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"e287f768-6ffc-4ea9-916a-8a1651825d06","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":68,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"e913970c-92cf-428d-bc9c-8e3ee85c8741","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":68,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"5e60bff2-3101-4b64-9ee4-5b46ff059123","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":68,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"dae33f2f-062f-4e64-b6d6-1271e6dadbd1","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":68,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"aa259624-cbf2-4b69-9aa7-fdaae947a353","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":68,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"195e76ff-c5af-4f35-99af-6ea8b2375569","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":68,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"608ae744-a2d0-4d3a-9e04-f86c0af1a23a","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":68,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"d96bd0f9-5add-4ae7-9425-120277bf343a","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":68,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"5c8ae653-4ac1-45bf-9abb-b38b2838db29","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":68,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"57e29850-b98a-4a25-8af8-9aea589ab605","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":68,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"b834bc2e-bd66-494e-9457-13cc62f0a197","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":68,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"a7c170dc-a76a-479c-83d3-2253b230cb09","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":68,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"f9ad3722-c684-4f7b-ad3d-877c8b3843ab","block_type":"box","text":"initial public offering.","page_number":68,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"504e2f1e-78fe-4edf-b464-a8a28f991686","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":68,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"93d9b9a4-a35d-431b-b717-3418283c4f5a","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":68,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"a0ea827a-4fc1-4ee8-a0fd-0bb4e973d3ae","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":68,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"5cd71680-bfca-42e9-8fb5-5375595622f3","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":68,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"29a1878d-6160-4dd8-b782-7379e1065ab4","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":68,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"1ba3b1b7-b818-416e-8a13-090eed21bcf7","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":68,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"dc6b039a-6dab-48f5-89af-960fb1b874c0","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":68,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"5b70175e-9263-4ee2-90c7-2fa4383e09e9","block_type":"box","text":"more established companies.","page_number":68,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"9a40f517-f963-4ae9-b9d7-e991c6440082","block_type":"box","text":"II-26","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"776dc556-a0ed-4d15-8364-d734f8915135","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28cf7fec-e325-4f7c-8040-97cc796241b9","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":69,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"3f90c689-921d-4744-a374-701f0e286bf6","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":69,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"c326b26a-caa8-4ef0-a964-36e7f4e7a454","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":69,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"7cda78d2-f172-4728-bcca-5f66f4cee86c","block_type":"box","text":"below.","page_number":69,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"cc88d93b-1c9e-4306-a148-6eef65194991","block_type":"box","text":"Real Estate-Related Securities.","page_number":69,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"4c1f73a4-e4d9-4095-b04e-a9c41aed740b","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":69,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"47d65266-e2a5-4aee-bbfc-8b5c5216317f","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":69,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"b2c8ef6b-c95f-4256-996a-33a256b1e2fc","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":69,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"8276f475-8407-413e-be8f-d4b78a4299cc","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":69,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"d391018f-9c94-40b4-a7c2-7fc4db861115","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":69,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"f89ca564-0198-46d9-bc4f-25594361b160","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":69,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"1e72dfc4-5a16-405f-bd37-0a718dd86154","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":69,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"98b342f1-e584-4560-9271-c5d425d91f0b","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":69,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"331e3d83-cfb5-442c-8d68-85f8866f4868","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":69,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"09b19341-a54f-4e86-b872-bbc2042778f4","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":69,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"a53aba25-f980-4a2c-82f2-4a50c928094f","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":69,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"a295f218-02a4-4923-abe1-2c13e6cf73dc","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":69,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"580820c5-f28d-4db8-8e1c-5d3d4bff22d8","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":69,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"7c3e9180-7b40-4650-b0df-fbdf373335e2","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":69,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"528163ee-0910-4e1f-b917-95650ba58a83","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":69,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"688f5a99-c838-4386-8a03-ac78f2ab8c15","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":69,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"ffbce85f-bd39-4681-b10f-ca88314c5e95","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":69,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"17a98c17-b230-412f-b6b3-0a51a83d630e","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":69,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"0901dc3c-8560-450d-9a18-d8ef152d773b","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":69,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"bed1e47c-92bb-4676-a2de-9832f5afc54a","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":69,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"b25164f8-c213-4411-b652-c813eb29817a","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":69,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"e95372a3-a7dc-42a4-ae06-eeca45ff5ba3","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":69,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"093c2bc9-b6ad-4cbf-ac3f-131be071d3f4","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":69,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"e43a96fc-4fa1-498f-a546-dc8e725a9157","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":69,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"7db518dd-4a72-483c-830c-ce9f6148ab20","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":69,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"b7979b09-0b53-4197-a1c0-b9e567f0ccb4","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":69,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"288840aa-452f-4baa-af81-f387fc9f4634","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":69,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"a9f8c5c2-fe8b-4ac3-b09a-df9f668dc2b9","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":69,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"9e2dc795-5dc7-4b04-8cfe-e5bf1254926c","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":69,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"e9fbc31c-ba56-4bed-bc18-f79a01ee1a4e","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":69,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"66f6b5da-35ec-406c-bca4-d01a41124ddf","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":69,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"f77ecd80-e9a9-4ffa-95c9-5ae86922551e","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":69,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"c9fc927a-4b29-4f93-8d8d-d6f4b59e62ee","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":69,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"8708ba99-da87-4552-985a-668ed3680f6b","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":69,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"7179c823-1ccf-45e2-b264-1fee11cf89d7","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":69,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"b98415c0-4a23-4d14-ab56-f227b1f1e3a9","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":69,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"38c6c2a5-5ea8-4c8e-84f9-d8a436f9eeca","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":69,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"f7262e5f-6c2c-4131-8efe-6d581cfbcb67","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":69,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"f2128ce8-b4aa-42b3-981b-3da58721db0b","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":69,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"a665d477-87d0-4864-b983-78932bc074d3","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":69,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"3dd8ee23-2bb9-4924-bfa2-c8017c9756f8","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":69,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"d365def1-e87a-4a53-841d-d8f394bec710","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":69,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"3be5b010-99a2-4826-9924-f70454508123","block_type":"box","text":"cycles.","page_number":69,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"9c3925fd-20c6-422b-b55a-a4e65a011d5e","block_type":"box","text":"Tracking Stocks","page_number":69,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"5fd9cc0b-526d-4e53-96a9-21174fb116a4","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":69,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"bea43dea-c1a0-4ccd-8ed8-db17025b90c3","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":69,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"e3ada13f-9aa1-488b-b29f-ed3e763aa2b3","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":69,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"c2ddf862-cbe9-47ec-8c0e-5d9b7ff799df","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":69,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"1f322bf7-9829-4d3c-97b6-2ca67c3aca7e","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":69,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"d34eb553-2f57-40d0-94ae-c299ba21eda7","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":69,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"85398ef8-e41d-4168-b4a8-df8e7b8aed92","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":69,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"1b442988-1eb3-463a-93d4-86c16066af70","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":69,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"6e04c3f3-bca2-42a9-9747-b91da4565844","block_type":"box","text":"II-27","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e4603e0b-b5b3-4b3b-b7ff-fdd7485115a2","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2bc653f-ec38-400f-bc3c-d50199a275e8","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":70,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"99c404bf-3fe4-48f3-90a6-ad597a5d0b1d","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":70,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"7ba1ac76-8f17-4be2-b4dd-20aa66133d55","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":70,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"12cf7036-ee4f-47bd-b4a7-efb82d3f2de4","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":70,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"09da2a94-ee9f-4658-b638-ed4dbf9a2e3b","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":70,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"19a50457-fb8e-45f2-a739-9b62432d4b87","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":70,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"abbca0ca-f61a-4bf0-a919-5a1100a3376a","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":70,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"545df32c-374b-460f-9b94-2daeeb5219b1","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":70,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"cbe20ebf-7d28-43ca-8dfd-52178c832484","block_type":"box","text":"geographic events that affect the reference instrument. ETNs are subject to credit risk and the value of the ETN may","page_number":70,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"8a7fea35-3d26-4a48-97f5-c1641e5ca315","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":70,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"9119f0d8-e29a-4845-a5c7-4e5568f8b3d4","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":70,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"a9e0d946-4a5e-4b30-bf47-ebd6ec88b452","block_type":"box","text":"ETN.","page_number":70,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"9e3c8f9e-7d7c-4ca1-96bb-ddd3a3f06d96","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":70,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"337f6490-f861-4fae-90b7-597fe24f5c0d","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":70,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"de2c0799-fe00-478e-9ebf-612a0bd492ac","block_type":"box","text":"may, at times, be illiquid and may be difficult to purchase or sell at a fair price. Levered ETNs are subject to the same","page_number":70,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"8ceab4c8-6167-4b76-8bd6-d9c3041ef5ab","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":70,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"d4903453-3024-419c-b321-288fd06d6028","block_type":"box","text":"potential for loss is also greater. Finally, additional losses may be incurred if the investment loses value because, in","page_number":70,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"ec847a3f-a5ae-46c6-bb9d-264633b4c5c8","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":70,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"a7990177-3289-4c06-980e-1a9fe5a9bb5c","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":70,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"31f9f44c-947e-4477-af8f-5bed719267fe","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":70,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"becff5e5-7f33-4b25-b37e-59d65d098d41","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":70,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"4f06277a-1ff3-450b-81ea-db760c184663","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":70,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"b167ca63-b33e-4c10-8d76-f05f524dc6fd","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":70,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"877d9fb7-1aec-42a4-9281-fa6df1188fa8","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":70,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"9e71206d-dbc0-4c3f-9ec3-1ca33912905a","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":70,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"bf3185c1-5fcc-4970-a914-ba30f96271d2","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":70,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"7d7004b5-8d72-4130-b78a-5abd5156fdb7","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":70,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"cf98a47b-a204-4e92-a5df-5da58bb3a28d","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":70,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"b8d97503-1cd4-41b9-8594-b75d0177f16e","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":70,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"34c99c87-76f9-4f0a-810e-7b8350bfffc3","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":70,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"a719901a-6633-415f-a05c-01a35da67ec3","block_type":"box","text":"Foreign Investments.","page_number":70,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"560c9fee-78a9-44ea-a6d1-f79fa4fd99b6","block_type":"box","text":"Foreign Investment Risks.","page_number":70,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"cfc91e3d-8dad-4d40-a753-99a8e7466c7e","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":70,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"38ac9a73-7e6d-488c-9260-abd31d7dbe13","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":70,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"7095b004-0cb0-43df-b965-eb7f99d66a4f","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":70,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"94d26c21-18ac-4361-8e60-15b194411e22","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":70,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"8df1fe0a-90a8-4fb0-9960-f8f675dd3543","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":70,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"c44529fd-6847-45d8-bb9e-b6951defcce9","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":70,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"8b95fbe0-94ba-49eb-968c-ead76c269435","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":70,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"6c679354-e3d6-4e8d-accb-d7be78c8077b","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":70,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"c26b7998-82d9-4b7b-8445-db74bcbcfae8","block_type":"box","text":"benchmark index.","page_number":70,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"71e67ae4-7150-4c9f-8f04-3ddf960e0449","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":70,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"f633283c-0d1e-4f92-a398-f973f5a57274","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":70,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"4b1bca87-4324-45d2-8332-e650d7870b68","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":70,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"3e5fee68-f27e-42cb-a6f5-fe5ad70ae54e","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":70,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"68b40d7a-645d-45ff-9f2f-504ebcfcac62","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":70,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"f0709486-ffa6-422c-bf50-3e9534e4245d","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":70,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"9538f100-4f9b-47ed-9571-c5a20ba190b0","block_type":"box","text":"securities and zero-coupon securities.","page_number":70,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"0f10bbdd-ccbf-44c4-a58e-a3bad61217fc","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":70,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"6e843cb4-0726-419f-af7b-c6c9b699a758","block_type":"box","text":"taxes.","page_number":70,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"48c93320-0909-4363-8668-a1cc2213c4eb","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":70,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"ddcd0f3a-d9a9-4a2f-8acc-2f50d6ca3721","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":70,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"6234597c-26e4-4409-859c-e6e1f34d34fe","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":70,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"8e2e68f2-975d-42ee-975d-524435d47043","block_type":"box","text":"II-28","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a817fc8-e95a-4551-a269-f8a1c77f3e8e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f47ff8da-546a-477b-b3ea-3aca95af230d","block_type":"box","text":"underlying security (","page_number":71,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"4bed0c09-79a0-49dd-b6c3-d2069f582aef","block_type":"box","text":"i.e.","page_number":71,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"a06e28c1-b8fa-4c6e-9f59-1c9dd75ecddc","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":71,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"6e5d35ed-1113-40f3-ae6d-1fe36212d9f4","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":71,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"270c0718-5d79-43fa-944f-dfde362c0a33","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":71,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"860e5786-f492-43a1-b701-6582b35a73e1","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":71,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"ea5c39db-5ab1-4f2f-b4b4-ec302120796b","block_type":"box","text":"Foreign Market Risk.","page_number":71,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"d644b455-66ea-4f7c-b8b0-6997eca47212","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":71,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"8b0ec135-5a0f-4986-a8e4-00e344ba902c","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":71,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"981c19cb-f2a0-4300-925e-0c57f2948e70","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":71,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"9c96fae4-2724-4707-b5b8-4d92340908bc","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":71,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"cdd535d9-3a48-453d-b650-a70d8c3e3959","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":71,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"b323d1be-b7da-4d8d-8045-75b15f8bbc61","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":71,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"314d64d4-47f3-4170-abd9-7fc38011fb60","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":71,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"4e820abd-2a97-42a2-ba21-8825d67f18d5","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":71,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"92d41dc1-4197-454b-81be-fc9d73a2e0a5","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":71,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"d6854eb0-73f6-4348-b185-0f656c8c9650","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":71,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"6ed25299-124f-4d31-8d82-628df322bb5d","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":71,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"b5d20885-0fa2-41ef-a705-28a277ea4fd2","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":71,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"c065070e-60e5-47ca-9f08-fe01603e28fe","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":71,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"57ea683f-7476-4dff-8714-ee8f33c7b580","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":71,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"fa5abf92-79f9-4284-ad70-2c33cd0c7d31","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":71,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"bd9b4ecc-5c9d-45ee-b822-8d6d7630f668","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":71,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"8bd0fab6-8fe8-4dee-a50d-41b9eeee6abd","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":71,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"c380534b-b7fa-454a-bbe9-3762f6fea6d8","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":71,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"3dc0fb47-6e2a-487b-a8e0-db6be971624b","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":71,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"725a7dd5-04cf-45a0-8598-529cf9829099","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":71,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"cb880265-35c9-400b-906e-9b5a9221f711","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":71,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"cbd163a7-bea2-418f-b938-0bc49ff65257","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":71,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"3dd8090e-35bf-4025-8b4e-5679a3c19bc4","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":71,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"a817ddf5-84f9-483c-98ee-20974ae20ed4","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":71,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"ba40f48c-13ea-4f35-8cca-864e4bc77788","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":71,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"0e5db369-3e7e-4be4-8743-3b909086af3a","block_type":"box","text":"Fund’s operations.","page_number":71,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"a7e29487-1d88-42c9-9257-db2e999cfb77","block_type":"box","text":"Foreign Economy Risk.","page_number":71,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"a5f5ad53-b77a-4929-8bb4-67e607815654","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":71,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"c8fa1982-e011-4925-a60b-5f7372cf859f","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":71,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"18f15803-ee66-4711-9224-4cde7dda959e","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":71,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"b76a3417-9051-4717-99a5-4422cea5b02a","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":71,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"0fcbc9af-af29-4d21-ad38-257080848151","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":71,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"4df81980-ab75-4ffe-915a-784c5c9deddb","block_type":"box","text":"measures.","page_number":71,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"ae91b324-7007-499d-84d8-f2b6aba43b7e","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":71,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"2e400d4f-af52-4ab7-99d5-39f50bb671dd","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":71,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"805426fe-4e5f-4ac5-9fc2-383f662b3fef","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":71,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"7319ba74-892b-4b71-b4ba-326fcd33cbf3","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":71,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"6f20911d-7fa0-4341-9f61-553c457c2569","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":71,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"c5dfcd50-ffb8-41cb-a4b0-3a1ac279bef9","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":71,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"ec52ccd5-4a86-42ae-bcab-8bc797233303","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":71,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"5919e6e6-b75f-4da0-8c82-496282d94b0a","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":71,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"f582e129-ff13-4fe7-82d2-484cc66558d4","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":71,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"dc733780-8e2d-489e-a2c8-1b41d21dcd85","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":71,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"83409063-9af7-49f3-b5d9-c424f13905b0","block_type":"box","text":"United States or abroad.","page_number":71,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"aad4fb0c-1fd9-4940-a77e-b8361dc0143e","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":71,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"5e7927d0-c4dc-4dc5-ad41-22b037d54106","block_type":"box","text":"Many foreign governments supervise and","page_number":71,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"5764e94a-de54-4117-b9ed-8cbb7cc08a52","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":71,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"8d061426-e83e-436a-a7aa-beff862cc368","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":71,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"84d3e492-1bce-4cd2-b6af-b22bb439b025","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":71,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"6e094e31-7697-4873-88e8-de7a807ac594","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":71,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"34c52010-cad8-4c46-a9b9-4d2edc59bc07","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":71,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"bd783bcd-6d07-4635-9d86-6d0cc199daec","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":71,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"b1a08286-0ea4-4894-80c6-ffa1553a664a","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":71,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"778fd3ef-76ed-4059-8cfc-3b4dc7c317fb","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":71,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"1fe9a11c-f838-486d-a995-cfd4314ad573","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":71,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"18c642c7-531d-4e40-9353-c40cf03a3a65","block_type":"box","text":"II-29","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"81c06cac-158f-4821-9c58-cb2a05364982","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5296c403-ab7d-4b9e-b85a-1363f78f4d0c","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":72,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"b81f4293-3a28-4bea-879b-f3224e792e66","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":72,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"53c8bfb0-1d32-4a9d-975a-edcfce5faf66","block_type":"box","text":"investments.","page_number":72,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"48b830a3-f9ed-4421-b7ee-0d4069508fc4","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":72,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"d0cc212a-5eee-407b-a1ea-1e312e0d405c","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":72,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"36036d85-9376-44d3-b21d-1cb7e84353ec","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":72,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"5ef23718-fdf0-4f98-aee1-ceb0394bd363","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":72,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"dad350ba-e936-4b5c-80f3-a2026b915ad2","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":72,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"0cd07a69-cdb2-45df-bf8f-88e0352c30a7","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":72,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"b6a51680-948e-4417-8f46-3f1fcc492172","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":72,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"2df67440-1a71-4a9d-903f-45bcf7ef550a","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":72,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"caae23ea-52b5-4901-b0f4-253e384ca04d","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":72,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"6484b03b-0c5b-4c11-9e2d-b90fb352d9c6","block_type":"box","text":"States.","page_number":72,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"384396a2-e209-41b1-bc02-5ed620e657d1","block_type":"box","text":"Publicly Available Information.","page_number":72,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"561e14c5-c6f8-49d2-99f8-5fde320bf3de","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":72,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"db4ee236-4973-41ca-a7e2-4a4417fc8e51","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":72,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"627182e8-aaba-4c4c-a4a3-53db01caab3b","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":72,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"826c6dd9-3fed-4139-b39f-4231b59b5fd5","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":72,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"44711daf-866f-4432-8e46-1b17fe52462f","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":72,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"9dbd1951-c681-4c82-a38d-a73470cf2bb3","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":72,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"d696c190-1e81-4b87-92e2-e4324b74f46d","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":72,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"bb42288d-fb58-4902-9cfc-320a4656c2fa","block_type":"box","text":"United States.","page_number":72,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"b7803e64-b603-4ce1-9b23-877511040e60","block_type":"box","text":"Settlement Risk.","page_number":72,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"4a74cd82-7c61-4f8f-b499-d2ee5dd10e54","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":72,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"559560eb-ae41-42fa-b101-d4814251548e","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":72,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"ee9d9573-fb01-4eb1-acfa-7c3baafd23bb","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":72,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"3bb098f6-fa81-4c90-bd3a-b8d0e0b62515","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":72,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"d0306fc6-c634-455b-bed5-e7d5f1cc663a","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":72,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"b98da75b-e8f9-4858-90ea-8968f945a449","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":72,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"63926ec7-9678-4243-8399-a3871163d4b5","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":72,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"55046085-c723-4075-a9d1-7a99fc5fa806","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":72,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"3e7328c5-d9b4-428e-a0b4-55ace838233b","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":72,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"c491c4ad-0273-40d7-9acb-2f8b07c3b4a0","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":72,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"864cc4a1-2aeb-48ae-b30a-7be8cc36c96b","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":72,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"85fb32d1-1137-4a18-8a48-1e20529511fc","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":72,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"86976af6-abfc-423f-90f9-cc3d30509dd3","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":72,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"a4144ef6-e447-44d2-b3ef-bc54050d5c46","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":72,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"e3d0812e-6507-4917-82d8-1c54950135a6","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":72,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"b6df1dc0-169a-4cce-8b34-220c288c991e","block_type":"box","text":"Sovereign Debt.","page_number":72,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"671f8d0c-c540-40e6-977b-ced03f984709","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":72,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"5ad57d53-d4a5-4a9f-89a8-2b18952bc2c2","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":72,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"4d042bbe-c4cd-418e-89b8-7bb1a67165c5","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":72,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"381fda9e-83bf-4f2c-a2d0-1311e3bcc66a","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":72,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"f8216ef4-6449-4ae5-839b-423f9f32e539","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":72,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"1743376c-8b07-4305-9e0e-9092162e4c9b","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":72,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"d51698d6-9a20-419a-b776-08b3ddd2e7fe","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":72,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"7abbf59e-b969-4f87-b2f2-bd63c4cab817","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":72,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"07c4fa30-d938-4278-aeab-6f51cc630f61","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":72,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"9d450454-f101-45bc-9be5-37ceb5d5b157","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":72,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"3cb97ce6-5a2f-442c-a661-1397bd0acb90","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":72,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"4d15ff49-0500-4316-969d-be95afae3a8e","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":72,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"511a5a13-abd1-4b18-898e-4661b582d1e1","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":72,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"3aa30c07-f52f-4434-8734-a503678f5dc5","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":72,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"b5ef8e00-31b3-4c53-a6a3-f73d0c1d235e","block_type":"box","text":"debt.","page_number":72,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"9f65ed2a-8faa-4f1a-852e-6e9d0aba390a","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":72,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"bf7ccebf-a318-44e9-85c9-4412136c87f5","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":72,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"3e1f9fe1-da78-44c9-9f47-7018f7e8721f","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":72,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"42d38505-a17d-4f7c-b344-d8bf11b31037","block_type":"box","text":"II-30","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6552e60-1eab-4828-b135-67c0cd07be03","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0c5cd6a-7813-4de4-adaa-7433fdc9c58b","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":73,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"10f55992-8983-4ee5-8fca-bcdc6b1dc5a1","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":73,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"34a341bc-6976-4fda-b3cd-2ac78df7d329","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":73,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"587612f8-63dc-43d4-8eac-effe9473ec2a","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":73,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"8b6ef5f2-c98f-4fee-92a5-3a701fd476a4","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":73,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"0805a6df-078a-4eb3-bff4-fcf7a4248739","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":73,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"a1b66c04-6465-4f24-b070-73c4c5d6e525","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":73,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"5b89a513-68f0-4de3-9ec9-10e14dac6cd9","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":73,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"b2d206bf-1933-4f5f-8549-e6aab3295542","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":73,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"11133a20-d6a4-4d8b-87ec-48e9710e20dc","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":73,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"62e20d5b-0ca7-489b-bbcc-45f092e4ecf4","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":73,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"0939d3f9-a49a-4ac2-80d4-64510831014e","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":73,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"78d73533-e251-4d26-a37b-0704202745f4","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":73,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"f0d388b6-d4c2-453b-b7d5-f0815004695e","block_type":"box","text":"in the Fund’s net asset value.","page_number":73,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"270de3ba-a63c-4f69-a728-1b4526d18e5b","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":73,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"ea4b6a15-0717-40c0-a97e-530e1e6b564f","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":73,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"e6a0a2e4-6a27-495d-ab71-4937dca0a2d6","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":73,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"54f9b506-9bdf-4f0f-9723-679fa9b9a920","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":73,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"b9bd2243-2268-471f-b52e-005c4c3dfd8a","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":73,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"e8720f7c-1348-485a-99cf-a9bdf65cac55","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":73,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"dcab8616-eec7-4ebf-8314-3d33a65c146d","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":73,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"d6866165-355e-4dce-9f28-48d113063d77","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":73,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"234fd78f-1b1f-4b5f-a46e-e0a44974cb91","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":73,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"8a0fbbe6-0fa6-4cc3-aae4-8d39d16386f1","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":73,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"c45a9be1-4a48-407f-a4ad-5cb6c390caa9","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":73,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"dac9552d-44f5-4bf7-be59-e85c465f96ed","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":73,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"69af4385-1a83-4451-be8a-121129b5a1aa","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":73,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"5f7ca64e-0b18-4032-957c-7dc5740f4317","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":73,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"6c9be5df-e7f9-491c-acdb-0f8a07d7aabc","block_type":"box","text":"Fund may invest.","page_number":73,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"2b14e4c2-80f7-4b4a-b186-3bf7bbfc96d1","block_type":"box","text":"Funding Agreements.","page_number":73,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"d56cfa2f-5ff6-475a-84c3-ab2c188c6519","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":73,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"3870190d-eb1b-4239-8672-f3ecbc868689","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":73,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"8ed29121-1e74-4d64-aeb2-edd20ad61e73","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":73,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"080b9aff-c3ba-4497-b015-36b16e9f87dc","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":73,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"2402fbe7-6823-4d6e-8d0e-96629d57a51a","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":73,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"93e339e2-91da-4407-a4e6-90798dcc26fb","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":73,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"1024ff27-ff32-46d6-ab2d-9eb973733b27","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":73,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"fdb750b4-bac9-49fa-8f7e-172d88fed8a8","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":73,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"6ad7a15a-4f6d-4286-9cb9-c3ed8da29c4f","block_type":"box","text":"Guarantees.","page_number":73,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"4e5db5b2-5345-48b9-b702-ff3e95c852d2","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":73,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"965e63c6-32b9-4eb7-9095-6cd12954e850","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":73,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"84a6a5bc-01e2-44d3-86d1-481d1cf49893","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":73,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"463383d0-bf75-4f58-a3cc-37bb3fe17cd5","block_type":"box","text":"Illiquid Investments.","page_number":73,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"e5dfa161-b70d-469b-aec8-f671ec8e2599","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":73,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"5ba83a3f-fd08-4064-8e45-590a1d144cfd","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":73,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"02b6f2d1-28b3-4710-b619-187871da995d","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":73,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"1a1dbe19-c6d4-4fa6-9808-bc99d1198393","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":73,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"99ed4b71-a688-4833-8982-93f82fff5fcb","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":73,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"623161d6-48fb-4dd4-97bf-6e968196c6e2","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":73,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"b1afcc42-2de5-4bec-abb4-e8e554e7fe13","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":73,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"2aa495a6-62a5-4804-a25d-ce0e28a96b15","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":73,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"c10079cc-691b-426e-b4b3-d3a4b2ac7129","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":73,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"79968011-dbef-4cbf-9f6e-c5bce215b52d","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":73,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"81c9d858-862a-4b44-aeb5-dfe1f57afbbd","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":73,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"f0ec2b02-dccd-4706-baaf-f1c04e4b632c","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":73,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"0d02dfb5-a945-4525-983f-9c41eef0dc5f","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":73,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"f1e33b57-8b0b-482f-904e-4887e7684498","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":73,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"f99d4bfb-fe32-4a63-8dc5-6431345f3a07","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":73,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"c3f486bf-c3a8-4f7f-bef8-646f466677f2","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":73,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"2713985d-5207-461a-8ae5-9b02e9f06a10","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":73,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"5f2d4f09-df5f-4429-a9aa-b8cbe990fe41","block_type":"box","text":"II-31","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b00dd69b-e4e0-4bb4-bb4b-30634b752ff7","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9ea6073b-c9da-434e-88a8-a669aa415b31","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":74,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"aa3b3cc6-8b94-4dcd-8cde-ca8a207a5e0b","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":74,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"a601c4ed-c716-486c-851b-e1d00fa13ddf","block_type":"box","text":"Index Funds.","page_number":74,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"f6ddd62c-b675-4d47-9ab4-47fe38491b64","block_type":"box","text":"Cash Flows; Expenses.","page_number":74,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"0f7999ea-1ae6-4594-be05-14b91b353491","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":74,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"3fe21682-8898-461e-9b8a-e34c69457731","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":74,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"e5815015-a8ea-4e51-b4d0-32e8d540657f","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":74,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"23480b21-e8ed-4568-bd27-64e8d7ce4a8b","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":74,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"451ebbda-5ae4-4a6b-a30a-6eb19c0c9d55","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":74,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"11dc7e6a-6764-4807-898b-666608af3b5e","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":74,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"de24a55c-4c48-4dee-86b5-e7e20372a22b","block_type":"box","text":"(","page_number":74,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"524422a7-5eb5-4c70-a9f2-d44abd09171e","block_type":"box","text":"e.g.","page_number":74,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"115b5965-b427-4967-8cbb-bb7d8f967599","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":74,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"ce5fa218-d5a0-42b5-8930-deca239b8451","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":74,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"e6c099b3-c141-4ab2-aed7-0124138abcc7","block_type":"box","text":"par ticular security as an investment.","page_number":74,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"9791380d-5235-4acd-9351-0d57d8bb46b1","block_type":"box","text":"Tracking Error Risk","page_number":74,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"b85f6531-e60b-41b6-a031-db9f2042bea4","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":74,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"8cc2e520-95c5-4274-b3cf-8aa86f8f9107","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":74,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"962cc67f-4792-446f-94e3-2c02dc6d0901","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":74,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"754bdd7a-f547-4bad-86bc-4ab806328640","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":74,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"e15ab9d1-2e03-49f7-95ff-0a9396e8032a","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":74,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"32d72c35-af1b-4c77-a444-ac8598a2db83","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":74,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"1cb4065c-bfc6-4237-9fea-8aa04dda9e38","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":74,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"f3bdf6f4-ac62-4787-87c7-f052b203597e","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":74,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"a1beb513-b045-4a97-ba34-b6fb62462512","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":74,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"0b748108-f13b-4c8d-b7ae-ab8d39e52585","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":74,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"c117285b-68de-422b-8ee2-479f33ffd868","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":74,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"cfba3b30-3843-4fa5-9029-62a20da32cc3","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":74,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"ad40f5e5-64d7-47e0-8498-d1842238f749","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":74,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"c6dad8f8-bccd-455a-9c9d-cc2b99fc1580","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":74,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"29b4e43b-1604-46ec-b391-d0cf3bbf24a3","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":74,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"12333ec2-fca0-4699-9b1d-d36c17a98d4e","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":74,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"105bbf73-cabb-488e-8281-649173b69186","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":74,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"22c4ae2f-9fc3-494b-9a42-5e90b2879f56","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":74,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"b21b41bc-9441-456e-8840-1f7740b97f51","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":76,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"1b9106de-2412-4157-a76a-24ebbb9274ec","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":76,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"7d9814e3-03eb-4406-9e49-a55a00ef938c","block_type":"box","text":"ICE BofA Indexes.","page_number":76,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"1fb1492a-00c9-4331-8e44-de6db68028dc","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":76,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"9045e659-529f-4585-996e-86723c3fdfeb","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":76,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"db4bd51e-f9a2-4378-b9d7-d5e1b6e1d61e","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":76,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"a100e20d-2a4d-4cce-a118-e531d60e28bc","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":76,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"c1857426-3699-4be0-b29b-1c547a2c6476","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":76,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"5a9bb908-e2a2-4d77-b51a-3b63a0e9d9d7","block_type":"box","text":"completeness, or otherwise.","page_number":76,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"d2f981c7-8c72-4485-8ea9-560f0e2d1d00","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":76,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"9aa2d471-0609-4587-9b23-655f47f24e11","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":76,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"250f3a98-89f7-4ea5-aa53-622690922b42","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":76,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"4d17e0ba-8acd-4526-94a5-c823eef0f589","block_type":"box","text":"Indexed and Inverse Securities.","page_number":76,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"255c5ddc-181e-4e1b-bc1e-e6d7c69f7ac1","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":76,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"ef7be11b-75e0-445b-8582-99a3bb0c221e","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":76,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"b2958536-5971-4475-a244-55f718950058","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":76,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"9c317696-755b-48d8-9591-46b863cb7add","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":76,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"40a6a82f-127e-497a-97f9-aa8ceb067fb8","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":76,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"6716c364-d216-432d-861c-21a72cfe78c0","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":76,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"bdb18fdb-77b5-40b5-856f-a15ea40d239c","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":76,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"b54147c8-6a30-4737-b9bd-81bf8ff13391","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":76,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"c86e226c-2a8b-4afa-8dd1-d62549edd0d5","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":76,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"77582c77-a829-444b-aba3-0255a3c41586","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":76,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"6b57015d-aced-4521-9c70-e2148c3ca67a","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":76,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"098b30aa-3062-4023-8fd1-e9ae4698ff54","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":76,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"354b2546-b6d6-4ab3-a72e-61c715ed2e2e","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":76,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"abbe29d7-061e-4e1a-bedc-df19d0170a10","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":76,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"aab3e9ff-d4d5-4826-b269-4cd3d8a49e5e","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":76,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"efda86bd-b7c7-4b37-8603-62a8d3d947e6","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":76,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"8a4ed3e0-c768-418e-9b79-545634f0ed2f","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":76,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"6ac82630-643b-45a0-89ef-749eb4c4f9e5","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":76,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"0323d0d4-21b7-43e8-ba1e-2cb2c79e9d25","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":76,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"d604a555-25bd-4656-869f-843ed7c6bc1b","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":76,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"d742fe74-4b4a-4f38-bf68-4fcc9d774935","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":76,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"bb2572b2-057c-4c0c-9060-69c1bf040729","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":76,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"ae5ad405-4941-4cfb-a9d2-905089085299","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":76,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"371aa03a-ec57-4597-ae2b-80a2d07d8388","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":76,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"22ab0870-d098-456e-9e00-7100720fe31c","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":76,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"26cbf19d-cd60-4360-9e21-e00cee6bacea","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":76,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"6a2ac035-7bb1-4196-84cf-a6f253c9aeea","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":76,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"3591ba49-c2e6-4d2e-bd55-162e7c60dcae","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":76,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"6107594f-a5d0-421a-84cc-9216a5a8a691","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":76,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"f694dead-3063-4028-87c1-732a1663af5a","block_type":"box","text":"Inflation Risk.","page_number":76,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"47847479-3d01-40fe-b6c0-916d962a1c38","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":76,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"1c38545a-8970-484e-8073-5e4db9020014","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":76,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"13c0f955-e6fd-42cc-bf93-eb550af5ec4e","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":76,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"116b4752-857f-4b29-a84c-317f2a6885e0","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":76,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"ad9b0f09-9e60-467a-8676-0b5e0b9e6acf","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":76,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"83d24494-3a22-4716-98ba-8e7ed1a653c1","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":76,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"8b4ba83e-2b50-4d92-a4b3-8c43dcbc2fb2","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":76,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"138bda61-0684-4dfa-aeba-fe2484f00412","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":76,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"1c2aac14-9141-4cf7-a089-a4be541d9dbb","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":76,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"4e2fc7df-b460-4818-8df3-ef75c1f2ab5f","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":76,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"f35708f4-10a2-44c2-a491-188c004cee61","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":76,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"f00d3ca5-d9e2-4f73-b333-fc8275bc37da","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":76,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"bba67bea-b9d1-4928-9cfa-ee91a5580c1a","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":76,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"b9b41c73-a826-4b80-8667-bbb543cde26d","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":76,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"abb5fc6b-7823-42fe-be42-bc0e4a8ffdb2","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":76,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"0a905b06-b2a8-4e25-b714-a60807ca1247","block_type":"box","text":"II-34","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1bdd11a6-f516-4d37-8509-bc0fd59db7ee","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1624196d-7d05-463d-a634-a062919b147c","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":77,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"929d97e1-2e66-4bfc-b704-c38bf5a6d388","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":77,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"80e55725-29ae-4631-acdd-db0b02547b7b","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":77,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"f5515421-46b6-40d5-bd05-98fe4e5a37c8","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":77,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"a5ad208a-83e7-4f9e-9e70-b2faaf0651ee","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":77,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"4c9df754-5361-46e0-87e8-298fd5988129","block_type":"box","text":"be available for very limited periods.","page_number":77,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"7da05262-a840-41fe-8b57-bee6d2621c18","block_type":"box","text":"Investment in Emerging Markets.","page_number":77,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"630d0c14-9153-4a94-a73a-940a64906353","block_type":"box","text":"General.","page_number":77,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"1da55700-e7f6-4f4a-b28f-15e54fb791cc","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":77,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"9c4f7da1-b4be-4e7b-9656-e183a94148ef","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":77,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"7c611ed7-b9e2-4901-9885-94135a3f7ade","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":77,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"31bfc41e-95ff-4291-9999-76cf720c6e62","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":77,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"5b4e1e3e-262a-4929-8bfd-52b2d81b5ce9","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":77,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"ece45503-26fe-4a74-bb0d-ccf1351f3e06","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":77,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"d50cabfc-fa4f-49f9-b471-2a266bc7f0c8","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":77,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"728891fa-2128-4806-87f0-6417628b02b9","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":77,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"4f5251be-39fa-48c1-97f0-d3eeaea16865","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":77,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"eb39f076-4e09-420b-85ff-8f5bf2d307e6","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":77,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"ba1e6486-95f0-4b3c-bc4f-3615e659dc45","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":77,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"0f50b0fa-e37a-4386-9e40-02a0c24359b9","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":77,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"6125f12c-e8ab-4489-a767-c08b283c3210","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":77,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"595eb558-1767-41f5-857a-09faa7dc9062","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":77,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"3b452ce2-f04d-4243-ae3c-965665049379","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":77,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"d3c895dc-e7e9-4e01-8e81-93d0cf6b4a65","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":77,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"5c48ff9c-aa69-4424-9343-b77f82868b31","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":77,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"fa85de07-e578-476f-93f6-5f2d822e8c1b","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":77,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"7d2a2fe0-9300-4ab0-b7a9-e0e57c5b2aed","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":77,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"5b0685e1-0046-4a3d-a262-3de1923f82c6","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":77,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"371b17b3-e847-439e-9346-309e95c4ebca","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":77,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"4d35722a-2767-44e7-a3fb-824ff29f4f2c","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":77,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"7034ba59-acd6-4a0f-b894-9396abb3d7da","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":77,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"f8e90e6f-13a4-43c0-902d-bba1faf0bd02","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":77,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"a6d08674-1efa-4576-ae49-b6a2bdc4e1b9","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":77,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"87eefcda-57df-4871-bff9-9b4751a725bb","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":77,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"c43f1a07-26a6-470e-9fff-8e9bf494879b","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":77,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"463305c6-8eca-4645-95d6-9c7ffaba6fa7","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":77,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"e9893be3-1ac1-4df5-887c-af667f13f8e0","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":77,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"1c99403e-9899-4185-8db4-8b556191367a","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":77,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"a01b0e4e-d753-4e9e-948c-0b89aee23368","block_type":"box","text":"volatile than investments in more established markets.","page_number":77,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"d482e8cd-0264-4390-95e6-2e878f77dae8","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":77,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"1756423e-0730-4a5f-8f2a-4915f956a19e","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":77,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"dfe61ae0-47c0-453b-a791-adf11fcd5d51","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":77,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"59206bcf-6dde-4e49-a7fb-05221c203791","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":77,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"c6168116-ec13-4569-ae4a-5ed92ab79b65","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":77,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"384e6a18-1c77-4801-b0b2-ef3b3ef6a8a6","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":77,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"70b708c3-9a59-43f6-8324-646d5e16db55","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":77,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"db700c5f-ed6d-46e5-a899-b9deec00fba4","block_type":"box","text":"acquisition or disposal of securities.","page_number":77,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"7252e544-766b-4470-8a38-c77af68ce05d","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":77,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"8990532e-bb02-470c-827b-55cecd4aa65b","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":77,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"494bc3d9-eb7e-47f9-900b-a5715e643182","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":77,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"c82714b9-2e57-4c5e-89ae-d485ba5ba2c2","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":77,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"de9431ad-347c-4f92-bdd8-a37ab96fe787","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":77,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"177f9ce5-d1fe-4eb5-8887-46a37d3b731c","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":77,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"3eae469b-a803-4885-872c-35bd52c88fdc","block_type":"box","text":"II-35","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"514ffb90-01d3-4540-b6a7-b27b07b999ec","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cc28cff6-7a4a-49b0-967f-17cf876543e0","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":78,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"42ad4f64-120a-420e-bc8e-8c669a0eebfc","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":78,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"b94c2ab1-f524-4daf-b9c5-7a7ac195c50b","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":78,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"212bf274-0540-49f1-8d3f-9907eecfb8fa","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":78,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"eb65ad24-87a0-4cbd-9535-2db3c5792f6c","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":78,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"9ff823ae-7c27-4350-ad9f-5f1413ecf8da","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":78,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"d770ab13-773d-442b-9cc8-81e2647ff147","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":78,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"0a78d5bb-d8db-401a-9685-5d4552d83f51","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":78,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"a4986428-22a5-479d-a8dd-12af16289239","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":78,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"a678f993-5135-420d-acb3-49572e5e2273","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":78,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"ac4badaa-fb11-436c-90d8-47f294b0d65d","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":78,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"94b9455b-4792-45ff-93bd-47cc30bd2b16","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":78,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"99435d80-4820-42e4-a2c6-92e2e09a99f4","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":78,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"299ea3c3-7006-4711-9a28-3db3351e28a5","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":78,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"89bacf03-5a71-483f-abdd-451e65244da7","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":78,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"e7933a10-444f-48cd-98ba-e7e10d2c86ae","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":78,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"c7c0e716-a0d5-4894-b4d2-6d79775f6ba3","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":78,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"dd9241d5-0e48-4a56-9cd0-b34ddcc8199e","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":78,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"c2aaf477-1873-4328-98d4-6f77d5a3373d","block_type":"box","text":"per formance of the Fund.","page_number":78,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"a6d8c3e2-515b-443e-b5a0-3955e08c5aef","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":78,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"34ae20e3-70e2-46f6-8d0b-729d0414e63e","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":78,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"a2d93711-3f7f-45a6-a205-01a72c57b4f9","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":78,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"98916c75-6fd9-4457-a0ab-95b7bceecced","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":78,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"52ffcdf9-06f1-4c4a-83f4-a43ff984dc60","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":78,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"2c81b9e3-e61e-46a9-bbfb-4dc2560cde7d","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":78,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"f8a43ee9-9f50-47a4-b343-97ebc42ee418","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":78,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"3ed852d1-6a3f-40ce-9184-560e388c61c8","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":78,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"d761f4ae-c073-4edb-8b6c-35d8f5465f45","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":78,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"4b81586c-2075-4fbb-9576-33b8986ba4c1","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":78,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"14097f88-c9c8-4db8-8c04-ca59cd93dd32","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":78,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"6aae3b24-1e22-4366-bc2d-b192a6a657cd","block_type":"box","text":"affected by a variety of factors.","page_number":78,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"39e06cdb-2119-4003-a4cb-0135a48b28ae","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":78,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"2dee9578-18a5-4606-8107-6a2eb319b3ae","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":78,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"e6a37f4d-7f99-4e0f-b520-85567a162896","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":78,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"1289b507-5830-4488-9011-dc9725cfa751","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":78,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"68a7ba58-4784-4021-9856-07653721e0f6","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":78,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"9c99abfd-47d4-4422-b183-e9400662cf0b","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":78,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"8f084899-f362-4964-9218-e468ff783e1a","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":78,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"f06c847c-dc0b-4667-9222-5f7f5181350a","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":78,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"99597fc7-b738-4df5-9693-8cbb9a742694","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":78,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"5b8a3798-6e71-45c5-974a-cc949b6d7f99","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":78,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"d1d58b68-9b00-4ff2-b887-afca071c41ca","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":78,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"9475d311-3548-476d-9caf-fef309cfb2c1","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":78,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"b30f0c7c-0383-47e9-acd3-c84f45ab639d","block_type":"box","text":"nations.","page_number":78,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"46c66f75-327b-449d-9e34-4a0c584a7ded","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":78,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"59938340-c445-4eb7-a70f-cd156191dfb2","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":78,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"928b1b69-03cb-4aa9-b2f2-aacb10098083","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":78,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"1a8e8442-7d44-428a-9c19-68a56030278d","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":78,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"36b59799-5513-463a-96c5-20eb1c77f9f8","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":78,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"aeeca13c-065c-482b-9606-60c46ef4a99e","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":78,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"9101e18a-a311-4d4f-a4ff-2944503134ef","block_type":"box","text":"market Asia-Pacific companies.","page_number":78,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"c66f2b14-2861-45a5-bd0e-9fbc9a487566","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":78,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"eb93a0fb-662f-4844-bacd-96b8685f7dae","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":78,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"0aa79a04-d6d1-4525-b6dd-926c2c4db30b","block_type":"box","text":"services for such securities outside such countries.","page_number":78,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"28b08697-60ac-4829-90b2-debf5afe964d","block_type":"box","text":"II-36","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ce94f04b-1491-474a-bc26-ed60a62ab5c9","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"62ac0573-ba9e-48d3-a969-e0ada31c4a89","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":79,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"68aec1d0-fb44-4f11-92e3-8656898b03f7","block_type":"box","text":"to commercial banks and foreign governments.","page_number":79,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"2af31d8a-9620-4a09-82b9-a1b7ff8d63ab","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":79,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"cab0e0cd-2391-44db-90eb-7e22484d7aae","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":79,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"b6579ee5-1e31-4a33-b7f1-a1b4ee5296ac","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":79,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"7ccc99d8-baca-4466-af3b-6e3d77e93529","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":79,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"b7dec7b4-be9d-45ba-84cd-70a70e9b5007","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":79,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"dfa3dd24-48e7-4678-9239-44c330291cf0","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":79,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"ff9ab3ea-c0b4-47d8-a8c0-da20cee35639","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":79,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"3fec5330-c50c-4af6-8c81-12b17ad61dbe","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":79,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"d53b3664-ef7a-4335-9692-858d8cfd79e5","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":79,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"f3765382-c8da-49eb-bf24-b57b1d0f9542","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":79,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"ada7c386-49d6-4ff8-aafa-c1a3c8c784a5","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":79,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"fd9e2f88-16f8-4c99-8095-0fffee72bd21","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":79,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"c697b0bb-bf31-424f-98da-55ab8c36c4ac","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":79,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"c3e53260-c91a-43e5-b5a4-cb86d0454bfa","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":79,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"44c5f8f2-1b37-4f97-a2d7-b88184a304bd","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":79,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"1f877e0d-14d3-4f19-a2e7-1fca55869fa6","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":79,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"ed08b3c2-5abc-4f63-8b8a-d5dc82cac2d5","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":79,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"8618177c-98c7-42ed-8ce5-bc44e5c87fa7","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":79,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"392d5e3e-3f60-4fc1-9715-cd580742d9e6","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":79,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"7f37bc7f-41ca-48a0-a4f8-04c30f4b247f","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":79,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"5a35b4fa-19a3-41cf-9930-dd8d0f57b28e","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":79,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"87fef550-1c22-40ae-988e-5d7068226169","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":79,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"14827c9f-c39e-4807-b083-dfbd86a63ea6","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":79,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"ddfea173-ac3b-458c-a91a-34fb48e032bb","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":79,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"f9c6cc9e-1214-4e8c-a401-e7891ffd3c17","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":79,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"6f26f47a-3eb1-4187-82cd-6a50143b6660","block_type":"box","text":"investment at that time.","page_number":79,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"d30f79ac-6ed0-46ba-ad7c-f66be4db7cb6","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":79,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"01d21090-bd7b-4ea1-83aa-bec02218e1b5","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":79,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"ca6b0866-87bd-45af-a03a-40f5bb5c1462","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":79,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"e65267b4-1415-4274-8fae-bd6f0e8bbb22","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":79,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"27cceb30-aed8-4880-97ed-f0090654a0b8","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":79,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"af8587a1-4dd2-40a9-bc8b-c2a58e455324","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":79,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"14c5dae1-4998-40c0-a661-3fdc38f77417","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":79,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"307374a9-96f0-4bac-91e7-149618efb26d","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":79,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"1448e935-5805-4443-9520-21f9e5e2e187","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":79,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"7a21beb2-b4f3-41c2-adfd-b6586b9d6a24","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":79,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"6d950e8f-fd1b-4251-9fec-00b49355e0f0","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":79,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"aacb1203-b4cd-4e35-a0c9-0bffb12440fc","block_type":"box","text":"government).","page_number":79,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"a8b15896-1a05-4b4d-b045-dc6a1d89e737","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":79,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"3932baf0-b18c-432a-9927-b08eed76bcc1","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":79,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"9f057e9e-efb0-43ba-b79e-5b1b1746bc86","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":79,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"b727ba1e-8040-47f2-8c30-6825c3419f0a","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":79,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"3a17b8bc-6bd6-45c9-8377-ab6383308cfa","block_type":"box","text":"foreign banks and other financial institutions.","page_number":79,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"3b516d60-8ca3-4e46-bdb1-76c34b3de48b","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":79,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"0f5cf762-cb29-4f1b-80fc-8c261159e392","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":79,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e4298305-34a4-4d11-9fc7-ed84d3785b17","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":79,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"502df2cf-cc7d-474c-b59a-f4905a52be02","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":79,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"b0c9d29c-fdcc-4d6e-847f-c4b3275f696c","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":79,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"7b96e4e3-df8f-49e3-adb4-1a315d373a25","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":79,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"9e183447-4aaa-4938-ae2c-006f3f635939","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":79,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"2f7255c1-7e4c-4e8d-a42a-267641f4e876","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":79,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"2abc42b6-49f8-4c91-b038-dca7168919cc","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":79,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"8b697253-03aa-4ce9-be70-caedc91cbfe4","block_type":"box","text":"II-37","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ebdfdbf1-69fb-4a03-ab57-1c0cd1817bf1","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb63e2ed-927e-40d3-825c-9ff82906e6bd","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":80,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"b313df8b-7882-422e-9ce2-640c6bfc42a3","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":80,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"1959562c-25b8-4caa-835a-7309abdb5999","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":80,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"8be49774-74fa-43bd-964c-d3dbf445bd93","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":80,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"26113d6a-975b-419b-b5fc-5c809e1f1550","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":80,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"8d6839db-a7ce-4682-9e54-87714155dae1","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":80,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"61a623f1-4fd7-4874-82f7-1b203223c1f1","block_type":"box","text":"foreign securities.","page_number":80,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"6edb0a61-737b-44a8-9030-1c9be82ae32b","block_type":"box","text":"Risks of Investments in Russia.","page_number":80,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"6c8ac394-3546-4db9-94d1-252ac030fcd0","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":80,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"bc093f60-f97c-4ae0-b53a-32fd2422e298","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":80,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"7f249788-647d-4aa1-8fa2-a5b2a1e9a310","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":80,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"2faf6065-c751-4b66-87c7-d14e44077a48","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":80,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"6b6294e7-27cd-4dc4-b74b-f1d7724cb7cf","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":80,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"75ae665a-8409-4719-ba51-05329067e854","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":80,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"2bb1e542-0100-40c6-b5ce-568dfe03d1fc","block_type":"box","text":"developed markets.","page_number":80,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"f5557e5b-4591-4b37-adc6-09fec8a0b462","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":80,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"54db1998-d91e-4dcd-b4fd-f595741d9278","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":80,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"dd4e5807-85c8-4068-972b-b477943a52c9","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":80,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"ede6e667-16f1-4270-8a36-e80777b44543","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":80,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"5ee40039-89a3-452a-ad0d-4ed0b768a685","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":80,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"6e2eb4c4-05b9-47f6-93c7-d0718e572ad2","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":80,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"6e15fce7-aa15-4202-aa91-5399ff61f334","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":80,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"a8c4b495-2bc4-4b66-a1a5-00da62a5fb7a","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":80,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"0a498cb9-9b6f-41d3-bd96-6170177e373c","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":80,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"e86319da-9aab-4bcf-93f2-abdf7dfac883","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":80,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"610cc780-081e-4509-98bd-0757a98979a4","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":80,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"d660705e-6be5-4ddc-8200-3e04a508392a","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":80,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"fbeb1dad-ce4e-46ac-8519-bfeebf9c577b","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":80,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"568c52a0-f170-4fb8-9017-e671c91750cb","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":80,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"3722322b-fd4f-4032-bea8-e52e46b13311","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":80,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"378d249d-7598-4bb4-887e-5c1d7d3cf0f0","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":80,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"574fd67e-aee5-45f7-a387-e8b64b041025","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":80,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"8565fa93-ab21-48d2-ae58-42a1db659cb7","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":80,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"dab5bd05-01d1-4198-b008-d97061ea97d8","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":80,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"0b29816f-d868-481f-9ef7-80bf996842f7","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":80,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"38fc6792-2735-4a40-87ec-c06aef4f070d","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":80,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"9eaa04dd-9321-42f6-ad41-56732908d008","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":80,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"c91a0874-53b7-432e-b822-f3b8e6ed47ec","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":80,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"5a5610f9-8bf5-442c-9822-c154d99878c0","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":80,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"263ab529-369a-44ad-bbd7-add0260dd9b2","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":80,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"ca1aa6f4-305e-4755-aa18-618776673d2e","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":80,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"cdd30034-22ea-481f-9609-b8ee1cb7ea01","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":80,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"3fd15c6b-a397-45d3-9499-f77c02cc3fa3","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":80,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"18b816a1-2b78-4c5a-b769-6322e18550f5","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":80,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"dc5e6a31-4534-4c6c-b6a8-d2bde4f53485","block_type":"box","text":"sectors globally.","page_number":80,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"506d8cba-6d01-4579-9c75-4dc1ac73afde","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":80,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"3eae0a47-8462-4dd8-ab28-e6e2a3fc6d23","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":80,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"87452283-29d8-433c-a556-8faedad1a610","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":80,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"80681cc3-96f4-4a0e-940c-708586b8ec5b","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":80,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"10bf7644-8aa3-4580-af4c-93b7ff209c7d","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":80,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"9d8660e0-dad8-4d25-a83c-6ef884c6b62a","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":80,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"b91fb3e4-3590-45a0-a4a9-b0b003ca652c","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":80,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"f4b5a2a1-ad4e-493e-bcd6-896077497d12","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":80,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"c8ff072a-f24e-420c-b827-459fac4727ac","block_type":"box","text":"funds invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities","page_number":80,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"07d73c2c-3563-4251-9777-2c53d897ab30","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":80,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"e3a04424-7b22-48d6-988f-0976f37637da","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":80,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"94db0433-6ff1-4346-ba59-f8c6aa20117d","block_type":"box","text":"II-38","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bf2ed983-1223-406c-ab3b-4466febd5203","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"931b845f-74cb-461e-b903-be922fda3400","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":81,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"1012429f-bb2b-4638-abd7-d59cfec1b3a3","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":81,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"c96046c1-cf01-4edf-9aa1-1b7cf63ac861","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":81,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"98823e40-7385-44d9-b275-38e33ec39da3","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":81,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"b0a5f11c-f69e-4969-b616-2a4a442127e8","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":81,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"4027a081-930f-4cf3-99bf-d645ec0ecdda","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":81,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"038b0853-7c4c-412d-96d4-dc15a3c2a93b","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":81,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"0755a8ae-6466-4a70-a0f2-444bc8b64df5","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":81,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"e3cf30f7-68e7-4f7a-a375-b148dc3f66b8","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":81,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"18d30498-cf73-4826-8ec2-e8c8c72e954b","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":81,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"8680dd76-960e-477f-8cfa-2207663ad0a7","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":81,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"60bbedeb-ea81-44b3-85ef-afd87893c173","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":81,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"3f17d153-4e58-46c4-97e8-6904ba891989","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":81,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"4e41e188-fdb2-45e7-9e4f-05bbc1eabca4","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":81,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"c7da8a9d-db8e-4173-9aca-46a80163a510","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":81,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"85cf83b5-86a8-4984-aac6-c7e0753a6c7c","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":81,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"8b804f6e-ab58-4e4a-8409-17f2c01eeea3","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":81,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"33af35d7-fac6-474f-ace7-8b503ed6dc51","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":81,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"df688846-08e4-45ca-887f-d86f55855af3","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":81,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"9cc83f7b-6ce1-4489-b726-28757be1d4a4","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":81,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"ae6dd595-8acb-400c-a114-9f3282cce770","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":81,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"ba715195-7dcd-4663-8fe1-7f2295a6c373","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":81,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"706d2b48-ddae-42f6-baf8-133d3d11a0b7","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":81,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"cfe15573-c0a1-4051-89bc-97b6828905bd","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":81,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"51c2f58c-921d-440c-a720-e504e1da1bca","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":81,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"4dc654e0-0c35-4fbc-b0c3-771d258f7902","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":81,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"9b4a81d6-d3aa-4647-83f7-ef552950776c","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":81,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"89beba83-cb31-4351-8bb4-a647da31d297","block_type":"box","text":"impacted.","page_number":81,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"2583db52-99f0-4db4-946a-71d63c51615a","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":81,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"a728d1a9-14b8-472b-97b8-8ba5eabd1904","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":81,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"303f3fac-429f-427e-ba38-8ce3edd90e93","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":81,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"20679468-67b9-45ab-8ee4-997def2a878f","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":81,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"b098339f-ea16-4d65-ad2d-b41742fe1ea8","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":81,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"3c738b57-0089-4ca3-a6b8-497716111fc3","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":81,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"7902c695-34f4-4249-95de-ce1a7bf09f0d","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":81,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"c4a6fca0-95d3-4920-bd7b-389202023e37","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":81,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"22059fff-5d7d-4363-a760-1d8afe3acd3d","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":81,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"689a07c2-f12e-45e8-899b-21832a72f4bf","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":81,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"a844a770-2e30-49da-b2fd-4dcd103edf49","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":81,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"22a187a0-aa09-4a7c-9add-256ccbbdb191","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":81,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"dc4a8f7d-023f-425f-a992-6b322844a301","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":81,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"b06df679-6c40-4ed2-97d9-f9d420fd1f83","block_type":"box","text":"economy.","page_number":81,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"fa7fb56a-c4de-48e8-a6ce-2030c0cabb93","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":81,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"d72060c4-d50d-4268-9699-c2a6b6e339ad","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":81,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"406b2429-9b26-48c3-b19c-e69c8ea81832","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":81,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"eeab756a-6ce4-49ee-8a82-37159f652d44","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":81,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"99c169bf-f46b-4c90-b4d5-273f9b2b9c4c","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":81,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"27467d92-f180-4064-99a2-8ac774a8979d","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":81,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"9accdc88-56c4-432f-888c-22cf8e1184ce","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":81,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"c3111e14-7ff3-4513-8ae1-f2cc0a575972","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":81,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"62bd41ae-5adf-4d11-aae8-6261dfd75b1a","block_type":"box","text":"typically the case for investment managers.","page_number":81,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"433c5fc1-aaea-48e7-97b9-be4a3daf65fb","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":81,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"9fcf5b92-9a2d-410b-8f4d-51008338db25","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":81,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"7e2d6f7b-862d-411b-acae-c6b974243999","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":81,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"cd668487-8f97-49a9-bf60-5e8564eb4c21","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":81,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"e514ba83-4d7f-4c1d-99aa-0f03354205a8","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":81,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"a41c5699-611f-4a57-be04-eb3eed276964","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":81,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"9776d521-d142-4da0-a62d-9d67fbc17772","block_type":"box","text":"II-39","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d58c9dfd-3901-4a6d-8d68-2f82a83d6677","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ebaae56e-c3bb-49d1-b172-e3e712ac5468","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":82,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"e3a8b888-a1ba-4a47-80bb-4ed8a3eccff9","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":82,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"0cf2264b-309f-4ae2-93dc-da59b01b8fe4","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":82,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"f9fa3f82-45ad-43a6-8878-a9699fd236e6","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":82,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"81b0a3bc-f5c6-4167-b3c3-f69e37ad464b","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":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"368faf93-2d26-477a-a26c-d4897f728aea","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":82,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"ea3d0b7a-3987-4cbf-8601-36081dce57c6","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":82,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"cc608d9a-3e5d-4973-9307-e059f36831a5","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":82,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"c70fb836-4b1e-45be-95e8-078591e21db1","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":82,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"f8051fe1-948c-4152-9401-63fd264439cc","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":82,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"bddccbd5-9688-4bb7-9d43-4ad8d4b91f3f","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":82,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"47a8186a-3c44-4dd1-af22-9bd3d5dd67e6","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":82,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"13d61086-bbf2-4804-bf9d-ce3ff9c3364f","block_type":"box","text":"will be indirectly subject to those risks.","page_number":82,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"8735bfbc-cb89-4280-a8f9-a27c7dda3539","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":82,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"96ae7085-0b63-4d45-ba46-7e6b34b9d539","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":82,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"9f56335d-acfe-4830-94aa-3d8833cc1e77","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":82,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"2e13d833-1761-4162-94c3-90a218d284f5","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":82,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"daae095c-6c43-4ff6-9799-a8464b202d72","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":82,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"9c06f086-170c-4936-a76f-96bea364fa43","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":82,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"9fa34c0d-874b-4087-b7b7-d9e186bbbb96","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":82,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"0da0e770-066a-4285-af59-88581fe2c12f","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":82,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"e7b85f3d-5ee5-4d34-b439-748832e7efa0","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":82,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"8ec12845-b50f-4546-987e-5ff3e57a681b","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":82,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"7dc755ca-2e14-4b89-8d1c-d26f848f4089","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":82,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"adf30e68-8b5a-4c4a-8f05-ef3b2cfbf193","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":82,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"b4b417a5-156b-42af-942f-a6bdd1c684df","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":82,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"21e7d64c-0049-4513-9d5d-51f82e12a131","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":82,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"42b79448-f04c-4a84-bdbc-e1d9da9e5f2a","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":82,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"ae5c15c7-1f7e-404a-a2a3-084a9b751e16","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":82,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"d52cf8e0-5899-4864-b228-528cb258ac1f","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":82,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"1300c5d4-f979-4b36-a3ab-1c38c47a6d80","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":82,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"d3d32181-96ea-4440-b067-482f457b6146","block_type":"box","text":"impact on a Fund’s investments.","page_number":82,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"12ae67dc-eb0b-46d9-aaf2-61470646531d","block_type":"box","text":"Brady Bonds.","page_number":82,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"c957db9e-2aaf-4e1b-9218-25f73ccd9780","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":82,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"42d1fbd9-f80d-44b0-a16e-cb9e4673ef13","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":82,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"a02ef3c9-22ff-4708-82c5-414dcbf44de7","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":82,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"75418437-d6a5-4d03-b2d4-e68f29d5b1a8","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":82,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"04c8e775-b991-4ae7-a929-efd11be2e543","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":82,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"c921ef29-7a58-4d0c-915c-2cd6815cc26e","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":82,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"93e5f808-cb18-4cfd-b529-416a7105add5","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":82,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"8ff351a0-c046-460f-a27c-5812a6240a14","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":82,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"3e3426c2-eb70-4ae6-b10b-43d7a52f60da","block_type":"box","text":"Venezuela.","page_number":82,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"085c64a3-8fb8-4a20-a729-fe454a168661","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":82,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"ce686329-883c-42e0-9d90-902cc6de4710","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":82,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"d4358d41-a0c1-4c74-98f5-c4774edde658","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":82,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"5fd7ccfb-acfe-48e5-a3ee-4b40e29a191e","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":82,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"86a1d85c-3003-49be-b854-57124534e9e5","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":82,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"0a47b100-ce54-4369-9612-5259fd421119","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":82,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"7084fe5a-9dcd-419a-9856-4ca471a2c540","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":82,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"4607cce3-fcf1-4126-9303-1c30aab233f3","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":82,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"d8be2558-c996-49c8-b578-791ecb789e0f","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":82,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"1d6eeae6-2e8d-4b45-87be-88758c754deb","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":82,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"5a0f5b24-ae5b-4ce2-bdbc-9738526e7099","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":82,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"b0ee9caa-a5b5-4934-be0d-46d60149020b","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":82,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"822c56f9-5d71-4ac6-ae02-c85f6e8b04e9","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":82,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"7df73baa-67fa-482a-816c-6d55d1b04b9a","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":82,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"0cdd168a-5a52-483e-9998-d17d17f3eb98","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":82,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"544df42c-377d-4d30-830c-ed48b9ac79a9","block_type":"box","text":"II-40","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2daeded6-f38b-4c50-95e0-88ccb42b48dc","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf72677d-2e11-4876-97e5-5df9ef72f11b","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":83,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"4a7807ac-f10c-4283-9e44-239074992c42","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":83,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"ba6f968c-8509-475e-b28b-e4af9c82e10d","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":83,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"3ee15137-b91e-4a3d-bbbf-bfdaed4f1e6f","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":83,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"a4d89562-d503-4cec-bc04-6a1a82ad5e3a","block_type":"box","text":"China Investments Risk.","page_number":83,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"d0144974-19d5-4245-8849-eeff189f8476","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":83,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"5f96f77a-4292-4ad8-8c4b-3845bce0dc7e","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":83,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"00fbd81a-d7cd-400c-a7cb-cf0c4e58ccb5","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":83,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"ea342a06-b96c-4eaa-bb90-2f3c2d7bb11c","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":83,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"5b221c93-6b8a-448e-8a3f-c3df89621b24","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":83,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"35b30823-1b18-4307-acfe-93edc188a996","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":83,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"a6e1067c-193a-4c50-ab52-93b1c819f02a","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":83,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"9f220761-f3d7-46f7-8a18-bf5147cfa91f","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":83,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"e43e11be-9a0f-4d4c-adf3-f7254aa64b73","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":83,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"c843b054-3318-4217-8e2b-5aa65143485a","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":83,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"8744814d-46ec-4775-b90b-af1ca3402493","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":83,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"e2a88f24-3bfc-4dd2-ac7a-202362179ff6","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":83,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"6cd05e7a-689a-4a7a-85fc-d88e83e5060d","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":83,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"91c92f28-3013-4689-acbb-bab07649bd81","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":83,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"9c736829-acfc-499e-a776-592e27196d64","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":83,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"82fba964-9b4f-44a0-a334-9a313a27a714","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":83,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"f958253b-e695-45d1-9f85-5d6241d2d2ab","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":83,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"9b27e286-1189-4760-a80e-e8390746a805","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":83,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"046b29ac-5a81-487f-8fad-6cfb37952431","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":83,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"03b7f591-8cb9-44b5-8fb6-dd639ee9b86b","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":83,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"458f2f8e-9496-43a5-ab09-51d61010feb5","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":83,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"48f52b9b-60b5-4f35-abcd-63211a8e5c54","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":83,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"0458568f-6191-4ef9-958e-383beb21b839","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":83,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"7acd06cb-1779-4fc0-b0d7-80a3daaa6d47","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":83,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"9f8b5b78-644d-4c7d-8687-c02b3e19db67","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":83,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"65bd667f-3436-41f9-8cab-a5b1b91a6daa","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":83,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"4c8aa102-d2e0-4df3-829a-1021e1744fd0","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":83,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"27bb69f4-3a53-483c-9715-230ccfa6cd60","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":83,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"7dc847c4-84d4-478e-b3d6-b17611c80c48","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":83,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"3d464d11-b025-41fb-b431-6f2e592092f6","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":83,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"2a52527c-dc72-4b9e-b5f4-0cf76f02f9cb","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":83,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"8dfa6b3e-e4dd-465e-866e-abf86c63f4e9","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":83,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"7350c709-beb3-43c0-8145-ffd8da3dd8f7","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":83,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"b23b577c-a84c-49c1-9dd5-c772502e863c","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":83,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"5700de35-6359-431c-b1f3-44b22138d821","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":83,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"b2ac309a-c79a-4870-81d0-a5e7cb9d4d39","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":83,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"429dac0a-88de-43dc-b3ae-0a279353d7c4","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":83,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"4a3d58b8-ecf3-4c54-a7b8-0c062d13bbab","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":83,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"3d5d2276-6816-4974-9c0a-ed6634ef801e","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":83,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"8f97b45d-e0bc-4dc9-aae3-c35850993c9b","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":83,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"ae5a6db1-4496-4a59-94be-51859847d65c","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":83,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"a6868c24-f8ea-4c07-8c00-ff6d8751c79a","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":83,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"fb4a67ee-6d85-4ed9-baa0-343e85a543d7","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":83,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"5f3e49b0-cc34-4f78-9286-7a1e1412cd67","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":83,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"b748e3a3-5635-46e5-94e2-2caba7f0ce69","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":83,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"c82bd548-fe5c-4b2a-9af7-8a825dad1733","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":83,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"9c559ed4-7cfc-4661-9b5a-ed3563dd5587","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":83,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"09ae3d77-f005-4e2b-9c1d-b81dd6d986cc","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":83,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"1a003bca-c55e-48c7-a707-e9a815b0a4e4","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":83,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"4a24035c-938c-4cd6-ba23-551323e02f2c","block_type":"box","text":"sub-custodian.","page_number":83,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"fdc889c5-037c-4858-84c1-6eec1fa153d7","block_type":"box","text":"II-41","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f33167b5-f47d-477a-a13d-5715e69c379a","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9d3c27ca-8fcb-418c-88ef-0aac0b3bf3a1","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":84,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"84fb6f49-82c4-49cd-a66b-8bf6e86edfbb","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":84,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"b50a862d-3d59-41cd-9f71-427a6ab946b6","block_type":"box","text":"on investor protection considerations.","page_number":84,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"1922308f-381e-43fd-9583-8e7c8e2be9e8","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":84,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"930c30ea-11c1-4d1c-be6c-0c67f9975ba1","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":84,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"6f24a144-f54d-46d0-87c5-3a0048a24754","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":84,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"0946348b-74d1-422c-9176-04160d2ecccd","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":84,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"435cbbce-fa37-42a0-a608-9e361be2bba7","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":84,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"6e3bd5f4-3db4-4615-a773-d4cda768a87c","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":84,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"9bdedf08-9dec-42ca-a36e-21658bb7133b","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":84,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"3be86c6d-47d6-4a58-8a43-cf9ecbd81489","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":84,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"ce5ed5f2-e77f-4fd7-818d-6dfb80c84669","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":84,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"77f5c3a1-0448-4f3f-b66f-87b86eabf3a6","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":84,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"0e4d7457-8b80-4349-a6f8-a4e829806585","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":84,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"3f058b34-a4cf-4194-a8d4-55fc511b4a70","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":84,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"6f7c5bf6-f1c9-4021-9a81-b7a2d85dc306","block_type":"box","text":"accounting firm.","page_number":84,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"a1ba4c0b-2faa-4db5-8d07-883b37fa6877","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":84,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"cc4b4372-f139-4773-8533-8fb2417a4ea2","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":84,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"a6294bfe-c6ca-4c20-a999-5e3622237ef7","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":84,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"002776d0-0a1e-4aa6-8a23-526201dfea51","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":84,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"3689aabe-1b88-4322-9c0d-d3caa826b754","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":84,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"9eb0c80e-db79-4776-9418-35f7b7727258","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":84,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"e1afffd4-a791-4782-8d60-226c8e7a529e","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":84,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"5fee434a-61b3-45e2-93af-68504f8475b0","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":84,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"ec34046d-126a-470d-aed8-ac4cca860a53","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":84,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"2680d8d9-8553-423f-a8a2-4c0dbcb92ea9","block_type":"box","text":"RMB (“CNH”).","page_number":84,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"04b93e01-30f8-4b69-8a2a-61936ed69418","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":84,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"873453d1-6182-47a8-a885-7602963735fd","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":84,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"fa14d290-850c-4444-9ff0-3fd3ef463359","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":84,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"507f4b2c-1280-4863-9096-68d3e0f9c0eb","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":84,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"e5a62deb-0ceb-40df-a3c7-a980020258ed","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":84,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"d2d32a22-8121-4fef-9e7c-508d22ec6d60","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":84,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"397ab923-952c-481f-9720-cd5b8a697c6d","block_type":"box","text":"represent equity ownership in the operating company.","page_number":84,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"0245e45f-4612-4264-9d97-0a3ffcf1cebd","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":84,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"9dceddfa-c883-43ea-89ad-5679b2b9c2d0","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":84,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"1a78dfa4-fe9f-4cc2-8b82-98e29fea5955","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":84,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"cc356f0e-4451-49cb-9fdd-9312469b8ba0","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":84,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"242e565c-bdca-4c6d-82ca-61eeb0b1a7e4","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":84,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"90573887-8989-4a65-ad48-0204f0b51980","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":84,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"2f4eb38b-70dd-409b-ba86-8724ebb82099","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":84,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"8a1192dc-8cf2-4a22-aa7f-057e0e196040","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":84,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"3937608c-e8c4-421d-b258-5c88a0318ce9","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":84,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"bd34a8bf-f1dd-4198-adf6-3693bae05d0d","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":84,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"2b064273-ffa5-4e07-93f8-e0d2ea2f2aad","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":84,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"5b7b7dd2-7776-4d3c-8362-5f02bb8ad7fe","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":84,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"d4b54dc1-58b5-4e3f-993a-d8f9ab7c83a1","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":84,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"13d7a55f-3bcf-4297-b1b2-41316676dd28","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":84,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"c3427caf-7349-44a1-8230-bfb6bfef5431","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":84,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"de191fe1-7fdd-4b44-94ab-fec17c95b0bf","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":84,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"a49fe0e4-0be7-4c39-b8b0-57a622103d0d","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":84,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"155dae65-a5ba-4be6-a4e8-eda6b318b9f0","block_type":"box","text":"losses to a Fund.","page_number":84,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"7e2feb32-4e23-44a2-89ba-c31e7116bf93","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":84,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"021dbee4-aad3-4a69-a48f-8bd964bed8d7","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":84,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"17da1496-28c5-4ed9-8cec-1b3cf9932aad","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":84,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"617f920f-77d7-4e48-bac6-312a27586fa8","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":84,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"c73b467b-78d4-4759-bd67-4d6708660cfa","block_type":"box","text":"II-42","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c455f75f-1db5-4fc7-a322-1095569ebe35","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f17fa8da-a488-4119-af85-9c39be2faf6c","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":85,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"6ceff39d-df82-434c-8a69-8a1dfcc5d448","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":85,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"d64141f8-ae7e-43f9-b5a6-fbe531e80fd4","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":85,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"5c43c5fd-4953-484c-908f-84f97650ad7f","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":85,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"27a3a0e0-acef-4ee6-83a5-42790333af62","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":85,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"896993d8-5b16-42ca-bec0-1e64f69e7924","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":85,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"9f5a6543-02cb-4569-8185-2e1003dd6e26","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":85,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"b7f03e36-619b-49be-b7e7-ff138c1d77a6","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":85,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"57359c24-e41e-41ee-84ef-e535494f314e","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":85,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"f14d083d-af8c-4f35-89e4-d6bbf982abaf","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":85,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"ec15022a-d577-46cb-922a-e278def98db6","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":85,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"cf15df1c-0c80-4928-965b-91959f7d8785","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":85,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"3fe56db9-d833-4a95-827a-534348158428","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":85,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"4ae3860a-af05-4e37-ba28-c8ddfeef8953","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":85,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"55c8033f-1617-40a3-aa60-d0aab71991fa","block_type":"box","text":"such companies.","page_number":85,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"ca9e300e-8cf7-4de1-8faa-58522bae5bbe","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":85,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"e42dfe75-c650-4622-ba7d-ca4f983c4e41","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":85,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"8830f824-ab15-4d31-94c7-50b03d73d478","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":85,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"f8f6b9dd-13f5-4b0a-b7b9-e6ce96a113c2","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":85,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"2e876b46-2b5a-4c39-b561-1d22717f08d6","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":85,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"fd758648-c693-4071-87b1-627444c31868","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":85,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"2e3736b7-e191-48aa-8707-c48ffdf3fe36","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":85,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"b7e401e5-e7a2-4812-8e3c-c588ccdfe522","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":85,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"5740d588-07eb-473c-9d44-d2235651b61e","block_type":"box","text":"standards.","page_number":85,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"d9e5b363-049c-4de8-ab46-b5b194a4f692","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":85,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"88d890d0-f94a-4f77-840e-00bbbbd2693a","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":85,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"60a6a5ce-b36b-48d3-88fc-c42c1eeff5fd","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":85,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"52ab8c94-ac96-44ed-8622-6122094274fc","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":85,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"834b7a6c-51f0-495d-a276-1e5debef19ec","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":85,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"c29f2e5d-f100-43c0-bd82-ad3790d21f4b","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":85,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"cc499d33-2c20-4569-80fc-401e7c3f886f","block_type":"box","text":"General","page_number":85,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"2680a5e6-16d1-479a-bb9f-50f62db4469d","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":85,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"11f4d0f3-f559-4855-975d-a1ec4b2f7b5d","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":85,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"7fe5eae1-bd96-43bf-8c79-9c0aedf509c0","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":85,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"433fe3d6-915b-4aa6-a63c-3ba1aaee30f5","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":85,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"646e8c60-3934-49b3-8cbf-6d08cc5469fc","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":85,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"2a21d4c8-9fd8-4f2c-a523-1043baa179b5","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":85,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"730e67c9-2039-4a42-9c08-e2c8df54ca54","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":85,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"7e8aa435-aece-40b3-8180-3177efefa702","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":85,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"930ada3a-0400-487c-995a-41eab126dc91","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":85,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"993ff204-9d37-428d-9d27-0be95fafdaae","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":85,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"ce5a6c51-0127-4b3e-8f85-d3f600e229f5","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":85,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"73faf931-2ee0-4c25-b396-eec3b1873061","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":85,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"02d78175-db54-4892-b3e6-12c2a92c50c7","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":85,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"34ec8c03-e2e2-4009-a26a-3dc6ac356a82","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":85,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"95025875-138d-4d67-998a-bad0edbae4e4","block_type":"box","text":"company established by SEHK.","page_number":85,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"503b3d83-cd0e-4909-a92b-85db76431ddf","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":85,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"2baa8fd9-e368-43cc-9f84-da66d18f97de","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":85,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"9c193874-dc20-4c08-af1c-408fa8a62a71","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":85,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"234a648c-2fdc-4737-af68-9ff988f7abd2","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":85,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"1c161ad2-938f-4d96-8e20-8eadb446d6c5","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":85,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"c196c568-9e1b-4dbc-9ae8-637c697815a0","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":85,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"2a2c1d76-fad1-4cf2-a431-be73e2030fd1","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":85,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"cd95e293-2a86-4489-9471-7f0b99222f3b","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":85,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"d50b0980-a670-4ae2-bd69-1001070880a0","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":85,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"cf821cad-2333-4e96-a5bf-d55959f5e198","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":85,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"10155756-728a-4784-8a57-830635ef95fe","block_type":"box","text":"II-43","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"93bab155-f576-4a82-bc44-049f217a6e90","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"728dd05d-3352-43e6-8db2-dfb515d5cd61","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":86,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"951b7713-e8b0-429f-97d9-dc76f69700be","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":86,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"fbcb99fb-4c65-45dc-a89e-7a55ce08706d","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":86,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"4b7cf410-7801-4442-b454-ec5e1b3b73d6","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":86,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"d96f0078-736c-4802-a4ca-34718170e845","block_type":"box","text":"i.e.","page_number":86,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"53e9d178-a0f8-4c63-955f-d92beb4b9e26","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":86,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"e7e1d93e-30cc-46f3-bf8e-faba9d0daaf7","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":86,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"5af1d7af-1daa-4243-a7ac-e593002e29d1","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":86,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"2cb50c73-94c0-4a2a-b930-3c6d9c91c4e6","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":86,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"80732159-ad25-4f28-ba29-627f0cf9cf52","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":86,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"ea9203dc-bda7-4afe-9113-37bfbcbf6f92","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":86,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"240bef89-2be7-4c3d-a5e4-73ccb4b39433","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":86,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"1d52cbbc-fdf5-4537-a000-0b3c1d11e159","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":86,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"5c3a1490-4729-491e-bb45-24478e822bd1","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":86,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"60c6bc93-9d90-4efe-bc0c-428d88a06561","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":86,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"c3dadc15-dbc1-4461-a571-63c5e580902a","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":86,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"f3a8aec7-f9d8-488a-9245-eefc072e4898","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":86,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"7897fd3f-8a27-4968-8247-62bb599efcc6","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":86,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"39af237a-4c19-4031-ab18-ef900954d9cc","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":86,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"83c6e137-998c-44e9-9ab4-b560cbb17295","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":86,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"dcd515cb-866c-478d-9c6d-83a825cec9a4","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":86,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"271f17fa-b537-4bef-9da6-be5268e78a42","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":86,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"64827fa8-daec-4085-9ae9-e504046b7eea","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":86,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"ebed36e2-6ceb-40c5-89ee-ab949a081904","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":86,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"7f0a2fa9-76a8-4f53-be16-65514c87e7a2","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":86,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"77af9737-75fa-4b6c-a8c1-1a011362c40a","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":86,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"d3c23895-983d-43c9-9d0c-931d3dd41d30","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":86,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"9a221af2-1224-4467-ba05-c74b21ca05a1","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":86,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"772ebb9e-2da0-40e9-a060-b9815fc17637","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":86,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"75291e5f-fc23-4b05-956b-79e5f97eb353","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":86,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"d55b5f37-b8a5-40c5-84cc-86500e8c3aaa","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":86,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"a402c157-025c-4ca3-ac13-879f7eec7cd6","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":86,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"b4a74cd0-0390-419c-b430-977f0fa4c7f4","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":86,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"0479cf6b-4544-49a6-9256-abb58a50083c","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":86,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"87564ade-db72-481f-b120-e2d028b87149","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":86,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"e1089c2c-e803-4e69-8df9-adeafb2f6970","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":86,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"7dc489d6-ef90-452f-b913-99c66a42cb71","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":86,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"038b23b7-42bd-44fd-98e5-ead50119b944","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":86,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"5b89e384-26d2-4720-b6d1-61a4843f9094","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":86,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"de93fa6e-138d-4630-a86f-9ea3abe66610","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":86,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"ac7480d9-376c-4b0c-aefb-d37e6c9a7ed0","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":86,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"7c0e3290-2421-4b27-9d62-c5a02c8bbf39","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":86,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"2e1303df-b306-4c68-8caa-8e0743adc821","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":86,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"5b4592ca-888e-465c-b700-c81975a79a57","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":86,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"874d32e5-6b14-4af0-9001-48d909495a3f","block_type":"box","text":"PRC.","page_number":86,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"90686eda-b9ec-453f-b75c-4e949707b267","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":86,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"107cd5a2-c3cf-4d5c-8a70-d21bcebb182f","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":86,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"b762d389-714e-420f-abe5-dca998089a9b","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":86,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"b7b079cf-fb2b-4c4d-bd7b-0c9d2359f75c","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":86,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"f62ddc3b-21d2-4e19-891f-d7ed3602071e","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":86,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"144b08fb-3b5c-493a-ba33-8e79542badef","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":86,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"24f3fc6c-21c4-4e60-90fd-3da388090228","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":86,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"88d5254c-972e-4327-9e71-33802c3fea24","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":86,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"0bb99b99-71b0-421b-ba0c-2cfe9fcd52c6","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":86,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"2a39db58-ea55-4234-b551-764780793510","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":86,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"183cb710-2c6a-4af0-abff-ab1d30b8e2e6","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":86,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"a4c91ed8-01dd-4c4b-bc74-0bedcf38ef44","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":86,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"ab218b1c-e979-4f0b-82d8-707dc4f7372e","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":86,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"311a157f-9f6f-4242-8662-9ad1f4e84156","block_type":"box","text":"II-44","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"253e3f09-cf32-4f53-88aa-e1872ab04d49","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db0e477e-3f43-4a7b-8ef2-db80e1cbd186","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":87,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"e83640b2-a0b1-4733-9a67-81a3d1833713","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":87,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"33355638-ead2-47a6-9176-83036cb068dc","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":87,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"fd91baa9-548a-4fd1-a158-0488bb46a5bd","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":87,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"25f46cf3-7d5c-40f0-8366-29ca96627079","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":87,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"57fe85e1-d8e5-4762-b6ca-caac47dbd812","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":87,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"021c4e3c-dbcb-411f-8601-739bef8c9340","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":87,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"13453025-3358-4dac-a19a-cf2552d4ecf1","block_type":"box","text":"Suspension Risk.","page_number":87,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"4e51cf4a-d789-41f3-b3b0-70dc8ec6fc3b","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":87,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"4d6490f4-279d-45f9-867c-7ca23c6154ec","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":87,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"489a5100-b7d6-4f7e-aaa1-ff1c9a102203","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":87,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"11d12083-0909-4044-ac89-d832c9c04fb8","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":87,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"89bfb604-44ca-4f7b-b9f7-67ef394d35d9","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":87,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"ee038123-9c2d-4cb9-9380-6c3f3a8e53fe","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":87,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"68ce2f7c-8dde-455f-b9d0-d04c2f3fe0ec","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":87,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"88183532-9878-4d93-9200-e2c5d61f6c63","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":87,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"657a4107-96b1-45e3-905a-f6c0f5457661","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":87,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"628525ea-e6f1-4c9a-a768-7c4022fa4a2e","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":87,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"1f7098d7-a45a-49f0-bc9a-dafebd4f0d54","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":87,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"e543df22-adf7-4065-b16e-f0d5fdc2ecfc","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":87,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"4a63b18f-a454-477c-b33d-03cf36e721ad","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":87,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"9dc3841c-c82d-408b-9ab7-955e7be19487","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":87,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"da92ba1d-60e2-4565-9a54-67f742dd399b","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":87,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"355e0436-5e58-436f-a5e6-f59ea8bf29da","block_type":"box","text":"A Fund may invest directly in the","page_number":87,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"16effadb-75f2-4c02-a808-e0eb1e816d8b","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":87,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"49c403e9-65b8-41c8-8d5d-f7b2be788b29","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":87,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"943aeb97-d1e7-400d-83c5-c4a40644487d","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":87,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"66f01b4a-74f2-47b9-80c6-1a98d4b8dbe1","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":87,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"d0a6a80f-7b2a-4404-b2a8-62c1e2073cc9","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":87,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"9d55c72a-4b81-4d1f-a3c8-0037ab123065","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":87,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"f650789a-ca8e-47b8-be79-c592caa6100e","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":87,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"db1aa724-75da-4902-bb98-1a98761fc0a5","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":87,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"8aa0a9d1-a87d-4ba7-8db5-96970d516267","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":87,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"968f223d-2863-4093-be9c-1b6bf1785496","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":87,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"cb051ca0-abbf-48fa-9997-a140227858d2","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":87,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"b0fae072-33dc-4d10-89bb-9907ab0de507","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":87,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"63565de8-46ae-4fa3-af3d-302659410d72","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":87,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"9eec95a3-8631-41e9-9a34-176d2fb5e67b","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":87,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"cd68bd1e-388d-482d-8657-4324a2129c61","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":87,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"11915852-c411-4b69-a98d-085ccb6be739","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":87,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"d11144cd-0b64-421a-8007-80044221759f","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":87,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"0ed5d853-b9f4-4ac1-a23e-710949214abd","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":87,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"fd739bc9-d43c-4599-b6ee-3d58d49ff99c","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":87,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"93d31dec-52f6-41bd-82ac-6cabaa1582ed","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":87,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"0e284921-3a9b-40d2-8e87-65a6ff115815","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":87,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"e044d6fd-4be6-4899-842b-079ea655327b","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":87,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"38a1c960-6ebf-4386-85d6-fec3eb16f4f4","block_type":"box","text":"i.e.","page_number":87,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"90e3385a-acd6-4999-9fdd-51b38a5b7150","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":87,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"c6d4686d-e40b-4a18-b540-b0023ed90681","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":87,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"d54722d7-0488-4b87-8903-3fa4c2234d9d","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":87,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"5355f205-5278-43b1-9156-f4238d11b86e","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":87,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"0d433d7b-a3c6-420d-9322-faa5c94bf837","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":87,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"0f1932f9-ef2a-4ec3-8d01-250f78af8f8a","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":87,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"397e9e46-c549-4e0a-bf88-810c7b98f7ab","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":87,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"5e2e9530-c74f-41fb-9b12-02114504a594","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":87,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"ad6c2569-768d-40e3-abee-83ac4e0e61fe","block_type":"box","text":"par ties.","page_number":87,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"04c19234-1cc0-4862-b9e8-e144fab0b259","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":87,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"3565f362-2b61-4b5c-9cc4-d19076db0cb8","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":87,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"3b889366-baff-470d-af18-1607f04a635c","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":87,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"8be8c6d6-5497-4370-8d55-9ee3206fe74f","block_type":"box","text":"II-45","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"982cfa68-ffd7-4859-9840-058c59e74278","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef19dd3b-8955-4bf0-a0be-b4f29f70f0e2","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":88,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"53920996-8dbe-4248-b5d5-fa7b1780fde8","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":88,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"eedc2e1d-8b71-4af5-97bb-20322a7b2f8d","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":88,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"2a67f220-fd52-4f3f-8599-e09f1dfd6fdb","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":88,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"73cc53d0-453e-44ff-8e4d-87d384aac2ff","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":88,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"4a582b20-1d7e-486b-9579-3a81c4551141","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":88,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"a6282b85-9907-4654-9222-5416e53fa010","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":88,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"ef367565-65eb-4764-9813-2b516ee86a39","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":88,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"3c133e4a-76c2-48f2-8120-9c89a432a8ed","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":88,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"6fc3395a-11b9-4863-b256-a1ffcbf12d0f","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":88,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"3115a347-54da-4daf-bc52-5b8204fb1e36","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":88,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"6573d1b6-853e-4126-a676-85654c596131","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":88,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"3b7defb2-463d-44a8-997e-d7b4e92eef4d","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":88,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"ec7696ae-b664-4a79-ba3e-1e8e366a2304","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":88,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"ad91b920-c435-41c9-b2a8-579087669fc3","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":88,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"9fd59f35-41a8-4132-bd8f-1ac54085637e","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":88,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"d5507788-cc0f-4b20-9cda-9faeb6afb7ca","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":88,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"3aa1d379-17c4-479c-8a9e-30b70ec5bd83","block_type":"box","text":"per formance.","page_number":88,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"27e369e5-59f9-490d-a8b3-950702ef7d47","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":88,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"aa4d2820-6b43-46c5-8376-1c3ca2e6359d","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":88,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"9038bcbc-a717-4492-8994-a5d873f116ba","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":88,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"8f9ed869-aeab-445d-9ce9-f683a9ecee98","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":88,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"6343ff18-8612-459c-a3a3-913558188c98","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":88,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"c4294a5b-fd43-4330-b794-37b52be5dea9","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":88,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"ffbdcfed-a1f3-40df-98e6-8fceb21d05f9","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":88,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"907a46a1-cd05-45f5-864c-ecbe4cc5e607","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":88,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"9112c4de-3a70-43ed-bf73-dc9cc3bceb56","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":88,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"871581be-6df3-4b23-aac6-2c3390db9fed","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":88,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"f91b33cf-974b-4206-874c-1e5bdb91dc09","block_type":"box","text":".","page_number":88,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"3322fc6f-4d38-43f6-b8fa-999b59d0cec3","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":88,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"69a37d8d-c7d9-49e7-acbb-204e5d2d4a85","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":88,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"2ec01e29-64eb-4b40-a24e-80a5155c44bd","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":88,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"aac06354-5b84-467a-bead-be959bc6d995","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":88,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"ed187252-5ca4-4b05-8ce0-63908693a68a","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":88,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"9fa2873f-568b-42af-ac07-040e9d0a1359","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":88,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"c4a4fe7b-1297-4e57-9bd1-1708f2f6f006","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":88,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"4d6a93be-5b2e-4807-b79c-1463a3adbe7a","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":88,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"b8ad4f2c-258a-4383-aeb4-5fb479fea918","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":88,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"6e7d31ab-7876-4d86-945e-b5d995fe35fb","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":88,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"74ad09e8-d138-49e6-a176-15462c54fdf2","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":88,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"e0e56a22-a819-4e6a-aee3-1d6fb4d0917e","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":88,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"1edc993b-9c41-4b95-bda0-233c84782c32","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":88,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"3c7e6b29-53c1-43ec-8ed5-c2bc20e0723a","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":88,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"9d9c8f64-d4da-47ae-8e26-f5a1ba00d949","block_type":"box","text":"without notice.","page_number":88,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"c73767f1-a1a3-4d49-abef-8c953673549e","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":88,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"fb08b330-6bcd-4358-88a4-36297e890c97","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":88,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"4c7324ae-8699-4e8c-b6d6-f40f7140eb2e","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":88,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"7858992d-b990-465c-9291-c339ffb35219","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":88,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"a26e4787-860e-4d9c-9da9-52605f577147","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":88,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"fbd214b2-6eca-42d1-8a14-047cd4483bb2","block_type":"box","text":"December 31, 2027.","page_number":88,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"430fb51b-32bb-469c-8247-ac549668084d","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":88,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"3d3e33e9-39ba-4abb-9636-7984fd49566f","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":88,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"3c9332cc-867b-4b2d-a8f5-c10db5e0a317","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":88,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"40c7264b-f1b7-4707-bd1a-1e7e0c4e0a5c","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":88,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"c2685cd4-683b-4660-be2c-2cf9470137c3","block_type":"box","text":"II-46","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a4efead5-4aaa-494a-bb95-f270c730c2ff","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4a05234-5a24-4b41-a3c7-dbc769953f28","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":89,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"c01e1f39-b848-4533-88fa-d643336514f6","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":89,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"a38abda0-fc91-4414-aecc-25929b394640","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":89,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"3ccedc7b-e9eb-4eac-94bd-ccf167d49796","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":89,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"6668aa34-79de-4267-b47a-cc34c8190566","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":89,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"a9a55f3a-1290-4db6-937e-2fe8f099e2ef","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":89,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"4454a4ba-e6cd-4665-ba2f-81a55ee4d03a","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":89,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"94e73436-628d-4601-a328-fdd66908d093","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":89,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"f008fa50-386a-49aa-9c1c-b70dc316ca74","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":89,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"e35a7d59-4a0e-443c-bbbd-f98c1c0b0050","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":89,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"6f696be9-730b-4a9f-b477-41e4b4f129ae","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":89,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"a7ca9a3f-ea01-4291-bada-a95c50f56c88","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":89,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"82718212-cb68-45b0-9d35-b02d905e99f9","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":89,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"a143b020-06f6-4830-a2e9-7e73c901482a","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":89,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"f17259b7-5bc9-417a-a623-90ef33d6a1f9","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":89,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"5d9f95fb-f880-47b6-8cbf-7c54af5c330b","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":89,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"c8708835-f86b-4fa5-b7d0-a7213f5d128f","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":89,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"e1584a6a-e9f6-4d14-ac35-541e35963c28","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":89,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"7aecb4c5-2336-4b27-ba00-1f6a7436af80","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":89,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"c67263d0-1dae-4b61-96ba-9492d729200d","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":89,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"7b8d5857-39cf-452b-8222-92003872fca7","block_type":"box","text":"the PRC in notifications.","page_number":89,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"4eb05a9e-b664-41d5-98b9-ae0b6fcbcb4a","block_type":"box","text":"Investment in Other Investment Companies.","page_number":89,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"77728194-89f2-4c78-ac4a-11643fdd5d17","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":89,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"251afdaf-0d9a-4e2c-bc70-66d02cf4ec04","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":89,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"76f67059-3c78-4bbd-893e-31db86896ea7","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":89,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"09caacbc-e948-43a7-bda1-d6c953626c39","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":89,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"e499b3fa-721c-408c-ac5f-f120fab75b3f","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":89,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"1600f1fc-005a-4c92-b463-273ecfd73a04","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":89,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"103185aa-5d0e-4ff0-ab2e-e697a6f4eba3","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":89,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"2941baa1-ee63-48cb-a6c1-dc002df47328","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":89,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"7a411a49-e727-4e99-9ba9-3459b69335c4","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":89,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"6eda2c24-db5a-4177-a4a4-0aacd00cf59d","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":89,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"c2f84f6f-6487-485d-bfa9-833e717ed262","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":89,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"8f79ced8-2889-442c-8872-b4780843f666","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":89,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"51abe70b-efe0-43f4-805a-bb42a4ad2d9b","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":89,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"bc916594-e970-4f79-9ac3-fd1a8b4ba555","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":89,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"cf87d127-95b1-4b3c-85d6-661ca92b10b5","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":89,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"a268f865-c7e9-4b63-9326-d22a57a77a06","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":89,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"e8894284-bb10-4d08-98f7-6a7132dfeac2","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":89,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"1790f2a3-6398-4574-9ef2-893d25d26e16","block_type":"box","text":"subject to cer tain conditions.","page_number":89,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"4b34db58-eb64-4093-b220-55bc9825f545","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":89,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"532d3d0f-95c4-4a8a-baa5-2497ce07566e","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":89,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"1b09419d-dabb-4874-9ce4-23ee996bfa34","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":89,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"1207b0a6-0e05-4dcc-a8b4-8bdb785c2b91","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":89,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"e890cb32-c68d-4bab-8c54-a81a91b9a793","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":89,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"1ac1b9f8-59ea-4a3c-aadb-bb5607e2988b","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":89,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"88ba9de3-08d3-4273-aab2-9eafaaa4ba4a","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":89,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"173295a0-7a95-4412-a2eb-61d07bdf62ad","block_type":"box","text":"loss.","page_number":89,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"14d1db93-4d9d-47e3-ad61-88341d0cb887","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":89,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"2ffc7e2f-1797-41dd-aee4-ecb2614a883a","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":89,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"b62e22c3-3f48-4dd1-b6be-a012af7c0623","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":89,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"db14a763-4805-47f2-a83a-e88d369f8296","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":89,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"d170e09c-67ab-4e70-8726-36261135c98e","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":89,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"a282ccf9-f353-4d74-84a3-3ed77e2e901a","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":89,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"7182ffb2-fa7e-491d-be71-10cf94a6df85","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":89,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"7f95ab30-4fff-4139-b464-d7682a578662","block_type":"box","text":"II-47","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f9e9833d-27d7-4481-97de-03439ec03bd7","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02302be5-23f2-4490-a806-a3fecdcef457","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":90,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"d0cc4a2a-4b94-4d96-b1d5-3ee14211affe","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":90,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"ddbeb98f-0d2d-4aad-91fa-9eb613304c29","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":90,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"0943f040-f9ac-4869-b6e9-16753705a09c","block_type":"box","text":"assets.","page_number":90,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"0f8cf6c7-8345-49cc-adbc-0287f329d41c","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":90,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"d062fac0-3d7e-42b9-be0d-bea503724b38","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":90,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"e49cc7d6-bdc5-48c7-a811-b88b41b71974","block_type":"box","text":"e.g.","page_number":90,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"7f50ec6e-0e18-4677-8418-9f9b7ba5e8be","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":90,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"81095b62-803e-486a-bcc3-cf934f90bcc7","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":90,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"63111f66-5388-4445-8ec6-4213b914d8fa","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":90,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"77990954-81e7-4561-ba7d-4edf2cb1d2bc","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":90,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"54d9b775-82a7-438b-aa80-dd82bfb56d46","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":90,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"804e424c-d4e6-42ca-80ff-7635cfe4da21","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":90,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"fa0e7d2a-574c-494a-9993-7068d2fc4528","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":90,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"f522800a-a450-4eea-b462-6e6695aa3767","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":90,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"713b5d7c-f9e2-42bf-9702-817663b1eb14","block_type":"box","text":"countries.","page_number":90,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"c6fc973a-4498-4340-a823-2828e88438ce","block_type":"box","text":"Issuer Insolvency Risk.","page_number":90,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"b7f49aab-46dc-4622-bdd9-5f32c1c71e73","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":90,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"34b93ece-141e-47e9-bc20-59692aa2a1e7","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":90,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"0482fd4b-8eea-4e50-8c02-6cc5c439de6f","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":90,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"e632323d-39ba-4f99-b2da-f0018300e817","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":90,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"30fbc574-2690-46bb-bc24-30270e3614d4","block_type":"box","text":"issuer uncer tain.","page_number":90,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"8e9fade6-8eb9-467d-a0e3-170167a86a63","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":90,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"df02ace6-3b22-4a11-bcc7-e83b7e105d2a","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":90,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"433b64ae-7147-4cf8-a895-8b1474e81e8f","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":90,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"cba9b30c-8e17-4904-a049-74e3d94a8613","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":90,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"1168f938-5d1a-485f-aba0-40b60fa41d2f","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":90,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"fe16b5fa-9b22-4d4d-bef8-75751c549168","block_type":"box","text":"eventually be satisfied.","page_number":90,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"41d3899e-53de-4ff4-b4a3-8b9ae235385f","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":90,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"eee2a674-90dd-451c-9c39-9a4e82bdfc88","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":90,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"78b6cb45-cd87-4fb0-b2f9-56ba91bad355","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":90,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"d087a0fc-c4db-4c7d-80d3-a66ba83e1368","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":90,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"7d173f34-42a9-4390-bb51-d9ef9f385b9a","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":90,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"661bb64b-4347-4d46-91f2-6dacbd9ccdce","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":90,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"b062972b-f546-4223-b317-3f8a997eaed5","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":90,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"f38d8c1e-0be5-45b7-bdac-2db52146b3dc","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":90,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"b657757c-bc9d-46ec-b9cb-ebf6b86d3118","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":90,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"8ff43888-ddfa-472a-ae40-d9e499c57e55","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":90,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"11360ec3-071e-4c30-b934-8c3f35312195","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":90,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"70303914-d0f2-494b-9b10-95695cccf283","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":90,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"6b40f931-3554-4e2a-bc5f-a83e4955a6bf","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":90,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"6818d36b-7f51-4374-a117-ca86c4b9bf11","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":90,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"a3d04a07-84ce-44da-9694-d029cc0c4785","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":90,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"cf9ee080-c66c-4dec-ac8a-6c1c7f475e22","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":90,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"0992055f-f1bd-4e41-a29c-6557f4b2e6cb","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":90,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"2288f813-a77d-472a-a66d-ec9c22eca39b","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":90,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"00f2a7ae-864b-4483-ad18-f4ccd95d4fc3","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":90,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"993eb452-50be-4d32-affa-3e81a5348c56","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":90,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"175972fe-8bb7-48c2-b274-aeecb0b10828","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":90,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"f1d7d3a0-432a-4fd7-9aac-bea2dabaf73a","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":90,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"c4c8f91e-d57b-49dc-9ae8-2acf6a3763f1","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":90,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"62b43451-5ac6-483c-996a-45c9474245b8","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":90,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"0280a085-162e-4264-aa62-42900e428a34","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":90,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"0595e1f8-08cc-4464-86c3-245921c7df1c","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":90,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"b1d9f0c0-ece4-4a3f-b3b3-e213dbbf0dc1","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":90,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"2ea31e8c-e928-4768-a017-6fb4e9573be6","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":90,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"5f992d3d-b1ed-4264-9773-0a6adc5f6344","block_type":"box","text":"that assumed generally by an investor.","page_number":90,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"c4566f0f-d45c-4df9-8916-35bb956a5dd8","block_type":"box","text":"II-48","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a67afbf3-c730-44b3-9cc6-6dd0d7159dbc","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3fc41a27-afe3-46ae-b933-3dc0173b5890","block_type":"box","text":"Lease Obligations.","page_number":91,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"52a54575-d166-418e-a1d4-7a00818cb204","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":91,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"79754aa3-4a61-4542-83bb-138a2299d007","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":91,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"2e1b2b72-1d17-4519-834c-996b3865facd","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":91,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"8ae05345-3510-4b89-a601-c148fa6ed2b6","block_type":"box","text":"Life Settlement Investments.","page_number":91,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"1973720a-db23-42e6-b5ab-2acc7638d910","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":91,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"d5079b42-0aff-45fc-83c2-a27cbbc98177","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":91,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"26c4be7a-49d5-4e5d-b19b-7e7b7d3e0a2d","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":91,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"b6cec8be-3131-42fc-a8c0-e191454d72dd","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":91,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"a3ed91c8-5782-41cc-bf15-4f93b9d3a2db","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":91,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"f08a0d61-e613-42ef-be50-b18030890225","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":91,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"569706c3-5802-466a-a7e0-a886d0f128eb","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":91,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"6978cdbd-aac8-414d-be48-9a3d153bc91a","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":91,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"e6e6a3ea-d676-41cc-ae50-9ffc387ad43a","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":91,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"fe0e3af4-0bf4-4da4-86e6-36efd6d3878b","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":91,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"3c96d7de-5c10-454d-bc4c-ca4056be7992","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":91,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"6a095d64-d04f-4410-8111-fec424150f83","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":91,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"f48a028a-4768-4f95-9458-d6e463a3d693","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":91,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"714a94e7-8fd1-485d-b6cd-5c92ee431733","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":91,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"b29c0317-6e93-4380-8bb8-caee35393c4a","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":91,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"d2b50a5e-629d-4bc3-9244-717d5940ef0e","block_type":"box","text":"Liquidity Risk Management.","page_number":91,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"b4afd36f-9648-4d2c-b943-838444c70516","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":91,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"ad726231-0cb2-4881-8a7f-38e5b00434ac","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":91,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"36e42a42-e2a5-421d-aa52-c0d868e1b6d7","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":91,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"a7bc29f7-9300-4870-a443-800d0762f468","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":91,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"62089e1b-22b4-4981-bb27-6a0dc769a51e","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":91,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"c701f164-7137-4938-87c9-26d467f1bcb8","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":91,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"02634b2a-ec73-41c9-81b2-15479dd235e4","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":91,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"7deede98-42ea-41dc-8f01-a3c317243586","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":91,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"d86c64ca-49b6-4260-ada3-516cb28c1b64","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":91,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"eb9e5952-cda4-418f-9d3e-6ee88f553160","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":91,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"72c01709-4411-4b12-b616-b6f374d4eeac","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":91,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"c8abddde-384d-4571-8de6-f42c635f5d69","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":91,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"da23fec1-6df7-4723-bbd7-d383c2b95c77","block_type":"box","text":"Master Limited Partnerships.","page_number":91,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"35e71715-38c7-4781-8240-915c26c2d441","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":91,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"f96489b1-c8b7-4516-b7fa-456e2afbe4ab","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":91,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"7f1a4585-051e-487c-82ca-9346464f57e7","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":91,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"85b9d662-6a13-48b3-9ee8-078b547e5685","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":91,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"d9c75caf-e27b-4a1c-a7cd-61a201575222","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":91,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"156089ce-80e5-4859-beac-a38e0fa02c82","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":91,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"31a989f6-f084-46bf-814e-f325177b8bca","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":91,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"5f103d94-19b8-4053-974c-6de44d9ef150","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":91,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"972e56ed-d3a3-424c-a205-8a04f25362a9","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":91,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"5045ba57-aaf3-416a-af0d-9ea46c2867d7","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":91,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"18bc4bce-d5c2-471d-8d99-cfffdaea07c1","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":91,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"3237fbf4-13e0-4f59-92a5-f01393327c60","block_type":"box","text":"in the par tnership’s operations and management.","page_number":91,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"0d67cfd9-5e89-4f34-871b-bf27361609cf","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":91,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"985287ec-4a3a-49e7-8660-95d43db91660","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":91,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"47fe0d24-e0e5-4fa7-9cf9-fcb055b876fa","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":91,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"15e62679-4f7f-4bc9-aa56-a7237542b395","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":91,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"dcca5788-76e4-4bf3-80be-64d5126a42d5","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":91,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"7bbda471-99ca-4adb-9923-1cbcb6681955","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":91,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"14f15def-e247-4baa-9ee9-dc00a2261189","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":91,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"999f03d0-2520-4166-92e6-b86cba080570","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":91,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"9a035df3-b417-486a-bd7a-0f7a1dd1472a","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":91,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"d4c96875-a648-49e8-9078-9a0828bc4b3f","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":91,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"931c0e3f-bb0d-4285-bcb6-2c372ef09b3d","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":91,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"0a5d4889-0201-4754-b11a-1280b28a900f","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":91,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"7f328e2a-d241-4d7b-bff9-c1308d8bbc65","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":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"882b69be-a9cb-4b73-bc6e-b5cedf09e9bc","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":91,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"183fb466-d4fc-4870-ab33-77f8b01ec23b","block_type":"box","text":"II-49","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6911e3ac-8b1e-41ac-970a-acc9c1353431","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b6853f2-82d4-4406-bdeb-62b1b3362416","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":92,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"75ba1f9d-6ea2-4501-b33c-223bd95d66ae","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":92,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"de64ce43-2d62-4b34-ab7e-060f37fe0fa4","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":92,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"c76751c3-055c-4a5b-8285-ee40271b6e12","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":92,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"55e47405-c977-4311-ba89-55b5ad9b4274","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":92,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"0fe1f8d7-5db6-4750-b9a0-3568aaf37636","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":92,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"78edcd5f-8520-42bd-bc98-534d24e7cb29","block_type":"box","text":"Merger Transaction Risk.","page_number":92,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"ff0bd116-beee-4bd6-b773-e4062498f014","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":92,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"7b53cb22-93dd-475e-89fd-230bbc6aa3cc","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":92,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"bc2aeece-b8fe-49b6-959a-feb47f66d365","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":92,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"1070993e-8e11-4eb0-9064-b751643dcf17","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":92,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"e566d006-6021-4076-8269-4202d7681d53","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":92,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"198566d1-caee-4a3d-9714-1231e6cb4ee1","block_type":"box","text":"the Fund and may lose significant value.","page_number":92,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"9fa788ff-144e-4b73-a731-42c9e61bb94f","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":92,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"db6a7b00-f21a-458f-a9ed-77ca71712f4d","block_type":"box","text":"Cer tain","page_number":92,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"f8cd445d-c2da-417e-b809-b68acd01e120","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":92,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"3447a2d6-eb5c-443d-9e26-91d6974356e8","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":92,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"b0293e0c-db6e-44d7-b522-b64a14e544ac","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":92,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"27122b0e-7641-4e8a-ae07-fb04fd6f7ef0","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":92,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"fca8ba77-31e8-42ed-9114-96f0c3e35e57","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":92,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"d252d69c-8387-4b01-8209-bce29091ecdd","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":92,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"48f2424f-31bc-4f3b-8817-df87df5df7ba","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":92,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"03016316-42bd-4b6b-a104-6670599bfafa","block_type":"box","text":"branches of domestic banks.","page_number":92,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"92740b93-b460-4072-9442-608aaf646961","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":92,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"8954a90c-071c-493e-97d5-8b4ee7f40b6e","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":92,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"4de1c536-8c72-4af0-bbc1-663465cc8bb9","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":92,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"1261c149-d108-4e21-a4b6-3b05cf266968","block_type":"box","text":"paper of a foreign issuer.","page_number":92,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"d6b04d29-2560-43f7-922d-dff9ad3c61bc","block_type":"box","text":"Money Market Securities.","page_number":92,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"3f6b73e5-c62f-45fd-97a0-6c1128a60153","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":92,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"dc23c7c0-8ff5-4679-bbc4-96a21a1cad7c","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":92,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"47287be6-51ee-4da1-aa97-77a3b7c45c60","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":92,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"34351d02-f793-41dc-97b9-88da31d01625","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":92,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"55f2898c-2071-4bf0-bcdd-424faef59b0c","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":92,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"e7440737-f08b-409a-ac7b-6b2c21fec847","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":92,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"23be8aaa-6c9b-4496-bdf8-f57e7464b030","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":92,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"b32a217a-528e-4697-afe4-886aed8c8cfe","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":92,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"563fa593-37bb-40c7-b6f0-a81d4e475851","block_type":"box","text":"agencies;","page_number":92,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"7c3b299d-23fe-4f23-a9b7-6a75d287b292","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":92,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"94e05ce1-ea2c-4ffd-95ba-4eefc757c0db","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":92,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"6dbd1eed-99fe-4e40-99ef-e9675d1a59e9","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":92,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"bf1f60f8-8774-43fc-9523-d50cf987d782","block_type":"box","text":"obligations and credit card receivables);","page_number":92,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"8d7fc419-f4e2-4ff6-b428-2ff017f6f463","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":92,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"d490a6c6-2916-4292-a922-18d255709046","block_type":"box","text":"authorities and related custodial receipts;","page_number":92,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"6d8f6164-62dd-44cc-b447-55999f07d133","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":92,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"b4c4bbf7-07e3-465e-8a81-231d4975a473","block_type":"box","text":"agencies or authorities;","page_number":92,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"00dc3ab5-f50e-4867-a777-aedba19c0871","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":92,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"d497dfbb-a90b-4950-9727-e2269ac69ba2","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":92,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"000f1ac0-cecc-4fdd-b360-6713613cc538","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":92,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"7486ad1e-6fe5-4163-9367-102e74359446","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":92,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"49c5f5fb-f9b6-44d1-aa51-ea2e436772dd","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":92,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"50d91ec2-7f26-4199-8483-1e105ae55100","block_type":"box","text":"States;","page_number":92,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"d71524fe-141c-49b5-930b-444bf14bc086","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":92,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"2ce588a3-ece7-402f-8c38-c0ef2530a0c6","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":92,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"d592f018-56c5-44c8-a097-2330b3db172a","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":92,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"ed6b7ba3-9eec-4073-939a-92b4a663db40","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":92,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"21da71c2-4ace-498c-b176-5112d255fb3a","block_type":"box","text":"II-50","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dbd5da26-395f-4918-9129-852fb6203455","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ee9f24f0-3a9b-4f5f-b341-f4fcf245e5be","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":93,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"109925e6-9169-4466-a723-bd41c01362af","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":93,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"db9b6b3f-4f1a-487b-9271-8b03f17dcdb8","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":93,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"f34024e2-e215-467c-b05e-1c3351c79978","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":93,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"f40672d7-20e7-4157-9aae-20cc402a6c72","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":93,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"b3dba7dc-16ce-412a-ae93-92d29ead824f","block_type":"box","text":"States.","page_number":93,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"8453dbb7-9178-41f7-91f9-ed784e90da4c","block_type":"box","text":"Mortgage-Related Securities.","page_number":93,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"53376aad-8c4e-4735-8506-a93f6941a790","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":93,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"b8b26206-b679-4beb-a49a-09c2ccbc47f0","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":93,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"88410e55-dbcc-4c75-88b5-5228843612e7","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":93,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"8c5ce604-c299-4f14-b912-6db8a749b8a5","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":93,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"14355b08-79f2-46f5-8c4f-b49ea990924e","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":93,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"ce906249-57c5-4785-ba86-a15a158c955a","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":93,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"4f9002a8-0b18-44bc-8ffe-a386ac062b8f","block_type":"box","text":"maturity or specified call dates.","page_number":93,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"9666297b-97e0-4c3d-8b52-bc1e4e0f2838","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":93,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"fb925bbb-20b9-4954-894b-e4f0c90f8ce0","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":93,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"340b4ee4-1df0-49d8-9cb5-50bef6bc9eed","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":93,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"5caa859f-1489-4cea-a575-5f96a280b448","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":93,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"da6ed25d-680f-4f50-856a-7534ea75af7d","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":93,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"3ff8f0b3-1780-4cb5-adfc-ee341900b430","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":93,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"66ed3154-4c79-4014-a38b-f80ba1e4d1a2","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":93,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"6afb8c97-d4d9-49da-9a48-ab2ee6a0be33","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":93,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"464f76af-ef39-463d-bd4c-8969d4d8a5b1","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":93,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"469ba4cd-e980-4c03-89fc-6416dc82badd","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":93,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"85326218-b347-48a6-aeb0-e1431e207667","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":93,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"1c9ae6f3-48db-467c-9f89-aa4b4c90e620","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":93,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"17401f75-8c5e-42e7-aec1-5ce6d86f08d6","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":93,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"759bc033-d3c4-4149-ba32-87989b345a8f","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":93,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"9e7c3fee-3eb8-4477-b704-bfe315beb82d","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":93,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"4cba597e-2a1a-4243-a61b-57610cfa1d2c","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":93,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"de35dfc1-c7af-4ab2-8e11-a089de422ee0","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":93,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"7ce595c7-cbd8-4911-8f32-ab837fc56b5c","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":93,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"37f9a32e-5b34-4ee8-b2a0-039b2fcfa62e","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":93,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"ccc8c68c-592c-40be-8b50-83e423448883","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":93,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"5108cb75-6baa-40f4-a631-203faf5b12b3","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":93,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"bd830cbd-c815-47df-8945-927b49de38bb","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":93,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"2312e382-dcc3-48ff-af5f-3d8c76df1747","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":93,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"ef6fba09-a9ef-45e8-91a3-585e190ee833","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":93,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"2b5de880-7b96-46f3-a611-312ce321e49a","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":93,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"9f265ad1-6763-4618-bad5-5ee35e524677","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":93,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"4db587d9-8078-4ede-bd28-3348ac6b3c06","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":93,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"e7d36dfc-86ff-4877-9b06-816a01af4759","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":93,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"52512ae2-33c4-401a-9656-f0aacc9fec87","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":93,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"c24e7085-578d-42e3-adb3-ae78bb8a3464","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":93,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"59aea842-27a6-463b-8280-ce1a9acd2134","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":93,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"f441b534-70ba-465c-9695-6de3d0b7d530","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":93,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"60310424-c0e1-49a6-9248-dfa7ccc79ade","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":93,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"8b3143fb-039a-4c3b-96bc-edb5eb86ba68","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":93,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"2d357bf2-8181-4c6e-8042-f3574fbf2b9c","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":93,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"2fef8327-97cd-4e01-8184-f11c5ff597bf","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":93,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"34cac4e4-5755-4ac2-b103-30b6046b60a6","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":93,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"5fec423b-1026-4799-a2ec-1b5df6c20926","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":93,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"c1b66bdf-32d8-4a53-9c32-c9241f0094a0","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":93,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"4e74b1a5-e38d-4f49-9a67-5530f96ebea9","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":93,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"7848f31b-1cee-47d1-bba3-160048418caa","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":93,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"cb5eda01-f1c5-46bf-9667-891a9a766a3b","block_type":"box","text":"II-51","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7ac39f74-c64a-4be7-874a-6406256e437f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"587a41d4-a2d1-4429-9beb-5380bf386004","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":94,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"9797038e-6b61-4ada-b9ee-5663ddd0ba51","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":94,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"631868b9-9eb6-425f-9ac7-ee76c49cfd26","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":94,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"f997751c-06f5-4389-a7a9-9df63058c0fd","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":94,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"c89a6048-0aee-4523-ace1-6312f4838a2a","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":94,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"309c3b5f-2cfb-4bf7-9b66-cb416732fc89","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":94,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"e2bd2c47-802d-471b-9035-d83adf1196f8","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":94,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"81049f73-69b0-46db-b237-28d9cd7d07aa","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":94,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"5c9099b9-1403-4ce9-9787-c166176f81fb","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":94,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"65f39896-4079-49e4-9902-19bef58e340d","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":94,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"0314421f-cb67-42c0-982b-20b347387926","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":94,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"0aa36204-c23c-4f18-bb0f-54b08bbc86b0","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":94,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"3a2bdc6d-5118-4271-b837-209784dfe4fa","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":94,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"099b86e4-f03e-42e8-b062-66e972a5f178","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":94,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"3967989c-661f-4d4d-99d5-e5167d4d3dff","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":94,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"046d27ce-eff4-4f2f-9279-294add9e2f9c","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":94,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"3774a902-d2bf-4d5e-88f4-ddecebe42847","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":94,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"04d23b14-d184-4c49-9178-139ece494576","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":94,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"d9f4d96a-cabe-44ab-adca-9df4b4085486","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":94,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"fd28300d-6775-4d9c-bd89-2360da79e119","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":94,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"77e2cf76-e52f-4176-ad65-bdb986e7449d","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":94,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"1734d75d-965d-44b4-b0d2-a120d44aa493","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":94,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"b05e858f-bef7-43f7-8584-df2b0c0d6cde","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":94,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"0ad40f6d-cf37-422b-afde-6ec3066e1c33","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":94,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"401ad7c8-e274-447b-8581-7b47ae49f38a","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":94,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"79d34a25-b7d1-4987-b73a-0074d0068fbd","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":94,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"b314aed5-9d35-4d21-b127-16141642f8ff","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":94,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"b635d062-df50-404d-a2eb-5c6fa98dcea0","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":94,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"ac34ad2f-9209-4382-b78b-a5f5c3440cc7","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":94,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"ed029b18-97db-4bc1-a85a-00922cd40c11","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":94,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"10d8b64f-4b6a-46f0-bff4-95fc9c2cd469","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":94,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"1af34ef3-eb6b-450b-b933-6f3716b7f087","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":94,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"b83f10b9-ecfb-4864-8932-f494e7453853","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":94,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"90df42ce-7540-4d30-ad9b-a047b38435e0","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":94,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"124166b2-9da3-4592-8b64-d3812136461d","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":94,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"077cf1d6-4270-4cb0-bbcd-6e4f2a24a155","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":94,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"b516466c-5dec-431c-802b-5629dc96f2de","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":94,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"ed5ba2ce-50c7-472e-8e57-aebbe2cba4a4","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":94,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"12b56075-0c03-4456-be01-9253767ca394","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":94,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"899cb48c-239a-4317-90e2-2f2dc936756f","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":94,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"c564a9c9-22e9-4ef1-bc6e-51e7275af4d3","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":94,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"a66f8655-2df8-4be8-9bdd-87774a85cedb","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":94,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"34f5577c-105f-4b0c-9f05-ec896fd54d5a","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":94,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"c8429926-937a-4f10-8750-4b9eb9653bac","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":94,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"e0aeb3d4-9865-4cd5-abab-5401c895ef07","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":94,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"17cb825e-05fb-4e5a-9d20-c46ae9ca1986","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":94,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"313c7cad-4cfa-40a1-8436-32d5bc683c10","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":94,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"a9a4e240-7bfe-4fe9-8e7d-8155dfcb6ed4","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":94,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"b8a00f87-2cf5-4c8a-b5e2-ce07a1dcf747","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":94,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"76c3d71a-ac1b-42fa-b796-388f7c152ffd","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":94,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"b66c1181-ef1e-480a-81eb-c69f404f9cd3","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":94,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"bad07d71-a126-4762-bd46-0037c10f202c","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":94,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"f2b62e7f-02f6-4b70-865a-1d76f650d372","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":94,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"10af6201-20d1-4065-956a-861870401557","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":94,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"b93a304c-b683-4db4-9cad-bdd00e366810","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":94,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"bce387c4-dff8-4258-99b9-086231b3e340","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":94,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"aaa439d9-26f7-4868-bbf2-528a92ab0c94","block_type":"box","text":"II-52","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0950a153-bc73-4a9e-a8ea-dacd0008020c","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a44d9af1-e451-45f6-917f-fbd3afa0a62a","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":95,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"b2e8efce-91bc-41c0-8208-5f0393cce711","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":95,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"b9e18a88-2bd7-4ec0-af27-4ac14b0b0a25","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":95,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"6ae99080-d8c3-43d2-a448-01bca974fcf7","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":95,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"6b32088d-8a09-4caa-ac05-7a6d92780d97","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":95,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"f6005d0f-11a5-4d93-8755-f065e40a1aaf","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":95,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"a17e3a85-aba0-45bf-ac79-7ca5c9a2ee56","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":95,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"4cef1b6c-13b3-4d56-8069-ed0e1486e5fe","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":95,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"84170015-8904-46fa-b915-abaa372133f6","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":95,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"12b67b8f-d17f-49c8-9d92-81eeabbe8393","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"96553eb9-aec3-489b-98eb-2dc784cbcb73","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":95,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"6947eac7-706f-4ff7-8209-9c6552346cb5","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":95,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"9d611ce8-a0c6-4114-8332-b4742be118e1","block_type":"box","text":"of principal because of the sequential payments.","page_number":95,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"d415d895-7e23-4b51-bdaa-6ee02fc9b221","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":95,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"dbc7b14b-6a97-48b9-ac61-04ec6df7a5d7","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":95,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"2ec1d2ba-f4a3-46c6-acec-45c301a761d9","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":95,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"bbccef69-1720-47a0-a997-025ccb22deb1","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":95,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"69e5e11a-7a20-485c-8a86-598eed206aba","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":95,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"aaf1ba33-cdba-4f82-a035-6fd648ab823a","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":95,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"d11105b9-60a0-45d1-b954-154fe7524a2d","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":95,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"28f25343-4773-4555-9fec-cb0436f896eb","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":95,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"26acf203-9def-4550-98a0-825ed87b7085","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":95,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"e2ab9e3f-b087-4526-9173-195b12f971af","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":95,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"9a6bb08a-5624-4a4f-bcd3-5269d8da784a","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":95,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"25272d90-6513-4d96-89f8-242851df9e5c","block_type":"box","text":"securities of any single such entity.","page_number":95,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"06664615-f40f-4b4d-9753-59cc7ca742c9","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":95,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"f9a8bb81-d3b2-4e7b-ba49-2d4b3ecf7b18","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":95,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"30c92fcd-f9c0-40d9-bd99-ea181b38888e","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":95,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"a291401d-5a7b-434b-bc08-c9aa7e754937","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":95,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"53b05762-f547-42d6-9f44-b0fcfc6f39e3","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":95,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"a4485866-db9e-4a34-aafb-fed91fdcde91","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":95,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"c6fccfcf-dee9-4dd9-9985-bc020702389c","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":95,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"e9218e31-84af-45ff-b1bc-e0da95693ddb","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":95,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"ef70f7b1-6b11-49cd-b443-fcc23d842963","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":95,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"1675b421-25f3-4d9c-beb9-12e1f63dc501","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":95,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"4af33294-f90f-4d50-9f8a-731980986b19","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":95,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"3d8db526-ca92-4ebf-b87a-5d8d7ebc216d","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":95,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"02ad1d63-4d58-4eae-b2a9-bc8f66519f25","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":95,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"194ed2d5-5f55-413c-8087-764cff26d53e","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":95,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"ecebabd6-0705-4948-9691-0958a8c9a636","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":95,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"3fc60df7-2d76-4a65-becf-6765e1a5f2e3","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":95,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"4a3abdbf-a58b-4b3d-b426-f88a37ed738c","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":95,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"f9ceeac4-027b-4b8b-adc8-3bc9df651069","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":95,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"a3ab789b-94d3-41e8-9c6e-34712e783871","block_type":"box","text":"classes.","page_number":95,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"7550fa13-401c-4a9c-b51e-c6f51b6cd03d","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":95,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"e3a05855-3c32-4a80-a825-5a93e7ea35b5","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":95,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"ee0cdc2e-3e50-4738-88c0-3271ca62e6e0","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":95,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"4f6d9698-8bc9-43c7-86e2-da8262d10924","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":95,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"51f6e880-2e56-4084-af67-9dff28620a51","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":95,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"d49f62e3-aa3b-4fbc-aaf4-9f3d2078ca24","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":95,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"8d29de48-a05e-4324-80bf-45882e2ac847","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":95,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"ce9f6fd5-4ec3-43d4-9b40-cc0ff9a3d16a","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":95,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"35140e9e-a700-4a20-ac3e-c824a2bf32c7","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":95,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"568116da-757c-4fb0-8dd2-add5bbc0e7f7","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":95,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"70d8ab75-b1c3-4af6-88b1-c0af1f1a0e8e","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":95,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"124e65b4-871d-41bb-b083-1bfe8dc2dd93","block_type":"box","text":"to a designated benchmark index.","page_number":95,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"fceeec92-b33c-4945-a86a-462c393f1a83","block_type":"box","text":"II-53","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3ec74ad2-c816-4322-944f-14c0105365c2","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72450754-5add-4c0d-a135-2d4c9eea964c","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":96,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"dff191be-e275-4804-ad53-d2c3dbbc12b4","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":96,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"ec2de63a-df02-4539-8508-093f7b1c0aac","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":96,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"8723c8c6-fe0f-40a0-8d9e-524d92226827","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":96,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"287e9b2d-ce19-475a-952d-0b4beff6cc8c","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":96,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"801af336-ea0d-4fdb-b453-ae36303d12b0","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":96,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"d37658de-18a9-4545-808b-9b3461db3bf1","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":96,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"06601cae-db8a-495c-8644-8521a1dffd5d","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":96,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"bdce344a-5e4c-49fd-8164-8e4fbdd4e564","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":96,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"7f10db71-d95c-409a-bfed-7e184c4e2457","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":96,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"f35b1ff9-6808-4193-aa89-163d11904e00","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":96,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"11406611-4ecd-45c7-abe0-358dc110b5e9","block_type":"box","text":"CMO Residuals.","page_number":96,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"e2b239b0-0067-4f22-82e3-a1b52069b369","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":96,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"5b676d56-2915-4d70-abac-52d4cbb1f2fe","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":96,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"3f69e3c9-0855-4a2a-98ef-24862ed9639f","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":96,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"b34e692d-bfc3-49b4-afb6-9121bb71c0bc","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":96,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"0a30898c-4a7b-42be-8b99-7162248cb750","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":96,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"6f0ef28b-5ec5-4c3a-8256-94b01ed488f5","block_type":"box","text":"any management fees of the issuer. The residual in a CMO structure generally represents the interest in any excess","page_number":96,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"793f9db4-aaa0-479c-908c-a2ea9d466cbe","block_type":"box","text":"cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the","page_number":96,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"6b59fb6c-c9a5-4b04-a043-3b456b7c0a6b","block_type":"box","text":"related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a","page_number":96,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"a9d281dd-690e-4735-ac07-477e734e6d6a","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":96,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"ab0251ef-b912-43d5-8286-695b4051b831","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":96,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"40dc5770-7b69-4425-aef2-1cb91b2021c3","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":96,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"d92c28bb-8fd7-4c9d-9031-1b7db1881898","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":96,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"1f234fe9-19cd-4e10-9414-7376b66b5fa6","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to","page_number":96,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"316b07c5-e0d6-4c1a-8a8e-14991e0977c7","block_type":"box","text":"maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which","page_number":96,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"13e96677-7eda-4862-9580-544e1a91be26","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":96,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"3cbfbf5a-915b-43f5-aa50-3e27a782ffc0","block_type":"box","text":"a CMO residual.","page_number":96,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"7d9d2135-a9d9-4cd8-8193-75512c40be77","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":96,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"301cefcb-d4d4-4613-98ec-7d49307b90f0","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":96,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"17b39b8d-466d-421c-8ca7-a4177624b815","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":96,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"8237d6ba-af12-4657-8788-a287f65f3b48","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":96,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"da672b7c-592c-469a-a72f-211fae34a785","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":96,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"650eba09-785d-4608-9ddc-3ddfdda542ad","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":96,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"69604511-cf31-420f-a11d-955e8026215f","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":96,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"a6116b4f-390f-427f-bdaf-9c9c166c5617","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":96,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"e6b928aa-e3bf-4404-aebb-d22cb1a89eb7","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":96,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"5974dab6-711a-4dfb-986a-f0b3bb612511","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":96,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"f89060bc-bc41-4ebc-bd67-39cc2041d313","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":96,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"b572e242-80a7-42fb-a75b-79755d34d550","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":96,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"5540a642-a4c8-4e03-8a00-daaf390eb6ec","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":96,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"44acf9cd-49af-4593-a273-eb8450f7aaba","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":96,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"869a9f8b-a50f-490c-bb85-d5768f5d089d","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":96,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"67c99c59-a34f-4dc2-b866-13f3d4a21611","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":96,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"edeffd53-c84d-4042-b461-2c20793ef1f3","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":96,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"0e2d38d6-f721-4863-9004-a17d72d77500","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":96,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"48e2c3ae-726e-4033-8454-48da9e541fe8","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":96,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"e4532b8a-ccd3-498f-9014-0354dcc3fb4b","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":96,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"72172e18-b022-45f7-b615-1829f19233c5","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":96,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"9210097a-b325-4402-8254-31f184e5e9ba","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":96,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"5e191e73-b098-413b-b3a3-fd1c98bca0c2","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":96,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"2795f97a-18a4-4e80-8e87-b7333124f25d","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":96,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"e1c906c2-ff6b-43be-93f4-79b394e6e779","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":96,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"ed5e0555-a835-48e8-b14b-fb5febad4cc0","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":96,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"bc703eb1-3d30-4a15-9335-d0df066205bf","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":96,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"4ad8a6f5-8779-4343-a097-d7d4d97e0e02","block_type":"box","text":"Tiered Index Bonds.","page_number":96,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"c36a0fca-19a9-49af-8ce8-f86db638264a","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":96,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"ac1b7e3a-a3e4-4f33-8208-bb75f4b15182","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":96,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"cc0bc8c3-0f3b-463e-957f-f674fbee5a28","block_type":"box","text":"II-54","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0348173a-0abd-406c-8436-84c89a643b2f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e7e02abe-6db2-4f64-9bc7-629bae8b3384","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":97,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"1a2afcfb-4f81-4d9f-a07a-c0b7095a94ab","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":97,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"71d48582-8dfa-412f-98b6-00fc7475584e","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":97,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"3b2b5ce3-4531-4be1-8be2-b1df065219bd","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":97,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"3fb2161f-6f99-4c10-bdd9-c97f1f2d5b03","block_type":"box","text":"that of a fixed-rate bond.","page_number":97,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"973547ae-11da-49ae-aceb-40e0ed5f4024","block_type":"box","text":"TBA Commitments.","page_number":97,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"53257d24-a086-444a-9478-f394468170d2","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":97,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"ed602f06-e0fc-483b-99ef-6e13bfc5160c","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":97,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"8b2e5bce-9706-4b80-a38d-d7d307b69dd0","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":97,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"b2913b59-0699-4447-9929-ed7dfb2f8d07","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":97,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"1031a414-75a5-4361-bb14-8f257325ec11","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":97,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"0552d77e-fe15-427b-80f6-cfba71503ea1","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":97,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"fdaa8adf-f7b7-486c-8b5f-e1d6fd2547f4","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":97,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"825a6e39-fa8f-4115-a322-c2ede345c078","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":97,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"810f5d76-c19e-40ba-bac5-4ec6797b3b0a","block_type":"box","text":"below.","page_number":97,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"a1cfac3b-f29f-4469-beaf-47d61a3eff12","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":97,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"98a6cdaa-332f-4eb6-be50-9ba2a3eae995","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":97,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"b129f5bc-6078-499a-8503-5b72c1edebf0","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":97,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"826021c1-4fcb-4e88-9deb-12480bbfbc44","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":97,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"6eba0528-7d14-4412-a79e-5381b6193236","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":97,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"aa68457d-56a2-481e-b815-643e815da74a","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":97,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"d351dd14-5f90-4b41-a923-ea7962dd93b7","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":97,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"2c8c1c90-ca04-44d1-9424-e00633a33299","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":97,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"00d0efe7-8252-4fc5-8a1d-a2f9867053e2","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":97,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"cc281c8e-739c-495f-85d8-c7c78f5bf157","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":97,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"1542f1af-1e2b-4460-878d-053c2535f1c8","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":97,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"a29be166-f036-4068-b49e-705d73e46564","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":97,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"1acb9b16-3820-488e-8c3c-d3bc8b9abfe4","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":97,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"10262b8d-55c9-4b15-8f7a-a87ee41804bf","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":97,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"2edf76c9-76c6-4ac6-9bb0-4cb8c9a95760","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":97,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"995fea0d-0cd6-4030-bc3c-691956978469","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":97,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"b24a4ba9-63ac-411a-87df-e5ff5436a8b9","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":97,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"6cd9c2d1-7c37-466f-ab65-85ffce09ed48","block_type":"box","text":"securities in the forward transaction.","page_number":97,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"71dbeeb6-892e-4ac9-aa9c-d4cf8b785b67","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":97,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"5cda21cf-e7a7-427d-8938-ff143a63da45","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":97,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"961f6892-ef6b-4d7e-b53f-0af4851de1ff","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":97,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"40164279-4765-4020-87ce-047f3b20906f","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":97,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"4868a25e-3148-4a5c-9c98-3f3a94ddfa31","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":97,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"cc1d0a13-050e-4926-8f24-2f89a5ac54f9","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":97,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"b1b11422-efa8-4980-8cc7-b14b9574fd63","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":97,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"c27029ed-ea6b-4bd5-8bab-445e17457fc8","block_type":"box","text":"securities (","page_number":97,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"1e18e3bf-ea7c-4788-916c-09a7abc06b64","block_type":"box","text":"e.g.","page_number":97,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"2063ef20-46c5-462d-8c3e-907c9301908e","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":97,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"eedbb3fa-111a-4607-9ca1-1971d00b5e7b","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":97,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"18928b8f-82ae-47ae-bc55-903c2ceb7480","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":97,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"1bbdb75e-958d-4012-ab1f-2dd9f7c4c581","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":97,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"8d94e702-bfb4-47b3-a0ad-e36f8c41cb1d","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":97,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"6c71488e-e724-414e-b01e-65ef9f3a280f","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":97,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"003caed3-a56a-432a-badf-a6b0935132d4","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":97,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"e1516863-fb43-4a75-94f5-2a5b7339116e","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":97,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"1dde143a-921b-46f9-9279-2525d0a5ec74","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":97,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"2cecbc85-c4ef-40fa-907d-2d2fb8674b7d","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":97,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"e325c271-9af3-4689-b7a9-3b237a805c9a","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":97,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"46c4f724-3e52-4c77-b17b-58fc9e166c03","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":97,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"dae07575-068f-46d0-a30c-8d168cbb4850","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":97,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"c564b280-ac5c-49b9-9058-53ec53ce9290","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":97,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"bba7ac94-1d04-44d6-9752-ed4492dfbba8","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":97,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"89f12f7b-143a-4bda-bad3-399925c77703","block_type":"box","text":"Municipal Investments.","page_number":97,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"2bb281e4-a0a3-4387-b39a-54203f1a37fe","block_type":"box","text":"II-55","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a03d656a-579d-429b-9f58-54935aeb29d9","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b68428f-f81e-414e-8b17-91ef9492afe0","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":98,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"93eefa9e-4c4f-403d-b302-9f2b8fdad3cc","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":98,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"f45cd43c-65a4-4558-86f7-c79e73d30779","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":98,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"bc42218b-f538-4177-86db-c3ca00f76771","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":98,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"4a932852-8592-45d5-8049-6c2cb9f20e13","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":98,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"e33234df-68a9-4d69-8353-839c72f857b1","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":98,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"d8b91851-fc52-4876-bc8e-9127e66e06db","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":98,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"43ccd68f-1a80-4f2b-a257-61dcc377d3bd","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":98,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"4fadc4ab-03bd-48c3-bff7-4c7445b00357","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":98,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"ef474182-0eed-4865-9f13-887b5b0a01d7","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":98,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"6b0824b2-7e5a-4f57-8361-ef0cc6963b1d","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":98,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"c53a85fa-8fee-4b93-a797-56b08b6abb32","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":98,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"04593d81-3ef3-4105-b4d2-4debb7507ef9","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":98,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"fcc7e64f-d5d6-4477-9084-21a69c6bb19d","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":98,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"88ba1668-854e-40bf-b5eb-ef7ce66fde3c","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":98,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"423f984b-7c2b-43bc-b2e5-1240cbc2dab1","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":98,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"07202a84-985f-4cac-b9eb-310b451f3ae1","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":98,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"da5fd0d3-2ee2-4fae-b0d1-0afc95de714f","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":98,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"b97d005f-0bc6-4451-85f2-a1e6b30115dc","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":98,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"fd390d8f-0c0f-414f-b244-af67818ec256","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":98,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"17111312-0ad6-4233-8b3c-4cede35db9ad","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":98,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"00e0c5f3-4be6-4c7f-914a-681007e75a21","block_type":"box","text":"The risks and special considerations","page_number":98,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"d449d2e6-8856-44eb-96fd-ac23f990a3ae","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":98,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"67c80a20-4e1b-41ac-b622-3377917ac545","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":98,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"362315ab-2aa5-484b-ab9f-6f5b7b262fcb","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":98,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"0d48a1b4-f233-4b0d-b1b9-7f5b2de3ad5d","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":98,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"57f07a6a-c82c-4462-b04a-5371578b066b","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":98,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"5a6a7bad-c8c9-4896-816c-1a1f702ee22a","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":98,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"7afb3178-e288-419c-ae2f-7fd51f210296","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":98,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"988dd8f5-d1cf-432a-a447-e363f642875c","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":98,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"f8c3b297-795e-4bc2-b574-ddcf019ed5b5","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":98,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"358f5757-2c2c-4fd5-b4f2-4db8da90ee01","block_type":"box","text":"II-56","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5fbbad77-6bf7-464c-94cc-f3071d5cd5cc","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f444ea6a-02b1-4afd-971a-4e7ac893e39a","block_type":"box","text":"Description of Municipal Bonds.","page_number":99,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"dbe89a7b-dd1a-4009-902e-7217dfc1da02","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":99,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"9db1f954-35f3-4bea-97ba-e4abbad00554","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":99,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"c7fcfd7b-769d-4211-830d-9b5b023cafc6","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":99,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"371083b7-0255-49e3-8875-dca919b860a4","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":99,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"015f34c5-dce8-4509-84fb-ac6055ae3c58","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":99,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"44621a5f-fb80-4b9e-b854-24d619247a40","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":99,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"f5725522-9c10-43ef-8c55-b70d99da2b24","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":99,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"d8718556-166f-4a67-aedc-28f427c86609","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":99,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"141e4d96-1f42-4e14-807b-822985691d66","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":99,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"e90ef8e6-7e5c-44cc-89f4-7180662a5205","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":99,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"32ec5169-46f0-4663-a5c3-06c0106b9be6","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":99,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"fdac9df9-911c-40e0-89ff-b14797a54db5","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":99,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"d415fba3-4739-4d94-8b53-b90fdaff3618","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":99,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"80103e13-1ced-4670-9f3c-fb0a705dbb5e","block_type":"box","text":"General Obligation Bonds.","page_number":99,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"5ae1e7d4-5e19-46af-affd-b19eb1e2380b","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":99,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"c2d3fb9b-36ec-4572-aaad-03c9fab5d7e7","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":99,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"d821dd24-acb0-4957-ae28-dc55c91caa1e","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":99,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"6f33f47c-30dd-4112-8401-2eaca1dc5496","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":99,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"a566ac0a-9f1d-4141-8f2d-01bbf6dff9b0","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":99,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"12b87850-78f8-4d0d-81c9-e39656b79ca4","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":99,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"c7781f42-7031-4ae6-8230-7c58ef04a309","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":99,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"e0ef1bde-a202-45d9-9c74-9948c195508c","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":99,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"78115c10-b3b3-496a-85a8-c87f054e3050","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":99,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"5aa88185-87e9-4402-b957-d654323b0fdc","block_type":"box","text":"Revenue Bonds.","page_number":99,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"d0388020-31a9-4212-8e40-17dc701aafe4","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":99,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"1d971b50-2497-400b-b1c2-50f105387dab","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":99,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"13b12adb-4311-4a53-90ce-8fd24ad19ce8","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":99,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"bb07cfd7-5083-4d40-9170-598b78e98cdd","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":99,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"0bd9e35d-3d11-4b92-9e18-1121ddf439f4","block_type":"box","text":"viability of such facility or such revenue source.","page_number":99,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"f36c99d3-53d4-48bd-a3e4-575600d74de5","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":99,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"95c372d2-eca0-4bbf-bb92-a5c117995b28","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":99,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"6fb710f0-e54c-469a-8285-7c7303f5c7cd","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":99,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"52174358-0164-430a-93d1-a0adcf25e8a3","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":99,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"fc18853e-68cc-480f-a91a-3329f13183a9","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":99,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"b8253f63-1048-4a79-a7a7-8eeb6760cb39","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":99,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"65517d57-971a-486f-a410-66782a063643","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":99,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"ee7bcb4e-ad2d-43f5-8244-a8d4727132d5","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":99,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"69b82391-e232-467e-a12b-865c0f09bea3","block_type":"box","text":"PABs.","page_number":99,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"0b747379-e31e-46c2-a6e5-c3f7598e6f7c","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":99,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"08e54f1c-fa46-47fa-bc06-5072c55dd915","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":99,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"55d6906e-61d5-45e3-baaf-dcfd69229fd2","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":99,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"36ac3b0a-c2ee-444b-81c0-1e5e819ebd4c","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":99,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"7937c4b0-cfd2-49d0-9f27-fdb18810d907","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":99,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"bf7bfe4e-62e9-49bb-96a9-d058e6f58184","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":99,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"d7d41652-84b3-4750-bab9-f8e00e09ed17","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":99,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"ee80cfce-a293-4a3b-9108-3425a3d52cbf","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":99,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"00a7b0f7-32e6-4110-a17e-d3539eadcdee","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":99,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"fbf01350-d10f-4504-9116-83c8052a9f75","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":99,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"d0b7081a-e3cd-4932-af54-c18b9bebb83c","block_type":"box","text":"the par ticular facility being financed.","page_number":99,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"80862f68-68db-423b-b0b3-754e4cef9c74","block_type":"box","text":"Moral Obligation Bonds.","page_number":99,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"aebd042d-68d3-404b-a9ea-f95d1cd2537b","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":99,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"325f4349-5e1a-466b-80c4-2312148c74c9","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":99,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"90cc4802-e904-4843-808e-2efabd7d7a66","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":99,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"5c7d4c20-c323-4256-8110-e40b7909154d","block_type":"box","text":"that issued the bonds.","page_number":99,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"636beab6-fe28-48b3-8640-8371be5eca6b","block_type":"box","text":"Municipal Notes.","page_number":99,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"e08b7d66-ebf9-499c-b583-2da19af1a3d4","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":99,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"031f897a-4ddd-4a9a-8e25-ff5fa1d7347a","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":99,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"28cd4742-3c44-44a8-a9f0-039356eb8532","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":99,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"2a9fcef1-4b9e-41c0-b49a-b0987146265e","block_type":"box","text":"II-57","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fb3c33d7-e87a-4e16-b297-62c7b2021ba3","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"802932a3-1f20-4e33-a95d-408663ddf0ce","block_type":"box","text":"Municipal Commercial Paper.","page_number":100,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"1f358e49-ba5d-4c90-b2dd-3d4422d81e9f","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":100,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"754b495b-9613-4ea1-bb2d-e68d51d8b342","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":100,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"1236e4c9-8755-4e92-8af0-be44c5966fe1","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":100,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"fc472623-1bfe-4f0e-b34b-b83277b635bb","block_type":"box","text":"Municipal Lease Obligations.","page_number":100,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"63b1d7a8-83e7-43e6-9d76-c79a2d24a2d6","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":100,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"cbc2c249-8f1a-43b0-ac64-d63373961466","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":100,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"f2a28a2f-365d-4391-96ae-977442c6a8d9","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":100,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"fd06841e-8725-4d06-a8af-f534841c4efb","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":100,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"b2408c63-d33e-495c-8854-8ce5e5f0d65a","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":100,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"a4984c65-6db1-462a-8202-7861fff096f5","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":100,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"e5e02b64-e3e4-4388-beee-dca0a5a9f524","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":100,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"58189e4e-2ac8-4aa6-a54e-e4564599ee49","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":100,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"6768f6d8-f041-4236-9a24-ffe441a16d85","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":100,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"19615e40-7fa5-46a8-80d7-28f5b08a913e","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":100,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"d6418213-003b-4373-9398-e50640a94687","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":100,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"f636ed5f-93c0-43cc-9279-bd1165ccdcde","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":100,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"e023fab9-3a34-4e43-be34-659f4e959c89","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":100,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"b5ee4abf-62d5-4a73-b9d2-dfde19e0b543","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":100,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"54e483e7-33b3-405f-a1b6-690e6d6e44ab","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":100,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"831274f9-b4b3-412b-9fdc-b11718ee54eb","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund and could result in a","page_number":100,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"cae0d25b-e4c3-46fc-88ca-cbfbaeacbb20","block_type":"box","text":"reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":100,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"047165e9-adbd-4bee-9232-68562e7db962","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":100,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"c2442b62-34a4-4d7c-8df9-c411bcd94cc3","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":100,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"4d155aa7-2cd4-4c69-ad3c-8ed66a936cce","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":100,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"dc1d36df-aece-45cf-9cfa-4e7495dded41","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":100,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"527ccbbd-3e63-449c-9e2e-b06526952b39","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":100,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"f7e4e20f-f8f8-4fc0-bc97-e6c8fbc8afde","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":100,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"420b93e0-47a6-48c1-b412-d0b2f649f29d","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":100,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"09b25ddb-27a5-4edd-9f18-41089f842e0e","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":100,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"72664c80-4e7f-4033-b8bf-88de1f4bb3de","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":100,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"c9c794a3-02ca-4c09-8146-d588fd9d5d4f","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":100,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"e22cd3bf-8395-4947-91f7-7249e4a22284","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":100,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"8286cb60-a9be-467c-88e1-7cf0f9b51fb3","block_type":"box","text":"Tender Option Bonds.","page_number":100,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"3bc1e5b8-c8dd-4a04-8eb2-cd5ab99eab1c","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":100,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"e2a6a5e6-a224-428c-b7b1-39897984b6d8","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":100,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"3353ba3c-108c-4aa2-95b4-d83bcb7b32ca","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":100,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"a3c27b43-bced-4858-b5f9-4d60acaad8c7","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":100,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"20b0001f-5a59-463b-9541-aa6c55ab824d","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":100,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"257dee1d-46ef-4c8f-916a-6f790ebd1352","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":100,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"fd9fc22f-c4fc-402d-9a5f-4363416527ef","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":100,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"5e850f08-e0af-4557-93d7-b49cb5967ec6","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":100,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"86e5384c-575f-4fdf-a06f-6d88839a5090","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":100,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"b6a78f56-fba8-4dda-8b31-8cdc78f46c0c","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":100,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"4faa43bf-24a8-4372-8d3d-e6808d9e586d","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":100,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"54b8ccd4-31d6-42cb-9112-8a4a0b5bf297","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":100,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"a658b254-947f-431b-baae-cdba76b8983f","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":100,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"cbafe37c-15e7-4f08-8533-2c42d7267fb4","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":100,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"05249a99-e41c-411e-b018-2908a18811b4","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":100,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"3f63f1de-0552-4007-9c74-20b781be3280","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":100,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"7f93a52a-1b41-4df7-85da-10756241ba24","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":100,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"95fd03b1-3b13-416c-9090-5fe80a3bbf48","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":100,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"4882e48d-919b-4f14-b0e0-02bef8241702","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":100,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"4b029b7f-06fb-43af-8307-9cea4e4fbc73","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":100,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"8aa26128-9634-49fe-afc2-1d57a402b809","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":100,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"2838e604-9476-4af2-870a-f7a5106df7a1","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":100,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"b6293ea7-b8de-419b-9e4f-8e4d4a0ee3e5","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":100,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"eccf9add-7c53-4487-9c5f-c02bdfcdbde5","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":100,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"14e0ffcf-af65-4823-bb35-8d9e7d37a34e","block_type":"box","text":"II-58","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e624613e-9cd4-400c-9d35-4efe4b0958bb","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d5c0d7e0-d1a8-4203-9def-00ba81aa89cd","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":101,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"e94d5ae5-94a2-45fb-9e93-c68d72bbb02d","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":101,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"10491f17-7d5d-44eb-a1d3-cf323e1ad3a0","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":101,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"26d6ef84-73e2-43c6-8439-dfa153fb0862","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":101,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"de71ce7f-d771-4071-bd17-abc808144929","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":101,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"28e804e5-2e43-4a3a-a9c3-f4bd5cfc3f83","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":101,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"8fc99384-e65d-4a61-8020-1e41a4ea127a","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":101,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"97809210-475c-42ea-a5d0-9cb7594f1ba1","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":101,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"1c3c0425-5348-4eba-a5ae-7f368793d728","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":101,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"350f49a9-cb9a-4e9d-a7f6-e97b05e5eb0a","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":101,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"1472302c-171b-4ede-a62c-2af109b8287b","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":101,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"ce19d093-2caf-49e4-a23f-a2427908d24f","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":101,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"23d3a406-2c89-40b4-b8a8-fc5f28d83d86","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":101,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"a088b2b7-62f4-4564-a04d-6d5610e2f7a1","block_type":"box","text":"issues.","page_number":101,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"c21fcebc-904b-4e42-ae32-410d278d6ce1","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":101,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"1ff3c798-692d-4b52-9bf2-4c37d09f4fc0","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":101,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"4616e99a-72d0-4f91-88e8-baa748b45f57","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":101,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"ac65e6ca-31c3-49e8-9d24-6fe30933426a","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":101,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"38cd2911-38b5-4023-90b0-2397ed631569","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":101,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"ae85cc41-7a93-4748-96af-5dc93d492bee","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":101,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"b2db722c-ad7f-4bb5-8265-ba09f4dbbaf1","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":101,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"0f6f022c-f32c-4ed5-8f41-eb5a4dfc630c","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":101,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"9044b5d5-f2df-4f41-8545-831439a46fb3","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":101,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"78560574-c80e-4c3c-a72d-cdee38cf9ef6","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":101,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"5b266602-0de9-4787-9580-8ab708656bba","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":101,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"803ba9b6-e066-4cf0-97da-a098a1782c76","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":101,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"7044aaac-415b-4e6a-9655-d3ce3b5d7661","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":101,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"80296d3c-27f1-4aff-9c2e-389b306e6691","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":101,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"8017a42c-56da-451e-a982-77a1831d117e","block_type":"box","text":"i.e.","page_number":101,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"33d71ca4-01a9-435d-9518-1e5f2e9b799c","block_type":"box","text":", the Fund). In contrast, in the","page_number":101,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"4b548428-c636-49bc-98cb-297e4ebd96fd","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":101,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"680bcec2-a0fd-4725-86ad-ac7ba51c5af6","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":101,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"7886a361-2e15-4933-9531-9f608f0a43c1","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":101,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"9c5dbfbc-a77b-40ca-a6ca-d52ac9aac728","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":101,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"4ed0b4bc-ba61-4378-baa5-18037cb70e8b","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":101,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"7fea11eb-28fb-4959-b2e8-e3def6319f33","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":101,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"6241361e-b27d-43e3-82f7-e8d6316f39cd","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":101,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"764c3e39-ee1d-48ac-9d27-48a3b4ee7363","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":101,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"efb1a95b-4a75-4581-9689-2d4951fc2967","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":101,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"704a6107-958d-44ce-9661-85b12451a7c2","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":101,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"cd3715d5-92ab-425a-99f4-a09807a37163","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":101,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"6ebbeb71-2b96-4804-a6f6-6c9e27ba608e","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":101,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"ab514362-9fbc-4c7c-aeae-363c65994f3a","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":101,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"d7c6572e-d0ac-4872-9296-546ea8be71ea","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":101,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"17317903-4015-4e7b-9253-92d636a76776","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":101,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"a438abdb-7a74-4a08-afbc-91e6e842ce7c","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":101,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"d84fcde5-25f2-4a62-9fac-e474cd70eeca","block_type":"box","text":"Trust.","page_number":101,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"67181ae3-e8a2-464c-bd50-9348e95182e6","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":101,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"3f7779f3-b99a-47eb-aa66-d1ccabe3dd3a","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":101,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"7f708483-6e2f-4646-b36e-3a422fb72a20","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":101,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"50f9d112-e298-43da-ba2f-a138ca220357","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":101,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"018c462a-a0ee-48f0-8726-dcab569bd308","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":101,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"d682c7c3-2c9b-4c6a-ab12-2645ac073353","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":101,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"2f3a974d-1f23-44b3-80dd-ee1cbead8ac4","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":101,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"2e1d98ab-b391-4245-8599-304921742179","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":101,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"8e4fc743-9217-4cca-ba70-d744f107576a","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":101,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"26d72995-d625-4ea9-899b-6e38ff4e0645","block_type":"box","text":"II-59","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aab0f901-4141-4dea-9d4e-5d2a2ef14221","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f0587b87-451b-463a-8143-39ac34f9fea6","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":102,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"eff23fb3-dbbf-429f-98dc-85637e017794","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":102,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"c6cdde1e-39a3-4c6d-8948-f0368908fd4e","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":102,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"3dd614e3-7b8b-4162-a691-4d61b48ebeb8","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":102,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"bc92023f-1cc6-4457-af3f-a67d3ed235a1","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":102,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"b5e418a8-4955-40be-941d-9bbaac571f88","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":102,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"6926a1db-81ab-4a04-ae6a-94223db501b3","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":102,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"f16c8727-f706-41a6-9f50-0fde4693533b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":102,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"a20b20d5-7184-43ed-bdbf-8d97d93f7a45","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":102,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"7c899c51-fdbd-431d-8e20-c3a7ccf2601b","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":102,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"dd8b07d7-3535-4506-a16f-595fca108d9e","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":102,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"80e956fb-6dce-4808-98c8-ad03be4e4e23","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":102,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"fcf7754d-664c-44e1-8f9f-70d7d42c2d52","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":102,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"cf5ad4f9-0e26-4cce-9a53-321dc68dfa87","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":102,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"7029f303-387d-4a43-9d77-a24586cfa09b","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":102,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"e8b6e3bf-f1da-4041-8400-060ad9282941","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":102,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"79ac753c-5f15-46a3-83ac-3f80f60befb0","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":102,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"b87b417f-826e-4639-a600-5603d781bebe","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":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"7ff7690c-390a-4ed3-8eb6-68ecd4528c02","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":102,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"d9e53a4f-43c7-443f-a318-e19da0006c97","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":102,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"29f7039d-5758-4a7f-90d9-c48267f3144c","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":102,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"29627d76-7387-4340-9351-5d3497ee1b21","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":102,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"ec0caae7-b5e2-421b-a08f-db1f8501a02e","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":102,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"61cabb6d-a465-47b2-836c-d85f6810c0a1","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":102,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"b6bf366a-0073-4f55-94d6-12027a54c643","block_type":"box","text":"remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":102,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"96facc9c-e858-4996-b4dc-6b5efa769ccd","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":102,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"19c9bbd3-78b9-431a-bd8a-ce82c608925e","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":102,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"749983f6-15b5-470c-8ee4-d3f05b58fb78","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":102,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"b7e7adb3-29b5-4727-837c-c4e6a6b4c96b","block_type":"box","text":"i.e.","page_number":102,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"2ab638f4-8797-4648-a991-3407e8ebf598","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":102,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"717aab7a-54ae-460a-aa89-6a081d8570a7","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":102,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"30760bd3-0952-4dd2-8b62-7fc2dc8f744c","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":102,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"b1dcb4c1-fbe5-4766-a469-36f06a7ced75","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":102,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"2b349618-a129-4ee1-85be-d74c24502fa9","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":102,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"735122a6-b7c9-4e3f-9e24-4b34126fae2d","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":102,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"912a732f-cad1-482e-9b65-94aa90632153","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":102,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"87f2d195-843e-4c35-bb80-d0fe7ed966b2","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":102,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"b8bebe69-e417-4ff0-b3d7-e9c23ed098e3","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":102,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"98011050-163e-4606-b0c8-8a9ae2d63c42","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":102,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"c47125ae-1d21-4c5d-9183-a6e516475297","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":102,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"090331f0-b4f2-4bb7-b491-575325611d5d","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":102,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"a4da3ad6-b705-44e0-bf9a-48318bf7a90f","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":102,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"e89a5247-ca74-43f1-8f9a-76314157b160","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":102,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"dc51f25e-bfe6-4a25-97e6-56d0a1671aa3","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":102,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"2a683cda-403e-400c-8632-8eafb13c75be","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":102,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"80ddef54-4448-4cee-a732-40bee2d0c4de","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":102,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"0b42ada4-1dcf-474f-a8f0-d60a47806dc8","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":102,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"e02bf121-c52d-4edd-aded-916c21154bbe","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":102,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"b7e254f5-2e80-44f2-ba9a-ef6f5f452f20","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":102,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"def8bf66-5c4e-479f-869a-15dcd30e1366","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":102,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"27a29520-b358-4536-b69b-8da74815db84","block_type":"box","text":"market is not yet cer tain.","page_number":102,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"28d40b33-83ad-4ac3-b0b1-44b2a34ad685","block_type":"box","text":"Yields.","page_number":102,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"ec0079b4-93aa-4112-9c71-6d773b2ad242","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":102,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"657ae043-fd14-40a7-bf44-c6fad987bd61","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":102,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"430d8004-32a1-4751-9b45-58b95df3dddc","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":102,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"d96376cd-9797-4c1f-9987-cd6be58b8ba1","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":102,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"550b8f18-0f2f-4a9a-963a-3033b54331ee","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":102,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"fa8b3e84-833c-499c-94ab-359e44665e61","block_type":"box","text":"II-60","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dbfb65f4-da09-40ee-8a38-85fc2f30c470","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0efdbb71-f9d6-4772-a239-0bbccd99b699","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":103,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"9eb60000-e900-48f5-8139-bd16eff923e9","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":103,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"11fa6486-c000-402e-bc9c-2297ca4d8fcf","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":103,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"03487e43-83f3-4fd8-9238-117130cf5313","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":103,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"1a6ff86d-3633-4ae3-b629-5d57a4f99413","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":103,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"5ee30401-8cff-4205-bd0d-f26bbfe9b7b2","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":103,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"0887391a-0bf1-461f-b6b9-160d70b1e375","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":103,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"9da84576-46fe-48cb-8393-d7e911281de8","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":103,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"90cd152a-245b-4c32-8860-a01bcc70e741","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":103,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"e9b15f97-73ba-4de0-9dcb-574a1ea0fae3","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":103,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"05171983-8e8d-4b11-a186-e22eb3d45dd6","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":103,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"801e3bfc-86c0-424a-ae23-d02eefb5552f","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":103,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"6a7a4ddf-11ee-4eb6-858c-ab2b36a452b4","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":103,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"dc448233-1d77-4f8a-b611-f474ca25d748","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":103,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"77c38b42-78a6-41c5-bf36-e261c93e35e1","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":103,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"ce3cdda2-f9c2-4e0a-8365-65f8ca58fe4f","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":103,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"68a3a276-655e-404d-9934-89213b4b0ec1","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":103,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"fd855af7-90d7-4b10-a953-b495f67ea4fd","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":103,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"a960ecbd-673d-4c0a-8817-96e2544170c3","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":103,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"472bccda-7628-4bb8-be2b-9c8d8e27aa84","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":103,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"c9c074c0-de30-4a50-b9dc-3a94b0369d61","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":103,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"bb879b8d-0109-4fd6-88e5-a71d11429765","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":103,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"de232db4-4479-4771-976d-4587d54e01a5","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":103,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"3ffb4ba2-5233-4886-9143-e0d6380b7278","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":103,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"32325e26-b36e-4ad8-888c-33d45c4fd7f6","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":103,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"cc4e1cd0-a9e0-4e41-b57d-3b522c389244","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":103,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"0cb4b721-7d28-4101-8dc5-c253dea9a83a","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":103,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"c3b882dd-4b9a-44ef-bf7d-2def1ce48049","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":103,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"54084744-b5af-43ed-8b24-87e4db45e59c","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":103,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"a476472c-a42a-4527-81b2-f2c8afab3a96","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":103,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"6ec8125b-e642-4def-ac3c-6d28894d87c1","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":103,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"7f5b5374-9c2e-4e0a-a4e1-9fa235f5cdc0","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":103,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"d12263e9-b7ae-4f69-90c7-0db990935be1","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":103,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"12c510d6-e0d2-4b3b-ac17-c35c0fcd1de3","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":103,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"878a06e0-5d2d-4f54-b680-21c3b7905c40","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":103,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"51f8740e-9d5f-4b53-ac2a-1c80ca5a1550","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":103,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"303258a8-b215-4b46-a883-cf8ecbdfff5e","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":103,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"66b4dbe0-8171-4134-9545-14596a69f21a","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":103,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"df9074d5-cd5c-4be1-b61a-bb1e6d891abb","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":103,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"8275feab-3495-45ad-89e8-ae2c26ce2585","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":103,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"2533aa51-1954-4ece-a431-1aca8921157a","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":103,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"4a3adf60-e1e7-41d1-9b80-47529e25aa44","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":103,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"531f7c0d-2e0a-41be-a233-cdda95d237e5","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":103,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"25f94527-6e75-4f08-8fbe-460557e3a4f2","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":103,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"6169fa79-9219-4044-845d-599cbdb3c494","block_type":"box","text":"Call Rights.","page_number":103,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"434e4b16-7ddf-475e-9b0c-a89cc6df2ab0","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":103,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"61dbb96e-d540-4cf4-bb09-df63333588de","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":103,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"677e9cde-a062-497b-952c-b10a6f8d7f73","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":103,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"3590ba73-5693-461d-bf6c-1a647cbf01d0","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":103,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"18bdf7f0-c584-4c9a-9f3f-46e60d315135","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":103,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"f778c47c-855e-45a0-be47-65af6b5f5617","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":103,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"b74c78eb-f458-4a24-98e8-01aa57e0012b","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":103,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"37a8fbeb-3f49-415a-9ef4-8226384e46dc","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":103,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"d5f7c77a-42da-4473-a3c5-5d0f75e88cde","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":103,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"8e1cec6d-78ce-4392-8c37-620c6c4e9a20","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":103,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"424bcb49-fc8c-4470-89aa-ea9c8ecdef26","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":103,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"01f015d3-62c2-4945-a5e6-128d7a3ca7de","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":103,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"7d8946e4-06b1-4bf4-b46b-32fabadbb822","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":103,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"52ec5c59-d759-436a-b693-63ac9c63e8ed","block_type":"box","text":"II-61","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b96f6760-60b2-4b8f-ab7d-d72aaa0ff5ce","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef9604d6-950e-4218-9f7e-a53037ea1b16","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":104,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"76320b70-7c10-484c-b956-ecbbabfc1c17","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":104,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"64ed7960-b431-4d18-a5c0-bc21500a1abe","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":104,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"27f86e06-10af-439d-b9cd-8b8608ffbb41","block_type":"box","text":"i.e.","page_number":104,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"d1fb89b0-9ac5-4e7e-8d4f-74b7e8e74430","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":104,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"13caf3ea-7ba5-4228-9717-bbc999fed7d2","block_type":"box","text":"rates).","page_number":104,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"ba980a4c-97fd-4b35-bbc7-fd7dbe0d553e","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":104,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"4eba75c1-b890-4c9a-be5e-5392044d6e25","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":104,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"897dec75-a594-449a-942d-de0eb2564e76","block_type":"box","text":"e.g.","page_number":104,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"bcf58e66-26fd-4e48-9d09-305e0fb2872c","block_type":"box","text":", an exchange of fixed rate payments for","page_number":104,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"1716d1be-b647-4e54-8faa-3547d2b0eaec","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":104,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"a4c71075-e897-453c-84c3-4244531fbf76","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":104,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"0ea59339-4521-4aac-b3e3-439933c4885e","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":104,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"578c8281-2eeb-4f67-a1ed-0352df961c0c","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":104,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"13866d23-6df3-4a5a-b47b-ae703301cca3","block_type":"box","text":"with the same attributes as the swap (","page_number":104,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"f2020f34-d9aa-487a-bc47-8e140f387108","block_type":"box","text":"e.g.","page_number":104,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"32769748-bf96-432d-8257-bdbe73ed0955","block_type":"box","text":", coupon, maturity, call feature).","page_number":104,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"2f6f1e57-87b6-4a42-aa70-53183448a032","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":104,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"3d8e3124-a881-4120-97af-9b9709caf6fd","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":104,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"39ee0854-83e0-4be9-b5db-ec6acda8b0dc","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":104,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"8ae5b136-1a99-4d99-8fa3-cb8a5c36de1e","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":104,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"82ffdfc1-af90-4f8e-9b39-f4b7fd52b0b7","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":104,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"85fafe1d-06d9-47ac-82b5-4343a0e6df43","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":104,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"c12a97ed-8194-4f4e-972c-0d73f1be4138","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":104,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"a6390f0d-d7d4-4f50-b5d2-9586f2d8126e","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":104,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"ac478936-abc6-4398-b420-5ef621d6aa8f","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":104,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"4a44b0b8-f52d-4469-89ba-30286e4e50f0","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":104,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"5a6d4135-ac64-46e9-833c-43556f09a768","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":104,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"d7e18991-e52b-4ef6-bd5c-529ed07e7f98","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":104,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"55c8491d-631c-4130-8294-7340d2c3d33b","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":104,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"d0d10d14-1816-433d-9953-723e36fea436","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":104,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"30ad7849-0867-4eb2-9bea-55092161a023","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":104,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"6289ed55-c61e-4baa-969f-1ba7b563353c","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":104,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"bc735f46-82c5-4373-857c-3cf2d2ae3678","block_type":"box","text":"Insured Municipal Bonds.","page_number":104,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"53b77cc3-3459-4f76-8727-bf87a143782e","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":104,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"bd9a3cb4-18f1-4593-bf29-3fc33ee4ba3f","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":104,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"5c0aa28a-7d80-41c3-af34-0eb65a67ac8b","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":104,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"d323e355-7cae-4cf8-833b-844e3ab7b007","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":104,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"031a74e6-c5d1-4268-a1f6-647ee47023ce","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":104,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"eb9a7a55-4ac2-4ead-a8bd-79f4e3c3c3ea","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":104,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"6a5f3952-e8b2-4618-a69f-30f89918d11f","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":104,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"167c7e4e-cb1b-4381-baa2-b9b9c5dc77f3","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":104,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"7eddc8b3-5313-4e30-8873-10cf245d15f9","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":104,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"23ef90ab-705b-4efb-8251-2d8ca92792f8","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":104,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"cc2bfcfc-06d4-4de8-bd31-eca306046100","block_type":"box","text":"bond could drop.","page_number":104,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"d1b0763a-2aa5-41f3-aa16-87569e821b90","block_type":"box","text":"Build America Bonds.","page_number":104,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"7068db29-7011-4dbf-a22a-e8f759f4d967","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":104,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"21645d12-7d28-444c-a623-0ffa026d0f05","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":104,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"00030817-6161-4a03-9694-7fa29aee9cf9","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":104,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"b04d78a8-42f6-4e79-87a5-fd365879da09","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":104,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"4c5ba372-c220-4c69-847a-8eb14499b73a","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":104,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"cec94299-6934-408e-b653-67d9c0d1b78d","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":104,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"5d3041fa-dc05-4254-9886-9ab7b8001c3d","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":104,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"cce7f655-d941-4a44-b52e-716492641a1d","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":104,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"52cb211a-8abc-4ca6-b6c6-2f3a6f9f4961","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":104,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"a8d79b6f-a560-4d3b-8752-202fe8d166a5","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":104,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"e3e2fd79-a5c2-4f8e-aa42-5b414c6f0feb","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":104,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"be0cd767-ca05-47a3-9368-dd0935b54177","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":104,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"ca027145-a22b-4e78-9af7-8c485b9c6800","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":104,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"7c89625a-bacf-440f-b512-f01cee772931","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":104,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"73899e28-d1c6-4eb6-9605-2d4baa976c86","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":104,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"0863ae3b-ab7c-4499-81f6-1769ab06fd4b","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":104,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"25ad282a-8b8d-4853-aba9-274b62c2a7b7","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":104,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"b258f55c-8827-431d-9ceb-9e94828922a8","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":104,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"b955f243-e925-4dbd-899d-bf0cb68b97cd","block_type":"box","text":"II-62","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4b736790-6b4f-4ba5-975c-954db3ce2e10","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0bf98d04-0c6d-489f-8fff-8003b524b5c3","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":105,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"a4c9a5c5-42e2-4577-a3ef-37c0ba2671d1","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":105,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"267b11dd-e0e1-4d67-8ebd-0745217db068","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":105,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"9f08ec36-e0a8-4006-8b6f-4512f882bdb3","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":105,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"f49ebedc-e732-4033-8c87-137da8adf8f8","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":105,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"6d2c87c3-1900-4b33-bf8c-f1920eb4ddaf","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":105,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"968210bd-b8f3-40ec-85f7-12254182d2a2","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":105,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"af18f46d-2aaa-4913-8bb8-c14ec709ac70","block_type":"box","text":"their face value to the sponsor (","page_number":105,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"97243cd1-6625-48b5-9f5d-1b36e6c78664","block_type":"box","text":"e.g.","page_number":105,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"992fc19a-4234-4334-a6dd-b06b2aff8582","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":105,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"7e7b0a0e-968d-429f-a242-9858be2a5dba","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":105,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"95be8e24-75e8-464f-95c0-304ec6e1edb1","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":105,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"20878bd2-38f4-4fce-9cfb-e7363cb50ad2","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":105,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"7a177397-f2df-408f-89a2-9ac473eaeeec","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":105,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"ac5a5db8-e878-4f8f-b1e5-6323ec60ff38","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":105,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"0fcda389-39c4-4229-8525-9d9e07e7810a","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":105,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"b70b032e-4551-49ae-90e7-2232152c76cd","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":105,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"87469481-ae40-42d8-a1c5-26e458d68040","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":105,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"4613f961-3108-4729-9648-93d1d0088939","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":105,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"bf48b45c-6632-40cf-9b84-c82450e441df","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":105,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"beac59f7-fe3b-4946-b04f-0c72b890e914","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":105,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"766b56cd-1644-4b72-aebe-39b7e602ece0","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":105,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"c3b6f6e1-a0c6-41b3-a4f8-056f68b5dd1e","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":105,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"dd47e8ca-8f37-413b-955e-0c7fe1fda867","block_type":"box","text":"such opinions.","page_number":105,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"3d0d4c9c-ecb3-42e2-b64d-715295e741d2","block_type":"box","text":"Operational and Technology Risks.","page_number":105,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"7b099815-839d-4e75-bb9f-861818bb9249","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":105,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"8776797f-808b-4a3e-b4a5-28c3b04e9785","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":105,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"1e472523-a641-4e9b-9b3a-cb48d873ad31","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":105,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"c7dde312-4b92-4da5-8761-1ce0055fceb0","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":105,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"2638b764-5ff0-49ef-8fe9-7762f1cf9e72","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":105,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"5fc41527-6a2e-41ed-85ec-ed281797307a","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":105,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"787d4784-a93d-43b7-8c74-72af517863b6","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":105,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"ae684463-584b-4eec-b487-d01d2dadc7dd","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":105,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"53a15f57-89d2-4ea5-b0ac-45a90e1efe51","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":105,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"96fd6c6e-d2f0-4bc5-9eeb-233488c56c57","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":105,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"ef33db14-6897-404c-b8d4-75d7050e467c","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":105,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"18cef88d-a96f-4945-883b-84fc015d35b7","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":105,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"a76b3dad-52ab-4259-b5d8-daf8fdddef46","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":105,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"4f714b98-10d4-4c0a-9792-e25120b4ff17","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":105,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"bfc069ce-1b82-4018-a611-86b761fc8073","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":105,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"c165443b-42eb-4c16-92af-2e2cf05d6a08","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":105,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"29ff1ba0-ffb2-49fa-967c-b97f0f70620a","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":105,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"da1ab3ab-99e7-47ac-a21e-ef89b77f89f2","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":105,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"1efe7641-55eb-48f2-ac00-3282a2605e12","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":105,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"5c2dc1bb-c847-4a28-b3da-be5a0e13394d","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":105,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"51315584-56c4-459d-aad5-edf882b0fbca","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":105,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"72697cea-b97e-49c9-9da9-1164d62d2334","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":105,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"6264dc12-83a6-4f4f-ba36-f99bc7f3900b","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":105,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"4bf3e39b-3324-4da1-80a6-2bb989073c22","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":105,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"1c085325-a512-4fa3-a2ed-fbd920f05da8","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":105,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"8ca2124a-35d0-4334-8666-5ebb59a68c09","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":105,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"0f0f75e2-09d4-4bc6-9fcb-89f6231f9023","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":105,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"bcc3df00-f093-4b97-9d55-eb251a6d39d5","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":105,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"d13f18aa-676c-4010-a089-eab6f8155683","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":105,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"cc88b78c-4d4c-4a24-a4fd-381e77d86c6f","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":105,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"ea566360-bb46-4c5c-b338-9815d9cc3a8a","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":105,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"9494dca0-60c5-4ff9-9285-686e4f375f24","block_type":"box","text":"infrastructure assets.","page_number":105,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"f3208a12-e0de-468e-8bda-f20732a95c81","block_type":"box","text":"II-63","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"550b0f28-197b-4976-bb55-406cffc675b9","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27818c04-4d43-4a28-9254-571e49aafa7d","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":106,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"e6c167ba-69da-466a-b3ff-f040e8a4fd4f","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":106,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"7b43ed4f-b556-40f7-bdb2-81fb2443f65a","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":106,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"2d9917f6-a332-4330-95a6-b2f2f5411eca","block_type":"box","text":"or services.","page_number":106,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"2a704624-5c95-425f-9e56-d7d7ae7d2b9f","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":106,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"0da30dc0-ac0f-4373-9307-43b10f183222","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":106,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"e24f8a1e-0abb-4e4f-8534-e10b0fe3c4a0","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":106,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"215ae448-e7f6-4674-9b58-f63892179912","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":106,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"20fd488c-c830-4339-82fc-3f91f9ed0ac6","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":106,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"a7a6ae32-b091-4b7a-8298-33771865c7a3","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":106,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"8ed5406e-2de8-488a-b1e2-1880f1db4da1","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":106,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"ff768ee6-e80e-4cb4-ae6f-6b43fccb2aa4","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":106,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"1f601adf-25ec-4217-90d8-d535b15d8d76","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":106,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"a101795e-7f76-4818-a441-eadf190d9c16","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":106,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"8d31d48a-0d2d-44e1-a6ba-dbc69e9b9784","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":106,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"59351568-55b3-4d87-8bc4-b025ef74a994","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":106,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"e5ab1355-e3a4-4cf7-b36a-745faf859e73","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":106,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"e46b6072-c29a-4230-ba23-390e21977fa8","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":106,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"a487e1ed-5cae-4c3f-ad25-c83a14cc91b0","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":106,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"19e72446-0b28-42cf-a877-94f4583dd9af","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":106,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"7e5efcc5-0046-45c2-999e-21c66c506873","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":106,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"fbd357b7-cd4b-4af4-a775-83c222e84fe6","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":106,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"679574f1-defb-49c9-becb-0a0b28ba111f","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":106,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"92d5e0c1-fa9a-472d-bae0-d7b075d45b43","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":106,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"2c828dcf-e93a-4193-a81b-e90b6f5790f1","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":106,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"b21cc4cc-ca61-4b6b-b49a-c3e7e9cd643e","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":106,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"d68879b1-ca32-4b31-9525-90a6fe1056cf","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":106,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"296b4a77-f4d1-4ba0-98e9-1aef931e4da6","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":106,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"6f54bdc2-3f31-4466-b314-bd19725f58e0","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":106,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"cfc7cad4-3aae-40f1-a418-a5a79b904dc6","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":106,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"867a5087-a816-4ba1-acb7-0ab8eec1632f","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":106,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"d012fae3-23e4-4f00-b429-4849488fefe7","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":106,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"6ee0d4aa-2b79-4505-9f88-f7b4e2f22578","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":106,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"99851d4d-20b9-496c-820f-86e8c94752f8","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":106,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"2be076f2-774d-4723-91a1-fe7373a861ab","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":106,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"a957fc35-a8b3-429d-9396-79e72732f8b6","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":106,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"9f5e9aa2-a967-4218-ade0-fbc2747f97cd","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":106,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"a5f5d793-93af-4d97-91b9-2f506c24fd04","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":106,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"fed0a5c0-f6f2-4466-a927-ea9555d52dad","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":106,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"9a7692ea-1b89-482b-ab85-71334733d80c","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":106,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"f4530474-2801-42b4-98d3-024bb007da8d","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":106,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"f1038dd2-24b3-430b-9d54-65a9b18a58ef","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":106,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"20e16087-5955-4630-bc1b-8fef463c7d52","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":106,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"6472a1e7-61a5-471d-aa8b-d7b6489effdc","block_type":"box","text":"resources to monitor and implement required changes.","page_number":106,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"531e2a18-955c-474e-88ec-d0766894b157","block_type":"box","text":"Participation Notes.","page_number":106,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"0db7e23e-9d68-4550-8b30-5741d05d5805","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":106,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"30b56b98-36d4-4e7f-8d10-eed96ace043f","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":106,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"66f14f6c-77a3-4ecf-acda-046fae9c2cb2","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":106,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"ac0597af-f9ef-48b9-8a8e-69ba02201c61","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":106,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"4d50b7d1-6e8b-4924-a3ea-289b53701328","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":106,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"06c9e683-dd94-4d48-81b0-3862d934a874","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":106,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"c596cf31-aea9-4a94-b186-ae5930a0ebf7","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":106,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"2af0aee6-f614-4839-aee2-c1e9017fb8ba","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":106,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"03975cf5-7838-4b16-bcc4-4be11f6adf45","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":106,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"e3641873-18d4-4312-aafd-069604b4b026","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":106,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"7528b76b-03ce-496d-a802-08f34e58d0c5","block_type":"box","text":"II-64","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9799e5b8-b888-472b-b0a5-a05d65336f69","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"960b8b73-127c-4ea3-b92b-33d61c79f8ce","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":107,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"8ebbfb63-32ae-4597-9ec3-46dcb9e560da","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":107,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"22800e0f-0d43-442e-81e0-588cf8f3ba04","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":107,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"e5f66a8a-a581-407b-adc3-3c44d4a3c8c7","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":107,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"03d23657-0d4d-4f6f-b2b8-e4a300b9edba","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":107,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"b45d1997-083c-46e3-aacf-03ad4b36da17","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":107,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"99d6ebc1-0271-4ea2-bd2f-d88087bd6501","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":107,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"3f8d865c-bd42-4d1b-aaf8-43bf331e7633","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":107,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"1816519f-f565-40f8-b744-9b434ed53d6f","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":107,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"b041e003-8d8f-4eeb-92a3-7db0ce35e9b5","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":107,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"285a451f-63b7-418e-858b-be7f1c7e6a96","block_type":"box","text":"Portfolio Turnover Rates.","page_number":107,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"9cf651fb-1e82-4268-b53e-f1cba1752831","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":107,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"536bdb8d-680f-4091-91da-69b5e2c3c38b","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":107,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"788cc50c-a794-4424-a42f-e6e53efb51ef","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":107,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"98e3615c-5497-42aa-a1b9-7fc3988c6233","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":107,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"cc641a50-3d0d-48a5-88dd-84bb58f2161f","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":107,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"0b09ed01-b263-45f1-9d70-9075410503fb","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":107,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"37d16b8c-82bc-4045-9c73-46e38ad63a10","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":107,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"48810862-93d9-4e10-adef-597208cf1def","block_type":"box","text":"i.e.","page_number":107,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"39f32514-97ec-446c-91b8-492ec2db2a39","block_type":"box","text":", 100% or more) may result in","page_number":107,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"efd3d9f2-84e2-4ce5-a78a-458ab06f1e1f","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":107,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"f811289b-2169-4e69-9296-cfc4a636de70","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":107,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"44e65733-aa9b-491b-b6d7-b606e022e1f7","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":107,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"580e21d2-ac33-4bbe-923a-37ebff45d7f4","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":107,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"bc4e0a53-712e-4273-ae5e-f900eda40b3b","block_type":"box","text":"Preferred Stock.","page_number":107,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"48766863-9a42-4b01-8f4e-ec5e761d6431","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":107,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"436ca078-c099-48c0-8755-9fcef0901794","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":107,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"0e0241cd-9b36-491d-9c8d-d7d897d736df","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":107,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"ade799dd-c917-46e2-8675-51f08691820c","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":107,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"29fcb414-be48-4217-8676-72f505963be1","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":107,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"c934c261-8fb3-49f7-bac8-e4934249d3ad","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":107,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"7886b12b-89d7-4577-8683-b2bb8c18fda5","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":107,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"7b10be8e-0c0c-485e-8041-f0ec9dbdc1e8","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":107,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"51cb26e7-e45c-4dfc-85dc-bb2dca51035e","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":107,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"b52b4b51-ecd1-4975-92b8-e41c3d4b78f6","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":107,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"cf992329-70b7-49f0-9186-97101afbb1a8","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":107,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"dd3582cd-8ea6-44e0-ad82-2c817dccd6a3","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":107,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"de75866f-a6ff-48e8-9f7b-544413b64b68","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":107,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"c7c77f99-41fc-4ed7-b6a1-1b267bf7f9f3","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":107,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"fa90d702-bccc-4257-b816-344100cf23d7","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":107,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"e7cbe743-47d7-4510-a0bb-034c7348be7c","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":107,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"c8269493-4a0d-4c29-9607-ce0a3fa4b367","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":107,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"1d8dfd42-c626-4436-8c27-6c5f161877cf","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":107,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"a9a22a4e-53ad-466c-8961-d9220ec419ba","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":107,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"2bfa2dfa-5641-402a-b11a-2357b86c6c29","block_type":"box","text":"Trust Preferred Securities.","page_number":107,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"5f5d6489-4876-45ee-9fb6-22cde230d169","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":107,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"8988def6-c9a9-48f8-a46f-da983468328e","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":107,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"ecbe0003-388e-4518-a46c-b1ff1644559a","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":107,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"1f116d7f-f1cc-4ef4-9f57-b692e6a9f2f8","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":107,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"37d783fe-8828-4699-9fe5-8f471fb07b2c","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":107,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"aeeeb3ff-c1aa-4eb5-9117-45d6e8f9fd94","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":107,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"a890a3ca-109a-433b-864e-7651866bd2fb","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":107,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"4b3adfac-3bf0-4f0a-a297-e4f21f7745c6","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":107,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"2968c655-f4c9-443f-a3f6-9b01a8703180","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":107,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"81baa42b-08e7-408b-b6d5-ccf35c2fb714","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":107,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"cc569b01-e09e-4d6f-b212-76bcd772b7d8","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":107,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"65677818-9f07-4d17-acd1-e0dc71c8c167","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":107,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"270e175b-8f4c-4674-b548-16bce73d67f3","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":107,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"5a9200d2-4ce5-45c5-b6c3-7944b4eff35e","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":107,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"f6a521bb-544f-4671-8ff7-de69a12a65f2","block_type":"box","text":"®","page_number":107,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"37282e46-e326-4b41-b9a2-51375177967c","block_type":"box","text":"”); monthly","page_number":107,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"4144705c-dd2e-4f65-94e4-d44be2a33e35","block_type":"box","text":"income preferred securities (“MIPS","page_number":107,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"867b508d-b234-4251-a290-1ea571ecc84e","block_type":"box","text":"®","page_number":107,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"e907ddfb-af19-4620-bb2f-56dc498db3be","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":107,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"bc201787-065e-44ac-88fa-168c3a2ca87f","block_type":"box","text":"®","page_number":107,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"6f4642e9-0f44-4cda-bfe5-edf2f55f1293","block_type":"box","text":"” ); quar terly income debt securities","page_number":107,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"b4f36968-ea5f-4ba8-af66-5d80503a4953","block_type":"box","text":"II-65","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"64a8a02e-43d1-426f-a961-f1f5c32777a7","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"79baf084-7820-4caa-8b94-bcaba505326f","block_type":"box","text":"(“QUIDS","page_number":108,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"60513439-9355-4e0e-8d4c-0802e986b8a4","block_type":"box","text":"®","page_number":108,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"ca6d9a64-abd2-4216-a7d3-c63a9f8bfc44","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":108,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"6d5f4a84-3854-4418-9e78-a366803d14f1","block_type":"box","text":"SM","page_number":108,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"9f8a1526-10da-488c-99b2-69bacced0419","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":108,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"99dfd874-e6b7-47c7-bb3d-930335d5816f","block_type":"box","text":"®","page_number":108,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"8423db50-1b4a-4bfa-9d2c-73a3d9b705d8","block_type":"box","text":"”); public income","page_number":108,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"320ecbb5-fcbd-4d64-9e29-8b906bc3cdc9","block_type":"box","text":"notes (“PINES","page_number":108,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"1c0edc43-93f4-4ee3-98c9-f72543b97d24","block_type":"box","text":"®","page_number":108,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"5c2c1e94-05df-4ed6-978b-8a5dfa6e9365","block_type":"box","text":"”); and other trust preferred securities.","page_number":108,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"613347fd-fe15-4c20-b914-da60381cf538","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":108,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"b26c397a-ba24-4150-96d6-732a95001090","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":108,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"ae60a719-f9bd-4d26-8e79-9e2ba06c6023","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":108,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"d9272110-8200-420e-a2fd-5927d9c3035b","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":108,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"d7f2a568-7cf9-44f6-8eec-0495d1ab33e5","block_type":"box","text":"regard to whether all payments have been paid.","page_number":108,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"b432bb16-f539-4fb0-875a-52a435fe5314","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":108,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"10a08f81-957a-492b-8275-73d274850ed3","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":108,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"b334dcf4-79f2-4788-8edf-90e3940bfea8","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":108,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"269c5924-6b18-4aec-99a6-c9bf480d57fb","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":108,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"92de30a7-a5cb-4ebf-9036-d787fc38bfd6","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":108,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"6fbae06d-a4c2-4428-a96b-7a381e80c9de","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":108,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"ca6d6359-d889-4bad-98d0-080aec56a077","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":108,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"392b2cf4-0e4e-443a-8936-6229eca9f7ea","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":108,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"4231eb4c-b0cd-4409-9224-60a73ed12b5c","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":108,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"74344226-7428-4368-b9b7-8c39ebe25359","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":108,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"a967c569-3e5f-4b33-bf3f-7fe7a831f590","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":108,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"fb2bea0f-64da-4c67-ac72-d004a3f0bdba","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":108,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"1f789d43-4920-4829-b5eb-cac543bd6689","block_type":"box","text":"debt securities.","page_number":108,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"5e45ae5f-d674-461b-9091-8073dfaa22ea","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":108,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"fe3cb6f8-8baa-46e0-ade5-bb3183854e84","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":108,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"671b8ef3-618c-4b44-b7dc-12e68acc5dce","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":108,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"5e72f569-90a2-4262-8aed-354ba588d1ad","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":108,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"a4d626a4-561d-4539-bee0-0edbb17694b1","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":108,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"7f08c345-a747-4fd1-9be3-ab6aab12efae","block_type":"box","text":"i.e.","page_number":108,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"b2425054-919f-4f69-8036-9a7d0159c5d1","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":108,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"5c1a4657-f176-4044-880e-419e1ece33f6","block_type":"box","text":"buildings.","page_number":108,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"fed6b335-480c-4761-8b75-22d3710f7089","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":108,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"9bd7b75c-5601-42c0-a819-17fbad4e9254","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":108,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"53d8df86-80db-4292-8dec-c6e7fdbf7e93","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":108,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"bce78231-c148-42df-b427-1b84d1cd2926","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":108,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"00f742f6-fae7-47b2-a712-cbc0953ec1ed","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":108,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"e38bfc5b-e291-424b-a9a1-4b61a19c5950","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":108,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"ad099141-f80d-4c5d-9ef7-388c8b199027","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":108,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"208843fa-58bf-41a1-a63f-8be91f8d668c","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":108,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"8ba8fedb-90f4-49e9-bc57-f503a63de4fa","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":108,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"f21c274c-95b0-49e3-91a5-b5c5f6048a69","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":108,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"a4c01c6f-497b-4ecf-887b-d783d160d734","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":108,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"f3ab954e-ea18-46cf-8963-0756809cb0bf","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":108,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"8ea8fc96-4c30-46e5-944b-e8812406de76","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":108,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"4683e2b7-638b-4d11-a2d8-691e83f26730","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":108,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"be715202-e4f5-4fa6-b699-fa4733c7c405","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":108,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"ac0d0894-9042-41bb-93b6-5b10f3f9fccf","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":108,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"e9ff7d90-9160-4176-a6f5-35e7cfb294e3","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":108,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"b25c5149-9b6a-4467-8606-9e7003f3d7a0","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":108,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"338f5445-70bb-49fa-b74f-ea69988fdb13","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":108,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"7ac865e3-412d-4316-a9c5-2765f6d54732","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":108,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"bbeaf2d2-a313-4dfd-b9be-f36e66091232","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":108,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"23b40ca7-0eee-4ba1-9c95-b12da7da3dab","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":108,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"9f637f0d-a737-4976-a67a-0e11fb13ffb4","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":108,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"b138d8f8-3457-48f8-9d6e-3b595d4d9422","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":108,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"b40462d3-feb3-4ad9-9dca-65d2111c5194","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":108,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"e733fbfa-9f24-48a1-88c3-fd35a685f30b","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":108,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"55becb9a-4ec9-45c0-b89b-6103810a1d23","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":108,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"095a9b28-7006-4afe-a914-46800286ea6e","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":108,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"77bf60c4-69c2-45fe-be03-10f60838f50e","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":108,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"7a7a1a01-f548-4ca6-9c2c-c9b7bd86932f","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":108,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"955d51bf-b329-4459-89b3-8c98e438e927","block_type":"box","text":"II-66","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ef634575-e62a-4aa8-bb02-db8154fd20ae","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73d07a0a-532a-4a77-838c-d7208831d424","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":109,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"7cdafaaa-74ba-4deb-bbce-dccef7b5b9d1","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":109,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"055ba3da-5147-43c6-9177-c9e2878b5eab","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":109,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"a2d6c518-d32d-4e59-9dc7-35a73afeff2e","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":109,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"c2f3a72f-a47e-416b-bbd3-ab0d7da8b22c","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":109,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"4bb93641-9c02-4b3f-9841-d4b4ffcf780e","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":109,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"517d9178-98e6-41d2-96cc-0ec94a6d6a76","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":109,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"f3da2f3d-1c02-4c81-a539-5701490a0740","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":109,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"685cd339-c40b-467f-8251-030949eda997","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":109,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"9a6bcb80-8295-483a-a7ed-31ddb7f98b24","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":109,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"fe5c8402-f2be-47e1-a965-4387647729c4","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":109,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"ebe662f7-7011-49ae-9452-e693f105cee1","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":109,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"b1d5eb5f-e5d3-421f-8df7-0d30e0ff9a5d","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":109,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"cf570e5f-95b7-4f29-916b-8fc80e350d63","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":109,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"b767df07-1fe1-4ace-8564-6225108dc19b","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":109,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"291aae4c-657c-4401-bf7a-1922381287a0","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":109,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"e2dadf6f-b282-4eb4-a16f-86cbca324028","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":109,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"39ae76f7-02e6-4319-8849-4084330f445c","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":109,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"a1747bc1-40c7-424c-bfce-08d88d0f7964","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":109,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"68a4f0f9-14ae-4187-a2b0-0e285d806d24","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":109,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"59983731-edbf-48c3-a963-ca346a0f1f25","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":109,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"eeceb772-d9d8-42a2-a690-2baab8d55d57","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":109,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"a96e6013-c829-4ccf-a457-59ba627b5f5b","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":109,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"35dc0c9c-60ab-4507-9d5a-fb1f620fd619","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":109,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"62089f63-7425-4f7f-b520-c50a7e7f20bd","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":109,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"fc06be77-6aef-443c-b79a-7565577f7abf","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":109,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"37891e70-9e40-4a76-942e-58e2635d3eb9","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":109,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"9923df6a-30a7-4904-a28e-3dbe20d651da","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":109,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"9de48b71-84f0-4a3a-86b8-faf0bf32aa5e","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":109,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"bf091cd5-401a-4de7-86f8-8c20b1450c4b","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":109,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"0151e0b4-376a-40c8-a755-95e3f7fee6b6","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":109,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"11e3b63b-9cde-4ac0-8f35-6681a15fd3f8","block_type":"box","text":"conditions.","page_number":109,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"c28c7a66-af20-4678-a5c5-6d0ac93227b7","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":109,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"889edf19-1d05-445b-84fb-a16626024a70","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":109,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"8d79e05f-0179-4cff-8fc2-bb2ae854321a","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":109,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"52eda242-a8ac-4bf0-87f5-cc1a97089c6c","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":109,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"2a503fa9-c3b5-41b7-b351-3b429eaab668","block_type":"box","text":"of these policies is still being considered, but the equity and debt markets may react strongly to expectations of","page_number":109,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"e9f60c11-c58e-4718-8cc5-ab33c2c2a0fc","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":109,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"a789048e-671e-4b6d-ad99-44efa1792bde","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":109,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"dbb57868-e45b-4293-ba30-dcb019666b2b","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":109,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"dc552afc-dbf6-4dcb-843d-90330b0bb678","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":109,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"724bd242-e299-48d2-9bfe-96357c151ec1","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":109,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"65eb16f5-45f7-4f1f-ac29-fcf8f4ad24d7","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":109,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"168731f2-f872-4743-b84b-97e884c48998","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":109,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"5725cd73-8114-4465-bf4d-e31c60848fb2","block_type":"box","text":"affected by such events.","page_number":109,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"55f17242-065e-42fa-9b29-c529d9ddef7c","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":109,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"55eeef90-c3c4-433a-9a8d-c7042412c016","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":109,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"fea9339b-d7e8-44fe-8ba9-c87d6f329056","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":109,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"0380f54a-67c5-4d57-9a35-141e920080ed","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":109,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"21d6ed0b-6168-4c2c-9000-7cb327d49c32","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":109,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"4e1980c0-8b28-4076-8428-70cdc9570ebd","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":109,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"c36123f3-d055-44a7-968c-052fe58241a6","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":109,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"41353e5e-d85e-4ef6-96a7-c491ce5df442","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":109,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"09365ed5-61bb-45ce-ac76-aeece2ae4eb9","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":109,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"b15c47b0-cbaa-4d29-b36d-4d9964dfaede","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":109,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"350d5ad4-d241-45a1-be4f-9d3dd5ba7dfd","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":109,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"f4d7f07c-6053-461b-9d9b-63de19d215e1","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":109,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"95097441-72b4-476f-a5c8-bfbe150768ed","block_type":"box","text":"II-67","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c5886dc-9769-4990-9c18-b39567c2ec92","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3da3b98c-0e21-460a-8cdb-0d82c0951528","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":110,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"fa5c7c1a-263e-4b62-ade3-8466deaf1880","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":110,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"0ad83820-f4d7-45fe-9ec3-e596c92a961e","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":110,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"17ebf23a-eee6-48f8-9e21-690684427d23","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":110,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"4f667e95-46b3-47eb-83cd-7c97fa6dac56","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":110,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"a0ecb996-7c3d-4ea1-b4da-2ab99c6c7e1f","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":110,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"aabb3150-8189-4444-83bc-48b9121bb20c","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":110,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"8163561a-2f65-485c-b407-690317a8a4e4","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":110,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"f2e22f08-047c-4940-a191-7f9875542282","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":110,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"8cd2b33f-8f65-49cd-aca4-bfb9894dcff9","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":110,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"a3370cf2-311d-4252-ac6f-dc66a449df67","block_type":"box","text":"investments.","page_number":110,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"c6eec444-8e0e-47f9-9721-94799c9ebc51","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":110,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"88a62fa9-9fd4-4c18-9f5d-2889ccd1b484","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":110,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"c7118c9f-3733-45a2-9d4f-137252e11f2b","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":110,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"5a723c43-8f2a-4c89-8169-80ef54a5c98c","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":110,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"0a0c5096-9ffb-4ca4-95cd-e63d53f8e01d","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":110,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"5f49570b-3fa0-4ce5-b220-399d863f3690","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":110,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"5171cd0a-4415-4671-ae09-2716caf8ec90","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":110,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"7a3c057a-f868-4d01-bb32-1bcfae9f85a1","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":110,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"be0dd6bf-4485-409d-91d7-8afa9dde7224","block_type":"box","text":"Legal and Regulatory Risks.","page_number":110,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"c384e7d9-3ea1-47a3-a96f-9148f9cdc19f","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":110,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"2df2e05f-f198-49db-8a69-0e00a043c839","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":110,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"d5538a8f-4d77-4666-bde3-ea75e3c2ef77","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":110,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"90d61ecd-ad5c-4cf5-97c9-af16098da9db","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":110,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"ed44d4b5-8835-4ef7-881c-344fb4c81f52","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":110,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"921c2ec3-5d5c-4cf3-9259-f0a223ca2e39","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":110,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"940e6781-2f1f-4089-97dd-175e8075c07a","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":110,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"555deb98-fbec-49cd-8d40-8ec684944369","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":110,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"0214357d-7712-440c-8519-3e3f4dc0271b","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":110,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"695c398a-2c96-45ae-89cb-0e1664a2e91f","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":110,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"3bb802c6-9ff3-41df-88d8-9211e4a3cac8","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":110,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"9bad1e6f-51eb-4b23-9fdd-2aaacf736013","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":110,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"2172764c-1407-4ac2-b6b3-829973121ca8","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":110,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"f1e8be0e-a262-4ed0-932a-53f5bb88d241","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":110,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"8d230697-8feb-4691-ab4a-b42cd3958af1","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":110,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"3d06771b-b9d9-46e2-99ac-f57043817b77","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":110,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"d2bf3a15-ab6b-45a5-b1b4-8a928659632b","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":110,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"3dd8a761-3144-4238-af4d-7e1d59c2bdc3","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":110,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"4f3dce1d-2fb0-4e8a-9935-1144e55deaf2","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":110,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"4f23591e-8fea-4631-855a-d4e98ffcca7c","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":110,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"a97e6d23-077f-4ca3-ba8c-37d3b0c003f9","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":110,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"abcf29f2-f253-4335-8295-1b54d49c07fb","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":110,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"3adbf572-23ff-4f1c-8c44-74b98444c645","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":110,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"44735ae1-44ce-46ed-adfe-d627d6477e3c","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":110,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"5e3a37f2-bae2-425e-a1f6-d6f1ec369fe3","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":110,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"2196d68c-3dc6-4c71-a97c-d5725b73e0b7","block_type":"box","text":"Geographic Risks","page_number":110,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"7c9341f9-9368-41ad-b3c7-5805651c22f8","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":110,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"f867bf6b-abd4-447b-abab-234a743d81ee","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":110,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"d9cd6fa2-7bcf-4af8-948c-b6329a59b5d2","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":110,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"ed16f551-1c76-4c2e-8fa6-f33770e5e1fb","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":110,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"893c6d80-d52a-40e7-acae-c97865c4dbc5","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":110,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"2698d7a3-41a4-447c-8bdc-844794a8aa51","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":110,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"c04a889b-d0e3-48fd-8ddc-f25a79919483","block_type":"box","text":"Fund.","page_number":110,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"c18a0f69-ae6e-441d-a5aa-0843c11ee906","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":110,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"ca80ce67-f804-4d58-964d-9b323ffcccbe","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically been used","page_number":110,"box":{"x":363,"y":846,"width":514,"height":11}},{"id":"3c560c3e-af21-4e85-8f3e-e2aa735fc4f1","block_type":"box","text":"extensively in the U.S. and globally as a “benchmark” or “reference rate” for various commercial and financial","page_number":110,"box":{"x":69,"y":861,"width":782,"height":11}},{"id":"3a1ae4ac-0e8b-4a49-818e-15db523db7a3","block_type":"box","text":"contracts, including corporate and municipal bonds, bank loans, asset-backed and mor tgage-related securities,","page_number":110,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"5092ad9e-d720-4053-8d95-2610710492f0","block_type":"box","text":"interest rate swaps and other derivatives. Instruments in which a Fund may have historically paid interest at floating","page_number":110,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"74752729-f292-47fd-b624-1bf146b9d683","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":110,"box":{"x":69,"y":906,"width":834,"height":12}},{"id":"9e77145c-8fe5-4f15-ab7b-b299e261b664","block_type":"box","text":"II-68","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e9835ad2-7c9f-4d2a-92af-88fec44c982a","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"62a7b734-c8bf-4c34-930b-bb166dc594d7","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":111,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"2fdef029-1aa3-44c8-be7a-7c8cd1db96fd","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":111,"box":{"x":69,"y":60,"width":783,"height":11}},{"id":"0d7d6057-ba67-4852-9d02-97a5027813aa","block_type":"box","text":"benchmark reforms, LIBOR was last published on a representative basis at the end of June 2023. Alternative","page_number":111,"box":{"x":69,"y":75,"width":779,"height":11}},{"id":"3d12a484-933a-4d25-906e-93b245862a19","block_type":"box","text":"reference rates to LIBOR have been established in most major currencies and markets in these alternative rates are","page_number":111,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"170f793f-4101-4262-b89b-c09f718d15a5","block_type":"box","text":"continuing to develop (","page_number":111,"box":{"x":69,"y":105,"width":160,"height":11}},{"id":"43760441-22c5-490a-bcb1-0c1bfdb846a7","block_type":"box","text":"e.g.","page_number":111,"box":{"x":231,"y":107,"width":25,"height":9}},{"id":"6c42fd14-6ac5-4098-821e-61cf0d93d95c","block_type":"box","text":", the Secured Overnight Financing Rate (“SOFR”) for USD-LIBOR). While the transition from","page_number":111,"box":{"x":258,"y":105,"width":641,"height":11}},{"id":"b6ddb324-0690-4183-9add-4b9aa076cc77","block_type":"box","text":"LIBOR has gone relatively smoothly, residual risks associated with the transition may remain that may impact","page_number":111,"box":{"x":70,"y":120,"width":777,"height":12}},{"id":"8c5fd653-05cb-4066-a157-b4d2e21f3433","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":111,"box":{"x":69,"y":135,"width":776,"height":11}},{"id":"dd6c6627-fe4c-4706-a8a3-adb89c012a2d","block_type":"box","text":"instruments in which the Funds invest cannot yet be fully determined.","page_number":111,"box":{"x":70,"y":150,"width":493,"height":12}},{"id":"90a5a32d-28a8-4f1d-a241-1d5228c353a3","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":111,"box":{"x":102,"y":173,"width":750,"height":11}},{"id":"fe403bd6-c7db-46c0-8f46-106022ec5f27","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":111,"box":{"x":69,"y":188,"width":803,"height":11}},{"id":"c4db81d0-b7e3-4879-9ac6-9018954fc669","block_type":"box","text":"various sources. For each trading day, SOFR is calculated as a volume-weighted median rate derived from such data.","page_number":111,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"a204f026-840c-4970-ac94-99324760201b","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":111,"box":{"x":70,"y":218,"width":801,"height":12}},{"id":"4b795f5d-6bc8-4c19-8e7d-a6f557867eb1","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":111,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"e1025902-2107-45c7-8c15-37c69b679d07","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":111,"box":{"x":69,"y":249,"width":803,"height":11}},{"id":"27c45a3d-8935-4e15-89d9-1d2e39db24ff","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":111,"box":{"x":68,"y":264,"width":825,"height":11}},{"id":"0b61c79f-6645-4ba5-a7fd-f02d0cdd35c5","block_type":"box","text":"In contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is","page_number":111,"box":{"x":70,"y":279,"width":828,"height":11}},{"id":"364476d4-d23e-474e-9fcc-41fdf1d8a889","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":111,"box":{"x":70,"y":294,"width":838,"height":11}},{"id":"8fb976b5-9c8f-4243-b6cd-15a7000b17d3","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":111,"box":{"x":69,"y":309,"width":796,"height":11}},{"id":"55eeb3c3-8bf5-481e-84cb-59bcdad3eb5d","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":111,"box":{"x":70,"y":324,"width":836,"height":12}},{"id":"ef900e84-22dd-4157-81d4-004694ac5a77","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":111,"box":{"x":70,"y":339,"width":824,"height":12}},{"id":"22517305-b59b-431d-92e2-455b191982f4","block_type":"box","text":"rates will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April","page_number":111,"box":{"x":69,"y":355,"width":830,"height":11}},{"id":"a00a4335-f00c-479a-8369-5aa7e644f392","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s","page_number":111,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"6999f9ff-21dc-4763-870b-c7baba8dcb30","block_type":"box","text":"history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or","page_number":111,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"fd28b562-a6c3-4582-940e-816776a73db8","block_type":"box","text":"other rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner","page_number":111,"box":{"x":69,"y":400,"width":835,"height":11}},{"id":"7dde5929-aa92-4ab9-a3e8-bb85e8bb4872","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":111,"box":{"x":68,"y":415,"width":384,"height":11}},{"id":"90f4ccd1-0669-447c-a772-ef747e17955b","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":111,"box":{"x":102,"y":438,"width":782,"height":11}},{"id":"5052cdc3-4a1d-48d7-bc91-af38da26cc52","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":111,"box":{"x":68,"y":453,"width":786,"height":11}},{"id":"cfc217db-8d10-43bc-9ae1-67e96bde1069","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":111,"box":{"x":69,"y":468,"width":746,"height":11}},{"id":"8bfe11e1-a561-468c-bb62-eb8567e081a7","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":111,"box":{"x":70,"y":483,"width":822,"height":11}},{"id":"e428e4c3-b995-4cab-8ac7-c80b7dedde96","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":111,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"d956008b-5063-436c-b6fe-db7970834204","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":111,"box":{"x":68,"y":513,"width":799,"height":12}},{"id":"5d48f897-c233-4c54-8f64-0e7c69485e66","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":111,"box":{"x":70,"y":528,"width":830,"height":12}},{"id":"80e92479-9944-434a-b795-7ef439278560","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":111,"box":{"x":70,"y":543,"width":757,"height":12}},{"id":"ff8d4c7f-f3d5-4c5f-9b74-16687aee8300","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":111,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"22cc4363-81ae-4b58-8d4f-cf121ccba73c","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":111,"box":{"x":69,"y":574,"width":840,"height":11}},{"id":"f5f87197-e951-495a-9f14-a4c416d05756","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":111,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"cde47aaa-e0fc-4974-af06-fae837ed7e58","block_type":"box","text":"consequences which cannot be predicted.","page_number":111,"box":{"x":69,"y":604,"width":298,"height":11}},{"id":"da3a484d-87d8-4eb3-bd72-61d9179fc8d7","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":111,"box":{"x":102,"y":627,"width":432,"height":11}},{"id":"1e8f7922-443c-4274-801b-6af9a78a45b5","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":111,"box":{"x":541,"y":627,"width":347,"height":11}},{"id":"ce282abb-715a-43d7-b21d-5abb3e819af1","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":111,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"6a1b4416-dc48-4328-83d3-23202fa507d1","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":111,"box":{"x":68,"y":657,"width":815,"height":11}},{"id":"b72367ba-aeac-4c2a-815f-0398f1e7ec3f","block_type":"box","text":"term of the agreement.","page_number":111,"box":{"x":68,"y":672,"width":164,"height":11}},{"id":"947126d0-3493-403b-ac74-5eeccdd1c1ab","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":111,"box":{"x":101,"y":695,"width":788,"height":11}},{"id":"b9c2ee4b-a41d-4365-9f38-ff993b63ae67","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":111,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"acfb1f48-7f97-4239-8e34-0f21f5c7356b","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":111,"box":{"x":70,"y":725,"width":821,"height":11}},{"id":"ae1d5554-4db8-4cdf-9845-32837a0dcd97","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":111,"box":{"x":69,"y":740,"width":790,"height":11}},{"id":"b3272be3-d8c6-4bf4-b455-a73edc6e66e9","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":111,"box":{"x":69,"y":755,"width":827,"height":11}},{"id":"94906f39-0843-4718-9b15-6ffd788300a3","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":111,"box":{"x":69,"y":770,"width":788,"height":11}},{"id":"b4a7a5d9-e2cd-4bd6-8622-49d9742a69f7","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":111,"box":{"x":68,"y":785,"width":522,"height":12}},{"id":"75a6a8fb-13ba-4973-999f-a90735d983fe","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":111,"box":{"x":102,"y":808,"width":792,"height":11}},{"id":"e5ac8601-d56f-4cf2-9fb2-fec33add4b97","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":111,"box":{"x":70,"y":823,"width":784,"height":12}},{"id":"2e1d7c6d-3889-45b5-9e0f-317752ab83f0","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":111,"box":{"x":69,"y":838,"width":837,"height":12}},{"id":"e6121b77-80a3-4a28-a1ae-c2a5b5b6c34e","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":111,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"23ab289e-2a87-49b3-a690-8dca6411a7bd","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":111,"box":{"x":68,"y":869,"width":770,"height":11}},{"id":"9cbb42de-3767-4e1c-aca7-90f691cf034f","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":111,"box":{"x":69,"y":884,"width":802,"height":11}},{"id":"93c9328a-af67-4b3e-b797-709653179d09","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":111,"box":{"x":70,"y":899,"width":430,"height":11}},{"id":"bf34af1d-d3da-40da-a641-7113b095f0e0","block_type":"box","text":"II-69","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20f97ea8-f203-43a2-9fde-e6e1dbf2e74e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8b5fc46-ef3b-4630-9e08-b24a8dfa395e","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":112,"box":{"x":102,"y":45,"width":759,"height":11}},{"id":"8359799c-5e2d-4676-bc9b-7c1ccdbacf4d","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":112,"box":{"x":70,"y":60,"width":765,"height":11}},{"id":"2079a7b1-b807-405f-a692-57ed396250bb","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":112,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"e05f7966-00e4-4f35-8a7f-8075901cca2d","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":112,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"6d1644ff-32f7-40f5-afc4-ba576b678e57","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":112,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"db094de8-3792-45cf-8185-c99083a3e012","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":112,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"56ab3389-40d6-43ac-9cb6-a897b7f0397f","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":112,"box":{"x":70,"y":135,"width":831,"height":12}},{"id":"ab80c8db-c3dc-4473-bbe6-b762864701bb","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":112,"box":{"x":69,"y":151,"width":810,"height":11}},{"id":"8e136921-9c72-4dad-83bb-33922a4ea283","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":112,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"7fb67a80-dcd3-48ab-b72d-b2f83b6dd1bd","block_type":"box","text":"or by another authorized securities depository.","page_number":112,"box":{"x":69,"y":181,"width":329,"height":11}},{"id":"44738800-fdb9-4ba6-89f5-bc24287f3b6f","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":112,"box":{"x":102,"y":203,"width":770,"height":12}},{"id":"a0290d05-9a9a-4d27-9ad5-4fbd8f38323a","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":112,"box":{"x":69,"y":218,"width":805,"height":12}},{"id":"cde4e04c-f062-4ba5-b92c-48f879b8d6f6","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":112,"box":{"x":69,"y":234,"width":819,"height":11}},{"id":"098a6687-9d4b-4a90-8c4f-2beaa982fa2c","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":112,"box":{"x":69,"y":249,"width":778,"height":11}},{"id":"be080888-d2e3-4bf0-afa8-39c51ca5b119","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":112,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"bd4ab3b4-96bc-431a-96df-bb3ad01fea4a","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":112,"box":{"x":70,"y":279,"width":810,"height":11}},{"id":"295092e5-e4fe-4cdf-92ff-ce5d17a67a4b","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":112,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"e0bb68de-4c8e-4b04-8ab7-601bdd0789fc","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":112,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"c2c0ddd8-ebe8-4b85-9d48-0928edfbd6c9","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":112,"box":{"x":69,"y":324,"width":817,"height":12}},{"id":"7df697ba-1504-41eb-b111-512a8eb9ae8d","block_type":"box","text":"the repurchase price.","page_number":112,"box":{"x":68,"y":340,"width":151,"height":10}},{"id":"a9560c33-97d4-40e2-974d-094f14fa6b28","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":112,"box":{"x":102,"y":362,"width":805,"height":11}},{"id":"400baa48-8761-4ea1-93dc-5b5babc5a0f0","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":112,"box":{"x":70,"y":377,"width":837,"height":12}},{"id":"713b36a2-1b93-4f46-8200-87e7631ea188","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":112,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"9dc5f63a-2bcc-44ff-a845-9c06efde1203","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":112,"box":{"x":69,"y":408,"width":767,"height":11}},{"id":"d04b63e6-8b9a-4595-8e16-a2d301d68170","block_type":"box","text":"strategies without the repurchase obligation.","page_number":112,"box":{"x":69,"y":423,"width":317,"height":11}},{"id":"778d731a-7783-4ca1-bba5-1a0720b5fc9c","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":112,"box":{"x":101,"y":445,"width":782,"height":12}},{"id":"3a556543-5743-4652-bea0-735f4c3ecbe6","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":112,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"d31db4c0-0ba6-4d9b-b799-aa9ccf3b98be","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":112,"box":{"x":69,"y":475,"width":799,"height":12}},{"id":"6b5f6fa5-689d-4a02-a955-cd2b1b2f6093","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":112,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"4cd27995-dd09-4a8e-8831-52c0b06047ee","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":112,"box":{"x":68,"y":506,"width":825,"height":11}},{"id":"9473ae6a-15c6-45c5-8bc6-425ea402fb7c","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":112,"box":{"x":69,"y":521,"width":374,"height":11}},{"id":"2de84fb3-d79d-4825-a88d-c0c818aa44fa","block_type":"box","text":"i.e.","page_number":112,"box":{"x":445,"y":521,"width":20,"height":9}},{"id":"58ac3f50-489c-4919-8122-25bc45c0d256","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":112,"box":{"x":468,"y":521,"width":434,"height":11}},{"id":"cf6c9204-e65d-49c5-bfbc-5500345a91d5","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":112,"box":{"x":70,"y":536,"width":813,"height":11}},{"id":"b1efd374-1144-4d53-a3ea-5a23c96587bb","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":112,"box":{"x":68,"y":551,"width":816,"height":11}},{"id":"34d64878-0692-4892-867b-83e1dbebdf48","block_type":"box","text":"and income involved in the transaction.","page_number":112,"box":{"x":69,"y":566,"width":278,"height":9}},{"id":"b5cd3643-4bf1-4453-b3cd-d4c34bf70e7d","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":112,"box":{"x":102,"y":589,"width":800,"height":11}},{"id":"0e410eac-21dd-4601-b100-08735e23dff6","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":112,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"87ab9e96-5e0e-41c3-93c4-8effa122e9f2","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":112,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"16bafed3-fae4-4dcc-9fea-ea668a0b8844","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":112,"box":{"x":68,"y":634,"width":790,"height":12}},{"id":"83c1710f-ae2a-430a-9f26-2b63109a6b48","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":112,"box":{"x":69,"y":649,"width":818,"height":12}},{"id":"7ed2e719-2bce-40ec-86bc-d8aa95e6d041","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":112,"box":{"x":68,"y":665,"width":783,"height":11}},{"id":"8783b7ad-74db-45f6-9556-4a0d02aec859","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":112,"box":{"x":69,"y":680,"width":821,"height":11}},{"id":"55164252-b8a4-457e-8d20-454ef1d0c2c8","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":112,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"097f548c-ddb5-4268-bf93-7da5bace9454","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":112,"box":{"x":69,"y":710,"width":796,"height":11}},{"id":"90bda1d0-f6b3-4ef0-a8a0-8cfb9ef9f60a","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":112,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"2354bb34-bbd8-4a96-b037-72feb4b8e097","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":112,"box":{"x":68,"y":740,"width":824,"height":11}},{"id":"0498897e-dc1d-4fc7-a986-75dd7cb389dc","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":112,"box":{"x":69,"y":755,"width":279,"height":11}},{"id":"4fa6f7b9-e1ed-497a-a735-2db21defece4","block_type":"box","text":"Restricted Securities.","page_number":112,"box":{"x":102,"y":778,"width":157,"height":9}},{"id":"98be664e-4dbd-4ee4-881d-a5cb6833b2e1","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":112,"box":{"x":265,"y":778,"width":617,"height":11}},{"id":"25595960-bc21-4a3e-8281-d91f5832750b","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":112,"box":{"x":69,"y":793,"width":801,"height":11}},{"id":"723d5df8-7ed8-4245-ae3a-1bb4dc4c08f1","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":112,"box":{"x":69,"y":808,"width":808,"height":11}},{"id":"410649da-e6f1-4768-98cc-da1802a3b5b8","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":112,"box":{"x":70,"y":823,"width":802,"height":12}},{"id":"d79379e0-7c8a-4a82-892e-cd107a70b281","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":112,"box":{"x":70,"y":839,"width":834,"height":11}},{"id":"1db31c8a-b5dc-4772-aa2e-9f4b7b4fc0ae","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":112,"box":{"x":68,"y":853,"width":825,"height":12}},{"id":"df6c54e9-c553-46d3-9dd0-0d462f9131e5","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":112,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"9597be2c-e0d0-437f-b81c-03345eb03bcc","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":112,"box":{"x":69,"y":884,"width":821,"height":11}},{"id":"adb4abd1-a3b0-4893-adbb-ac3e2f174c2d","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":112,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"edd7aac7-37b9-4908-b3de-0104455eb3be","block_type":"box","text":"II-70","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"34d62946-a57a-4d82-9db5-89bd7552209f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95de761d-e07c-4ac4-8648-afdc20484505","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":113,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"d390e810-8a65-4c0c-b108-6c857331ba5d","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":113,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"5edca1d8-9dcf-496b-a1ed-35885348087b","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":113,"box":{"x":69,"y":75,"width":769,"height":11}},{"id":"78f88e2d-2468-47a4-9c6a-93b5e700b329","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":113,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"d724c4ea-ed92-48d6-bff0-47f5cbff8909","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":113,"box":{"x":68,"y":105,"width":805,"height":11}},{"id":"bc1986f0-18f3-4c7a-b538-62acd1ca3015","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":113,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"323c3571-d459-43d2-ad47-bb6cbb758c69","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":113,"box":{"x":70,"y":135,"width":815,"height":12}},{"id":"9f821828-efad-4ff2-824e-efd0b7ebe4bd","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":113,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"0af053f7-5ec6-4f7f-a08e-17f78f075bc1","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":113,"box":{"x":69,"y":166,"width":803,"height":11}},{"id":"39dff293-66fc-46d5-a8a0-0e1894d8bf99","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":113,"box":{"x":70,"y":181,"width":830,"height":11}},{"id":"51968ad3-cda5-4daa-ab59-ddc2228b99b9","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":113,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"3bdc6781-abf4-40a0-bc21-4d7b0e9b696f","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":113,"box":{"x":68,"y":211,"width":825,"height":11}},{"id":"2353d052-3125-4d13-b74a-3f3691336dae","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":113,"box":{"x":69,"y":226,"width":777,"height":11}},{"id":"455b0e88-b9a6-4d8e-bf86-78d45de2dfd7","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":113,"box":{"x":69,"y":241,"width":828,"height":11}},{"id":"2e8d382a-77b0-4255-9ad5-2959d650e0e1","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":113,"box":{"x":69,"y":256,"width":834,"height":12}},{"id":"8dbc4686-f88d-4be2-8bb9-7c1d28657861","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":113,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"afeaddb6-5b09-4279-b2ac-e93c4f26c1a5","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":113,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"dc33436a-a624-43e2-80ff-1196d9035144","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":113,"box":{"x":68,"y":302,"width":819,"height":11}},{"id":"5f29725b-d666-4a4e-9e83-cd97dc89bda5","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":113,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"194daaa0-9201-4053-bb86-ccb95fdcc1b3","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":113,"box":{"x":69,"y":332,"width":798,"height":11}},{"id":"134ee024-53d1-44ad-a14e-43359ca4819a","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":113,"box":{"x":70,"y":347,"width":780,"height":11}},{"id":"801d15cc-4236-4d7d-aa00-6566b5d4b62e","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":113,"box":{"x":70,"y":362,"width":773,"height":11}},{"id":"ddfbdadc-0cf0-424a-a9b4-207d61df5297","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":113,"box":{"x":69,"y":377,"width":784,"height":12}},{"id":"ea33d6da-272b-42ae-b2a2-4a6652c00ed7","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":113,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"9ec2e1c2-a111-4b40-b20f-1b578fc91ba4","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":113,"box":{"x":69,"y":407,"width":828,"height":12}},{"id":"ff570ebd-b178-41c0-99e9-d9ac8a40aff7","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":113,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"c8e3ffa1-de20-4f38-acd6-fa22b86e6b92","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":113,"box":{"x":68,"y":438,"width":804,"height":11}},{"id":"6b98773f-43d5-4476-a587-3e9679ea4b73","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":113,"box":{"x":69,"y":453,"width":647,"height":11}},{"id":"b978b6b9-9ffc-4eab-950f-8efa5a18b135","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":113,"box":{"x":102,"y":476,"width":714,"height":11}},{"id":"36a58f79-c3b0-40bb-a9d7-1d8384d31b13","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":113,"box":{"x":70,"y":491,"width":823,"height":11}},{"id":"9c9b0611-645f-41e2-a0fa-0f0e8831432f","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":113,"box":{"x":70,"y":506,"width":826,"height":11}},{"id":"aa95c5ff-f41c-4df8-af79-b0c755603433","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":113,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"b1e94f0e-7683-4219-ae9b-c7fe395bf54a","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":113,"box":{"x":69,"y":536,"width":812,"height":11}},{"id":"200abf5d-a286-45d3-8738-ca1d0e5be799","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":113,"box":{"x":69,"y":551,"width":787,"height":11}},{"id":"e29a4430-4577-4bad-833b-ac6967788b0c","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":113,"box":{"x":69,"y":566,"width":833,"height":11}},{"id":"f269df76-b71c-47b9-bd93-042211ef0783","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":113,"box":{"x":69,"y":581,"width":759,"height":12}},{"id":"fc64475b-6605-455e-8197-9ac72c4354e8","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":113,"box":{"x":70,"y":596,"width":833,"height":12}},{"id":"853b3430-a28d-4a48-ab87-e3f88babe8a2","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":113,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"ffa09e5f-585c-44b6-a2a2-0eb0d1036b61","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":113,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"a8ee1c5f-c66e-4c7c-9ccf-39da4834c1bf","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":113,"box":{"x":70,"y":642,"width":804,"height":11}},{"id":"3ba2d8e3-07b2-485f-a9f5-948f742a9998","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":113,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"eefa0b82-bc88-4d5d-9e5c-61613873ac45","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":113,"box":{"x":70,"y":672,"width":835,"height":11}},{"id":"eaad868b-2942-44b7-bdd9-3f9fe8e6eba3","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":113,"box":{"x":69,"y":687,"width":768,"height":11}},{"id":"e8ae99d5-c614-4b95-96a8-439a803663c5","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":113,"box":{"x":70,"y":702,"width":815,"height":12}},{"id":"e947d17c-8a7b-4787-9214-efafd940bd3e","block_type":"box","text":"especially as that Fund grows in size.","page_number":113,"box":{"x":69,"y":718,"width":264,"height":11}},{"id":"0ca76e90-3228-4230-83a9-9ada7a2c05b5","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":113,"box":{"x":101,"y":740,"width":762,"height":11}},{"id":"5c24c98c-6af1-4ff2-894d-7a35fb8f8573","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":113,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"0547c02b-e4ae-4354-984d-054661d41672","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":113,"box":{"x":69,"y":771,"width":751,"height":11}},{"id":"e7ef1042-d43a-4b37-adeb-ea908b8609d9","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":113,"box":{"x":70,"y":785,"width":755,"height":12}},{"id":"2ab01e9d-d835-4e6b-9d50-a85cfe45aceb","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":113,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"e88b8059-fbe4-4e3c-88ac-423850f7cf63","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":113,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"d495f49d-3eb0-45b5-9372-bd4ec5c6ba16","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":113,"box":{"x":68,"y":831,"width":766,"height":11}},{"id":"f2b3b138-5dd8-46f7-aa3a-fda3c2c415c4","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":113,"box":{"x":69,"y":846,"width":792,"height":11}},{"id":"4ab8bf50-7bb2-4066-9a5e-42acd35330fd","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":113,"box":{"x":70,"y":861,"width":821,"height":11}},{"id":"49ac81b4-060a-48d6-a150-ac55f9bf0611","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":113,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"a22ead87-4061-40c4-bef7-d2283a973aff","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":113,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"73ca142b-9a13-4113-9caa-95a594b98003","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":113,"box":{"x":69,"y":906,"width":790,"height":12}},{"id":"d495e111-3d31-411c-80cf-ffe01eaeefc3","block_type":"box","text":"II-71","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f81600be-193c-43b9-ba56-36e6d4b22690","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"735a63d9-492c-46d8-97fc-eba54724c767","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":114,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"cd07d20c-3416-41a8-bc15-18dd1a68ee99","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":114,"box":{"x":69,"y":60,"width":810,"height":11}},{"id":"6d1e32c0-823e-4ab4-848d-e02ad0b4b502","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":114,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"1ba3c281-d88f-4f65-85be-aabf56deb1e3","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":114,"box":{"x":68,"y":90,"width":839,"height":11}},{"id":"0e801f3c-0de2-4f9a-a4b8-4a28cb7e3f16","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":114,"box":{"x":68,"y":105,"width":514,"height":11}},{"id":"86d3c19c-3424-41f7-b717-24f1cf8b2603","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":114,"box":{"x":102,"y":128,"width":385,"height":11}},{"id":"0484adc0-9d6d-4a92-9980-c3e4bf33352b","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":114,"box":{"x":102,"y":151,"width":246,"height":11}},{"id":"b27f786a-97b8-4c91-bf74-3da8c5484bc2","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":114,"box":{"x":354,"y":151,"width":548,"height":11}},{"id":"edda9fa1-d47f-4bf6-a184-e9bb71151319","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":114,"box":{"x":68,"y":166,"width":830,"height":11}},{"id":"96da18be-0c2d-4503-862f-7503629f48bb","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":114,"box":{"x":68,"y":181,"width":793,"height":11}},{"id":"3589d416-b4de-4d81-844b-e2d7c6daf6ed","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":114,"box":{"x":69,"y":196,"width":784,"height":11}},{"id":"bed4d292-53b0-4b22-aae1-c0abfe3ed773","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":114,"box":{"x":70,"y":211,"width":591,"height":11}},{"id":"9c3ddce4-35ec-4308-9d12-096149cea23f","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":114,"box":{"x":101,"y":234,"width":730,"height":11}},{"id":"74d7fd0a-b680-48df-8042-c8c21b321dfa","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":114,"box":{"x":70,"y":249,"width":822,"height":11}},{"id":"c311f774-21de-42f6-9da7-11849dc0e3f9","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":114,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"3fd7080d-40b9-4ea0-99aa-f68c6a0a7879","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":114,"box":{"x":69,"y":279,"width":801,"height":11}},{"id":"16ede985-0efa-40d0-9917-6e15f12af652","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":114,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"bef6a938-9f95-4d73-84f9-29282c19077f","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":114,"box":{"x":69,"y":309,"width":354,"height":11}},{"id":"58727ace-1392-4f21-98b2-688659cfca5f","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":114,"box":{"x":102,"y":332,"width":769,"height":11}},{"id":"8b549ef4-3c35-41d9-a0ea-c110872b0f14","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":114,"box":{"x":70,"y":347,"width":815,"height":11}},{"id":"1dafa567-dfda-4e6f-a123-d766df57abfa","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":114,"box":{"x":70,"y":362,"width":782,"height":11}},{"id":"b046abcf-1450-4a6d-b254-a8ec33bd5c2a","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":114,"box":{"x":69,"y":377,"width":449,"height":12}},{"id":"3ae6ef94-2917-4586-8ae4-0445701af3b6","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":114,"box":{"x":102,"y":400,"width":794,"height":11}},{"id":"faade501-6c63-4fa7-abab-1c5451f15fe9","block_type":"box","text":"similar financing transactions (","page_number":114,"box":{"x":69,"y":415,"width":218,"height":11}},{"id":"3058ee2f-fa5d-41b9-97e1-ff0ec07a70ff","block_type":"box","text":"e.g.","page_number":114,"box":{"x":289,"y":417,"width":24,"height":9}},{"id":"75edaaee-5f85-4768-a7a8-3252d0571bf8","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":114,"box":{"x":316,"y":415,"width":594,"height":11}},{"id":"f5dd9d53-a6cf-41ad-8124-9b4209c2c0df","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":114,"box":{"x":68,"y":430,"width":813,"height":11}},{"id":"04dd3985-0a92-4d80-b6b6-8a695dbdf642","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":114,"box":{"x":70,"y":445,"width":789,"height":12}},{"id":"fe569dfc-163c-4493-9d09-cf8e9f8a984b","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":114,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"40cdca36-45b0-4b31-9bd6-00870ec205b6","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":114,"box":{"x":70,"y":475,"width":824,"height":12}},{"id":"dc0443c0-88ec-4dd4-91ac-479d912833ad","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":114,"box":{"x":68,"y":491,"width":758,"height":11}},{"id":"2b68ff33-97b2-4baf-987f-09ca19af66be","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":114,"box":{"x":69,"y":506,"width":822,"height":11}},{"id":"8d8e436c-13a0-4cfa-98e8-590d49680174","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":114,"box":{"x":68,"y":521,"width":838,"height":11}},{"id":"06db8a34-da29-4f5d-88da-8e9a4b7dfad9","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":114,"box":{"x":69,"y":536,"width":538,"height":11}},{"id":"d798ac69-3752-4f7b-9d3c-7686c927d834","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":114,"box":{"x":101,"y":559,"width":780,"height":11}},{"id":"430fc9bb-a7fe-4093-8df4-4a61ef1ba8d0","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":114,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"782bd63a-3092-47cf-9e1c-8ac5f08fb84b","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":114,"box":{"x":68,"y":589,"width":775,"height":11}},{"id":"123fc798-1fe9-48e3-abea-808c77714c62","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":114,"box":{"x":68,"y":604,"width":754,"height":11}},{"id":"79872cb2-f6d1-4c92-8b69-53bc106aa567","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":114,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"669660d4-b244-4d63-8ad5-7e9b1617a5db","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":114,"box":{"x":68,"y":634,"width":783,"height":12}},{"id":"7f605f68-0e21-4fbb-a02f-42173a47c119","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":114,"box":{"x":69,"y":649,"width":800,"height":12}},{"id":"d264779f-48fb-42b5-83b9-dabf099e119c","block_type":"box","text":"amounts to be received under such agreements.","page_number":114,"box":{"x":69,"y":665,"width":345,"height":11}},{"id":"7837ea3a-26f1-468c-a419-d5a252526207","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":114,"box":{"x":102,"y":687,"width":316,"height":11}},{"id":"89a57d63-ebe8-4e31-bc18-ab4449282c80","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":114,"box":{"x":424,"y":687,"width":481,"height":11}},{"id":"de0305e1-f065-4a5b-a4dc-cda8b6e926df","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":114,"box":{"x":68,"y":702,"width":822,"height":12}},{"id":"28f07b22-e5c6-4850-b56c-c6d690ed8151","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":114,"box":{"x":69,"y":717,"width":776,"height":12}},{"id":"711c41b9-ca83-406f-b472-faf70cdcbb0e","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":114,"box":{"x":69,"y":732,"width":817,"height":12}},{"id":"251dd82c-506e-4b55-8d9b-376c8e9d0982","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":114,"box":{"x":70,"y":748,"width":833,"height":11}},{"id":"de380ebe-f918-49d1-bcd5-2159512893df","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":114,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"513a3f38-f512-42d2-afaa-e8454a40518c","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":114,"box":{"x":70,"y":778,"width":821,"height":11}},{"id":"01e7ab0d-2556-4aba-acf9-223776bfed4f","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":114,"box":{"x":69,"y":793,"width":830,"height":11}},{"id":"2ba70447-12d5-402e-b2da-f882e331d0a7","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":114,"box":{"x":69,"y":808,"width":777,"height":11}},{"id":"44ff545a-1a5a-486d-b37a-0f3f6fdbcb0d","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":114,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"d2404b70-1466-4f95-80ac-d8002eba623c","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":114,"box":{"x":68,"y":839,"width":708,"height":10}},{"id":"bbf7d36e-46b7-459c-990e-20452baf46c6","block_type":"box","text":"Rule 144A Securities.","page_number":114,"box":{"x":102,"y":861,"width":159,"height":9}},{"id":"b3a81d19-0e0d-4a62-8339-0f72911c75d4","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":114,"box":{"x":266,"y":861,"width":560,"height":11}},{"id":"8d6ff893-664c-4e2b-8902-8d8c070ec66a","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":114,"box":{"x":70,"y":876,"width":741,"height":11}},{"id":"5ee04392-1703-4794-9c82-d09548fcfb42","block_type":"box","text":"II-72","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3fea20e2-8b6d-4ae1-bc27-db777e39fe3d","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c86e53a-4143-404e-a183-74d23ac1f7fb","block_type":"box","text":"Securities Lending.","page_number":115,"box":{"x":101,"y":45,"width":139,"height":11}},{"id":"3fca9da1-fe01-4779-b2d8-f00e39e1fbeb","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":115,"box":{"x":247,"y":45,"width":645,"height":11}},{"id":"f213a8cd-10f5-405e-a96b-bfd2c04a097b","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":115,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"2f8f52af-cd14-45d8-8597-91be24f761ea","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":115,"box":{"x":69,"y":75,"width":817,"height":11}},{"id":"6816874b-7afa-49a4-bded-eb6311ad955a","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":115,"box":{"x":69,"y":90,"width":831,"height":11}},{"id":"fa66ca4d-ae8c-4a78-9eed-0b222f081c65","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":115,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"8ade1ec6-b23f-4a78-bce7-cbdc9b1679c9","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":115,"box":{"x":69,"y":120,"width":829,"height":11}},{"id":"e41d02c6-ea7b-4aa3-94ce-de0180da1448","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":115,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"3b4d5fbb-5c91-4c74-97d5-899db7507dac","block_type":"box","text":"the securities were not on loan.","page_number":115,"box":{"x":68,"y":151,"width":225,"height":8}},{"id":"c3fa68a7-5a6b-419a-a11a-cbb98c185fae","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":115,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"b3936c3d-cef2-49e6-8b3a-280b5b313c9e","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":115,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"a943d0d6-7cfb-4fba-beeb-e58b92359979","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":115,"box":{"x":69,"y":203,"width":824,"height":11}},{"id":"bd8a226c-da52-4450-b44f-faffb0da30e3","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":115,"box":{"x":69,"y":218,"width":821,"height":12}},{"id":"08df0749-f79d-47a4-8a3b-12f0fd90aa5e","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":115,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"87bc4df8-07e7-45e4-8c5b-a25bc3b24812","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":115,"box":{"x":70,"y":249,"width":789,"height":11}},{"id":"e8fe19fe-fbf6-487d-bf1a-21c5ed1ffb3d","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":115,"box":{"x":70,"y":264,"width":643,"height":11}},{"id":"c5b1283a-c98c-4a64-a500-4630eb630df5","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":115,"box":{"x":102,"y":287,"width":568,"height":11}},{"id":"a1df3ab0-98c5-4ed4-a9a9-45b85c86af12","block_type":"box","text":"i.e.","page_number":115,"box":{"x":672,"y":287,"width":20,"height":9}},{"id":"0c7ab1bd-1d6a-4eeb-b9f6-941cd33a60b7","block_type":"box","text":", the risk of losses resulting","page_number":115,"box":{"x":695,"y":286,"width":198,"height":12}},{"id":"368d14ad-7f76-485b-a083-31284980f1bc","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":115,"box":{"x":68,"y":302,"width":501,"height":11}},{"id":"b600c204-d891-4879-beea-04f4a17a811c","block_type":"box","text":"i.e.","page_number":115,"box":{"x":571,"y":302,"width":20,"height":9}},{"id":"bf4e8cca-c340-4789-b51c-81643e1a0c87","block_type":"box","text":", the risk of a mismatch between the return","page_number":115,"box":{"x":594,"y":302,"width":307,"height":10}},{"id":"43cfedfd-7cb0-4ee2-b6c8-857b30ad89e5","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":115,"box":{"x":69,"y":317,"width":794,"height":11}},{"id":"0b4640ba-5fd6-488f-8bfd-0c3908014a07","block_type":"box","text":"i.e.","page_number":115,"box":{"x":865,"y":317,"width":20,"height":9}},{"id":"57ba2492-1cf2-43b4-ac3a-121341a3f115","block_type":"box","text":",","page_number":115,"box":{"x":888,"y":324,"width":2,"height":3}},{"id":"f8ae15ee-3863-41c7-86cf-f3358e851702","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":115,"box":{"x":68,"y":332,"width":788,"height":11}},{"id":"971e5c31-f887-4902-b176-f6ff6dad5ffa","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":115,"box":{"x":69,"y":347,"width":837,"height":11}},{"id":"8e641432-c6b6-460f-ad28-a6397044a21e","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":115,"box":{"x":69,"y":362,"width":822,"height":11}},{"id":"24aab8a4-b56c-4c8b-8349-6905a69d8832","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":115,"box":{"x":68,"y":377,"width":811,"height":12}},{"id":"96114ee1-61f0-419e-b985-d6c6c9a0fb7a","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":115,"box":{"x":70,"y":392,"width":820,"height":12}},{"id":"b4f25f2d-25cb-463a-adf9-8ce68355c90d","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":115,"box":{"x":69,"y":408,"width":790,"height":11}},{"id":"295ae575-0c8c-41cd-8272-a457925a61c5","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":115,"box":{"x":70,"y":423,"width":820,"height":11}},{"id":"e432e70a-932a-498f-8b47-bd06f93b24af","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":115,"box":{"x":70,"y":438,"width":805,"height":11}},{"id":"885a2b90-851a-4402-9624-7dee0b8cdcf6","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":115,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"516b4f99-7151-4274-a2ee-98784d122cc6","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":115,"box":{"x":69,"y":468,"width":775,"height":11}},{"id":"597106ad-8217-4d56-92d1-6040c19c3333","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":115,"box":{"x":69,"y":483,"width":821,"height":11}},{"id":"8494c105-0cd3-4cfd-99b6-a1bc437d26cb","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":115,"box":{"x":69,"y":498,"width":838,"height":11}},{"id":"ef928cd1-da10-4ca7-9b14-2676bc044c2d","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":115,"box":{"x":70,"y":513,"width":837,"height":11}},{"id":"a7b8dd1b-9a1d-4708-9bc2-8c7c9f8eb4f3","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":115,"box":{"x":70,"y":528,"width":808,"height":12}},{"id":"fc1e9e55-b93f-40ad-9bc5-11facf3f377f","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":115,"box":{"x":69,"y":543,"width":839,"height":12}},{"id":"bf20e12c-c524-4b30-890b-3af9395d6ea5","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":115,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"9ce42545-7334-4b31-a567-8985a05ff01e","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":115,"box":{"x":69,"y":574,"width":801,"height":11}},{"id":"6be18e55-b75d-4f5a-ac50-f6e3dfe6e519","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":115,"box":{"x":69,"y":589,"width":823,"height":11}},{"id":"a594ea9a-45f1-498b-a203-2be32ff5885d","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":115,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"096bc8b4-6246-4a73-b548-2d6abba1aeef","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":115,"box":{"x":69,"y":619,"width":812,"height":11}},{"id":"2b00742c-5b87-46e0-8c00-6311b46c1ef6","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":115,"box":{"x":70,"y":634,"width":814,"height":12}},{"id":"0c1fca24-4dff-473b-ac78-dddf0e5af10f","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":115,"box":{"x":68,"y":649,"width":787,"height":12}},{"id":"294ce7cb-1abb-46d5-ae6b-c8b78d6efdbf","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":115,"box":{"x":69,"y":665,"width":828,"height":11}},{"id":"1f3b788d-11bd-47e6-b1da-fdd7295a22a9","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":115,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"cd41eb39-1151-4513-94e1-9018c5e5d88b","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":115,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"c15726c2-35a4-4aa4-a187-427c05ad9b91","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":115,"box":{"x":69,"y":710,"width":731,"height":11}},{"id":"60d42c9f-7946-4e39-aae1-47ef682ecad4","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":115,"box":{"x":102,"y":732,"width":800,"height":12}},{"id":"48ed8834-5279-47e1-b9cb-39e5a4cebe1d","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":115,"box":{"x":68,"y":748,"width":802,"height":11}},{"id":"f2e3ba0c-1a35-447b-8785-153123daa168","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":115,"box":{"x":69,"y":763,"width":783,"height":11}},{"id":"4ee4d5ea-0ce2-44d5-a860-58bb0bccae0d","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":115,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"167dea8f-bbdc-43db-8f42-85c9e90c45d4","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":115,"box":{"x":70,"y":793,"width":747,"height":11}},{"id":"ba838af4-8102-4d02-b77a-f53caec7468e","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":115,"box":{"x":69,"y":808,"width":806,"height":11}},{"id":"dd906f64-20bd-4a8d-a834-f570009ac3bc","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":115,"box":{"x":69,"y":823,"width":808,"height":12}},{"id":"8f304cad-aee0-46f9-99b6-e6bcfdd2ced9","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":115,"box":{"x":69,"y":838,"width":839,"height":12}},{"id":"5c17fd08-1dcd-4a11-b69e-ecd6ed61eeba","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":115,"box":{"x":69,"y":853,"width":827,"height":11}},{"id":"4ecde99f-ff4e-4466-b8ff-9d8667f2bcc5","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":115,"box":{"x":69,"y":869,"width":794,"height":11}},{"id":"8088ea91-6187-4d5d-96c8-5147a4efcbe4","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":115,"box":{"x":69,"y":884,"width":371,"height":11}},{"id":"d8beae56-549a-469a-90de-ce988e199514","block_type":"box","text":"II-73","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"687d5cbb-cacd-4609-91b4-dfd421100844","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1018fa85-bd67-4084-8393-be28c0f7c7da","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":116,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"531dc32e-13a1-4a83-807a-07387d7740b2","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":116,"box":{"x":70,"y":60,"width":808,"height":11}},{"id":"51ce1ece-efed-44e1-b3f7-8813ff940654","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":116,"box":{"x":69,"y":75,"width":784,"height":11}},{"id":"94b99640-4a4d-413f-b866-b0ed927d6a5b","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":116,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"950f690b-bf97-41d6-b7dd-f08f338e2faf","block_type":"box","text":"the current expected compliance date.","page_number":116,"box":{"x":68,"y":105,"width":273,"height":11}},{"id":"97a2cd66-76f7-4c92-8707-b5b1118f8b87","block_type":"box","text":"Short Sales.","page_number":116,"box":{"x":101,"y":128,"width":89,"height":9}},{"id":"8376d0a6-b729-4c62-98ed-b15f594d685f","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":116,"box":{"x":196,"y":128,"width":696,"height":11}},{"id":"58755b6e-f49a-428b-b70a-4432dd6084cf","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":116,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"9a1de7f6-11a2-499a-a670-1d5cdc7e7ecf","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":116,"box":{"x":69,"y":158,"width":778,"height":11}},{"id":"b1cf0fa3-937d-4d8e-b1a6-27c9e580c3a5","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":116,"box":{"x":70,"y":173,"width":831,"height":11}},{"id":"1db46419-bdcc-46a7-aacd-e6c3e4703fad","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":116,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"c54c86dd-6593-4603-84a0-0364ea3a27e7","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":116,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"400aee85-5443-4e47-adb9-72660f79f3ff","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":116,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"e859e995-1bf1-46e4-9228-3d3985426adb","block_type":"box","text":"securities to the lender of the securities.","page_number":116,"box":{"x":69,"y":234,"width":289,"height":9}},{"id":"e5090a01-6888-480d-9edb-a79fe6d2f141","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":116,"box":{"x":101,"y":257,"width":772,"height":11}},{"id":"a07b9159-dd85-46b7-aed0-fba847a4654f","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":116,"box":{"x":69,"y":272,"width":795,"height":11}},{"id":"212ec159-0d3f-48e7-ad7c-3f7ab689e98e","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":116,"box":{"x":69,"y":286,"width":801,"height":12}},{"id":"750c72e9-f4e1-4b1b-9620-0f683d8f3427","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":116,"box":{"x":69,"y":302,"width":830,"height":11}},{"id":"fa788cfb-3a9a-4bfc-bd66-eeee74772686","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":116,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"55aac060-94b8-4fae-bfcd-9bd46611bd8d","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":116,"box":{"x":69,"y":332,"width":770,"height":11}},{"id":"59da7ce8-06c7-4048-acc9-9817f756227a","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":116,"box":{"x":70,"y":347,"width":568,"height":11}},{"id":"c8ef3285-75a3-471f-a801-e8e22c411393","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":116,"box":{"x":102,"y":370,"width":806,"height":11}},{"id":"888f5505-3ef0-4100-9e2d-888a451f79e6","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":116,"box":{"x":69,"y":385,"width":817,"height":11}},{"id":"00a86999-696e-4c32-b253-36089b9a9260","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":116,"box":{"x":68,"y":400,"width":819,"height":11}},{"id":"4c171901-f3c7-44b9-99e0-1c89fb0e00a4","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":116,"box":{"x":69,"y":415,"width":758,"height":11}},{"id":"e7912aa7-d696-409a-b87e-98139c17d1ff","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":116,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"c0e40d08-e506-4e27-bec2-3dbcf6e7b6d5","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":116,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"7bee45e3-cc36-402a-9594-48a5607232a9","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":116,"box":{"x":69,"y":461,"width":818,"height":11}},{"id":"cc675888-6fbc-4284-abff-c980fa3b76e5","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":116,"box":{"x":68,"y":475,"width":821,"height":12}},{"id":"bfdcd163-f294-4eff-b19c-527cf1fa8079","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":116,"box":{"x":69,"y":491,"width":640,"height":11}},{"id":"5f58b0f4-757e-4484-8786-42266fc599cc","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":116,"box":{"x":101,"y":514,"width":673,"height":11}},{"id":"e10ac5ff-3c74-457f-8dac-9b381169fc84","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":116,"box":{"x":101,"y":536,"width":721,"height":11}},{"id":"d9a48c10-2e36-4dda-a600-271658bd38c6","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":116,"box":{"x":69,"y":551,"width":791,"height":11}},{"id":"b84728c6-7f5c-4f64-8d5e-9749198ba4a6","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":116,"box":{"x":70,"y":566,"width":489,"height":11}},{"id":"7e1a313c-e124-4190-8a24-59691acb0852","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":116,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"b0e83ab8-e98a-441d-951a-d0f7108550f5","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":116,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"b81ccb8d-560d-48fc-8a38-dfe3e3202f2a","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":116,"box":{"x":69,"y":619,"width":796,"height":11}},{"id":"c346b931-03a3-4610-9aa4-048c281268d6","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":116,"box":{"x":70,"y":634,"width":766,"height":12}},{"id":"85c64ba5-fe79-4a71-afa2-7e0428e9095c","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":116,"box":{"x":70,"y":649,"width":754,"height":12}},{"id":"6a8ce810-5664-4ae3-8f89-0da1be531364","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":116,"box":{"x":67,"y":664,"width":800,"height":12}},{"id":"02e38e16-1a11-49b9-a5de-a890575afe10","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":116,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"99056269-646c-4635-aa54-da8c5609a312","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":116,"box":{"x":69,"y":695,"width":782,"height":11}},{"id":"b9d1926f-b782-4384-a4fa-ca56e877640a","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":116,"box":{"x":69,"y":710,"width":460,"height":11}},{"id":"13bc63f8-c549-4b0b-a47c-ccf22342e136","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":116,"box":{"x":101,"y":733,"width":293,"height":11}},{"id":"5009e756-2b9a-4084-9443-765d207aed3a","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":116,"box":{"x":400,"y":733,"width":504,"height":11}},{"id":"fdbc7895-a3cd-4b5c-884f-d4b846abaf4d","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":116,"box":{"x":69,"y":748,"width":791,"height":11}},{"id":"132b747b-80a0-49d5-b853-21c4d6f27a15","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":116,"box":{"x":70,"y":763,"width":793,"height":11}},{"id":"a5471968-28c7-4630-9fa5-9532717f1393","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":116,"box":{"x":70,"y":778,"width":824,"height":11}},{"id":"3e353087-897e-49cb-9518-368907fbfd0b","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":116,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"cb1c064e-2a5f-4737-8c4d-29e45c04cc80","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":116,"box":{"x":69,"y":808,"width":768,"height":11}},{"id":"646aa8d2-13ba-4bce-89e3-09135fa6f8b4","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":116,"box":{"x":70,"y":823,"width":826,"height":12}},{"id":"598b297d-6646-4c31-a9e5-78bb63950fc9","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":116,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"92ce08b0-3620-47c3-9d02-4c753e9b7e07","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":116,"box":{"x":70,"y":854,"width":797,"height":11}},{"id":"50646df4-5cd1-4427-91f1-68099d24000c","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":116,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"29a51f1b-9b46-4e34-afc0-883f63bc0ca2","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":116,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"e7bb0bc5-4a34-4715-8f36-992d09570dc8","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":116,"box":{"x":68,"y":899,"width":794,"height":11}},{"id":"7c1756d6-c908-461f-9d28-d3f1b220a380","block_type":"box","text":"II-74","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c1628d8a-a987-4399-a9b8-7003b3628bab","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82f5b7f8-0e51-4503-a70c-9ec340a41241","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":117,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"da26cb3f-aa70-45d3-821e-541b9d172515","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":117,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"18a6e0ed-8488-4d51-96a3-82d3b04c9352","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":117,"box":{"x":70,"y":75,"width":802,"height":11}},{"id":"5c8c2735-33ea-409b-bf65-dedb8be270dc","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":117,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"e6598a7a-108b-4bd9-b32f-a3803daf18c0","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":117,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"ee21995e-f984-4439-93cd-9f2c78a22632","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":117,"box":{"x":69,"y":120,"width":806,"height":12}},{"id":"54544be5-687e-49b5-9fc5-4bae1ebbd834","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":117,"box":{"x":69,"y":135,"width":828,"height":11}},{"id":"030e2069-4a0c-4af7-a396-c4daace7b35d","block_type":"box","text":"Standby Commitment Agreements.","page_number":117,"box":{"x":101,"y":158,"width":255,"height":11}},{"id":"1373f225-338a-4cca-8d86-64dfe8139146","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":117,"box":{"x":362,"y":158,"width":511,"height":11}},{"id":"a3c67b90-6ece-4d88-bf29-ac8ee30e6dea","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":117,"box":{"x":68,"y":173,"width":834,"height":11}},{"id":"cf049ef3-ff09-490a-83f4-c3d624ebcfd8","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":117,"box":{"x":68,"y":188,"width":834,"height":12}},{"id":"c75d8361-3f67-4f66-8d99-57c270592ce2","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":117,"box":{"x":70,"y":203,"width":802,"height":12}},{"id":"4645f152-5fa9-41ed-b302-a2a032277dd6","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":117,"box":{"x":69,"y":218,"width":793,"height":12}},{"id":"9640eefd-91d9-4b08-97a4-98eaeccaf9c3","block_type":"box","text":"advantageous to the Fund.","page_number":117,"box":{"x":69,"y":234,"width":188,"height":11}},{"id":"d0e42e64-8bbf-430c-ab18-7471e6ae2647","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":117,"box":{"x":101,"y":256,"width":800,"height":11}},{"id":"835a1ba8-29af-4c68-a628-70597280d813","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":117,"box":{"x":68,"y":271,"width":816,"height":12}},{"id":"29cb1c7a-a1dc-4047-8af8-7505da6ebd71","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":117,"box":{"x":69,"y":286,"width":835,"height":12}},{"id":"f76865a9-8613-4b71-a6a6-901b4ce11725","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":117,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"d024ae28-ce4b-41f9-9395-72374e212ea0","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":117,"box":{"x":101,"y":324,"width":785,"height":12}},{"id":"7d59733a-f951-4a4a-98bd-17f3722f7bfa","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":117,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"e1fd3ce7-16f0-4d00-a170-956c419bd29b","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":117,"box":{"x":68,"y":355,"width":815,"height":11}},{"id":"d541f54e-4764-42b7-8350-b286c32b7c69","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":117,"box":{"x":69,"y":370,"width":792,"height":11}},{"id":"532c0a30-e29c-445f-80ee-61d3d3b277e5","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":117,"box":{"x":70,"y":385,"width":415,"height":11}},{"id":"c0e18573-0663-467a-a8cd-a33317afd73b","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":117,"box":{"x":102,"y":408,"width":789,"height":11}},{"id":"8495731f-b015-41d8-aa0f-8d70f4516f68","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":117,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"5116575b-2811-452b-9b90-cf17afdd4291","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":117,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"ad3bdaaa-72ec-4284-b697-316a47dec879","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":117,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"fb0d163a-b2d7-45a1-9f97-68fe8e747ca5","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":117,"box":{"x":68,"y":468,"width":817,"height":11}},{"id":"7cf1fe11-185b-40e2-bcb2-b4d2fe7b8799","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":117,"box":{"x":69,"y":483,"width":578,"height":11}},{"id":"f294b15b-77ae-4554-8d6e-3b74c6f47c0f","block_type":"box","text":"Stripped Securities.","page_number":117,"box":{"x":101,"y":506,"width":143,"height":11}},{"id":"fd37bbad-2d90-433c-a369-f5ad2bc3dcc5","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":117,"box":{"x":251,"y":506,"width":596,"height":11}},{"id":"d2757607-997c-4613-be36-d71344e12067","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":117,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"953bd97f-8544-45ed-865e-eade8a2e2651","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":117,"box":{"x":70,"y":536,"width":818,"height":11}},{"id":"8ccf96c7-8dea-426a-a809-e3ee82336433","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":117,"box":{"x":70,"y":551,"width":813,"height":11}},{"id":"25bb64f2-4c4f-4c27-bae3-0fb107b5219f","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":117,"box":{"x":70,"y":566,"width":777,"height":11}},{"id":"70f8b837-dc82-4252-b442-03d86e127b16","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":117,"box":{"x":70,"y":582,"width":802,"height":11}},{"id":"55765c01-8507-4136-9841-fe72dfeb01d4","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":117,"box":{"x":69,"y":596,"width":794,"height":12}},{"id":"1777125e-e74c-4c41-ae74-d807f1be68ed","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":117,"box":{"x":70,"y":612,"width":837,"height":11}},{"id":"2fec5e12-763b-43c0-875c-2bf03f37edd3","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":117,"box":{"x":68,"y":627,"width":823,"height":11}},{"id":"26c58aa1-c000-4709-8a7a-01439ef18370","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":117,"box":{"x":69,"y":642,"width":494,"height":11}},{"id":"c27b294d-7df9-49dc-a7fe-f1e1755925b8","block_type":"box","text":"Structured Notes.","page_number":117,"box":{"x":101,"y":665,"width":130,"height":8}},{"id":"fad09bc3-c744-4635-9430-c47783aedb15","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":117,"box":{"x":237,"y":665,"width":650,"height":11}},{"id":"c3ee7283-8f6d-4cf1-bf9f-4be1835c130d","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":117,"box":{"x":69,"y":680,"width":818,"height":11}},{"id":"5c7333ce-4e18-402e-97ed-bf3dc0166639","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":117,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"19ad567f-6fe7-45a1-8137-de50749765cd","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":117,"box":{"x":70,"y":710,"width":821,"height":11}},{"id":"cc8598e7-11b7-4a8e-a64b-4582dcb1ba5b","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":117,"box":{"x":70,"y":725,"width":839,"height":11}},{"id":"c38153c4-835f-4b95-b390-f74238464b95","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":117,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"94812329-16fc-4886-850d-1a05042b8ac3","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":117,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"b2cf75b1-7443-4cad-8582-6052f4ed55e7","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":117,"box":{"x":68,"y":770,"width":673,"height":12}},{"id":"cb547747-9c55-4e7e-a1b3-8e02dafbdfb0","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":117,"box":{"x":102,"y":793,"width":768,"height":11}},{"id":"c3950bf0-3415-4fde-b36e-18ae44c5adc2","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":117,"box":{"x":70,"y":808,"width":821,"height":11}},{"id":"21d7f100-5008-42da-9259-f7a2fdbd77c0","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":117,"box":{"x":69,"y":823,"width":787,"height":12}},{"id":"1a5abb48-7d86-438d-ace2-f5618930c309","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":117,"box":{"x":69,"y":838,"width":827,"height":12}},{"id":"cd7bc4ff-9eaf-4704-b185-b256e5944690","block_type":"box","text":"the risk of loss.","page_number":117,"box":{"x":68,"y":853,"width":110,"height":9}},{"id":"b88f11a8-457c-4011-96ab-4dd6cdb01d8a","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":117,"box":{"x":101,"y":876,"width":759,"height":11}},{"id":"06d0706b-fa39-4e45-bdb2-0e6db9b7fbbd","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":117,"box":{"x":69,"y":891,"width":795,"height":11}},{"id":"37598667-78c5-49ea-b956-ea633608742b","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":117,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"56657442-c31b-4cac-9577-7936cad1ffda","block_type":"box","text":"II-75","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fd66ec9c-5636-406a-893e-485816b3b24b","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a245e04e-9c91-4ed4-84b6-0b84f7212d34","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":118,"box":{"x":70,"y":45,"width":821,"height":11}},{"id":"6786a6ad-4f62-4fb5-a96d-26be8c33b283","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":118,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"a88a5c07-3f6a-4d98-8243-0a7a9e28d28c","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":118,"box":{"x":70,"y":75,"width":618,"height":11}},{"id":"d4bfcc1e-b65f-4365-b49b-4a59130f8cca","block_type":"box","text":"Taxability Risk.","page_number":118,"box":{"x":103,"y":98,"width":109,"height":11}},{"id":"77c1936b-035d-4bfa-b390-32915da0f83a","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":118,"box":{"x":218,"y":98,"width":644,"height":11}},{"id":"f42736b8-42d6-421f-b739-525e64a826a4","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":118,"box":{"x":70,"y":113,"width":817,"height":11}},{"id":"407246f4-ebc1-48fc-a51e-f428dae78cb1","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":118,"box":{"x":68,"y":128,"width":827,"height":11}},{"id":"fa0b81f6-e449-4280-a105-fa4161c22380","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":118,"box":{"x":69,"y":143,"width":835,"height":11}},{"id":"c96d8759-31d7-4915-8758-025c92bfeb55","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":118,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"0b9c2642-46e4-440f-a4b3-8c19f10b86ab","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":118,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"3e29e2bf-f9e4-446b-8082-a8128401013d","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":118,"box":{"x":69,"y":188,"width":816,"height":11}},{"id":"0c6a658a-8ad9-4b8d-ac8f-8ff1dddc42e9","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":118,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"abe61aff-95a6-4185-a0ba-f3d5b70ab3b1","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":118,"box":{"x":70,"y":218,"width":818,"height":12}},{"id":"1719870e-f2a9-465d-8196-60bac060eccc","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":118,"box":{"x":70,"y":234,"width":771,"height":11}},{"id":"31d715cf-a9b3-4b2b-a883-901f0958dfae","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":118,"box":{"x":70,"y":249,"width":765,"height":11}},{"id":"d079551e-fa7c-4ed1-aac6-8d2591dfcc35","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":118,"box":{"x":69,"y":264,"width":834,"height":11}},{"id":"f6acfa63-3e98-41b5-b434-166300cb2739","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":118,"box":{"x":68,"y":279,"width":807,"height":11}},{"id":"b4756ad6-87c2-4a63-a00b-f87ae0950ef5","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":118,"box":{"x":70,"y":294,"width":830,"height":11}},{"id":"e0e54184-21dc-4d7b-bce2-60dbd807a01d","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":118,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"0b3e9d5c-c7c2-4a98-a091-7bedb43ea685","block_type":"box","text":"the value of an investment in the Fund.","page_number":118,"box":{"x":68,"y":324,"width":278,"height":9}},{"id":"998678cd-7b95-4aa8-9421-c95ba731ec38","block_type":"box","text":"Temporary Defensive Measures.","page_number":118,"box":{"x":103,"y":347,"width":230,"height":11}},{"id":"c952ff42-580e-48f1-928e-518447dc4aa3","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":118,"box":{"x":339,"y":347,"width":542,"height":11}},{"id":"b69ee9fa-8d03-4d61-a1c2-dfe56a5e8e26","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":118,"box":{"x":69,"y":362,"width":811,"height":11}},{"id":"a57c946a-2d60-4b2d-a7f5-6e7e71977bd5","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":118,"box":{"x":68,"y":377,"width":813,"height":12}},{"id":"3d20aabe-a45b-47e6-9a1e-6726d598613a","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":118,"box":{"x":69,"y":393,"width":833,"height":11}},{"id":"42a96e21-0a36-45e7-98b1-e205a439d6d1","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":118,"box":{"x":70,"y":408,"width":813,"height":11}},{"id":"cd571e3b-a8c5-4a61-81be-1823d9f01299","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":118,"box":{"x":69,"y":423,"width":795,"height":11}},{"id":"b41d53ad-05d1-43ee-9593-442461e35c7e","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":118,"box":{"x":68,"y":438,"width":806,"height":11}},{"id":"63ff9cb6-0b3e-402c-b0e4-a4dcfad7c2ee","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":118,"box":{"x":69,"y":453,"width":808,"height":11}},{"id":"556c8603-515e-45a4-886a-713a2c59a3bd","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":118,"box":{"x":68,"y":468,"width":820,"height":11}},{"id":"bb3115b0-1727-42ec-abf1-7b5b38eb3056","block_type":"box","text":"its investment objective.","page_number":118,"box":{"x":70,"y":483,"width":171,"height":11}},{"id":"b808683b-ed9a-428c-91c0-e2278b912ac0","block_type":"box","text":"U.S. Government Obligations.","page_number":118,"box":{"x":102,"y":506,"width":213,"height":11}},{"id":"3e08d09c-cc0b-43ed-8bb7-f8f3cd48ca25","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":118,"box":{"x":321,"y":506,"width":566,"height":11}},{"id":"a463f524-63ef-4638-ab79-94d3ede76e62","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":118,"box":{"x":69,"y":521,"width":810,"height":11}},{"id":"0f84d37e-8396-4fcd-b58c-45c7d3094c71","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":118,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"ce487f54-2e26-483b-8b7d-c9bbc5b6ff2f","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":118,"box":{"x":68,"y":551,"width":779,"height":11}},{"id":"79d9aaf0-bcdf-4507-a214-0562fca036dd","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":118,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"8320304f-e985-4f4c-af15-7ab18bef3616","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":118,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"96b0e66d-1e04-4d78-9136-3e6d420b213f","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":118,"box":{"x":69,"y":596,"width":809,"height":12}},{"id":"d51533b7-eebb-4393-9e14-0152f77de413","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":118,"box":{"x":69,"y":612,"width":805,"height":11}},{"id":"a1030f9b-b224-4144-b890-6d641137eb43","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":118,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"dbaed786-2463-4698-9053-646251163779","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":118,"box":{"x":70,"y":642,"width":832,"height":11}},{"id":"87f69b46-4930-4177-a754-bae450dd1054","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":118,"box":{"x":69,"y":657,"width":829,"height":11}},{"id":"50d0bc93-3f00-4fd4-bf63-9cddb2d9aab5","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":118,"box":{"x":69,"y":672,"width":716,"height":11}},{"id":"ee0c8ea1-a1ba-44bf-94ae-cd0ae1de316c","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":118,"box":{"x":102,"y":695,"width":800,"height":11}},{"id":"c2471e7b-0fee-4033-a10e-04ea1d254e9c","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":118,"box":{"x":68,"y":710,"width":785,"height":11}},{"id":"5b0b6fb5-1842-44bd-8001-f3aad157dae5","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":118,"box":{"x":68,"y":725,"width":813,"height":11}},{"id":"b68b6bb4-8b2a-4d55-ad0e-c8a2010f73d6","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":118,"box":{"x":70,"y":740,"width":794,"height":11}},{"id":"8fa54fb4-fb4b-4984-ad22-a8d8e68cdd89","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":118,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"7a96f0a2-3483-4280-9d5e-03c2a1174810","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":118,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"7d966f36-3c8f-4ac9-b5e8-d51e579b80a2","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":118,"box":{"x":70,"y":786,"width":777,"height":11}},{"id":"0441c3fc-10e8-4356-bc52-86fdb7ac38d1","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":118,"box":{"x":70,"y":801,"width":749,"height":11}},{"id":"00ac1c64-7a60-4486-95c2-04fe552414ac","block_type":"box","text":"U.S. Treasury Obligations.","page_number":118,"box":{"x":103,"y":823,"width":183,"height":12}},{"id":"594d4194-f487-4e03-8ced-01e4da9dcecb","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":118,"box":{"x":292,"y":823,"width":593,"height":12}},{"id":"75199e0a-8989-4da6-ac93-8240cb659a27","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":118,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"8aa79544-0373-42b4-809e-c341b928c217","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":118,"box":{"x":69,"y":853,"width":827,"height":12}},{"id":"0fe8d1e9-736d-48e2-8727-fc2662a6089f","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":118,"box":{"x":68,"y":869,"width":823,"height":11}},{"id":"95abf30e-24f6-4ef1-9fcd-216139687273","block_type":"box","text":"do so.","page_number":118,"box":{"x":69,"y":884,"width":42,"height":9}},{"id":"2ae5aca9-c219-46ce-bc45-e8cafcf6ad87","block_type":"box","text":"II-76","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"18e17083-d7a9-4cdc-aa9a-5744a2bbe5cc","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"047d4143-b223-4918-81c7-756635ca574d","block_type":"box","text":"U.S. Treasury Rolls","page_number":119,"box":{"x":102,"y":45,"width":139,"height":11}},{"id":"4129125f-8069-45fa-aee5-94dc08267551","block_type":"box","text":".","page_number":119,"box":{"x":241,"y":52,"width":3,"height":2}},{"id":"1ece7964-ce49-43ca-b9ab-d3d93f6301f6","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":119,"box":{"x":250,"y":45,"width":656,"height":11}},{"id":"d81ce48c-dea3-4c6f-8c1e-bd339273124e","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":119,"box":{"x":69,"y":60,"width":804,"height":11}},{"id":"f9f4008f-f4f6-4ef5-9892-00a2f0ad38c5","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":119,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"60420915-aa50-4080-9aeb-80b6e5b3172a","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":119,"box":{"x":69,"y":90,"width":840,"height":11}},{"id":"b594371e-fc26-4b54-9aa8-1e8a2b4ca753","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":119,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"66ac5a30-6ab2-45c1-8bb6-4d50a331aab4","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":119,"box":{"x":69,"y":120,"width":775,"height":12}},{"id":"c4ea054e-5a4a-4795-aa67-ebcc09f45d19","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":119,"box":{"x":69,"y":135,"width":829,"height":12}},{"id":"6c0ef0ec-3894-448b-adea-087473752d26","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":119,"box":{"x":68,"y":150,"width":657,"height":12}},{"id":"57898dc3-a5e7-4036-a467-e84486d1badc","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":119,"box":{"x":101,"y":173,"width":756,"height":11}},{"id":"8a036b37-5ec9-4352-8be4-8e6d08135973","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":119,"box":{"x":70,"y":188,"width":800,"height":11}},{"id":"5168ee8f-c19c-4e53-84e1-449b09faf0c0","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":119,"box":{"x":70,"y":203,"width":617,"height":12}},{"id":"3ac174a4-0581-4689-8f51-b778a226ba0c","block_type":"box","text":"Utility Industries.","page_number":119,"box":{"x":102,"y":226,"width":124,"height":11}},{"id":"4108940d-b10c-4449-a980-2aacb8d42700","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":119,"box":{"x":233,"y":226,"width":674,"height":11}},{"id":"da46e90c-34f5-4373-b370-6d78b91ad7ed","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":119,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"d41ff629-a49c-4b1f-b490-0819b515bbd6","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":119,"box":{"x":69,"y":256,"width":812,"height":12}},{"id":"0fdee82b-ef45-4fa7-9993-1959f52a251a","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":119,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"65232755-9548-4457-9b83-cc3d6fb5cb84","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":119,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"ed6aa1fd-d0c1-47b4-9cfa-a0d7156fe137","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":119,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"7b150214-eeff-44cc-a53f-81fff3312133","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":119,"box":{"x":69,"y":317,"width":795,"height":11}},{"id":"0b0af11b-b143-46b2-84fe-1ce9480c1bfb","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":119,"box":{"x":69,"y":332,"width":774,"height":11}},{"id":"46c8058f-5095-414a-a209-7c459645ffc6","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":119,"box":{"x":69,"y":347,"width":817,"height":11}},{"id":"5c1f1b1a-b51b-45d9-9829-a839a31597e9","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":119,"box":{"x":69,"y":362,"width":839,"height":11}},{"id":"0f0e9f37-5bd5-497c-a8fc-f49d160c6678","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":119,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"38ee39dd-03cc-4a2b-8281-03b077bd761a","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":119,"box":{"x":69,"y":392,"width":761,"height":12}},{"id":"b46f7c76-27c6-45be-9a38-82ee65ea276e","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":119,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"a452492e-c36b-4cd9-8bfd-6d8767aa70e4","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":119,"box":{"x":69,"y":423,"width":777,"height":11}},{"id":"18d69884-3aa8-4e08-b8ea-6b5c1e26cdc3","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":119,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"047262d0-ce8e-474a-ab07-369016d104ad","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":119,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"c8afbad0-ac31-4d44-82f2-db579df2130a","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":119,"box":{"x":68,"y":468,"width":778,"height":11}},{"id":"f00e65a3-27e5-4e31-b92a-eca8b2d607ba","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":119,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"1d1ac71a-4293-4fb5-9d01-8e00793fe7b6","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":119,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"6c9f184f-5d69-4dd7-9845-cb0979000cdd","block_type":"box","text":"utility.","page_number":119,"box":{"x":69,"y":514,"width":39,"height":10}},{"id":"1fba4868-333d-4b8b-97c0-e4e0c79e6a8d","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":119,"box":{"x":102,"y":536,"width":744,"height":11}},{"id":"2b3d42de-11a9-47a4-9dc8-e6da9ac64ba5","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":119,"box":{"x":70,"y":551,"width":828,"height":11}},{"id":"eb5a91bb-bde2-4350-9e53-de3eae080d86","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":119,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"41456b8c-5fcc-410c-8fd5-09f8491525d2","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":119,"box":{"x":70,"y":581,"width":464,"height":11}},{"id":"03eb8f8d-6b40-4349-9551-19e686c01d4a","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":119,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"923e7e04-8a11-42f5-aca6-707e91e60303","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":119,"box":{"x":69,"y":619,"width":790,"height":11}},{"id":"d1ca51fc-a49f-4016-98f0-9c6e94d92a52","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":119,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"de11a433-cd3d-4b51-b1c7-2aa1771b90e5","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":119,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"d9297f58-1947-44ac-a2ee-ae7cb859823e","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":119,"box":{"x":68,"y":664,"width":781,"height":12}},{"id":"50cb5012-b341-44d4-9007-14ad28ab80c7","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":119,"box":{"x":69,"y":680,"width":826,"height":11}},{"id":"542c1e3b-e2d8-492f-bd19-0a43cc016e2b","block_type":"box","text":"continue in the future.","page_number":119,"box":{"x":69,"y":695,"width":156,"height":9}},{"id":"e539cb0c-24e1-4f44-a3a9-b5f46ca8a934","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":119,"box":{"x":101,"y":717,"width":763,"height":12}},{"id":"2e263fdc-4468-4f0f-98b5-01bb092b93ee","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":119,"box":{"x":69,"y":733,"width":820,"height":11}},{"id":"c37abe51-a7ee-419c-8efe-650e0b295ebe","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":119,"box":{"x":70,"y":748,"width":834,"height":11}},{"id":"dec04503-9091-41ef-a2d8-0c9acafeb47e","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":119,"box":{"x":69,"y":763,"width":784,"height":11}},{"id":"4e990e06-d1b7-4980-b0a6-2afcb79a5c28","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":119,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"aae4a87a-06dd-45a7-9333-1f4ff96f9f73","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":119,"box":{"x":68,"y":793,"width":809,"height":11}},{"id":"5a86443b-cb23-4997-8977-37f5a49e8d11","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":119,"box":{"x":69,"y":808,"width":834,"height":11}},{"id":"56e71d0b-a83e-4139-a452-4cd87276ccb1","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":119,"box":{"x":69,"y":823,"width":825,"height":12}},{"id":"bc5d3946-d018-4df0-936f-c09f0236743b","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":119,"box":{"x":68,"y":838,"width":840,"height":11}},{"id":"0bd2a1ed-c356-4f86-b6cb-db3b22f69d15","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":119,"box":{"x":69,"y":853,"width":796,"height":12}},{"id":"90025c07-1f76-4009-8e3b-b4eb1d73eb0a","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":119,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"5ddac118-00ce-4a50-aa8f-d708f87c1437","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":119,"box":{"x":68,"y":884,"width":831,"height":11}},{"id":"d5161da2-4a21-462b-a0f7-cad7dd530a02","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":119,"box":{"x":69,"y":899,"width":812,"height":11}},{"id":"9d08e1fd-47f9-4271-8fa1-0a91f6dbd692","block_type":"box","text":"II-77","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4f800746-7ff5-43e7-91ab-afbe46c2b844","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4dcfa485-ec5e-4271-9e61-bf0be9754efa","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":120,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"5dcd0cf7-52a5-4dc7-9711-8ecf212f3126","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":120,"box":{"x":68,"y":60,"width":831,"height":11}},{"id":"da84c5cf-4170-4e86-93f0-f4ce9611b310","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":120,"box":{"x":102,"y":83,"width":720,"height":11}},{"id":"03d7ab0b-0c82-4aa3-8898-764de0879973","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":120,"box":{"x":69,"y":98,"width":838,"height":11}},{"id":"3b538f8c-63da-4eb2-b90a-4aaae3ba5179","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":120,"box":{"x":68,"y":113,"width":762,"height":11}},{"id":"3ea06792-0ccf-4597-bcac-e2b6bcf457e2","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":120,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"6904b662-c343-4402-84e9-c7adc84eb1cd","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":120,"box":{"x":68,"y":143,"width":801,"height":11}},{"id":"c434c14a-32d1-42cf-bc60-fbb72bb3e8d9","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":120,"box":{"x":69,"y":158,"width":828,"height":11}},{"id":"a7a6f2e7-5099-4243-afe3-18a46e41bd91","block_type":"box","text":"ways different from regulation in the United States.","page_number":120,"box":{"x":68,"y":173,"width":365,"height":11}},{"id":"d4c664cb-0485-44e1-bfa0-143dd623e172","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":120,"box":{"x":101,"y":196,"width":745,"height":11}},{"id":"6ef57a0a-2955-4015-bb15-4887db45d275","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":120,"box":{"x":68,"y":211,"width":790,"height":11}},{"id":"5627b753-4298-43ae-834e-d5c0131b1797","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":120,"box":{"x":69,"y":226,"width":833,"height":11}},{"id":"55326a30-5a98-4aa4-a63b-d2e013bfca30","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":120,"box":{"x":69,"y":241,"width":810,"height":11}},{"id":"6a64530c-bac8-49a4-81b5-b87ed90f638e","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":120,"box":{"x":69,"y":256,"width":831,"height":12}},{"id":"c50df8ec-1212-4bbf-9a13-daacfb361556","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":120,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"d656dc04-cd9e-4593-90b3-189c3b24e60c","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":120,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"1f21d203-ffc8-47d7-8beb-b9bc85eec974","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":120,"box":{"x":69,"y":302,"width":786,"height":11}},{"id":"d89f0ee5-9d77-4f17-80b1-18c18d3053a3","block_type":"box","text":"increase.","page_number":120,"box":{"x":70,"y":317,"width":63,"height":9}},{"id":"11af1749-6906-4a9a-809c-bc7530a8eb28","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":120,"box":{"x":101,"y":339,"width":793,"height":12}},{"id":"d744e4da-6e4a-493c-bbd6-435e5a3b715c","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":120,"box":{"x":70,"y":355,"width":821,"height":11}},{"id":"a0ed0632-cccc-4ff0-a6cb-a4a44508bcf8","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":120,"box":{"x":69,"y":370,"width":619,"height":11}},{"id":"535fa31f-81e1-4bc3-b44f-db5a2f92bbd6","block_type":"box","text":"Electric.","page_number":120,"box":{"x":102,"y":393,"width":54,"height":8}},{"id":"fdb831e5-fc02-4fda-9cbd-e97e97536e42","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":120,"box":{"x":163,"y":392,"width":684,"height":12}},{"id":"0e145d56-f8e6-4d77-9271-4a51870945df","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":120,"box":{"x":68,"y":407,"width":793,"height":12}},{"id":"210bdcba-e781-48b7-b2e5-49709dcf1346","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":120,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"946c4516-df0c-48f0-91a2-b463735c7c1d","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":120,"box":{"x":69,"y":438,"width":833,"height":11}},{"id":"1a98e197-287d-497c-9153-77c6b35d0fdb","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":120,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"e3c9f271-8832-4a7d-ad59-cc5e01393033","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":120,"box":{"x":69,"y":468,"width":823,"height":11}},{"id":"e84f9520-78ff-4053-a0ad-cff2d222baa8","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":120,"box":{"x":68,"y":483,"width":803,"height":11}},{"id":"d2f606be-78ff-4b82-96c1-40e73dea3f5d","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":120,"box":{"x":70,"y":498,"width":778,"height":11}},{"id":"215dd5b7-cf8a-4829-9cad-c5716ae50444","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":120,"box":{"x":70,"y":513,"width":836,"height":12}},{"id":"716b6db5-d77f-4e34-83da-4957990f48fa","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":120,"box":{"x":69,"y":528,"width":793,"height":12}},{"id":"0cf70d82-2960-420d-b122-36bfdf4bf239","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":120,"box":{"x":69,"y":543,"width":786,"height":12}},{"id":"54eaeefc-c3d2-45c9-88e9-7e0a37bf9fdb","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":120,"box":{"x":69,"y":559,"width":819,"height":11}},{"id":"7b032010-9974-4946-9a31-de2d51be8acd","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":120,"box":{"x":69,"y":574,"width":775,"height":11}},{"id":"2ffb9393-d2c7-42ec-8441-559ca47b2559","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":120,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"2a132161-1927-4efb-9ef5-2b8fe6070838","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":120,"box":{"x":70,"y":604,"width":826,"height":11}},{"id":"e8348880-4574-45f8-ac35-a21775a315e4","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":120,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"ec4a9a7c-6f11-4de7-a4fd-815eb3dfe53f","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":120,"box":{"x":69,"y":634,"width":836,"height":11}},{"id":"2f443cf5-7ce9-474d-ad32-003828095374","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":120,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"44a57965-23ae-41e6-b6a7-9406d7b1a32c","block_type":"box","text":"and for decommissioning such plants.","page_number":120,"box":{"x":69,"y":664,"width":270,"height":12}},{"id":"05609764-5b4d-4b6f-9fd0-eeaf9c8f7409","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":120,"box":{"x":101,"y":687,"width":776,"height":11}},{"id":"52d71108-75eb-4b0d-9edd-7a4ac6db3c46","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":120,"box":{"x":70,"y":702,"width":802,"height":12}},{"id":"6908a2ee-a249-436f-b5e6-719e835183d6","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":120,"box":{"x":69,"y":717,"width":791,"height":12}},{"id":"4414d2ab-ad34-4db9-aa44-0be2ffc22cc9","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":120,"box":{"x":69,"y":732,"width":839,"height":12}},{"id":"b677116a-5915-492c-83dd-823f801c5d60","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":120,"box":{"x":70,"y":748,"width":838,"height":11}},{"id":"19b7d0fd-26fb-41a3-94d4-17b891c4c1b9","block_type":"box","text":"greater predictability of cash flow.","page_number":120,"box":{"x":68,"y":763,"width":239,"height":11}},{"id":"e70d5583-34f5-4370-8f1f-0c57f0652932","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":120,"box":{"x":101,"y":785,"width":801,"height":12}},{"id":"d828d65b-c521-4461-8fbf-bfbb79e6f1b5","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":120,"box":{"x":68,"y":801,"width":821,"height":11}},{"id":"ff290e4e-2caf-4b40-895e-9b376381ff9c","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":120,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"c1b98136-e884-4bfa-99a4-795f0c526254","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":120,"box":{"x":68,"y":831,"width":815,"height":11}},{"id":"8a9d14e8-333c-4e70-816c-4a622049ce33","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":120,"box":{"x":68,"y":846,"width":803,"height":11}},{"id":"1cd87c85-fa43-42c9-bb4d-4ad63de19124","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":120,"box":{"x":69,"y":861,"width":777,"height":11}},{"id":"410e3dbc-397b-4825-999d-7bd5d386d667","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":120,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"74909d80-1913-4e1c-b5b9-6f3a120b26b5","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":120,"box":{"x":68,"y":891,"width":835,"height":12}},{"id":"a4a604a4-af4c-498d-8c27-67fdfb630a06","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":120,"box":{"x":69,"y":906,"width":700,"height":12}},{"id":"3159a3f0-1030-48ec-a3b2-2296c559cb80","block_type":"box","text":"II-78","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"242410b7-0dc4-45df-9468-ed06a03c4243","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"568ff6fd-597f-4433-ae43-eddb8cc49b7c","block_type":"box","text":"Telecommunications.","page_number":121,"box":{"x":103,"y":45,"width":147,"height":9}},{"id":"fd2c6f33-f483-4d8f-b41a-f68321b97206","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":121,"box":{"x":256,"y":45,"width":652,"height":11}},{"id":"22fdd482-0661-445f-9a9d-e3300d95c9f8","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":121,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"ef6c7986-cbde-4283-8445-6e93bdabea84","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":121,"box":{"x":70,"y":75,"width":782,"height":11}},{"id":"5d22f795-33f4-43f8-b400-e10cefd3d94f","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":121,"box":{"x":69,"y":90,"width":786,"height":11}},{"id":"163871fe-2445-4c78-a116-d59070b655d3","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":121,"box":{"x":69,"y":105,"width":784,"height":11}},{"id":"ca544683-44ec-48a5-9df4-d42addf3dc76","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":121,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"cbc1c7b8-bcee-45da-abcd-657e20de04b9","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":121,"box":{"x":69,"y":135,"width":790,"height":12}},{"id":"2563c6a1-6db3-4fe4-add5-d0bd83678921","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":121,"box":{"x":70,"y":150,"width":788,"height":12}},{"id":"e1873b0f-6683-4d2e-ba20-13a135b8cbef","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":121,"box":{"x":68,"y":166,"width":825,"height":11}},{"id":"95fb447c-5f41-4181-9c0d-b7a3658063e3","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":121,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"48838057-1b50-4b40-beb6-4c27dd99838b","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":121,"box":{"x":69,"y":196,"width":821,"height":11}},{"id":"6d401432-4140-41f1-9a90-d44547820743","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":121,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"aee7aaa6-c3b4-4fa9-93dd-f0041e4cd1e0","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":121,"box":{"x":70,"y":226,"width":821,"height":11}},{"id":"a9bd12de-3f99-468a-b23d-6e12eb704e4f","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":121,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"473ed3cb-bd70-40f0-b095-575985241b91","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":121,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"68ee7083-b7d0-49a1-addf-6870d1f64390","block_type":"box","text":"residential, corporate and governmental customers.","page_number":121,"box":{"x":69,"y":272,"width":367,"height":11}},{"id":"ca63cad8-ec76-4d05-8fe7-4401f332f1bf","block_type":"box","text":"Gas.","page_number":121,"box":{"x":102,"y":294,"width":31,"height":9}},{"id":"b7dc8133-1850-4031-9e70-1e4b92526795","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":121,"box":{"x":139,"y":294,"width":740,"height":11}},{"id":"97823ca1-de8e-4d98-bfd2-2b83ee510ced","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":121,"box":{"x":70,"y":309,"width":834,"height":11}},{"id":"e87a9916-60cd-454e-8e16-23d0a9d9277f","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":121,"box":{"x":70,"y":324,"width":756,"height":12}},{"id":"2eaaa086-cdaa-497b-a24b-953c1f8c2462","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":121,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"a4a68410-c369-4500-b977-056090e5c927","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":121,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"e2fa3cd8-6efc-4809-bea5-3f78514d659c","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":121,"box":{"x":69,"y":370,"width":815,"height":11}},{"id":"7337ea6f-1305-4d27-ba5c-717b78f85db1","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":121,"box":{"x":69,"y":385,"width":782,"height":11}},{"id":"dcf58614-7484-4459-9271-f81a9256abfe","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":121,"box":{"x":70,"y":400,"width":829,"height":11}},{"id":"51c25b70-70ab-4c2e-8794-76b63a3b01a4","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":121,"box":{"x":70,"y":415,"width":691,"height":11}},{"id":"070828b3-5816-43d8-b501-951c38da22dc","block_type":"box","text":"Water.","page_number":121,"box":{"x":103,"y":438,"width":42,"height":9}},{"id":"d1de3c2d-060c-4092-b83c-e89d342d0070","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":121,"box":{"x":151,"y":438,"width":754,"height":11}},{"id":"a29770a4-f2d7-4097-b36e-d31668ad7c70","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":121,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"eea2d848-46a8-4c28-8291-b0da9e9125a5","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":121,"box":{"x":69,"y":468,"width":806,"height":11}},{"id":"01df4feb-e44d-4b98-9ae5-6c2b44fbad63","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":121,"box":{"x":69,"y":483,"width":814,"height":11}},{"id":"beb51fdd-2d2a-48c1-96d7-09bedbaa8575","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":121,"box":{"x":69,"y":498,"width":808,"height":11}},{"id":"b2089bd7-5872-4e6f-ae2b-4b6597f552ca","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":121,"box":{"x":69,"y":513,"width":832,"height":12}},{"id":"d21362b4-9981-4028-9412-2cfb08c7b39e","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":121,"box":{"x":69,"y":528,"width":662,"height":12}},{"id":"9aaa3afb-d615-4c4f-ab96-14de679af836","block_type":"box","text":"Utility Industries Generally.","page_number":121,"box":{"x":103,"y":551,"width":186,"height":11}},{"id":"d8065f58-7ab0-4345-901f-442ff86f99e1","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":121,"box":{"x":296,"y":551,"width":584,"height":11}},{"id":"e784884b-23cc-41c0-af38-d1e7f6ddda66","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":121,"box":{"x":68,"y":566,"width":837,"height":11}},{"id":"80c93a33-570f-4aa2-93f9-dc8f215d38e0","block_type":"box","text":"not develop in the future.","page_number":121,"box":{"x":69,"y":581,"width":178,"height":11}},{"id":"fbb6c1b0-6de5-4221-b862-6f8be7665c1d","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":121,"box":{"x":103,"y":604,"width":585,"height":11}},{"id":"e4d6b616-91fc-47ba-a065-ef8698d0f32e","block_type":"box","text":"A Fund may purchase or sell","page_number":121,"box":{"x":694,"y":604,"width":200,"height":11}},{"id":"8d6f4eaa-1c1d-4a01-8539-c6c137a7ffe4","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":121,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"f59fe3d0-2921-44e9-b058-7b8ffc020c1a","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":121,"box":{"x":69,"y":634,"width":777,"height":12}},{"id":"412f3717-d3d5-45f4-813d-b38f4ac113c5","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":121,"box":{"x":68,"y":649,"width":820,"height":12}},{"id":"93bf0976-45f7-473a-8bd9-329f4c3c225c","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":121,"box":{"x":68,"y":664,"width":807,"height":12}},{"id":"25490c32-f8f5-4c1f-84a2-452f214d9710","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":121,"box":{"x":70,"y":680,"width":430,"height":11}},{"id":"460d7ad2-fdf7-495d-b01e-b61ecc346b50","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":121,"box":{"x":102,"y":702,"width":750,"height":11}},{"id":"53f23db0-56e0-4e8a-9d18-7264aa4bc219","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":121,"box":{"x":70,"y":717,"width":823,"height":12}},{"id":"904c6259-3aee-4f3b-b6c8-c761b6e219b3","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":121,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"47a8a6fe-1194-4f16-b327-20980f527aac","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":121,"box":{"x":70,"y":748,"width":755,"height":11}},{"id":"e4b69c82-5cc4-4bf6-b337-685fd4852317","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":121,"box":{"x":69,"y":763,"width":799,"height":11}},{"id":"2bd891e8-e42d-4d6c-8911-7afec6266e15","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":121,"box":{"x":69,"y":778,"width":614,"height":11}},{"id":"022c596e-df0c-4c2f-9986-30c66772956b","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":121,"box":{"x":101,"y":801,"width":780,"height":11}},{"id":"33dc4aa3-fa0e-488a-90ef-decae8168789","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":121,"box":{"x":70,"y":816,"width":823,"height":11}},{"id":"78db2717-dead-4a32-8bbe-1ba7056a6ec3","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":121,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"dbb59ba6-8a02-4869-903f-519cb6e38731","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":121,"box":{"x":68,"y":846,"width":839,"height":11}},{"id":"ccb1eb64-ce2b-440c-9593-3e5af6fe6a23","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":121,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"b690a18d-a4f3-452c-bd82-7b8507788fa0","block_type":"box","text":"II-79","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a54b09bb-3b74-49ad-a2ff-4e459cd31331","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4fa653b1-db88-4dce-b045-8d1f5d32a385","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":122,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"d3b6616c-d3d4-4d35-898d-dd7cd53b2f62","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":122,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"c3d0c45f-67d2-4445-a23f-6c5c0608eeeb","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":122,"box":{"x":69,"y":75,"width":799,"height":11}},{"id":"890c731a-3e2d-438b-aae3-e63e622e4534","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":122,"box":{"x":101,"y":98,"width":784,"height":11}},{"id":"006f29d0-5ef4-4932-b890-1bbd0fcd325f","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":122,"box":{"x":69,"y":113,"width":772,"height":11}},{"id":"7b75a33d-9f81-460f-8155-432259e340ba","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":122,"box":{"x":69,"y":128,"width":434,"height":11}},{"id":"4b8f0af6-da92-476d-99c6-191ff286a629","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":122,"box":{"x":101,"y":150,"width":745,"height":12}},{"id":"90c57f00-d2fa-4d83-b9f3-fafa95080ff2","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":122,"box":{"x":68,"y":166,"width":831,"height":11}},{"id":"7a550f5a-1eea-4c6e-bd61-697536d78a7b","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":122,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"2a45f3b6-4ed6-4fd6-a209-cdab03823f05","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":122,"box":{"x":68,"y":196,"width":514,"height":11}},{"id":"32601179-5a40-438f-901f-ba042d6e8f3b","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":122,"box":{"x":102,"y":218,"width":759,"height":12}},{"id":"0c60dfdf-1ad0-4504-a48d-59f8f3c149a9","block_type":"box","text":"securities (","page_number":122,"box":{"x":69,"y":234,"width":78,"height":11}},{"id":"a216f8d4-e7be-4a9a-809f-3edb73a2b357","block_type":"box","text":"e.g.","page_number":122,"box":{"x":148,"y":235,"width":25,"height":10}},{"id":"05f28e16-21c1-4758-8ecb-75c14ad7e827","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":122,"box":{"x":176,"y":234,"width":686,"height":11}},{"id":"3feb65e4-208c-4e53-ae20-a3a18a6ee897","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":122,"box":{"x":69,"y":249,"width":813,"height":11}},{"id":"1420ca54-5080-4e7b-9285-b3807eda1d15","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":122,"box":{"x":70,"y":264,"width":822,"height":11}},{"id":"67a9e45b-9e1b-4ed6-9b6b-65bec98edb7d","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":122,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"88aec838-210c-424a-adc8-3b7334672e35","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":122,"box":{"x":69,"y":294,"width":826,"height":11}},{"id":"76509bcc-1ce1-46cc-add0-e5e9566f37ae","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":122,"box":{"x":70,"y":309,"width":816,"height":11}},{"id":"17d9fada-e215-4a9a-8b43-5bc8faca0873","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":122,"box":{"x":70,"y":324,"width":349,"height":11}},{"id":"eea30974-9324-4e50-89f2-8575d2c60645","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":347,"width":800,"height":11}},{"id":"c9457156-813f-417d-9879-2a0b5e126619","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":122,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"d19e6751-563b-4504-86f4-2aa5f9466c30","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":122,"box":{"x":69,"y":377,"width":814,"height":12}},{"id":"6adcca9b-9acc-4a14-9206-dd32c2e75637","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":122,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"d0b01a6d-07ce-45b0-940c-6908da45e61d","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":122,"box":{"x":69,"y":407,"width":836,"height":12}},{"id":"ffd3d11c-f2fd-4589-9a91-21dac4cb5263","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":122,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"0e7fa459-ae23-4356-ab1f-81a6844a5f24","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":122,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"c966e354-7f60-4340-a674-9530ead1b830","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":122,"box":{"x":68,"y":453,"width":573,"height":11}},{"id":"a5437b9a-895b-4650-a0b6-19cf71aba31c","block_type":"box","text":"Yields and Ratings.","page_number":122,"box":{"x":103,"y":476,"width":139,"height":11}},{"id":"7750ac7d-2c57-4fca-a842-983ae221bb2c","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":122,"box":{"x":247,"y":475,"width":628,"height":12}},{"id":"0b35adeb-9001-4c44-8117-33ff3023c82f","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":122,"box":{"x":69,"y":491,"width":834,"height":11}},{"id":"a3d25cba-b041-4c9b-b86f-e3daa68826cb","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":122,"box":{"x":69,"y":506,"width":799,"height":11}},{"id":"ecae8fab-9039-4d0b-bdb0-f7d2fe367c54","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":122,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"60ba7650-1fe2-4691-9419-ed8293051b82","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":122,"box":{"x":68,"y":536,"width":792,"height":11}},{"id":"a5588aea-1755-492e-b214-35a6a3ecfd26","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":122,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"b8dae03c-b817-403b-90cd-7d28bbcfe73d","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":122,"box":{"x":69,"y":566,"width":786,"height":11}},{"id":"1045b8cc-125e-4fef-a19b-f1ee3e36ce1d","block_type":"box","text":"continue to hold the security.","page_number":122,"box":{"x":69,"y":582,"width":204,"height":10}},{"id":"9482b18f-88a6-4724-b662-dd4af6ebb1cc","block_type":"box","text":"Zero Coupon Securities.","page_number":122,"box":{"x":102,"y":604,"width":175,"height":11}},{"id":"c8c2fcd3-7f7f-44ad-bd6f-cbc331ca3056","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":122,"box":{"x":283,"y":604,"width":601,"height":11}},{"id":"f2f0c912-13f1-4a91-8c5f-cd8190e31883","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":122,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"8d0b32ee-25de-4b31-b5a4-b63238cd362b","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":122,"box":{"x":69,"y":634,"width":822,"height":12}},{"id":"7cd70ac3-c928-430c-a61b-b72dde3620f9","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":122,"box":{"x":68,"y":649,"width":814,"height":12}},{"id":"8a88a3ec-9473-4154-9f6e-43451ace286c","block_type":"box","text":"security.","page_number":122,"box":{"x":69,"y":665,"width":57,"height":11}},{"id":"c65efd9e-1d6e-4bc7-a348-74f58642f84d","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":122,"box":{"x":101,"y":687,"width":749,"height":11}},{"id":"21df2fd4-56d1-4dd3-8faa-021c5111c08a","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":122,"box":{"x":69,"y":702,"width":835,"height":12}},{"id":"651bade9-02c6-4264-b62a-e1e8d79a9f00","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":122,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"2c9d9fd8-9336-48d1-8c40-9fd696743f5d","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":122,"box":{"x":70,"y":732,"width":836,"height":12}},{"id":"11917218-bb09-43d0-9d08-36b5ba6d34de","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":122,"box":{"x":69,"y":748,"width":804,"height":11}},{"id":"b0562f2a-d925-4e87-9e4d-539697aaed6f","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":122,"box":{"x":68,"y":763,"width":824,"height":11}},{"id":"3e4f5551-d11e-4536-8a77-f7df653f261f","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":122,"box":{"x":68,"y":778,"width":805,"height":11}},{"id":"358b0741-8bdf-40df-85de-6437badcbb62","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":122,"box":{"x":70,"y":793,"width":837,"height":11}},{"id":"6a6ce30c-94ec-4cee-b30f-e2812066b56a","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":122,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"fd019e9d-5c0e-4541-b408-67084b74f56e","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":122,"box":{"x":69,"y":823,"width":800,"height":12}},{"id":"f5d32b8e-4e95-44a1-bb2a-32e760411d12","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":122,"box":{"x":69,"y":838,"width":400,"height":12}},{"id":"0275b28c-d796-4646-aca6-4b95fb6370fe","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":122,"box":{"x":101,"y":861,"width":775,"height":11}},{"id":"e5bdedb4-5468-4dea-9b77-1c6bea49488a","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":122,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"f466f111-16c7-4076-be95-022c20a65459","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":122,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"641b10ff-ae1e-4ecc-9a06-203cd1e240c8","block_type":"box","text":"intervals.","page_number":122,"box":{"x":70,"y":907,"width":64,"height":8}},{"id":"dd0576f6-b720-4007-879e-88bcc1d41955","block_type":"box","text":"II-80","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1e113c8c-bc1a-40d5-9e75-ec24565eb55b","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"648c2bc2-f89d-4f3a-b657-b861893b9901","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":123,"box":{"x":102,"y":45,"width":749,"height":11}},{"id":"8f9c3f18-bae3-4afe-923f-96d8f8beaf3b","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":123,"box":{"x":69,"y":60,"width":784,"height":11}},{"id":"61901bb3-fcc7-47ec-abba-f800fad68452","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":123,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"fe493ce8-7d17-41ac-b354-66f6c3712542","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":123,"box":{"x":68,"y":90,"width":799,"height":11}},{"id":"18644699-4d72-47a3-858b-d7e5b9f09096","block_type":"box","text":"exposure to zero coupon securities.","page_number":123,"box":{"x":69,"y":105,"width":253,"height":11}},{"id":"7bd4ce29-d566-42b1-aab5-999bbddfe0c1","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":123,"box":{"x":102,"y":128,"width":740,"height":11}},{"id":"91794dbb-d737-4944-8b0f-faa8e6ac7d6e","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":123,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"c2b15cf0-f249-4e38-9cfb-275026cf347f","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":123,"box":{"x":70,"y":158,"width":829,"height":11}},{"id":"8a441ee1-f271-49ec-8a6e-a19a9d860ec1","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":123,"box":{"x":69,"y":173,"width":741,"height":11}},{"id":"eb1351e8-6f8f-47bc-805c-fe56545508f5","block_type":"box","text":"Suitability. (All Funds)","page_number":123,"box":{"x":101,"y":196,"width":161,"height":11}},{"id":"161bb493-255f-443b-991c-49753a73ed99","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":123,"box":{"x":101,"y":218,"width":793,"height":12}},{"id":"9fc8de83-441c-4529-86f1-118aa97effd3","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":123,"box":{"x":68,"y":234,"width":811,"height":11}},{"id":"63058b65-258d-493b-80bb-7faea96ec578","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":123,"box":{"x":70,"y":249,"width":810,"height":11}},{"id":"73d0adea-66c0-4fd1-91b7-a41fe07724a1","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":123,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"aaa4d934-c6d0-462d-9be7-d43179fb472c","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":123,"box":{"x":68,"y":279,"width":460,"height":11}},{"id":"91c48153-f3b4-4505-9327-4d003dbb8c58","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":123,"box":{"x":102,"y":302,"width":264,"height":11}},{"id":"4c5b7d9d-6013-4ebe-9e4c-4f5f6981e796","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":123,"box":{"x":102,"y":324,"width":745,"height":11}},{"id":"29098394-0c7a-4836-b1ae-9a66376c35c3","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":123,"box":{"x":68,"y":339,"width":807,"height":12}},{"id":"8751681c-46fb-4909-a834-c87a9c90179d","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":123,"box":{"x":69,"y":355,"width":528,"height":11}},{"id":"4d50f4d4-b761-4373-b7c6-a3ea6727342f","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":123,"box":{"x":102,"y":377,"width":735,"height":12}},{"id":"b0af3482-0b37-49d7-8097-a6b752aca524","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":123,"box":{"x":69,"y":392,"width":775,"height":12}},{"id":"a0d75281-ae77-4f8c-9e97-515e8cb9dbb6","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":123,"box":{"x":69,"y":407,"width":837,"height":12}},{"id":"3d59f404-e073-4e7d-9f08-96d847081f48","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":123,"box":{"x":69,"y":423,"width":799,"height":11}},{"id":"6236cafc-1b5e-4cf4-86d9-8dd621ddb8d5","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":123,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"68da95e3-9110-4764-963c-e3dd32bcc74b","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":123,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"4328b9ab-a9ad-4e8f-8568-b1de2bf9ba2b","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":123,"box":{"x":68,"y":468,"width":802,"height":11}},{"id":"121b45ee-56c9-4366-8b7b-2243384991bf","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":123,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"112bb3d3-6721-4da5-b7e5-c54bf8f5efee","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":123,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"1a106470-f62f-48c3-aa77-5044dcb5a804","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":123,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"39158caf-7a0d-4993-ae0c-f1afb8b6ee37","block_type":"box","text":"(","page_number":123,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"c8503024-2bae-47fb-82f0-aaef65f31394","block_type":"box","text":"i.e.","page_number":123,"box":{"x":74,"y":529,"width":21,"height":8}},{"id":"389dd1cc-0b93-4361-952f-a5e07779d2c6","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":123,"box":{"x":97,"y":529,"width":806,"height":11}},{"id":"c3526e76-bb27-4d2b-8b6b-5f579a2a7f49","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":123,"box":{"x":70,"y":543,"width":824,"height":12}},{"id":"46683bc9-362a-4bbe-a28e-b0f457fc7f38","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":123,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"b65a7acb-9af8-4cab-8699-8c669d7cd9cf","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":123,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"fd7f9881-2c93-4b8b-b346-74e38a62aa49","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":123,"box":{"x":69,"y":589,"width":815,"height":11}},{"id":"96e9e891-bfe6-42ef-8bb6-433211b472e1","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":123,"box":{"x":69,"y":604,"width":781,"height":11}},{"id":"fc292852-8b04-452d-8089-79e4b4080ba7","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":123,"box":{"x":68,"y":619,"width":810,"height":11}},{"id":"e7eea806-0bab-430c-b54a-3a92370aaf38","block_type":"box","text":"regarded as the sole issuer.","page_number":123,"box":{"x":69,"y":634,"width":198,"height":12}},{"id":"ca4d42e8-9536-4ed4-b97d-56eb232b06b7","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":123,"box":{"x":102,"y":657,"width":784,"height":11}},{"id":"6ef412dd-a1c7-4955-b7f3-657eb7093763","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":123,"box":{"x":69,"y":672,"width":819,"height":11}},{"id":"c899f8ea-69dd-427e-ba4e-96cc52344c36","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":123,"box":{"x":69,"y":687,"width":811,"height":11}},{"id":"d57fc5c1-ac70-458b-81cf-37b09e1c13ac","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":123,"box":{"x":70,"y":702,"width":747,"height":12}},{"id":"13073a75-23ed-4bef-8021-84cd5676d1d6","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":123,"box":{"x":70,"y":717,"width":834,"height":12}},{"id":"9d26fa16-dfb9-4777-b865-26396cdddb61","block_type":"box","text":"75% of its total assets.","page_number":123,"box":{"x":69,"y":732,"width":165,"height":10}},{"id":"413bb52e-c0cd-4154-b168-894e7d1af613","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":123,"box":{"x":268,"y":762,"width":442,"height":10}},{"id":"ab40fb53-3fb9-432b-8343-def7955cd175","block_type":"box","text":"Directors and Officers","page_number":123,"box":{"x":69,"y":792,"width":159,"height":9}},{"id":"fb347daa-f1fe-48d9-b1db-a8cf28dfd329","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":123,"box":{"x":102,"y":815,"width":733,"height":11}},{"id":"b5a5e39d-03f1-4504-b725-ceb56bd3addd","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":123,"box":{"x":69,"y":830,"width":783,"height":11}},{"id":"f685e47e-ff96-44ac-bda8-6b5ab7872be8","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":123,"box":{"x":69,"y":845,"width":795,"height":12}},{"id":"ce365338-469d-4b45-b3ad-ebeb45644455","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":123,"box":{"x":69,"y":860,"width":789,"height":12}},{"id":"d7ffb69e-1a99-4952-98c6-f09bb952e281","block_type":"box","text":"II-81","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84be2083-c122-4312-a5ec-6d562ca1c16f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c76dd04-004e-4ee8-82df-47885ce68803","block_type":"box","text":"Management Arrangements","page_number":124,"box":{"x":69,"y":45,"width":202,"height":11}},{"id":"c3369f20-987d-4b70-8d7c-3ad607e3d5dd","block_type":"box","text":"Management Services.","page_number":124,"box":{"x":102,"y":67,"width":162,"height":12}},{"id":"ee50e5cf-3e9a-4e98-a468-a594f13253d5","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":124,"box":{"x":270,"y":68,"width":615,"height":11}},{"id":"139a47f1-1814-4832-bb08-d5fc7b3ef37b","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":124,"box":{"x":69,"y":82,"width":836,"height":12}},{"id":"543e8d09-15ab-4cc9-9f4b-e4461b58166f","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":124,"box":{"x":70,"y":98,"width":820,"height":11}},{"id":"a6c073be-1a52-40f2-af72-bb9f46696244","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":124,"box":{"x":68,"y":113,"width":832,"height":11}},{"id":"283b8389-bcac-4ad0-bf50-22f827befbe0","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":124,"box":{"x":70,"y":128,"width":801,"height":11}},{"id":"960d4b35-be3c-489e-a814-b3bdd2a4234e","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":124,"box":{"x":69,"y":143,"width":370,"height":11}},{"id":"2c9940ca-15d6-4cfb-a0ed-63f13568fcdb","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":124,"box":{"x":102,"y":166,"width":778,"height":11}},{"id":"2f5ac9df-db07-440a-8181-fb5f687896e1","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":124,"box":{"x":70,"y":181,"width":800,"height":11}},{"id":"32e70513-b2a5-4a7d-b176-0a34f08b7d73","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":124,"box":{"x":69,"y":196,"width":810,"height":11}},{"id":"41f483ac-51f0-46eb-a4f6-80c06bf4586e","block_type":"box","text":"Management Fee.","page_number":124,"box":{"x":102,"y":219,"width":126,"height":11}},{"id":"4d4608fd-7e35-447e-bedd-0c16fcdc878f","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":124,"box":{"x":235,"y":219,"width":646,"height":11}},{"id":"dcfd8f40-00af-49ae-aae8-e15e20ea1298","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":124,"box":{"x":68,"y":234,"width":841,"height":11}},{"id":"892559bd-f80d-46e8-9361-fb81e4e4bd74","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":124,"box":{"x":69,"y":249,"width":833,"height":11}},{"id":"1bbb13ca-87cd-44df-bd01-dc95100a89ed","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":124,"box":{"x":68,"y":264,"width":746,"height":11}},{"id":"3b5884b0-4e18-48aa-9229-80e4980913bb","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":124,"box":{"x":70,"y":279,"width":825,"height":11}},{"id":"d8f1893d-346b-4dda-9c71-112a748aad13","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":124,"box":{"x":102,"y":302,"width":774,"height":11}},{"id":"6cc66c3a-1c1b-485b-ba5a-9850f8f74db7","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":124,"box":{"x":69,"y":317,"width":826,"height":11}},{"id":"63373ce5-f749-4fae-ae50-f5dec9fcfccf","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":124,"box":{"x":70,"y":332,"width":820,"height":11}},{"id":"72fa28ed-157a-422e-a091-7aecaa0a7ac9","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":124,"box":{"x":68,"y":347,"width":797,"height":11}},{"id":"3eddaaa5-455e-40f0-8378-5c24cc9cd5ef","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":124,"box":{"x":70,"y":362,"width":830,"height":11}},{"id":"e2f45f45-7173-4b1d-9779-0bcdfe9f0a80","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":124,"box":{"x":69,"y":377,"width":802,"height":12}},{"id":"88502254-e0a5-468e-9adc-322717c3bb84","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":124,"box":{"x":70,"y":392,"width":809,"height":12}},{"id":"7762b1aa-a864-4a87-bc36-63a8115272b7","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":124,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"12aa7dc7-408d-4ba1-9cac-8c1dacc8a844","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":124,"box":{"x":69,"y":423,"width":830,"height":11}},{"id":"36163662-3bdb-4bb6-a7bf-ba7c1bce96e9","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":124,"box":{"x":70,"y":438,"width":784,"height":11}},{"id":"4eca8299-1deb-4529-b9e9-25c1e6d4b529","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":124,"box":{"x":69,"y":453,"width":767,"height":11}},{"id":"8759c7cf-87c7-4b94-b264-8dde21247f0c","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":124,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"4dcb1430-76ea-409e-a6b0-33474bb34b1e","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":124,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"29933d3d-71ac-46c3-ad07-228ebdeebdaf","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":124,"box":{"x":69,"y":498,"width":794,"height":11}},{"id":"24456ebf-9e65-4b38-97f1-534da71e73f3","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":124,"box":{"x":69,"y":513,"width":786,"height":12}},{"id":"7a0f067f-da15-40a5-b667-58f24d6c3af3","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":124,"box":{"x":69,"y":528,"width":790,"height":12}},{"id":"bdf9f57a-6cfa-4cbf-bd74-25532b4be385","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":124,"box":{"x":69,"y":543,"width":817,"height":12}},{"id":"b426b42d-ec34-4a3d-a702-aba25c6a2696","block_type":"box","text":"expenses are financed by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the","page_number":124,"box":{"x":69,"y":559,"width":767,"height":11}},{"id":"c0a65403-d275-43ea-b6a7-4040f38306d2","block_type":"box","text":"Investment Company Act. See “Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":124,"box":{"x":70,"y":574,"width":743,"height":11}},{"id":"f952ebad-1802-45d1-bc94-2fcafd194c13","block_type":"box","text":"Sub-Advisory Fee.","page_number":124,"box":{"x":102,"y":597,"width":124,"height":11}},{"id":"bcd93313-4064-4144-950b-6948e1dc35ef","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":124,"box":{"x":232,"y":596,"width":643,"height":12}},{"id":"47112c44-3ab0-48f4-95f1-14a0e7cc4161","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":124,"box":{"x":70,"y":612,"width":839,"height":11}},{"id":"0dd3d559-73ba-43db-8e34-819ddf75b8cd","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":124,"box":{"x":68,"y":627,"width":830,"height":11}},{"id":"585f64b5-9607-40b6-9a36-2e84e28ba078","block_type":"box","text":"Organization of the Manager.","page_number":124,"box":{"x":102,"y":649,"width":204,"height":12}},{"id":"b33be3aa-759b-4079-a926-2766e28341bf","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":124,"box":{"x":313,"y":649,"width":560,"height":12}},{"id":"f6465828-ae31-4007-b99c-17da2ecfde6f","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":124,"box":{"x":70,"y":664,"width":819,"height":12}},{"id":"bf73ad0d-a2d3-4fab-a82a-d994402fc342","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":124,"box":{"x":70,"y":680,"width":817,"height":11}},{"id":"d3fec003-cb61-4455-a91b-52b9020ad631","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":124,"box":{"x":69,"y":695,"width":768,"height":11}},{"id":"ef9fbeb4-c9b2-4234-a690-457d411c6074","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":124,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"9a279603-24c9-4ec5-b38f-f885e08405c9","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":124,"box":{"x":69,"y":725,"width":517,"height":11}},{"id":"65f0b02a-d558-4775-af16-4a64004bf5bd","block_type":"box","text":"Duration and Termination.","page_number":124,"box":{"x":102,"y":748,"width":182,"height":9}},{"id":"66a381ae-cc1f-4949-aec2-15645b8dda23","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":124,"box":{"x":292,"y":748,"width":613,"height":11}},{"id":"249ea5e1-c082-485e-962a-dd1646e2f484","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":124,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"87a53679-596a-47a8-aa00-d40652d78ed1","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":124,"box":{"x":69,"y":778,"width":803,"height":11}},{"id":"d5312f47-7cb9-46c4-a575-30b70472915b","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":124,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"f47c6aab-c3b1-4dcb-a64b-ec1330953ae1","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":124,"box":{"x":70,"y":808,"width":778,"height":11}},{"id":"954a557d-99d3-42d7-9013-b5a6ba66d505","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":124,"box":{"x":69,"y":823,"width":832,"height":12}},{"id":"a558f453-7a3c-442b-84b4-f2e9bdf65cc0","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":124,"box":{"x":69,"y":838,"width":388,"height":11}},{"id":"3863853c-a6de-4c75-86ad-784102850070","block_type":"box","text":"II-82","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ae62422a-5a4a-4cb0-a6f7-a0dbc235e426","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ec1a3cf-a946-460b-980d-40dd1510de81","block_type":"box","text":"Other Service Arrangements","page_number":125,"box":{"x":69,"y":45,"width":205,"height":11}},{"id":"df3b956e-7adb-46de-93e0-8be28b8c2d4b","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":125,"box":{"x":101,"y":67,"width":338,"height":9}},{"id":"1d0ab739-220a-40ed-8a1b-750a0482ab1d","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":125,"box":{"x":446,"y":67,"width":439,"height":12}},{"id":"1227a868-6a5d-4400-862a-e41f98bdab6f","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":125,"box":{"x":69,"y":82,"width":818,"height":12}},{"id":"efe8cd0c-30ca-4096-bb6d-07470ded586e","block_type":"box","text":"SAI (each an “Administrator”). 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For information regarding any administrative fees paid by","page_number":125,"box":{"x":69,"y":113,"width":833,"height":11}},{"id":"458f3aae-32be-4745-929d-cb8e453bc25e","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":125,"box":{"x":68,"y":128,"width":738,"height":11}},{"id":"b1b3239b-bc95-4d02-9ad5-d4c2bcc3b4f6","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":125,"box":{"x":68,"y":143,"width":839,"height":11}},{"id":"10f7aa44-7f4a-49ba-ad94-584ab2843962","block_type":"box","text":"that Fund’s SAI.","page_number":125,"box":{"x":68,"y":158,"width":113,"height":9}},{"id":"c5d49696-9d7f-4377-b0f0-eea96fa20d26","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":125,"box":{"x":102,"y":181,"width":755,"height":11}},{"id":"23ef47c6-3826-477b-ab92-60aee78ef9d5","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":125,"box":{"x":69,"y":196,"width":800,"height":11}},{"id":"7f5d0086-4f61-4457-b216-4a16f6436116","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":125,"box":{"x":70,"y":211,"width":809,"height":11}},{"id":"a374e68f-d114-4e50-8c42-e97a3a1974e2","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":125,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"d4ff1ae5-a7bb-42fc-96fa-46fe6d94fd5e","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":125,"box":{"x":70,"y":241,"width":362,"height":11}},{"id":"7baab69d-9b45-4b2a-b600-f9df08aa9d19","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":125,"box":{"x":102,"y":264,"width":390,"height":11}},{"id":"c0560734-0bc8-4274-87f0-bd61ce9bf1e1","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":125,"box":{"x":499,"y":264,"width":364,"height":10}},{"id":"1acffd83-4d35-4b59-809f-234935f818bb","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":125,"box":{"x":68,"y":279,"width":832,"height":11}},{"id":"69c363ee-63a4-481d-998c-3da538572605","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":125,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"1d2784fb-a7c0-4f37-98db-b83ab657edb9","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":125,"box":{"x":69,"y":309,"width":800,"height":11}},{"id":"02e2d96d-e842-46c2-891c-a514779ebc29","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":125,"box":{"x":70,"y":324,"width":810,"height":12}},{"id":"72d62639-b718-46bd-a0ce-ea74c3aa72ff","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":125,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"c22cc1aa-9202-4433-b9a7-1cbf6c325105","block_type":"box","text":"shareholders of the Fund.","page_number":125,"box":{"x":69,"y":355,"width":181,"height":9}},{"id":"f3cfbbfc-311b-45ca-8abd-0410ccd20d96","block_type":"box","text":"Transfer Agency Services.","page_number":125,"box":{"x":103,"y":377,"width":180,"height":12}},{"id":"5ae72dce-810c-4f27-a787-c211f644ec09","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":125,"box":{"x":291,"y":377,"width":595,"height":12}},{"id":"80a93a3b-50cc-4cc1-b283-3872e502725e","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":125,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"2512d603-ee81-4b12-8ed1-3bcc85f05ed4","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":125,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"f14a707e-4a45-461f-92f7-18aa07928afc","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":125,"box":{"x":68,"y":423,"width":792,"height":11}},{"id":"e35e2ad0-dd15-4fd6-8a6a-ec2ec1f60b7f","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":125,"box":{"x":68,"y":438,"width":819,"height":11}},{"id":"1bd80cb5-9ec4-4e0d-84bf-c81e691a2006","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":125,"box":{"x":68,"y":453,"width":839,"height":11}},{"id":"31ee749a-5078-4e34-a658-0fe1a4ffb575","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":125,"box":{"x":70,"y":468,"width":831,"height":11}},{"id":"95c7419a-4d30-48ef-8ccb-6bbf63a1f45e","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":125,"box":{"x":68,"y":483,"width":813,"height":11}},{"id":"8902873e-ea9a-49f0-9c9d-c9e7409d90dd","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":125,"box":{"x":70,"y":498,"width":836,"height":11}},{"id":"93591347-c1bc-4e73-8c31-ace9fda356d7","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":125,"box":{"x":69,"y":513,"width":806,"height":12}},{"id":"cf0319fe-deb6-417c-8bcd-85c047f67b2c","block_type":"box","text":"class on a recordkeeping system.","page_number":125,"box":{"x":69,"y":529,"width":238,"height":11}},{"id":"88a74233-266d-4dc9-8527-28aa8de1aaad","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":125,"box":{"x":102,"y":551,"width":338,"height":11}},{"id":"7b5b0a4e-8744-4f57-9af9-b372ac21b957","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":125,"box":{"x":446,"y":551,"width":441,"height":11}},{"id":"b2fa329f-b2c6-4de5-b220-98455cbfc20a","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":125,"box":{"x":69,"y":566,"width":840,"height":11}},{"id":"73f428b2-4f8b-4a00-948c-91de9b66be8d","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":125,"box":{"x":69,"y":581,"width":823,"height":12}},{"id":"fa9932b3-875b-4ef5-a918-22d5e64826a1","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":125,"box":{"x":69,"y":596,"width":627,"height":12}},{"id":"823c80a6-83ef-472f-8eba-cafc1d1ca803","block_type":"box","text":"Custodian Services.","page_number":125,"box":{"x":102,"y":619,"width":141,"height":9}},{"id":"a4e8f440-e62f-41d0-8af9-852ca3923013","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":125,"box":{"x":249,"y":619,"width":654,"height":11}},{"id":"870ec94c-1544-49f2-8b47-313b19381399","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":125,"box":{"x":70,"y":634,"width":820,"height":12}},{"id":"072174c5-7c7a-4b39-ba74-88a24ee1b8a6","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":125,"box":{"x":70,"y":649,"width":814,"height":12}},{"id":"13998ccb-06b3-48a1-a6c5-050e5f9f68fc","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":125,"box":{"x":68,"y":664,"width":802,"height":12}},{"id":"ac9aa33d-9b56-4c57-8259-1582e69fe13f","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":125,"box":{"x":69,"y":680,"width":839,"height":11}},{"id":"969576ff-1a2a-413f-9123-1a88a8eba5bc","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":125,"box":{"x":69,"y":695,"width":792,"height":11}},{"id":"13d760d9-1486-445b-951f-efed542faeb8","block_type":"box","text":"cer tain assets.","page_number":125,"box":{"x":69,"y":710,"width":106,"height":9}},{"id":"1822f2d8-3587-4dc7-a6e5-975fec1fd585","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":125,"box":{"x":102,"y":732,"width":716,"height":11}},{"id":"40b368bf-3dda-4f7e-b7c1-93935713372e","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":125,"box":{"x":102,"y":755,"width":803,"height":11}},{"id":"5397c850-2b82-4f30-ac92-7325abfac452","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":125,"box":{"x":69,"y":770,"width":799,"height":12}},{"id":"af0d62f4-f291-4db2-b896-ea4307c5bd72","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":125,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"39f2d671-e267-4ad8-9886-7dac665a7424","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":125,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"cc63026a-e24b-42f0-bab6-294eba40c4f0","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":125,"box":{"x":69,"y":816,"width":807,"height":11}},{"id":"e014a6b2-fcc1-4d17-a251-e046c4d2b7e9","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":125,"box":{"x":68,"y":831,"width":836,"height":11}},{"id":"29685666-1fd6-43b0-9f49-e806060d277a","block_type":"box","text":"Fund.","page_number":125,"box":{"x":70,"y":846,"width":36,"height":9}},{"id":"29eb20df-e809-4939-a582-b2a4f98c2b83","block_type":"box","text":"II-83","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"63e7f399-4a93-42db-86f1-b0c5d64029b9","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78c780df-6a65-42c2-be23-0a21c08fe10d","block_type":"box","text":"Accounting Services.","page_number":126,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"14855c75-d478-41e8-9c19-c885684f012c","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":126,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"75efeddc-64b8-4fd4-b46b-234c61e906e8","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":126,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"c895d2c5-9aab-4223-957f-126462a4c341","block_type":"box","text":"Fund pays a fee for these services. 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Affiliated feeder funds — iShares S&P 500 Index Fund, iShares U.S. Aggregate Bond Index Fund, Treasury","page_number":131,"box":{"x":70,"y":347,"width":790,"height":11}},{"id":"9dcba62c-9ba9-4c1d-8ef8-6471440598eb","block_type":"box","text":"Money Market Fund (Cayman) and their respective boards, sponsors, administrators and other service providers.","page_number":131,"box":{"x":102,"y":362,"width":803,"height":11}},{"id":"030d5096-0c47-42e2-b30d-a8b607643f34","block_type":"box","text":"13. 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In some cases, such por tfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":132,"box":{"x":70,"y":286,"width":816,"height":12}},{"id":"f0a88a79-a61d-474e-87fb-19502ffdb8f3","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":132,"box":{"x":70,"y":302,"width":831,"height":11}},{"id":"d14ec9bc-0193-4a84-8bc3-247e0c1488b8","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":132,"box":{"x":68,"y":317,"width":813,"height":11}},{"id":"e44e4c45-4dc8-4afe-a9d7-b8dcc716ff1e","block_type":"box","text":"based on the information received.","page_number":132,"box":{"x":69,"y":332,"width":247,"height":9}},{"id":"2875a492-31e3-4c73-8396-12344690e993","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":132,"box":{"x":101,"y":355,"width":777,"height":11}},{"id":"9f018820-8f46-4009-b202-59bcac2b37b4","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":132,"box":{"x":69,"y":370,"width":838,"height":11}},{"id":"340337f1-c7f1-47f5-b67e-466c73533c1e","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":132,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"2ab37a30-3501-427f-98bb-7e2df698de2b","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":132,"box":{"x":70,"y":400,"width":817,"height":11}},{"id":"06b2ad41-98e7-4e8d-8605-deae8fff9f63","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":132,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"202edb37-4bef-4142-ba52-80af1b1459f8","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":132,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"e11f81e4-2f7d-497f-ab70-275681006b5d","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":132,"box":{"x":69,"y":446,"width":827,"height":11}},{"id":"ff7e188b-828f-420a-8b88-4d2c7107398b","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":132,"box":{"x":70,"y":460,"width":785,"height":11}},{"id":"9dce9bfb-40c1-43d9-b34f-1c161e5b6edc","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":132,"box":{"x":69,"y":475,"width":767,"height":12}},{"id":"9b8a56ca-4d2f-4201-bdac-537128b02760","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":132,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"bb842002-7b7c-47a9-9b52-b503a6ca13a9","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":132,"box":{"x":68,"y":506,"width":827,"height":11}},{"id":"457fe49b-20a7-4659-a7c9-702a66cda001","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":132,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"c675f03c-efc7-4ec9-9231-30be9a4dfe2a","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":132,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"32969751-5356-49fe-8a89-01c23ce6176e","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":132,"box":{"x":69,"y":551,"width":781,"height":11}},{"id":"27fe0f0a-f13f-49f1-a968-e7e19cae6374","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":132,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"c7f0ef56-b0c8-4d97-b87b-d8a953d42b98","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":132,"box":{"x":70,"y":581,"width":809,"height":12}},{"id":"0504b802-386f-48fe-b2ee-118e4957fbf3","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":132,"box":{"x":70,"y":596,"width":805,"height":12}},{"id":"ad695c98-c120-496b-b44d-005a31ffb990","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":132,"box":{"x":70,"y":612,"width":797,"height":11}},{"id":"a356ec10-2dda-484b-861d-e1e256a35335","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":132,"box":{"x":69,"y":627,"width":573,"height":11}},{"id":"90940d06-2cca-4508-8f14-ccac81bc1e82","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":132,"box":{"x":102,"y":649,"width":797,"height":12}},{"id":"54d65215-e335-43d1-9a57-2593cb11129c","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":132,"box":{"x":69,"y":664,"width":791,"height":12}},{"id":"c44b01fb-5b86-458e-bb65-6b2b93b175e2","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":132,"box":{"x":69,"y":680,"width":835,"height":11}},{"id":"e2a62086-fd08-45af-88f5-4aacf56d8988","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":132,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"47321e2a-ae71-4a14-8fdd-f4f8eba2e400","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":132,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"4b4ada1a-d17f-4acf-a20c-791d39aa2087","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":132,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"5807e521-8d55-4ac5-9817-df584e49a3c9","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":132,"box":{"x":69,"y":740,"width":818,"height":11}},{"id":"1c915a53-c17e-4b2c-9135-7ce1f17ad820","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":132,"box":{"x":70,"y":755,"width":777,"height":11}},{"id":"2c03c146-653c-43b0-b01b-2380603b402c","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":132,"box":{"x":70,"y":770,"width":780,"height":11}},{"id":"08d5be70-ee44-4dde-8052-98e889a0c854","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":132,"box":{"x":69,"y":785,"width":802,"height":12}},{"id":"5596baa9-097d-410c-995a-b366451dced6","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":132,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"c8243fbe-95fe-4772-83b9-51255bf75211","block_type":"box","text":"Funds.","page_number":132,"box":{"x":70,"y":816,"width":44,"height":9}},{"id":"9e471262-ebd0-44e7-b2e7-0ce29c3445ab","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":132,"box":{"x":102,"y":838,"width":755,"height":11}},{"id":"bb4c4248-2101-4851-872f-88b954ea7cbd","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":132,"box":{"x":69,"y":853,"width":836,"height":12}},{"id":"409a9f01-7507-4784-86da-b3d3eb56144c","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":132,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"1e0ad72a-a12a-4a4b-b453-c410b5e9b193","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":132,"box":{"x":69,"y":884,"width":679,"height":11}},{"id":"680c01aa-ca61-4dd9-9843-2cbcf363b282","block_type":"box","text":"II-90","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e1a0dfca-ca5d-4d12-b68c-2093daec5935","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"961c10d4-f9eb-4a3f-bce0-cdb9c418d157","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":133,"box":{"x":101,"y":45,"width":760,"height":11}},{"id":"bd0f3af3-d999-496d-bba1-5b3b645f6b97","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":133,"box":{"x":70,"y":60,"width":818,"height":11}},{"id":"5ed2cb70-9e5e-43d7-a8b5-3bbe80560670","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":133,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"96da14dc-d1dd-4063-a1c5-494d7e02b701","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":133,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"c364329f-23ba-482e-91f3-bdb84c5907d7","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":133,"box":{"x":68,"y":105,"width":421,"height":11}},{"id":"a12c9e67-b202-4ea2-9d30-9ef0b37d0c55","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":133,"box":{"x":102,"y":128,"width":794,"height":11}},{"id":"d2194e38-583e-466a-a811-da65a677c9d0","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":133,"box":{"x":68,"y":143,"width":817,"height":11}},{"id":"e1801f59-b2c9-45dc-a1ef-3ac7ebf6dc94","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":133,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"0ac5e69c-d4c2-414b-9fd3-3762cdddd837","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":133,"box":{"x":69,"y":173,"width":826,"height":11}},{"id":"5ba624a7-006b-4c94-8a59-181a82aa5867","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":133,"box":{"x":70,"y":188,"width":780,"height":12}},{"id":"bb045043-847f-4a0a-a121-fba219ea3fc0","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":133,"box":{"x":69,"y":203,"width":791,"height":12}},{"id":"4267fad9-e0c4-4a01-98e6-7097b0ff3db8","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":133,"box":{"x":70,"y":219,"width":457,"height":11}},{"id":"61e4cb14-e572-4b3b-9aa7-a2e6ee3dd107","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":133,"box":{"x":102,"y":241,"width":784,"height":11}},{"id":"b029b6c6-ce7b-45a1-99cb-c553533e24bd","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":133,"box":{"x":69,"y":256,"width":840,"height":11}},{"id":"47ded68d-7986-4710-8ce7-857a4d45af8a","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":133,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"c56f1a7a-c5ef-4f50-b514-a8235e126fad","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":133,"box":{"x":70,"y":286,"width":828,"height":12}},{"id":"0ce1f01b-0efd-4e2e-a502-6214b48a789e","block_type":"box","text":"case.","page_number":133,"box":{"x":69,"y":304,"width":37,"height":7}},{"id":"e0c2c1e8-4063-4444-a598-6c439247054f","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":133,"box":{"x":101,"y":324,"width":791,"height":12}},{"id":"01137699-03d4-4a2f-b5f0-76a5b69f2560","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":133,"box":{"x":70,"y":340,"width":824,"height":11}},{"id":"379e94ce-f5be-402c-9e3c-18d1d896e8f1","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":133,"box":{"x":69,"y":355,"width":798,"height":11}},{"id":"feb58900-2455-446a-813f-76df7ac77bb0","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":133,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"f0ad5745-aac2-482f-9e4e-05690a4c49d3","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":133,"box":{"x":70,"y":385,"width":835,"height":11}},{"id":"8a3f31ff-cd32-488e-86a9-8fb0c21067d0","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":133,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"32d054ab-665c-482d-a2f3-88aa30045a4b","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":133,"box":{"x":102,"y":423,"width":766,"height":11}},{"id":"8047439b-4cce-4379-bbe7-bd2e7149d3a8","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":133,"box":{"x":70,"y":438,"width":786,"height":11}},{"id":"140a78a0-8ae7-47b7-8c21-d561da89be40","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":133,"box":{"x":69,"y":453,"width":828,"height":11}},{"id":"5abeff95-90e2-4c03-afb7-0ccb2cd2dd97","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":133,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"b8158d20-6d75-4d33-a559-d20b32449bc4","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":133,"box":{"x":68,"y":483,"width":825,"height":11}},{"id":"5cbd27f3-21e9-44bc-8003-f0e81cb90349","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":133,"box":{"x":68,"y":498,"width":790,"height":11}},{"id":"0e00033c-b350-4407-9284-d6a8cf008471","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":133,"box":{"x":69,"y":513,"width":830,"height":12}},{"id":"750d461f-0814-4bfe-94d2-3c1518bad8c6","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":133,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"0732bdd0-9e15-43b4-9472-79bdce5fb6ee","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":133,"box":{"x":70,"y":543,"width":271,"height":12}},{"id":"0653f5e3-f591-400f-8bc3-337d7c0a6347","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":133,"box":{"x":102,"y":566,"width":792,"height":11}},{"id":"49b1a56e-cc31-44a3-8a60-1b4e4c581613","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":133,"box":{"x":70,"y":581,"width":826,"height":12}},{"id":"159cbed4-cfa9-47d3-8b53-74a1887684dc","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":133,"box":{"x":68,"y":596,"width":821,"height":12}},{"id":"fa1fda85-1252-44d5-8465-5a30b26d7b37","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":133,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"64329e5f-70c5-4c23-a035-270b31d7f263","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":133,"box":{"x":69,"y":627,"width":793,"height":11}},{"id":"db073524-e555-42ad-ba66-23cd65d8aa5a","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":133,"box":{"x":69,"y":642,"width":762,"height":11}},{"id":"d84887f1-a09f-4cee-b4d2-c032fb731ff9","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":133,"box":{"x":70,"y":657,"width":839,"height":11}},{"id":"007dea85-f86c-4fa3-a8ca-d5b793853191","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":133,"box":{"x":70,"y":672,"width":795,"height":11}},{"id":"9ea1cc62-43cd-4e82-b46b-2519373c90e5","block_type":"box","text":"managing a Fund.","page_number":133,"box":{"x":69,"y":687,"width":124,"height":11}},{"id":"a9e2ff49-20bc-48b0-992e-e9b77fe17936","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":133,"box":{"x":101,"y":710,"width":751,"height":11}},{"id":"04358d84-a700-4e3f-a283-36b3f8868c90","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":133,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"c6fe92a7-ed91-442f-9397-dfe7685fedb2","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":133,"box":{"x":70,"y":740,"width":820,"height":11}},{"id":"f3eed298-b5a7-49bd-886c-756aec6c0fa4","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":133,"box":{"x":68,"y":755,"width":785,"height":11}},{"id":"046f75fa-701f-49fa-a47e-e6f48244f739","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":133,"box":{"x":70,"y":770,"width":481,"height":11}},{"id":"989711d6-3f36-42c6-b356-642217b1b748","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":133,"box":{"x":102,"y":793,"width":754,"height":11}},{"id":"cc5df6d9-d388-4eab-a344-0fc56900c93b","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":133,"box":{"x":69,"y":808,"width":804,"height":11}},{"id":"6a6a2296-bce9-49d6-b530-b1d3711e2388","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":133,"box":{"x":69,"y":823,"width":831,"height":12}},{"id":"9a22d4d6-a787-4ff7-a92b-d7577c1fd67d","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":133,"box":{"x":69,"y":838,"width":680,"height":11}},{"id":"72d9aac9-70b2-432b-be64-3b87341ba45a","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":133,"box":{"x":102,"y":861,"width":791,"height":11}},{"id":"85adccf1-27cd-46b7-a0b3-d463fa7f262f","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":133,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"11e848b4-6262-4d10-9b09-c3ec431796d6","block_type":"box","text":"as the counterpar ty, principal or issuer. 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In addition, the purchase, holding and sale of such investments by a","page_number":134,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"9b027018-3167-4b81-aa10-7501cdf4becc","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":134,"box":{"x":70,"y":60,"width":344,"height":11}},{"id":"17184361-3fd1-4d04-bd75-4760523da78f","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":134,"box":{"x":102,"y":82,"width":741,"height":12}},{"id":"6f49c5d5-9fb5-4baa-9470-5ebed37352c0","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":134,"box":{"x":70,"y":98,"width":824,"height":11}},{"id":"c89f9fa0-bfbd-4087-9365-93ef6dd416f2","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":134,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"1806aae9-ea34-4266-abfd-898b7f13c381","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":134,"box":{"x":69,"y":128,"width":777,"height":11}},{"id":"d378169e-ec7f-4b94-a40f-005c54359a7f","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":134,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"06c828e9-faee-4207-98b7-2fbf2ca5cf1d","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":134,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"bb218b4c-3609-476b-8bb4-0ae8a0b21d77","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":134,"box":{"x":70,"y":173,"width":798,"height":11}},{"id":"ef30b342-845a-4d37-b292-e9dd32aec9fc","block_type":"box","text":"under management for BlackRock.","page_number":134,"box":{"x":69,"y":188,"width":243,"height":12}},{"id":"811113ee-7186-4d6d-94df-a863529f2fee","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":134,"box":{"x":101,"y":211,"width":773,"height":11}},{"id":"6a1db0c0-efda-4698-a4a3-b3e1e3d61716","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":134,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"352c22ab-81ad-48d3-8806-3e4e7635ba13","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":134,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"9f624124-6b8e-4d3d-b591-d50ec74cd40f","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":134,"box":{"x":68,"y":256,"width":837,"height":12}},{"id":"d1ab376b-7d9f-4582-9877-b7294fb10656","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":134,"box":{"x":70,"y":272,"width":781,"height":11}},{"id":"cba147cd-9cc9-45c9-811e-e89995a8ed07","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":134,"box":{"x":101,"y":294,"width":779,"height":11}},{"id":"551b09b2-22c9-416f-82f6-78925f4e404b","block_type":"box","text":"other commercial capacities for a Fund. 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BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":134,"box":{"x":69,"y":559,"width":793,"height":11}},{"id":"51770380-3331-454c-b041-8fce04c019a9","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":134,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"59b6f8d4-7edb-4aef-bc9f-97fcb13d46e9","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":134,"box":{"x":70,"y":589,"width":374,"height":11}},{"id":"c188d9b0-e8a9-47b4-aaba-8aff136b4ec2","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. 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As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":134,"box":{"x":70,"y":732,"width":814,"height":12}},{"id":"536d5f99-6177-4e7f-ac99-a9f844250c50","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":134,"box":{"x":69,"y":748,"width":660,"height":11}},{"id":"fb0a595a-2aa2-471d-b748-0689d17be559","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":134,"box":{"x":101,"y":770,"width":767,"height":12}},{"id":"07932f69-f8d2-47a8-881f-d216b2871d37","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. 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As a result, the management of program-wide exposure as well as","page_number":134,"box":{"x":69,"y":876,"width":786,"height":11}},{"id":"0f2b3f3d-e6c7-415d-a682-a5fd9dcfa5dd","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":134,"box":{"x":70,"y":891,"width":796,"height":12}},{"id":"a4744ee0-8d3f-46bd-999b-9db4079cc082","block_type":"box","text":"II-92","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bce65238-02a4-41fb-aa35-f67afba2c398","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f710179-9015-4a12-836b-78c19be38b52","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":135,"box":{"x":69,"y":45,"width":799,"height":11}},{"id":"43dc353e-d083-493c-99b7-0fc45919ff96","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":135,"box":{"x":69,"y":60,"width":356,"height":11}},{"id":"8fa8d386-bacb-488a-bb98-9721a54a7cee","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":135,"box":{"x":102,"y":82,"width":801,"height":12}},{"id":"1f96e80f-eca8-4db4-b123-957fc92428a1","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":135,"box":{"x":68,"y":98,"width":817,"height":11}},{"id":"da7b182c-c31a-4ae7-83f0-ac404887e79d","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":135,"box":{"x":69,"y":113,"width":784,"height":11}},{"id":"6b693a5b-b071-438e-8cef-70b05380c334","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":135,"box":{"x":69,"y":128,"width":789,"height":11}},{"id":"c95d9b81-57bf-47c4-b803-744741267b0f","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":135,"box":{"x":70,"y":143,"width":783,"height":11}},{"id":"4584ae6a-4134-4b9f-a269-2c03bbe750d7","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":135,"box":{"x":70,"y":158,"width":790,"height":11}},{"id":"a18ea913-665a-419d-8bb4-5fa7b36fe529","block_type":"box","text":"regulation.","page_number":135,"box":{"x":69,"y":173,"width":73,"height":11}},{"id":"11940473-95d8-44ea-9f68-cc8bb920d066","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":135,"box":{"x":102,"y":196,"width":777,"height":11}},{"id":"db3ff774-c855-4a91-b10f-2c301bd90b93","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":135,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"c463327c-777a-4a07-a4c6-f092bbe57ba7","block_type":"box","text":"various program limits (","page_number":135,"box":{"x":68,"y":226,"width":168,"height":11}},{"id":"bbbeec87-444a-471e-a22a-7ef7a3190f96","block_type":"box","text":"i.e.","page_number":135,"box":{"x":238,"y":226,"width":20,"height":9}},{"id":"e17a736f-5a7a-444c-8c11-dc8dd76f6bd5","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":135,"box":{"x":265,"y":226,"width":621,"height":11}},{"id":"6abc8dbe-e939-40f9-8dc9-bb45857b2dc8","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":135,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"bbe50e72-fb5f-4c9c-bd1a-e0ecd039e24a","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":135,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"623a6b18-26e5-4e0d-a3b9-b7fe534ce358","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":135,"box":{"x":70,"y":271,"width":780,"height":12}},{"id":"edabc9f6-75cd-4dfd-80d4-fba7646fa455","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":135,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"4e5729ce-0da4-4370-b4f7-279bbc77a6ce","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":135,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"cb8ea4b8-b45f-4245-adce-6dda28efe1fe","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":135,"box":{"x":69,"y":317,"width":444,"height":11}},{"id":"ce8bf470-fc4a-489b-adfd-010743b9df24","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":135,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"dc90e1a4-4630-4d6c-bbfc-a86845131f6e","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":135,"box":{"x":70,"y":355,"width":840,"height":11}},{"id":"97e44a27-3bee-4e36-a73f-afa7b057ced9","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":135,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"3e05c7b2-4275-4a1b-8805-02725fdc8e64","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":135,"box":{"x":69,"y":385,"width":788,"height":11}},{"id":"6325ef18-2a61-4d92-bfbb-d07acb88817e","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":135,"box":{"x":70,"y":400,"width":426,"height":11}},{"id":"0f77bf1d-940d-4468-9d36-5e34bc952c72","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":135,"box":{"x":102,"y":423,"width":763,"height":11}},{"id":"8a9fbde1-72bb-447f-abd8-828c8b12ad1b","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":135,"box":{"x":69,"y":438,"width":828,"height":11}},{"id":"6ea28c34-3ebb-468a-aef1-c9789663c445","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":135,"box":{"x":68,"y":453,"width":767,"height":11}},{"id":"531368d1-8a00-4fa1-878a-b55346866a30","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":135,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"165bde52-9c1e-4a7a-ad49-8c974a1655b6","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":135,"box":{"x":68,"y":483,"width":672,"height":11}},{"id":"d8f93466-1178-454b-95f9-7091ca745893","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":135,"box":{"x":101,"y":506,"width":767,"height":11}},{"id":"fd735276-fe00-46dc-b217-0f7bcef2d2f7","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":135,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"83282b5e-d6ca-4cfa-aad5-84c480b6f5e7","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":135,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"cc9ee016-a442-4042-b37a-00ee45683fc2","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":135,"box":{"x":69,"y":551,"width":836,"height":11}},{"id":"55f046ee-4cf9-48f9-b634-3d6b04f78d43","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":135,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"bd48177f-4c4f-4fd5-a34c-21d24ceb1b39","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":135,"box":{"x":69,"y":581,"width":812,"height":11}},{"id":"5b773407-c0c2-4001-9631-824b6928039c","block_type":"box","text":"than through client commissions.","page_number":135,"box":{"x":68,"y":597,"width":237,"height":11}},{"id":"da2424ca-a9f9-4be5-ba74-a39c36d0ec5a","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":135,"box":{"x":102,"y":619,"width":770,"height":11}},{"id":"85bdd635-bd06-4ec2-a8ff-403f3ab7e5c6","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":135,"box":{"x":69,"y":634,"width":797,"height":12}},{"id":"223f7bd5-0c7d-4bb4-abeb-f2dc23cef8df","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":135,"box":{"x":69,"y":650,"width":830,"height":11}},{"id":"c52b6519-3800-4ae5-89e7-9a2329c569c2","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":135,"box":{"x":70,"y":664,"width":780,"height":12}},{"id":"98aa17c1-2aef-4557-bd3a-7cd91d882eab","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":135,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"61028a34-693d-42e7-a476-3d6f0d24ee00","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":135,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"d4fd0a74-7a92-4ec8-8aa5-5a9406471e07","block_type":"box","text":"research-oriented software and other services and products.","page_number":135,"box":{"x":69,"y":710,"width":430,"height":11}},{"id":"c721a271-46bd-4b9c-832c-df4c75cb3ace","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":135,"box":{"x":102,"y":732,"width":785,"height":12}},{"id":"ca03e2e3-22b4-4856-b49e-0c0705f692b5","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":135,"box":{"x":70,"y":748,"width":768,"height":11}},{"id":"2b243de8-4070-4ede-bcaa-af9ab37c5d2f","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":135,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"ce22d421-c02e-4edb-8af3-6536ff816bb1","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":135,"box":{"x":69,"y":778,"width":818,"height":11}},{"id":"4dd47c90-5187-475a-80fe-d265f37d3930","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":135,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"acd6c04c-12fa-4efb-b066-81a5c225f763","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":135,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"355f73da-fb53-4d7a-bb7b-57926b769d45","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":135,"box":{"x":69,"y":823,"width":824,"height":12}},{"id":"19c3cf05-29fe-4e1d-8a28-ecc1832f5f22","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":135,"box":{"x":69,"y":839,"width":804,"height":10}},{"id":"f3584fbe-d49f-4e04-af8b-828b2cf5ac21","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":135,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"b75cdb97-1919-4d80-9380-6c4f368cc468","block_type":"box","text":"and services itself.","page_number":135,"box":{"x":69,"y":869,"width":134,"height":9}},{"id":"b187e605-b797-4cf8-a5ee-15d64d669b8b","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":135,"box":{"x":102,"y":891,"width":793,"height":12}},{"id":"a653dfe4-0a87-4c30-92f1-dca6fd0b9186","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":135,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"dbbe845f-9af6-411b-9723-290ec15a6271","block_type":"box","text":"II-93","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84194b0c-149d-4571-b4ba-2786be848767","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"acf5ca39-d27a-4574-b4f2-7faa6afa9453","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":136,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"6148259f-28a6-4529-be87-c56d13508fd2","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":136,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"6c56fa59-f999-4882-adc6-4c4ad8d887ff","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":136,"box":{"x":69,"y":75,"width":760,"height":11}},{"id":"9fc881e3-2f2a-441d-b09c-65ae3185de0a","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":136,"box":{"x":68,"y":90,"width":803,"height":11}},{"id":"a228bb64-547a-4b45-90c8-880e3ea2b81a","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":136,"box":{"x":69,"y":105,"width":807,"height":11}},{"id":"00e6cfa6-cdaf-4983-93e9-e04485b534c9","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":136,"box":{"x":69,"y":120,"width":760,"height":12}},{"id":"4c7e8164-a51d-4902-b7d1-2468adb72175","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":136,"box":{"x":102,"y":143,"width":799,"height":11}},{"id":"3f5bd69c-3ea3-43dc-866e-ee871dd0ee23","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":136,"box":{"x":70,"y":158,"width":767,"height":11}},{"id":"84d94844-6986-4fb8-97eb-d9c74addde22","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":136,"box":{"x":69,"y":173,"width":794,"height":11}},{"id":"4fdc50a0-edd5-4365-ad3f-ba7df590039c","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":136,"box":{"x":69,"y":188,"width":825,"height":11}},{"id":"04cb8095-8caa-415d-b9b0-536c4f35f7c1","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":136,"box":{"x":68,"y":204,"width":821,"height":11}},{"id":"f0111e42-a205-426f-9527-56604ee6a51d","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":136,"box":{"x":68,"y":218,"width":833,"height":12}},{"id":"268e5164-7e7c-413f-8662-abdd1f4810a5","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":136,"box":{"x":69,"y":234,"width":812,"height":11}},{"id":"aa9b1186-616d-4d07-9de4-e6ad87a2792d","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":136,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"1c639e72-2d7c-4499-a0cc-c0e941adce62","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":136,"box":{"x":68,"y":264,"width":519,"height":11}},{"id":"7f368122-2b0b-4042-9b70-4414bd2e6159","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":136,"box":{"x":102,"y":286,"width":793,"height":12}},{"id":"41e214a6-4e63-4486-9dc0-4e25682c4696","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":136,"box":{"x":69,"y":302,"width":782,"height":11}},{"id":"f3d4b3af-dc5d-4341-9511-397ed36ff9f6","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":136,"box":{"x":69,"y":317,"width":710,"height":11}},{"id":"0ffc948b-298b-4ee3-85cb-1787d9b9d00d","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":136,"box":{"x":102,"y":339,"width":792,"height":12}},{"id":"51fbd430-b2c6-4565-a33c-41b6e5ad086b","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":136,"box":{"x":68,"y":355,"width":784,"height":11}},{"id":"9d17e105-1c9f-400b-8d32-aad4618b1f78","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":136,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"f81c6b69-9182-4103-a385-1419110e423b","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":136,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"c9bfa240-c529-4bbf-b973-4a29fc0ee17c","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":136,"box":{"x":68,"y":400,"width":837,"height":11}},{"id":"2e6c2291-addb-4ca8-b201-d83b49081479","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":136,"box":{"x":69,"y":415,"width":795,"height":11}},{"id":"5840d19f-77cb-4bb1-b7ff-5ef3e39cc75e","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":136,"box":{"x":70,"y":430,"width":490,"height":11}},{"id":"690800a0-a979-4d6a-9c80-5856d71812ae","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":136,"box":{"x":102,"y":453,"width":757,"height":11}},{"id":"889b93ea-7051-4f05-b6cc-b09a01ba80a5","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":136,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"e35c1d13-6f58-41f6-9476-9313ad81e502","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":136,"box":{"x":70,"y":483,"width":837,"height":11}},{"id":"4ad114f0-4bb2-45dc-9bac-9ddd44db4b1e","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":136,"box":{"x":69,"y":498,"width":774,"height":11}},{"id":"1c724dc1-2317-4cfe-8ac4-1453386c9bdc","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":136,"box":{"x":69,"y":513,"width":796,"height":12}},{"id":"cd543a41-d6b9-42a7-a421-ea92a015b3f3","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":136,"box":{"x":69,"y":528,"width":830,"height":12}},{"id":"16d491da-9e82-4d12-8d32-ac968bde5ebf","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":136,"box":{"x":69,"y":543,"width":831,"height":12}},{"id":"8a733fe5-0cb5-4eb7-871c-df13d4413d5b","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":136,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"d6f88928-0883-4cce-a16b-f7b757569a23","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":136,"box":{"x":69,"y":574,"width":355,"height":11}},{"id":"1778fe9e-fb6d-413b-b31c-a4c5078cd6d0","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":136,"box":{"x":102,"y":596,"width":742,"height":12}},{"id":"ee8f2590-25fc-494f-b79a-3776b3e034a0","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":136,"box":{"x":70,"y":612,"width":838,"height":11}},{"id":"9f9dfde7-1960-4a3c-9bd1-e472fc398988","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":136,"box":{"x":69,"y":627,"width":788,"height":11}},{"id":"e839c7d1-85d5-4f0b-a8d0-42a8a1596cd1","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":136,"box":{"x":69,"y":642,"width":816,"height":11}},{"id":"b70ad400-2546-4a61-bc3d-db4d7483f017","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":136,"box":{"x":69,"y":657,"width":806,"height":11}},{"id":"cb0d12cd-3d00-49da-a572-d2f0f822a32d","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":136,"box":{"x":68,"y":672,"width":822,"height":11}},{"id":"ec158ec9-b783-477e-b451-a5a6b5b7597b","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":136,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"84b87e07-2263-4777-8710-0ae7ead4a0eb","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":136,"box":{"x":70,"y":702,"width":533,"height":9}},{"id":"2836f5e7-5c26-41d0-a027-2c121c6eda95","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":136,"box":{"x":102,"y":725,"width":789,"height":11}},{"id":"0e2e5102-2c0c-4ad5-8fd7-14b042b02faf","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":136,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"14079a05-c6aa-42da-a447-b314dd961266","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":136,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"81f5c206-3c9f-47b0-8a62-bbd73cedb26c","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":136,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"6743f144-be10-45e9-8e9f-de57a8cf9bad","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":136,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"49f0718f-4675-48d8-813f-033f65e469b6","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":136,"box":{"x":70,"y":801,"width":745,"height":11}},{"id":"abd1d625-29cb-4b69-af14-53416970c4b6","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":136,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"f5fbaff3-7cba-45ec-8c93-275788883ebe","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":136,"box":{"x":69,"y":831,"width":801,"height":11}},{"id":"7e5927c2-642e-4377-a06c-362f2d708319","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":136,"box":{"x":70,"y":846,"width":711,"height":11}},{"id":"703bf4be-0e5b-452c-affb-198f96ce0763","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":136,"box":{"x":102,"y":869,"width":741,"height":11}},{"id":"6a36d5ee-9307-406d-a6cf-9f5cc529cc8b","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":136,"box":{"x":70,"y":884,"width":823,"height":11}},{"id":"dc2896ed-dc13-43e9-ab63-33bbf40d7ace","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":136,"box":{"x":68,"y":899,"width":829,"height":11}},{"id":"9787eadb-660f-4c8d-a490-d56ad16ab0b8","block_type":"box","text":"II-94","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"12052b60-4f1d-4d3f-9820-cde5dd209e23","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d605c299-32a6-4b11-a3de-dce58b0a9d29","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":137,"box":{"x":69,"y":45,"width":825,"height":11}},{"id":"299646bb-4f91-4b89-97ad-fb4fc0292cf9","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":137,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"6bb4bfd6-50f0-43fd-89a4-4b42ceeaddf6","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":137,"box":{"x":69,"y":75,"width":824,"height":11}},{"id":"8911cd02-b297-4fa5-9abf-248236afc2ba","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":137,"box":{"x":69,"y":90,"width":792,"height":11}},{"id":"04e6b19e-34b7-46fc-8137-bf56c24a7787","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":137,"box":{"x":101,"y":113,"width":784,"height":11}},{"id":"c1ce685c-8f03-4ed2-8ab4-b4aff5c9bba8","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":137,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"57e1a2c3-93cd-4d8b-b3f7-6d95bccdd25e","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":137,"box":{"x":68,"y":143,"width":803,"height":11}},{"id":"5369ea4f-9659-4714-ad4c-4566f34e2599","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":137,"box":{"x":69,"y":158,"width":831,"height":11}},{"id":"6637a255-542d-4b05-823d-53e6ffd11cfe","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":137,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"6824a9b2-9a0d-4421-a63a-7ce5efbd6472","block_type":"box","text":"(the “Valuation Procedures”). 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The fair value of one or more assets or","page_number":137,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"d8e35f66-2a9a-425c-9f16-26654b904366","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":137,"box":{"x":70,"y":294,"width":800,"height":11}},{"id":"a22511a5-0d62-4dd2-a79f-c607f66bf91c","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":137,"box":{"x":69,"y":392,"width":823,"height":12}},{"id":"211d89aa-10fc-40c8-a35f-d8c7b3f41c50","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":137,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"15bfdc6f-1d7c-4f75-acb8-2c9f77e488fa","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":137,"box":{"x":69,"y":423,"width":822,"height":11}},{"id":"2f078a43-c774-48db-9c8b-a0feb5363257","block_type":"box","text":"some additional expenses.","page_number":137,"box":{"x":69,"y":438,"width":190,"height":11}},{"id":"def73999-9552-4ba3-8218-36f56bbbd532","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":137,"box":{"x":102,"y":460,"width":787,"height":12}},{"id":"2acd44d4-619b-498b-b735-383396add284","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":137,"box":{"x":70,"y":521,"width":802,"height":11}},{"id":"cb4cece7-1edb-46b1-8658-c17477135d78","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":137,"box":{"x":70,"y":536,"width":828,"height":11}},{"id":"04a2ab5c-6f6e-4712-82ed-fb570a85f16b","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":137,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"730ab06f-68e0-4ad5-82b3-7725cc9003cb","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":137,"box":{"x":70,"y":566,"width":816,"height":11}},{"id":"1e35fa0d-a767-46bc-81a1-d6141ce29147","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":137,"box":{"x":70,"y":581,"width":836,"height":12}},{"id":"e952e79e-7a02-4c9b-8058-4b207cb2f892","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":137,"box":{"x":69,"y":596,"width":352,"height":12}},{"id":"816f3a60-7618-4402-8c93-a691635bdaeb","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":137,"box":{"x":102,"y":619,"width":768,"height":11}},{"id":"d814d87c-3d66-4df9-9a74-dcc0b812be27","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":137,"box":{"x":69,"y":634,"width":836,"height":12}},{"id":"5b52289a-60d2-485a-aa62-802b3a089ae1","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":137,"box":{"x":68,"y":649,"width":839,"height":11}},{"id":"12798a01-45e2-4c43-a55f-e7f89a412db6","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":137,"box":{"x":69,"y":665,"width":824,"height":11}},{"id":"40b1e5b8-0657-4f2f-9954-fc9ec7db04a8","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":137,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"e176a572-040e-473f-b893-5eeaf120a5c2","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":137,"box":{"x":68,"y":695,"width":826,"height":11}},{"id":"d36391df-0553-4111-ac62-e0da961d20b3","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":137,"box":{"x":68,"y":710,"width":810,"height":11}},{"id":"5b620f3f-4d35-45b1-b648-a1f2260c7aa7","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":137,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"e4fc0806-71ca-4f21-a0e2-b2d931ad0258","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":137,"box":{"x":68,"y":740,"width":782,"height":11}},{"id":"ecd383f7-0fc4-45d8-9834-164df12795e9","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":137,"box":{"x":70,"y":755,"width":807,"height":11}},{"id":"c826e97b-317b-4a21-bc88-3473f2f868df","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":137,"box":{"x":70,"y":770,"width":804,"height":12}},{"id":"94417b19-e80d-4fee-9919-0fc57e04c90d","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":137,"box":{"x":69,"y":785,"width":799,"height":12}},{"id":"24e4e6ba-1744-4895-a4a9-8a5969c4b292","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":137,"box":{"x":69,"y":801,"width":755,"height":11}},{"id":"d0055ffd-f76b-4ef9-bad8-7ce91e9ce86e","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":137,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"905aab2f-c342-4035-9862-929d76e5d5f5","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":137,"box":{"x":69,"y":831,"width":806,"height":11}},{"id":"9712cda8-c4a2-4d2e-81b1-f16763c0a9d5","block_type":"box","text":"public information about the company (","page_number":137,"box":{"x":70,"y":846,"width":276,"height":11}},{"id":"66e6244b-5d63-4058-bbab-d595078251db","block_type":"box","text":"e.g.","page_number":137,"box":{"x":348,"y":847,"width":25,"height":10}},{"id":"e1411b7f-2d1b-4478-80f5-ca9efc3ca26c","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":137,"box":{"x":376,"y":846,"width":499,"height":11}},{"id":"c7f0f0ea-be74-4b0e-ab53-3aec3fd61f93","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":137,"box":{"x":69,"y":861,"width":784,"height":11}},{"id":"652c687e-9fd3-4497-9ff9-1d4916e4bc95","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":137,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"9529628c-6dbd-4010-8efa-6c19e12a5b95","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":137,"box":{"x":69,"y":891,"width":830,"height":12}},{"id":"76661e4f-5e32-4dfe-a192-fea2205d6354","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":137,"box":{"x":68,"y":906,"width":773,"height":11}},{"id":"168e7061-9aa1-4b31-840d-093de6098df3","block_type":"box","text":"II-95","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d14d9e6e-52ff-44f2-8b84-b2082f0ddb95","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"16c17843-b8c8-4637-95f5-8f956215f819","block_type":"box","text":"securities of which the Funds wish to purchase or sell. 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Cer tain por tfolio management teams within BlackRock may","page_number":138,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"11f638a8-3138-4ee1-a98a-ad8ad6e11f70","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":138,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"16c3e7c9-87c2-4055-a98e-87563ba1ba54","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":138,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"9918b49b-0f28-4f99-b4a7-dc0de29e00bf","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":138,"box":{"x":68,"y":218,"width":797,"height":12}},{"id":"ed035cbf-8200-4570-bdd2-830ec8148279","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":138,"box":{"x":70,"y":234,"width":667,"height":11}},{"id":"bdee2d6b-4cba-4aee-af5a-7627c0fd2388","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":138,"box":{"x":102,"y":256,"width":794,"height":12}},{"id":"4ed9a6e8-0360-4f67-9278-5680e60f8b70","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":138,"box":{"x":69,"y":271,"width":791,"height":12}},{"id":"e5f50aa9-a286-4045-9a9a-5e35120b44b9","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":138,"box":{"x":70,"y":286,"width":812,"height":12}},{"id":"90b30fd4-5183-4814-a9a8-30a41562d230","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":138,"box":{"x":70,"y":302,"width":818,"height":11}},{"id":"31101a2b-408f-4329-9fbf-911ead2ca0c4","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":138,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"3fc8488f-21bb-4b25-a5cc-a723dfded0dc","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":138,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"e699bd1e-f42c-4e1e-8f8d-2311c97bdd21","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":138,"box":{"x":70,"y":347,"width":824,"height":11}},{"id":"077250dc-3649-4652-a534-cef63a612cf3","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":138,"box":{"x":68,"y":362,"width":472,"height":11}},{"id":"64c81626-d2aa-4788-9bd3-c4097357126e","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":138,"box":{"x":102,"y":385,"width":744,"height":11}},{"id":"623f3ce3-d474-45af-a4ec-6a17af994b2d","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":138,"box":{"x":70,"y":400,"width":775,"height":11}},{"id":"60ecd09c-5220-4bf4-b09d-2140e5eed201","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":138,"box":{"x":69,"y":415,"width":818,"height":11}},{"id":"026856e1-c63e-429f-963e-3284b53c8a5a","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":138,"box":{"x":68,"y":430,"width":779,"height":11}},{"id":"a9c709b5-4484-4c57-8746-9ed9253e2451","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":138,"box":{"x":69,"y":445,"width":771,"height":12}},{"id":"ed25ae9d-90d9-4785-bbb9-b85c5f8a844d","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":138,"box":{"x":68,"y":460,"width":812,"height":12}},{"id":"a289b358-df87-4e2c-8614-82cfd1797784","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":138,"box":{"x":70,"y":475,"width":803,"height":12}},{"id":"5a534e12-637b-4279-be40-c4d99b4c8422","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":138,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"0c95fbc8-e5e2-4d7a-9bb1-14ef70879c56","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":138,"box":{"x":69,"y":506,"width":829,"height":11}},{"id":"ddea864c-2777-4c9d-873c-a6763024d412","block_type":"box","text":"a barrier.","page_number":138,"box":{"x":69,"y":521,"width":62,"height":9}},{"id":"cd21cc46-1a91-4659-be5e-2a72f2f31c73","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":138,"box":{"x":101,"y":543,"width":788,"height":12}},{"id":"331cf9f4-b2bf-4ac1-8661-d47e532e2c8f","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":138,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"d9c629c7-8919-4aac-bec6-f151fd2b92e6","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":138,"box":{"x":69,"y":574,"width":805,"height":11}},{"id":"bb960cad-1036-4f74-a291-aa9db747d54f","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":138,"box":{"x":69,"y":589,"width":840,"height":11}},{"id":"df78ae65-bd6f-4b30-a512-cf9296880dda","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":138,"box":{"x":69,"y":604,"width":806,"height":11}},{"id":"159a75d1-c206-4d41-834b-0193945ff591","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":138,"box":{"x":70,"y":619,"width":818,"height":11}},{"id":"5450ec67-eb3f-4f26-a47a-d34497aadce6","block_type":"box","text":"that operate in cer tain industries (","page_number":138,"box":{"x":68,"y":634,"width":244,"height":11}},{"id":"71188480-ce5a-4cd6-b57c-029f663700b9","block_type":"box","text":"e.g.","page_number":138,"box":{"x":314,"y":636,"width":25,"height":10}},{"id":"2970236d-e131-49f9-aed8-52f67591beef","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":138,"box":{"x":342,"y":634,"width":515,"height":12}},{"id":"709401f1-31e2-4d3e-9f9b-aa9fdbdd237c","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":138,"box":{"x":69,"y":650,"width":523,"height":11}},{"id":"b14408c6-d45d-4771-a988-045a47d77cdc","block_type":"box","text":"e.g.","page_number":138,"box":{"x":594,"y":651,"width":25,"height":10}},{"id":"135e8c61-2b88-4a1c-890e-61b76e024bc6","block_type":"box","text":", with mechanisms such as poison pills","page_number":138,"box":{"x":621,"y":650,"width":280,"height":10}},{"id":"1d4cd772-5d0e-4007-9fff-c3eabbb6adbc","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":138,"box":{"x":70,"y":664,"width":816,"height":12}},{"id":"902c77e7-2862-4605-a4aa-d2ea3f76e043","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":138,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"6f805bea-9147-43b0-a744-970cd7ef06dd","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":138,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"6cbc3502-0889-4c2a-9187-1a7d7b57e96e","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":138,"box":{"x":69,"y":710,"width":769,"height":11}},{"id":"0bd8e6bf-2834-49f2-8783-b5c6fc140059","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":138,"box":{"x":69,"y":725,"width":775,"height":11}},{"id":"7594cebc-be96-4f76-9408-934ac93ff5bf","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":138,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"c56b030f-03dd-44ce-8550-1440e26fdad6","block_type":"box","text":"seek to make indirect investments (","page_number":138,"box":{"x":69,"y":755,"width":255,"height":11}},{"id":"4c0231c6-3ea0-4a1c-851f-b95f2e3f5b4c","block_type":"box","text":"e.g.","page_number":138,"box":{"x":326,"y":757,"width":24,"height":9}},{"id":"538c8360-ae0f-41a5-b2b9-0f41bff859d8","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":138,"box":{"x":353,"y":755,"width":514,"height":11}},{"id":"e9efc61c-3e54-4d79-82a2-6afe6fd8c84c","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":138,"box":{"x":69,"y":770,"width":817,"height":12}},{"id":"be82171f-5528-4c26-aac6-7e7b1d1139e2","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":138,"box":{"x":69,"y":786,"width":795,"height":11}},{"id":"34b51c80-1c11-4562-baf7-761cc5b7b843","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":138,"box":{"x":68,"y":801,"width":799,"height":11}},{"id":"623fbbcb-0d47-4f27-b290-2c64755ddb3f","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":138,"box":{"x":69,"y":816,"width":767,"height":11}},{"id":"a7b4b882-2817-482e-b62c-57751bd8dc24","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":138,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"a05bf22b-e751-45f0-943c-6f5f4d166f5c","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":138,"box":{"x":69,"y":846,"width":772,"height":11}},{"id":"5b9529d8-2b5d-4b23-b644-01c9c7c59458","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":138,"box":{"x":102,"y":869,"width":783,"height":11}},{"id":"3c62a4cb-8ac6-4da2-bd8a-830d46d06fff","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":138,"box":{"x":69,"y":884,"width":808,"height":11}},{"id":"bbcb3cfc-74d5-4239-8596-30cbc7a1d6c5","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":138,"box":{"x":69,"y":899,"width":837,"height":11}},{"id":"19584503-2dcd-4f73-9f52-64df9cc3e8da","block_type":"box","text":"II-96","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5d84786e-fa7f-4bbf-8559-152eeecf08f4","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f7655e3d-a4b5-4b17-be08-1d9a6dde5d9a","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":139,"box":{"x":70,"y":45,"width":818,"height":11}},{"id":"4fa3eba7-217c-44f5-9e78-190e28390dde","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":139,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"e1ecc164-969d-4046-9081-a928f46c1a17","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":139,"box":{"x":69,"y":75,"width":806,"height":11}},{"id":"e55b2c1f-7acb-4b10-96b6-ac8114ca8695","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":139,"box":{"x":70,"y":90,"width":839,"height":11}},{"id":"7efe4ea0-5cac-4549-9bf9-1c169c4ae284","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":139,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"dcef2b7e-aa12-49e3-b703-62cf6921b8df","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":139,"box":{"x":69,"y":120,"width":807,"height":11}},{"id":"9c2d0b78-94b9-4138-ac0e-35d6616ee541","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":139,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"9e068885-8739-4298-87fb-57edb0170a3f","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":139,"box":{"x":69,"y":150,"width":765,"height":12}},{"id":"4c433ec0-1cbc-4e9a-bd89-b955f5a8a9c8","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":139,"box":{"x":69,"y":166,"width":781,"height":11}},{"id":"3430bca8-2f6e-40df-9ba2-ebe7766feb26","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":139,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"191d4230-8f47-463a-aa98-64fece552759","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":139,"box":{"x":69,"y":196,"width":720,"height":11}},{"id":"d849f68a-948a-4c10-8dad-ad20d5d087ab","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":139,"box":{"x":101,"y":219,"width":807,"height":11}},{"id":"99e1f8fa-8c74-4bde-a439-822c726e590e","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":139,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"b2c84eff-45d5-4ffe-9ddc-182fff2e11c8","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":139,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"22d3ca84-c746-4074-abc8-dc2f8db19bbd","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":139,"box":{"x":69,"y":264,"width":824,"height":11}},{"id":"9d4b8236-485c-4aa1-806b-c3e2b68d87be","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":139,"box":{"x":68,"y":279,"width":841,"height":11}},{"id":"08a68384-3194-4101-9388-7450f93cd841","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":139,"box":{"x":69,"y":294,"width":770,"height":11}},{"id":"53ba2b88-f52b-4837-8498-6ff631fca8bc","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":139,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"482d9d01-6af6-4b5d-af2b-d53f18119927","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":139,"box":{"x":70,"y":325,"width":794,"height":11}},{"id":"340b3636-821f-42b6-973e-b40488a3b86a","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":139,"box":{"x":69,"y":340,"width":757,"height":11}},{"id":"67d4684d-6c5b-4f10-9b1f-ad15f52f8048","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":139,"box":{"x":69,"y":355,"width":807,"height":11}},{"id":"9e89a1cc-aeb3-48bd-ac0a-cab6116b9025","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":139,"box":{"x":69,"y":370,"width":833,"height":11}},{"id":"efaa77f1-eab1-4d1b-88b8-c708062e1657","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":139,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"25b82b25-5b5d-443c-99de-a2367a7b4014","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":139,"box":{"x":68,"y":400,"width":803,"height":11}},{"id":"18596432-a03b-431d-bd27-fb8cb8b9ca5a","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":139,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"11b8a1b1-66b0-4a9b-bbfd-0f1e8565d132","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":139,"box":{"x":69,"y":430,"width":826,"height":11}},{"id":"3036dbda-dc0c-47e1-b5ac-0cb555280409","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":139,"box":{"x":69,"y":445,"width":834,"height":11}},{"id":"a6be5773-da9b-4701-905a-ad0f2d8b4d2d","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":139,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"e445b5a5-0031-4a64-8c2d-612daedfc6d5","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":139,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"2bd5a7db-2979-4827-b786-831b4b6ff39f","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":139,"box":{"x":69,"y":498,"width":566,"height":11}},{"id":"26132fd5-9ca6-4b6f-bc11-cae71093ddac","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":139,"box":{"x":102,"y":521,"width":798,"height":11}},{"id":"c9c374f4-b46f-4f12-85bc-804e2ea2bf91","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":139,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"deef37ca-bc82-40e0-a639-4af7bb3f4a89","block_type":"box","text":"strategy with respect to such security or asset.","page_number":139,"box":{"x":69,"y":551,"width":333,"height":11}},{"id":"c3a7fcdd-f3b2-4dab-80fe-749ce64026d5","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":139,"box":{"x":102,"y":574,"width":785,"height":11}},{"id":"8e55b188-e04f-468d-8b42-6297a821ccf8","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":139,"box":{"x":70,"y":589,"width":760,"height":11}},{"id":"44c33a87-ef87-4926-b527-22294e7cb56d","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":139,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"9d423e50-24f6-4aec-837f-3fcbaf11b6f9","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":139,"box":{"x":70,"y":619,"width":830,"height":11}},{"id":"f3810f51-1e6a-4c3f-a41d-d2eca8e5275a","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":139,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"bc5049ea-4cd6-4c58-859f-ee5f64a06287","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":139,"box":{"x":68,"y":649,"width":829,"height":12}},{"id":"5b140b9c-0380-4a73-a1e7-9cbdda9eaf1b","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":139,"box":{"x":69,"y":664,"width":784,"height":12}},{"id":"43b6a26c-24aa-464b-bc75-f3937b5dc730","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":139,"box":{"x":70,"y":680,"width":797,"height":11}},{"id":"06b20015-56ff-45a0-970b-8f03db99279a","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":139,"box":{"x":70,"y":695,"width":837,"height":11}},{"id":"2d6ad603-9e78-4985-a3e2-caef10419af5","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":139,"box":{"x":70,"y":710,"width":746,"height":11}},{"id":"6744083c-ae34-4007-be43-a2997b90e8ef","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":139,"box":{"x":102,"y":733,"width":686,"height":11}},{"id":"aa15e74f-b35b-472f-8219-4598128d71fc","block_type":"box","text":"e.g.","page_number":139,"box":{"x":790,"y":734,"width":25,"height":10}},{"id":"1adf4d54-c176-461e-981f-ad19be6193df","block_type":"box","text":", custodians,","page_number":139,"box":{"x":817,"y":733,"width":90,"height":10}},{"id":"102781a7-6233-4c70-9b98-097cb7a4b9d2","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":139,"box":{"x":69,"y":748,"width":756,"height":11}},{"id":"a7d26730-1eb6-4620-81a3-7b78cd8223a6","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":139,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"f6030276-92b1-4d24-a34a-740af4355140","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":139,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"0987c034-6858-4fb7-9c7e-9221317456a5","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":139,"box":{"x":70,"y":793,"width":800,"height":11}},{"id":"c7b59afc-88e6-4c2b-8fb3-e57963e8ce84","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":139,"box":{"x":69,"y":808,"width":771,"height":11}},{"id":"024629c9-789e-4128-80a8-32aedb75b185","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":139,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"ce4ea5cc-e0a4-4c19-943c-0095eb3fe1a9","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":139,"box":{"x":70,"y":838,"width":785,"height":12}},{"id":"c39a8834-1966-4d97-b2e6-61c56ef97a99","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":139,"box":{"x":70,"y":854,"width":786,"height":11}},{"id":"ff1b71bc-30c7-4328-9b1f-a3d1d5842979","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":139,"box":{"x":69,"y":869,"width":837,"height":11}},{"id":"2af85398-2c04-4a0f-8ac1-a97e75d9cd44","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":139,"box":{"x":69,"y":884,"width":809,"height":11}},{"id":"71ad9a5b-d876-42e2-b78e-05619b6c92d1","block_type":"box","text":"II-97","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"14b507c4-6127-450f-90d0-c3f48cecbf95","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34f5d56f-5b9e-4e77-93f5-b990ec6fdcc2","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":140,"box":{"x":102,"y":45,"width":788,"height":11}},{"id":"64a9cde0-f282-4500-b250-d6c3097f3716","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":140,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"76c0d362-54ca-4190-9e1d-d677deedf419","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":140,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"2a69a309-8141-4a5c-be5e-4689c3f789ab","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":140,"box":{"x":70,"y":90,"width":363,"height":9}},{"id":"946a34ea-045f-4bb2-9102-5d24938b6dff","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":140,"box":{"x":102,"y":113,"width":757,"height":11}},{"id":"eddfa72c-ffda-4f53-b506-f00050b191af","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":140,"box":{"x":70,"y":128,"width":826,"height":11}},{"id":"48746a5f-c21b-4899-bd81-f9f639af0747","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":140,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"15effab8-5aeb-4ba7-8a77-cb69b2903c04","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":140,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"23576cf3-94cd-42dc-87ee-4bf18111ce3a","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":140,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"baa55534-215d-4fdb-8229-8e61c1e4040e","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":140,"box":{"x":69,"y":188,"width":465,"height":11}},{"id":"cc3acf86-4f05-4a5d-b442-25fa0fe433c3","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":140,"box":{"x":102,"y":211,"width":804,"height":11}},{"id":"2769a04e-76d5-46fa-84a7-6fa101ea7a69","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":140,"box":{"x":69,"y":226,"width":840,"height":11}},{"id":"68af085b-3891-4167-8050-a6be9d7a8228","block_type":"box","text":"provider.","page_number":140,"box":{"x":70,"y":241,"width":58,"height":11}},{"id":"3e294119-9f5b-4b7f-b527-0a514728eebb","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":140,"box":{"x":102,"y":264,"width":778,"height":11}},{"id":"13c4dce6-b576-4eda-b6ab-2637c9eaf23b","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":140,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"230862ee-8a28-4552-b59e-b60acd884493","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":140,"box":{"x":68,"y":294,"width":485,"height":11}},{"id":"8044c3aa-a256-4460-ab10-897c404e1d92","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":140,"box":{"x":102,"y":317,"width":742,"height":11}},{"id":"c0db8e35-8340-4fbc-bbcf-773bfabb0e3e","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":140,"box":{"x":69,"y":332,"width":517,"height":11}},{"id":"8e36e5f0-cd2f-4a1e-b85a-e9ea521bbb32","block_type":"box","text":"PURCHASE OF SHARES","page_number":140,"box":{"x":395,"y":361,"width":188,"height":10}},{"id":"f9a35557-0045-42dc-9b46-c18f5e809603","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":140,"box":{"x":102,"y":384,"width":800,"height":11}},{"id":"21de4bd0-be65-403e-a5ea-8fd27e08e29e","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":140,"box":{"x":69,"y":399,"width":771,"height":12}},{"id":"345436aa-5829-4e5c-a22c-335dea955622","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":140,"box":{"x":69,"y":414,"width":822,"height":12}},{"id":"ce71819e-cf94-4d32-9d3c-0d9d94bce24f","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":140,"box":{"x":68,"y":429,"width":809,"height":12}},{"id":"a9a52ee2-88b5-4e7c-9ec1-1e40b425393c","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":140,"box":{"x":69,"y":445,"width":781,"height":11}},{"id":"ed8ea1a9-505d-4a5e-983e-3db82dd04c11","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":140,"box":{"x":68,"y":460,"width":833,"height":11}},{"id":"c52207b7-1858-4053-99d1-204cf3c75556","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":140,"box":{"x":68,"y":475,"width":833,"height":11}},{"id":"2be150ab-6472-40c9-b084-50f8256371b1","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":140,"box":{"x":69,"y":490,"width":835,"height":11}},{"id":"be821d42-4c86-45f4-ac70-a9cea1492cf2","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":140,"box":{"x":69,"y":505,"width":804,"height":11}},{"id":"2ba4a8f3-3730-41c7-bebd-e42acd175ccd","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":140,"box":{"x":70,"y":520,"width":816,"height":12}},{"id":"9debca25-d7dc-4f42-95c6-d6042bc4b368","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":140,"box":{"x":68,"y":535,"width":835,"height":11}},{"id":"a4f4beae-38e2-4d78-93ad-c53b2c92bdc6","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":140,"box":{"x":69,"y":551,"width":834,"height":11}},{"id":"2cb6eb96-f6b1-40e6-b8cc-39a364ae3e94","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":140,"box":{"x":69,"y":566,"width":757,"height":11}},{"id":"f1cd8389-f2d8-4738-a4b6-e070a0330b39","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":140,"box":{"x":69,"y":581,"width":802,"height":11}},{"id":"f459d526-f677-45f1-a2e2-e2fc1e0bf907","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":140,"box":{"x":101,"y":603,"width":799,"height":12}},{"id":"e77bb4da-e0b6-4fad-995f-320b8340dc66","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":140,"box":{"x":68,"y":618,"width":798,"height":12}},{"id":"1d8a7f51-d26a-4f4a-b6a6-c881885a681e","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":140,"box":{"x":70,"y":634,"width":795,"height":11}},{"id":"d37d387c-91b4-4889-b769-cbb1f9e3acc3","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":140,"box":{"x":68,"y":649,"width":786,"height":11}},{"id":"2860a8f7-cabd-4b7e-9e25-defd04e6f967","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":140,"box":{"x":69,"y":664,"width":839,"height":11}},{"id":"bd24392a-3737-46e1-bc6e-74de6905b427","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":140,"box":{"x":69,"y":679,"width":795,"height":11}},{"id":"f5317d24-8c6d-411b-be4a-cd2a5fd256c2","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":140,"box":{"x":68,"y":694,"width":819,"height":11}},{"id":"c4eebec9-81d0-4e8f-9656-6801bbbc32ff","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":140,"box":{"x":69,"y":709,"width":808,"height":11}},{"id":"2a62abb6-cdae-49bc-b08f-354247849015","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":140,"box":{"x":69,"y":724,"width":803,"height":12}},{"id":"0a4ce031-30fd-4190-b42e-d816045c2e3c","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":140,"box":{"x":70,"y":739,"width":812,"height":12}},{"id":"00c2dc29-abdc-42bb-a0f2-f1b94d16fcf0","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":140,"box":{"x":68,"y":755,"width":828,"height":11}},{"id":"2c295f91-1744-4f62-bfa3-875894f70aa5","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":140,"box":{"x":68,"y":770,"width":788,"height":11}},{"id":"cccfdb10-a379-4331-9103-868ac1c00aa0","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":140,"box":{"x":69,"y":785,"width":779,"height":11}},{"id":"a9fb16b3-b2c4-4cba-979f-b74893e47edc","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":140,"box":{"x":70,"y":800,"width":830,"height":11}},{"id":"68911020-f65a-4aab-86db-844c34bf1b87","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":140,"box":{"x":69,"y":815,"width":828,"height":11}},{"id":"4612f573-02b1-4758-8912-160661fab8e9","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":140,"box":{"x":68,"y":829,"width":762,"height":12}},{"id":"290b2501-66f8-48f8-b204-d4fd4016443f","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":140,"box":{"x":101,"y":853,"width":768,"height":11}},{"id":"072cdd49-752d-4cba-94a3-20eda88f8bdb","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":140,"box":{"x":69,"y":868,"width":819,"height":11}},{"id":"dcfc7b26-b6d0-47de-a50b-de31ae70e2a2","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":140,"box":{"x":69,"y":882,"width":769,"height":12}},{"id":"9f3ab1a7-c950-416f-94e7-47eeacc53104","block_type":"box","text":"investment is $25.","page_number":140,"box":{"x":70,"y":898,"width":132,"height":10}},{"id":"fbb28adb-977c-4741-9aa0-71231b22b771","block_type":"box","text":"II-98","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7153c21c-61c3-4d21-b800-792412bcece1","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e9807ed-8d15-4cee-aa63-5ea227c68c3d","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":141,"box":{"x":102,"y":45,"width":802,"height":11}},{"id":"5eed2b1d-a5ce-410e-ab98-62312bf89943","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":141,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"e14f2587-2d49-4c41-a671-3d28490eabe7","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":141,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"0b9026fc-5630-4e84-9411-a54ba580e3a1","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":141,"box":{"x":70,"y":90,"width":751,"height":11}},{"id":"30c8ed87-a667-4ad2-9c75-480f68d3dad3","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":141,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"f9b55017-5fbc-4352-b2ac-b3497c63cd95","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":141,"box":{"x":102,"y":128,"width":768,"height":11}},{"id":"22ffb38e-a95a-41c2-9821-9c723d400c9f","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":141,"box":{"x":68,"y":143,"width":807,"height":11}},{"id":"e8f1c792-8d6a-4b9a-8450-292479491bad","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":141,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"5c162059-f6f5-4027-b305-25b37d8cbf4e","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":141,"box":{"x":69,"y":173,"width":814,"height":11}},{"id":"c6b3dfc9-590c-4d9a-94d7-1ff2db947a13","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":141,"box":{"x":68,"y":188,"width":740,"height":11}},{"id":"ff1ca3ca-52a7-47ab-8600-2e94588e660e","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":141,"box":{"x":102,"y":211,"width":795,"height":11}},{"id":"51e48bdf-13f7-4e8b-a7f8-a49fa76aaa0a","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":141,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"a8b22cba-73ee-467a-b694-1a48450ea49d","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":141,"box":{"x":68,"y":241,"width":827,"height":11}},{"id":"6a9740d7-452c-4f89-bd21-ec640af231e3","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":141,"box":{"x":68,"y":256,"width":750,"height":12}},{"id":"5581b01d-6667-4b6b-aa69-d1935500ef18","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":141,"box":{"x":101,"y":279,"width":776,"height":11}},{"id":"0d46cd3e-f95f-4fd0-a3a1-1fafe5126cae","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":141,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"0a9de471-f423-405d-9a44-e52f14f3aa28","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":141,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"a6af4ba3-6e5c-49ff-a4ba-f14aed280084","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":141,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"aa4bf4e6-fe4a-47c1-9e3b-413e8fb93d78","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":141,"box":{"x":70,"y":339,"width":839,"height":12}},{"id":"3308e11e-4013-4237-ab3a-a9bfb4e6bb58","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":141,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"4f468e97-c2c2-4df8-8017-45730cc799b3","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":141,"box":{"x":68,"y":370,"width":827,"height":11}},{"id":"df2358ae-ef6f-4770-877a-913d61733aa8","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":141,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"34318b22-1d19-41d9-89f2-ec0b4b46d6dc","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":141,"box":{"x":70,"y":400,"width":788,"height":11}},{"id":"4152cf70-0181-452c-beb6-118c9a994b94","block_type":"box","text":"adviser.","page_number":141,"box":{"x":69,"y":415,"width":53,"height":9}},{"id":"8b5cf732-53ee-44e6-bae6-1a95a97d653f","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":141,"box":{"x":101,"y":438,"width":795,"height":11}},{"id":"3068abd2-ae30-482e-99ad-ee20ad12ad90","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":141,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"5f267d7e-27bb-4bc6-b312-b7b797a0820d","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":141,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"a47b174e-39f4-4166-ba39-523c08d09b4b","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":141,"box":{"x":69,"y":483,"width":834,"height":11}},{"id":"f4f5587a-8fa9-453b-b71c-125c6a460b49","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":141,"box":{"x":68,"y":498,"width":747,"height":11}},{"id":"9abb4663-b157-4891-98cb-eb99da5f3b22","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":141,"box":{"x":70,"y":513,"width":809,"height":11}},{"id":"60501eb8-a027-406a-8bcf-ef161a97e337","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":141,"box":{"x":69,"y":528,"width":819,"height":12}},{"id":"961fcddb-5737-4517-a598-de9933f68cef","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":141,"box":{"x":68,"y":543,"width":840,"height":12}},{"id":"eb9fcfb5-25b2-4efc-b44a-4e01966996a8","block_type":"box","text":"also be restricted from making additional investments.","page_number":141,"box":{"x":69,"y":559,"width":388,"height":11}},{"id":"bbfc33ed-4923-40e4-851a-4105d6014bd6","block_type":"box","text":"In-Kind Purchases","page_number":141,"box":{"x":102,"y":582,"width":127,"height":8}},{"id":"40bb0951-0c85-4f48-af93-ca299c19f049","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":141,"box":{"x":230,"y":581,"width":649,"height":11}},{"id":"d3b791ef-6542-45d8-ae91-095af06a64ec","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":141,"box":{"x":69,"y":596,"width":779,"height":12}},{"id":"ff0bddac-e3f8-4c1e-92ba-5e5488fe66e7","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":141,"box":{"x":70,"y":612,"width":820,"height":11}},{"id":"169dd70d-e62e-4686-bd12-604d050416b6","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":141,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"6502da1d-eda0-42da-841c-37e6145b4e74","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":141,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"8ed0e095-c1d0-44a5-ad93-8789ddcd5598","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":141,"box":{"x":69,"y":657,"width":817,"height":11}},{"id":"b4439b7f-983b-4b9f-8998-b745821f1bb6","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":141,"box":{"x":68,"y":672,"width":837,"height":11}},{"id":"117e3056-3500-4a73-a666-3e0da9ffb200","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":141,"box":{"x":69,"y":687,"width":835,"height":11}},{"id":"81e8d0d7-3510-4f19-a537-9afa13024fa1","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":141,"box":{"x":69,"y":702,"width":795,"height":12}},{"id":"1bc82892-ec8c-4d0d-8b76-a5fb5d972015","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":141,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"bfc514e9-beaf-40da-89f5-9735c6e27cfd","block_type":"box","text":"has settled.","page_number":141,"box":{"x":69,"y":733,"width":83,"height":9}},{"id":"cff94bb8-02a7-4192-9982-5e140f2f712d","block_type":"box","text":"Institutional Shares","page_number":141,"box":{"x":69,"y":763,"width":142,"height":9}},{"id":"f86f9df9-f5e5-44cb-bf94-f3171473214a","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":141,"box":{"x":102,"y":786,"width":759,"height":11}},{"id":"1ce30ff8-638e-4b9f-80c7-b59e5ab1b3b8","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":141,"box":{"x":70,"y":801,"width":756,"height":11}},{"id":"7ada7ac1-1188-4259-acf1-6fecf4f3f16e","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":141,"box":{"x":70,"y":816,"width":775,"height":11}},{"id":"cead8e0e-ce02-4828-b3a2-8cf4bc7853b8","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":141,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"bbc2d158-9bb7-4272-94c7-4a640422e1ee","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":141,"box":{"x":69,"y":846,"width":807,"height":11}},{"id":"c81c17c7-7763-48f1-8aa5-9e468883ec5b","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":141,"box":{"x":69,"y":861,"width":276,"height":11}},{"id":"228287b7-d163-487c-8b2d-b43b858c9051","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":141,"box":{"x":102,"y":884,"width":259,"height":11}},{"id":"dcb9dfee-20f4-47be-9f01-96bd260f359e","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":141,"box":{"x":369,"y":884,"width":540,"height":11}},{"id":"5761dc25-789a-4a12-9282-cd8ebcd6069b","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":141,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"08b7fb38-1323-41be-bbaf-518e3be919cc","block_type":"box","text":"II-99","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"150f0c8b-b0a1-4482-95cb-0c2958a2f3cd","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86e9cb43-7d01-4223-9676-7d71f85fefbf","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":142,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"167ee77e-68c5-4d9b-afe2-eeb955cab70f","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":142,"box":{"x":69,"y":60,"width":819,"height":11}},{"id":"9a688d04-8acf-4962-8c6f-2acc7f603cab","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":142,"box":{"x":69,"y":75,"width":840,"height":11}},{"id":"1b9ca3b0-f3ef-47ea-b161-46d35017c330","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":142,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"ceaff5d4-3556-4d1e-a1a4-be9f434e9969","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":142,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"d574fd63-c7cf-40ac-ab90-5b4429a2ab94","block_type":"box","text":"these fees and conditions.","page_number":142,"box":{"x":68,"y":120,"width":189,"height":9}},{"id":"f9951bb8-b31c-47b6-a4cc-dbee15ceaa86","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":142,"box":{"x":102,"y":143,"width":805,"height":11}},{"id":"243fa3dd-4920-4c57-9a5f-7eb813b68adf","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":142,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"e48e7139-3c57-43d2-a263-460e9cf991fc","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":142,"box":{"x":69,"y":173,"width":817,"height":11}},{"id":"3b54bc03-4033-46fb-af18-95acd92f8a68","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":142,"box":{"x":70,"y":188,"width":831,"height":12}},{"id":"bc8da426-bcfe-456b-a1ea-b89fdbbd2280","block_type":"box","text":"incurred by the Fund.","page_number":142,"box":{"x":70,"y":204,"width":147,"height":11}},{"id":"1dcd4a5b-6c29-4ee7-858f-65498462ca40","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":142,"box":{"x":102,"y":226,"width":774,"height":11}},{"id":"08e7ef28-9cca-481e-877e-fd7ea5fbcb7f","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":142,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"e4ee56f8-5119-4965-b304-a6c73748361d","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":142,"box":{"x":70,"y":256,"width":773,"height":11}},{"id":"8de0964d-43ed-467d-9626-a18c77fb6643","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":142,"box":{"x":70,"y":271,"width":762,"height":12}},{"id":"63c8356d-bfff-4d75-bf09-45ae914d98bb","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":142,"box":{"x":70,"y":286,"width":821,"height":12}},{"id":"e23a57bb-a7a3-4cae-aaa7-ab9b3370efb3","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":142,"box":{"x":69,"y":302,"width":819,"height":11}},{"id":"9ab3d8bd-9210-415b-bae0-495ac67900d7","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":142,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"398e5ba6-c8d9-4453-ba95-6c8286ec662e","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":142,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"e6d24994-6d89-4ecd-856b-cadb4915f639","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":142,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"a8075b44-00cb-4700-b539-58fdee36c28e","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":142,"box":{"x":69,"y":362,"width":815,"height":11}},{"id":"db1c92f6-60de-4ae5-b281-5cda73e3db07","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":142,"box":{"x":69,"y":377,"width":789,"height":12}},{"id":"b21613b1-4ec2-4661-9b32-42f9a3116b5d","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":142,"box":{"x":70,"y":392,"width":772,"height":12}},{"id":"d5b0ea5a-bb2e-4822-a725-ee3df4e3444a","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":142,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"4d10b446-6e36-432f-8c4d-74bfbe916083","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":142,"box":{"x":68,"y":423,"width":783,"height":11}},{"id":"7add7938-ad86-4054-8a76-bb66aa10b48e","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":142,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"72415713-832f-45cc-8707-82fe8161843d","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":142,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"1d224e61-ae07-4088-b5e8-7de33de65971","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":142,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"ac1faffa-5d22-49a9-92fc-be84df4780f4","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":142,"box":{"x":69,"y":483,"width":751,"height":11}},{"id":"acc7b1bb-f17e-4d82-af6d-7c13fade34a0","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":142,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"d8917b2b-afbf-45a5-b629-dd9578dd34a3","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":142,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"d1cbe7e2-2afa-4382-b0a8-4bfc83f6a7a5","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":142,"box":{"x":69,"y":528,"width":771,"height":12}},{"id":"77c1eb2a-4897-4669-83cb-051f09f8e0b6","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":142,"box":{"x":69,"y":543,"width":822,"height":11}},{"id":"c1281342-358b-438b-ac42-57e5dd420d40","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":142,"box":{"x":68,"y":559,"width":771,"height":11}},{"id":"d10ec3ec-bf00-4bd9-8195-5b0cf97cb91a","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":142,"box":{"x":70,"y":573,"width":801,"height":12}},{"id":"e53c8278-a46e-4900-95fe-ab37c230ed46","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":142,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"8fb00abe-412e-4dd3-889a-c606f32e083b","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":142,"box":{"x":102,"y":612,"width":280,"height":11}},{"id":"20ca8bda-ad10-4fd6-a232-1a61dc06bb51","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":142,"box":{"x":389,"y":612,"width":496,"height":11}},{"id":"9477a679-61d3-465c-ba5f-b8bd9d333411","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":142,"box":{"x":70,"y":627,"width":812,"height":11}},{"id":"ee398c64-4954-41cb-8d79-e20551f05cd5","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":142,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"968a1817-d218-4293-884c-035c31595dc8","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":142,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"5fff05b8-2ddc-4c6e-8371-d75c89685597","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":142,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"9c41efb1-8a08-4d45-89a8-eb6ea5bc3bdf","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":142,"box":{"x":69,"y":687,"width":279,"height":11}},{"id":"565ca7b4-26b1-4a48-bed7-6aaef2c1da18","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":142,"box":{"x":69,"y":718,"width":382,"height":11}},{"id":"433f3abc-50c2-418b-b31f-763a34a6b233","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":142,"box":{"x":102,"y":740,"width":770,"height":11}},{"id":"02f89321-0f70-4275-b4ea-a0d276197394","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":142,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"540153d5-3f54-4eba-bcb6-cfceeb491c0b","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":142,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"65d2c0ce-4309-49ad-bc82-e4c2f8bbf3f1","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":142,"box":{"x":68,"y":785,"width":840,"height":12}},{"id":"0cbdd7f8-fbc9-4937-8d46-d817741119ee","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":142,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"b3e1eb38-3a01-4986-b85a-596e5844b503","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":142,"box":{"x":69,"y":816,"width":791,"height":11}},{"id":"38263e7e-adf7-400a-8fd1-853d6f0e9b71","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":142,"box":{"x":70,"y":831,"width":727,"height":11}},{"id":"3286049a-6733-4030-80be-a33cfbf3faf1","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":142,"box":{"x":102,"y":853,"width":770,"height":12}},{"id":"215b5fee-24aa-4bd0-baa8-e7672588501c","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":142,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"dfbf5553-62d2-4edc-b230-3df20c5fa5ae","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":142,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"b0796bf7-cce4-4b2f-b76d-2b7a615703d4","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":142,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"fd997e6c-c524-4175-904e-83b3f1456110","block_type":"box","text":"II-100","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bc0c41cc-fe4b-4990-a770-449ee7f10e2b","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"715aa548-57d6-4d53-8cbd-1cdab9e88070","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":143,"box":{"x":68,"y":45,"width":808,"height":11}},{"id":"15bcab8f-cb69-47ba-895a-98f1f4367904","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":143,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"507ba035-9b76-46e3-9903-218518e37ed3","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":143,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"aaf22b92-049f-45ca-b392-d5f18ed83e35","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":143,"box":{"x":70,"y":90,"width":789,"height":11}},{"id":"e239c7dd-d4fc-40ad-8106-13c262b3746c","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":143,"box":{"x":70,"y":105,"width":805,"height":11}},{"id":"55545bc5-2529-43a3-9444-a9a8001fc4b3","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":143,"box":{"x":70,"y":120,"width":792,"height":12}},{"id":"60e49f15-2466-4d3c-820d-f31f1cd2c5f5","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":143,"box":{"x":69,"y":135,"width":826,"height":12}},{"id":"f60dab65-83e3-4cb9-b43f-e16dd0ca820b","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":143,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"1dff08dc-80e5-4b26-9ae9-83dd99e49793","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":143,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"b13b90b1-3dc7-4b04-a908-7054f877a98f","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":143,"box":{"x":69,"y":181,"width":358,"height":9}},{"id":"07d98389-526e-4a5f-a33a-73fa0c7fd706","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":143,"box":{"x":102,"y":203,"width":734,"height":12}},{"id":"671620d8-eeca-4fe3-9f25-40a2f1834a4f","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":143,"box":{"x":70,"y":218,"width":785,"height":11}},{"id":"606a9c20-61fe-4368-87e6-b2b113ece30d","block_type":"box","text":"periods indicated.","page_number":143,"box":{"x":70,"y":234,"width":124,"height":11}},{"id":"ce0cce34-a81e-46c4-94a5-bf2fe26908e2","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":143,"box":{"x":101,"y":256,"width":806,"height":11}},{"id":"322993d6-9232-4537-8b9c-d49b15c35d50","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":143,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"4dbde372-e12a-4304-90d2-3e26b23b44a1","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":143,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"6bd23b74-9895-4a8a-9d1f-a51ffb7f4a65","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":143,"box":{"x":69,"y":302,"width":714,"height":11}},{"id":"a91b8aed-90bb-48e7-a16f-bcd6f844e59a","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":143,"box":{"x":69,"y":332,"width":297,"height":11}},{"id":"4d0db43a-df20-4da9-b6d3-83bbbf05ef40","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":143,"box":{"x":102,"y":355,"width":761,"height":11}},{"id":"9924aa45-51bf-4995-b850-10d324fef287","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":143,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"4abf98e2-2ef7-400d-966e-bd9402877d31","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":143,"box":{"x":69,"y":385,"width":812,"height":11}},{"id":"52e3f8b2-459f-4893-800f-e7fab18fded3","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":143,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"7cccfa7c-5dd0-4369-917f-4828b5197f06","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":143,"box":{"x":69,"y":415,"width":578,"height":9}},{"id":"c605cb5c-4d55-4fbc-8eae-a575ba317de1","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":143,"box":{"x":102,"y":438,"width":734,"height":11}},{"id":"8d667680-1eb3-4882-b48a-1bbb179bcf10","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":143,"box":{"x":70,"y":453,"width":800,"height":11}},{"id":"15d83013-be67-4a56-8146-3377265d0c5d","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":143,"box":{"x":101,"y":475,"width":806,"height":12}},{"id":"e6477436-6c11-4a0f-8cb3-66be2213845a","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":143,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"7851be34-d3a0-49e7-9a43-e2bbcbbc55a9","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":143,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"c5c81fed-dd63-4daa-8978-3d408dfba466","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":143,"box":{"x":69,"y":521,"width":714,"height":11}},{"id":"6b40c9f8-0bbe-40fb-901c-5034ae7f8427","block_type":"box","text":"Reduced Initial Sales Charges","page_number":143,"box":{"x":69,"y":551,"width":219,"height":11}},{"id":"549cb31a-d06f-4989-aa98-dbab1ec49c42","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":143,"box":{"x":102,"y":574,"width":782,"height":11}},{"id":"927e8e84-9870-40a9-905e-9a12a91ab565","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":143,"box":{"x":69,"y":589,"width":827,"height":11}},{"id":"07f497c4-b108-4e26-aefd-0e8df5345e9f","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":143,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"2faa2479-fe8f-4905-a69d-0ec8be37d84c","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":143,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"527c6d31-e969-49b9-ba0f-2eec1883122b","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":143,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"4375fceb-a9cf-4869-9fa9-5e6a0cb7cc1f","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":143,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"637edac6-db6c-470c-acb6-5ad2ba2f5f74","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":143,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"84c84a00-74a3-45fb-a8ea-69d390cc82ca","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":143,"box":{"x":70,"y":680,"width":603,"height":11}},{"id":"17e98278-1b24-4f69-bd54-6dbadebc0f9b","block_type":"box","text":"Reinvested Dividends.","page_number":143,"box":{"x":102,"y":703,"width":156,"height":8}},{"id":"9a664850-3538-48e7-8bf5-3355417f1315","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":143,"box":{"x":265,"y":702,"width":566,"height":12}},{"id":"4446cede-f2a7-4f41-bc60-3e300b61b38c","block_type":"box","text":"reinvestment of dividends.","page_number":143,"box":{"x":69,"y":717,"width":186,"height":9}},{"id":"b56c9997-b479-4ffb-b94d-3c0271a2faed","block_type":"box","text":"Right of Accumulation.","page_number":143,"box":{"x":102,"y":740,"width":158,"height":11}},{"id":"6a8a2330-e4ae-4b6c-9a9f-ca7a9c36fe78","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":143,"box":{"x":267,"y":740,"width":574,"height":11}},{"id":"81d1d3e8-c298-4346-b87a-8a321d6dc3bb","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":143,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"afc1d1f4-a7cf-47f1-b07c-a0cec51dfbc8","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":143,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"ebe4f135-9151-44ae-b047-d79d09dd4b69","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":143,"box":{"x":70,"y":785,"width":825,"height":11}},{"id":"742000b2-0b10-4f31-8d41-91c909e108e7","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":143,"box":{"x":69,"y":801,"width":780,"height":11}},{"id":"30e02df0-ed69-4bb5-bf79-35d774bfb082","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":143,"box":{"x":70,"y":816,"width":828,"height":11}},{"id":"d27e8892-f214-4232-bc36-d0e2759cdf0a","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":143,"box":{"x":69,"y":831,"width":804,"height":11}},{"id":"3bbe7ce7-d503-4cfe-99fb-a7e13a388511","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":143,"box":{"x":70,"y":846,"width":794,"height":11}},{"id":"f394772b-b9d8-4995-9f8f-2502cf36b0c2","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":143,"box":{"x":70,"y":861,"width":814,"height":11}},{"id":"6d145f3d-9a72-4021-b138-c1b3d795e8e0","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":143,"box":{"x":70,"y":876,"width":828,"height":11}},{"id":"c100eea9-c984-457d-bd73-7406b16dbe3b","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":143,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"a0ed99be-3fd2-4cd6-8215-3e1018dd522c","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":143,"box":{"x":70,"y":906,"width":776,"height":12}},{"id":"46f9fa1b-2499-489e-9d30-dfbf3185b74e","block_type":"box","text":"II-101","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"208cf7ce-0920-4df7-a39b-b152d57b19ce","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab4d86aa-d55a-47ff-a0ac-b9a91dc1a57c","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":144,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"604b99c3-d2d0-4fd1-a953-f0bf7f2ab246","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":144,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"7136285f-d42d-4e1a-9ff8-a210d158f2eb","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":144,"box":{"x":70,"y":75,"width":829,"height":11}},{"id":"26de963a-2395-4396-8ab6-195955a51384","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":144,"box":{"x":70,"y":90,"width":774,"height":11}},{"id":"36679e98-2052-4bf1-a1ab-f4ae485207a6","block_type":"box","text":"Letter of Intent.","page_number":144,"box":{"x":102,"y":113,"width":109,"height":9}},{"id":"10aefdf6-5c4b-4404-a953-c2ec40ec223b","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":144,"box":{"x":217,"y":113,"width":681,"height":11}},{"id":"0b6c95a3-e811-4fac-b54d-0580c0394471","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":144,"box":{"x":70,"y":128,"width":820,"height":11}},{"id":"c7acc675-5bfc-4e00-90ac-0291f3bae7df","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":144,"box":{"x":68,"y":143,"width":792,"height":11}},{"id":"5f5495f0-5378-4fe3-bdd7-268965ce788d","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":144,"box":{"x":70,"y":158,"width":802,"height":11}},{"id":"db532c8b-460a-4de1-b082-8c8453f1973a","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":144,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"f4ffb028-92e4-4c06-8087-6a0448481629","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":144,"box":{"x":69,"y":188,"width":800,"height":12}},{"id":"dbfa1898-f14f-4c5e-8956-d699bb1fd024","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":144,"box":{"x":70,"y":203,"width":826,"height":12}},{"id":"0ec4bbe9-f9cf-4ea6-8b63-d3d3ed39bb95","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":144,"box":{"x":69,"y":218,"width":822,"height":12}},{"id":"a40c20a6-e675-462b-9d30-0bbe943e1438","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":144,"box":{"x":70,"y":234,"width":764,"height":11}},{"id":"af7f7620-4699-4b24-b35a-bfa770be0a41","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":144,"box":{"x":70,"y":249,"width":800,"height":11}},{"id":"b070aec2-6b58-44eb-bf99-772ef182b986","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":144,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"38bb6e58-5ea5-4dc4-a678-13723f75d483","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":144,"box":{"x":68,"y":279,"width":835,"height":11}},{"id":"eba57d05-f005-493d-b0b3-9fbd473cc6f6","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":144,"box":{"x":70,"y":294,"width":811,"height":11}},{"id":"36b9b21a-2b06-48f8-949f-f144f6401cfa","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":144,"box":{"x":69,"y":309,"width":814,"height":11}},{"id":"de895ba9-92f3-45f1-a6ae-49ed053ddcae","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":144,"box":{"x":68,"y":324,"width":827,"height":12}},{"id":"aaa514b9-c01d-4264-bf59-b9247fdf7cc4","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":144,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"485c4b1c-59ac-4087-a93a-4d3f957e5ba9","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":144,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"0d1256a6-ded3-4c55-a265-c1763d357349","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":144,"box":{"x":70,"y":370,"width":807,"height":11}},{"id":"6fbd5e97-ab94-4f15-b947-3542bd9ca6fe","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":144,"box":{"x":69,"y":385,"width":423,"height":11}},{"id":"e569bb69-93c6-4e1a-b792-de0af5e4652a","block_type":"box","text":"Placement Fees.","page_number":144,"box":{"x":102,"y":408,"width":116,"height":8}},{"id":"42109169-bb9d-4d88-a6bf-07b4e9944e45","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":144,"box":{"x":102,"y":430,"width":777,"height":11}},{"id":"0ecf41c0-e5a7-464c-a329-b0e179fc51e4","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":144,"box":{"x":68,"y":445,"width":704,"height":12}},{"id":"44c87f58-46de-4fa1-b34e-068b4e3a162b","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":144,"box":{"x":102,"y":468,"width":741,"height":11}},{"id":"abd3c467-af58-4e8a-9fc4-8f742ac19ea9","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":495,"width":361,"height":10}},{"id":"316d11bf-910d-4568-9906-55b8ef95ef21","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":144,"box":{"x":535,"y":496,"width":288,"height":9}},{"id":"b84b65bc-0bb9-42b6-bed1-ed2665179732","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":510,"width":361,"height":11}},{"id":"8e8dbbd5-90b3-4890-be11-4f4a43ad06fc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":511,"width":288,"height":9}},{"id":"ee984018-dca8-40c4-b4ef-73e117d981e9","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":525,"width":345,"height":11}},{"id":"5299857d-217b-4001-a1c3-21f809bc5950","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":526,"width":305,"height":9}},{"id":"3951e362-24c7-4e06-a065-f3f3990c0c0f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":144,"box":{"x":101,"y":550,"width":776,"height":11}},{"id":"bb8de119-d471-4f0c-9b11-80e4ba65e44a","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":144,"box":{"x":69,"y":565,"width":774,"height":11}},{"id":"93b8a109-daee-4d4a-ba9e-982758075ad7","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":144,"box":{"x":70,"y":580,"width":824,"height":11}},{"id":"77a239e6-d7e6-42d4-a9d1-d2f6395fe772","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":144,"box":{"x":69,"y":595,"width":695,"height":11}},{"id":"4e15d72c-6d5d-47ce-812c-74d8355b319e","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":622,"width":410,"height":11}},{"id":"fbd9e739-2bc6-4f0f-aca0-0f5c92b87dde","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":144,"box":{"x":583,"y":623,"width":240,"height":9}},{"id":"441e7144-4c61-48fc-96cb-63112db0b64e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":637,"width":361,"height":11}},{"id":"08fd09d0-16e0-4e4d-8107-9e0a5d59bbcf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":638,"width":288,"height":9}},{"id":"522d6a9d-d042-4caf-86f2-3fd9cc462c9b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":652,"width":345,"height":11}},{"id":"186cd560-cdd0-4f7a-b2fa-d228739a457d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":653,"width":305,"height":9}},{"id":"16138a30-b4cf-432e-8a92-d6185ef7a83d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":144,"box":{"x":101,"y":677,"width":806,"height":11}},{"id":"41eefb07-e6e9-4042-8583-d2ab954a7dab","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":144,"box":{"x":68,"y":692,"width":821,"height":11}},{"id":"7b81e9e2-7db3-4060-9208-351c08f29879","block_type":"box","text":"SM","page_number":144,"box":{"x":890,"y":693,"width":11,"height":4}},{"id":"235b5098-aa67-4c9d-8a41-774a3a985f65","block_type":"box","text":",","page_number":144,"box":{"x":903,"y":700,"width":2,"height":3}},{"id":"2d9333da-182a-4b5e-b93d-c17cd028ce7c","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":144,"box":{"x":70,"y":707,"width":816,"height":12}},{"id":"94ed4229-ffb4-47aa-b203-d262c8299f31","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":144,"box":{"x":70,"y":722,"width":835,"height":12}},{"id":"398fc93f-ae3b-4925-8137-8deadd0a8680","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":738,"width":520,"height":11}},{"id":"cdc72989-d582-400d-ae1f-2e18dd29b488","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":765,"width":361,"height":10}},{"id":"36218c32-6345-4088-83d6-0b640d9d4df6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":144,"box":{"x":535,"y":765,"width":288,"height":9}},{"id":"2c58cd93-a35e-40b8-b41b-282588304ddb","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":780,"width":361,"height":10}},{"id":"e49c03cc-49ca-4cb7-aa2a-7c87df0eb958","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":780,"width":288,"height":9}},{"id":"43783cf0-ade2-4a68-b9ee-740985610e8d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":795,"width":345,"height":10}},{"id":"bbe19db6-a08d-40be-86c8-4005377ba84b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":796,"width":305,"height":8}},{"id":"77d1953c-53d9-4519-917f-c75453271f12","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":144,"box":{"x":101,"y":819,"width":743,"height":12}},{"id":"a0c8bb21-d364-4a20-a7eb-9b1d300b62fd","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":835,"width":674,"height":11}},{"id":"ff7888c5-4e47-428c-a778-3cf59d61baa4","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":862,"width":361,"height":10}},{"id":"88721277-6acc-4843-921b-b0f610e719c7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":862,"width":288,"height":9}},{"id":"978c6e67-57fa-453f-83fe-e40ae8bccd26","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":877,"width":361,"height":10}},{"id":"f0be8d4d-697a-450e-b415-babcb7ccc5e3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":535,"y":878,"width":288,"height":8}},{"id":"f3e50ed0-8203-41cf-a94d-8082a2feff97","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":892,"width":345,"height":10}},{"id":"6815b3d3-5899-4c37-8462-0e55a849915e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":144,"box":{"x":518,"y":893,"width":305,"height":9}},{"id":"1f427657-7b68-4d2d-86e0-b5b7270cb8ff","block_type":"box","text":"II-102","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f085d753-fdb7-418b-abf5-30501b2ba643","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c74b1505-08a9-4c69-a97e-e20d20f66bd3","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":145,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"14027ed6-d524-4199-afe0-a89ce0b74ab4","block_type":"box","text":"may be up to the following amounts:","page_number":145,"box":{"x":69,"y":60,"width":257,"height":11}},{"id":"eb463305-5219-4eaa-ba15-1603cfd97077","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":87,"width":410,"height":11}},{"id":"fb5bb900-f229-4e99-8205-68d7808d4650","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":583,"y":88,"width":240,"height":8}},{"id":"50bf28c2-bf53-4dcf-8e02-d1be2f3ff716","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":102,"width":361,"height":10}},{"id":"e55ceea6-6d87-4b42-afa1-b1173c27418b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":535,"y":103,"width":288,"height":9}},{"id":"0ef47874-daaa-4a51-a94a-18c5b051997f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":117,"width":345,"height":11}},{"id":"2dac79eb-e5e8-438a-90ea-460e0734cf1d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":518,"y":118,"width":305,"height":9}},{"id":"17b7c545-81f8-441b-b00b-efb9dda61f7e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":145,"box":{"x":101,"y":142,"width":768,"height":11}},{"id":"044ce0f7-8dc2-4a44-8ad4-93187d658e5d","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":157,"width":371,"height":11}},{"id":"745f4f6e-0c67-45d7-9e30-10f2197a9eea","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":184,"width":361,"height":10}},{"id":"e1515a63-05c0-40ca-b41b-85128cafad71","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":535,"y":185,"width":288,"height":8}},{"id":"48328887-89ab-4131-b19b-d0c9bc2851cd","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":199,"width":361,"height":10}},{"id":"83441168-526a-4ca0-875d-bb14f6576268","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":145,"box":{"x":535,"y":200,"width":288,"height":9}},{"id":"cc800525-161e-4a74-b79f-979b31f7fa51","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":214,"width":345,"height":11}},{"id":"73cbbd22-d885-4e2f-a9c4-efb739a4eba2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":145,"box":{"x":518,"y":215,"width":305,"height":9}},{"id":"68999795-10c8-4569-84f1-0c7a86a6308b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":145,"box":{"x":101,"y":239,"width":778,"height":11}},{"id":"dba2e856-8947-413e-aae4-478283baf5aa","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":145,"box":{"x":69,"y":254,"width":830,"height":11}},{"id":"86c35322-07ab-4a5b-bb34-8867fb1f2777","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":269,"width":371,"height":11}},{"id":"146a0d58-4992-465d-8911-3a68ca1a0717","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":296,"width":410,"height":11}},{"id":"a8e342bd-7657-4c16-aafb-87294dccabd9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":583,"y":297,"width":240,"height":9}},{"id":"5bd49045-6c44-40b8-b836-ce57e92029e6","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":311,"width":361,"height":11}},{"id":"6720848a-a6a6-4a45-a531-61450788851d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":312,"width":288,"height":9}},{"id":"713f3b4d-9dff-44f9-884b-91f53430bf64","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":326,"width":345,"height":11}},{"id":"6a9dd716-af40-428a-9ace-9256b5ed093c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":327,"width":305,"height":9}},{"id":"4195026e-e9ed-461f-8ffd-9feb189eada5","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":351,"width":779,"height":11}},{"id":"081d8d29-b55f-4bda-9f81-9504b0a8fc15","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":145,"box":{"x":70,"y":366,"width":780,"height":11}},{"id":"81fdc1db-2d0e-4e8a-a9c4-f5e938c61031","block_type":"box","text":"$250,000 and above . . . .","page_number":145,"box":{"x":167,"y":393,"width":182,"height":11}},{"id":"e7fb1f47-686f-4f83-9a6d-1ca119cd2aa1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":355,"y":394,"width":468,"height":9}},{"id":"aac194f9-1c47-4d71-8717-f3c27f7d8070","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":418,"width":779,"height":11}},{"id":"1df80e4b-f022-4266-979a-3952563917f2","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":145,"box":{"x":70,"y":433,"width":819,"height":11}},{"id":"cf85ad07-86b2-48fd-a227-9924f55adeff","block_type":"box","text":"the following amounts:","page_number":145,"box":{"x":68,"y":448,"width":161,"height":11}},{"id":"4e3289f1-82cb-4f38-9159-20fa13fecf72","block_type":"box","text":"$100,000 and above . . . .","page_number":145,"box":{"x":167,"y":475,"width":182,"height":11}},{"id":"9d4c5307-0849-4ebc-96b8-a311ae47f8f9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":355,"y":476,"width":468,"height":8}},{"id":"5165d444-e3ae-41dd-a9af-e66706409601","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":145,"box":{"x":101,"y":499,"width":779,"height":11}},{"id":"5ff0500d-148d-4628-8daa-ae32292daf62","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":145,"box":{"x":70,"y":515,"width":775,"height":11}},{"id":"9ae0f263-acdb-447c-973a-4d85fb4098b8","block_type":"box","text":"$250,000 and above . . . .","page_number":145,"box":{"x":167,"y":542,"width":182,"height":11}},{"id":"434d9f74-e4d5-4f43-b3eb-5a8456054b3e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":355,"y":542,"width":468,"height":9}},{"id":"67dcfa35-2efb-4190-a14d-cc81bee40e04","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":145,"box":{"x":101,"y":566,"width":788,"height":11}},{"id":"f3ffc68a-bcde-404d-9f33-e3dfa4411f8b","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":145,"box":{"x":69,"y":581,"width":792,"height":11}},{"id":"e45a4cce-ba98-4afc-a6b0-fc1b0fcada6d","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":145,"box":{"x":70,"y":597,"width":787,"height":11}},{"id":"d12d63a6-bc8a-413b-abfd-e17c7264c955","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":145,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"8a67a709-fb61-4603-9d58-5b347ee838bc","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":145,"box":{"x":70,"y":627,"width":729,"height":11}},{"id":"01036e87-3183-4077-bc6f-6f6f4a577501","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":654,"width":410,"height":11}},{"id":"e43aa5fc-6f85-4873-9343-a53363990a10","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":145,"box":{"x":583,"y":655,"width":240,"height":8}},{"id":"bf03038e-caef-4fbd-ace8-18e6d4b24c25","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":669,"width":361,"height":10}},{"id":"f59164b9-e55e-420c-9bb5-1d7356bd917d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":670,"width":288,"height":9}},{"id":"0160e7d4-b8a8-4872-a237-7e364e1b62e0","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":684,"width":345,"height":10}},{"id":"e54054ec-4c4e-403e-ab6d-1b8c70ceefd8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":685,"width":305,"height":9}},{"id":"81f794b2-4c84-411e-a494-0e5d43cf3b12","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":145,"box":{"x":101,"y":709,"width":801,"height":11}},{"id":"cfe3896b-1311-47d9-8db7-1728b2fd733a","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":145,"box":{"x":69,"y":724,"width":769,"height":11}},{"id":"220cb781-023c-423e-b43a-d0c23c494a49","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":145,"box":{"x":70,"y":739,"width":818,"height":10}},{"id":"35c59578-5476-4a98-8779-e39681b52cc9","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":145,"box":{"x":68,"y":754,"width":401,"height":11}},{"id":"690bcf2e-ee98-4ba0-b1c8-c38b939a8f10","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":781,"width":410,"height":11}},{"id":"c2fbb245-eb68-4750-a327-7ac136b2ca23","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":145,"box":{"x":583,"y":782,"width":240,"height":9}},{"id":"5adb9032-31f1-459f-9a46-5dd52fe9c7cf","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":796,"width":361,"height":11}},{"id":"187b35be-024a-44a7-8c5b-d9da3829d416","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":145,"box":{"x":535,"y":797,"width":288,"height":9}},{"id":"70a014f9-c541-4320-9579-84f9614fa2cf","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":145,"box":{"x":167,"y":811,"width":345,"height":11}},{"id":"f86ae751-2f17-4b7c-846b-9c031b910ac5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":145,"box":{"x":518,"y":812,"width":305,"height":9}},{"id":"ec4eb76b-72bd-48a8-976e-03a3e99a8e6f","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":145,"box":{"x":101,"y":836,"width":398,"height":11}},{"id":"d6132ff2-50ee-41ad-bc8a-dff008f58eb0","block_type":"box","text":"®","page_number":145,"box":{"x":500,"y":836,"width":6,"height":5}},{"id":"5afe05c3-5f75-460e-89a4-3ee629b178bb","block_type":"box","text":"Index 2030 Fund, BlackRock 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III.","page_number":146,"box":{"x":70,"y":208,"width":393,"height":12}},{"id":"a72c7098-0b15-4858-9417-b039febead1b","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":146,"box":{"x":102,"y":231,"width":740,"height":11}},{"id":"9dd106a5-c897-416b-bb0d-cd68b07f9766","block_type":"box","text":"example, a sale of $4 million wor th of Investor A Shares of BlackRock Impact Mor tgage Fund of BlackRock Funds V","page_number":146,"box":{"x":69,"y":246,"width":823,"height":11}},{"id":"d71f68c2-c601-46e3-82dd-b698c107f052","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":146,"box":{"x":68,"y":261,"width":780,"height":11}},{"id":"4dd79241-eee2-4384-b2c6-ef7681b36129","block_type":"box","text":"$1 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has entered into a Class A","page_number":146,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"7f978750-b09a-4814-982f-fbc6829b14ac","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":146,"box":{"x":69,"y":405,"width":836,"height":11}},{"id":"967a36cd-0b20-4052-abe6-ccad34bc08e8","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":146,"box":{"x":69,"y":420,"width":793,"height":11}},{"id":"93045255-ef69-4c2e-8866-93ea78006e99","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons par ticipating in a","page_number":146,"box":{"x":69,"y":435,"width":811,"height":11}},{"id":"76f01a74-b9a2-4e97-9494-d70b0af45dbf","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":146,"box":{"x":68,"y":450,"width":827,"height":12}},{"id":"4af72004-8c4c-45a1-8b20-63fec33d8737","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":146,"box":{"x":70,"y":465,"width":782,"height":12}},{"id":"9ffc80ca-d80f-4d3f-bfa3-c36708309c7d","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":146,"box":{"x":69,"y":481,"width":830,"height":11}},{"id":"06a39c69-2f96-4b3c-b1d3-b639164ab2dc","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":146,"box":{"x":69,"y":496,"width":815,"height":11}},{"id":"1e7d9ee6-96ce-40aa-9efa-c0729febee39","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":146,"box":{"x":70,"y":511,"width":799,"height":11}},{"id":"b02c1b2b-6ba0-451c-8fea-fba70538c472","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":146,"box":{"x":69,"y":526,"width":752,"height":11}},{"id":"222803fb-23ac-44c4-8e0f-3a716d2a43b4","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":146,"box":{"x":70,"y":541,"width":836,"height":11}},{"id":"b7c5d59e-9901-4117-b133-b74cb7822c08","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":146,"box":{"x":69,"y":556,"width":812,"height":11}},{"id":"6778c142-4796-4420-8383-3546f7eea6d7","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":146,"box":{"x":69,"y":571,"width":839,"height":12}},{"id":"e4c3bd7d-aaec-4b3b-b1ed-8aecab70976b","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":146,"box":{"x":69,"y":586,"width":788,"height":12}},{"id":"6a2a3041-f75c-425b-90d3-a86f95f3e07a","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":146,"box":{"x":70,"y":601,"width":838,"height":12}},{"id":"6a2a353c-7f5d-435a-a232-1dbe2554cdf0","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":146,"box":{"x":69,"y":617,"width":810,"height":11}},{"id":"a3cd412d-5712-48bb-874a-201a4a3d5ef5","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":146,"box":{"x":68,"y":632,"width":787,"height":11}},{"id":"ce693bd3-b90c-4234-9503-4eb1aa89263e","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":146,"box":{"x":69,"y":647,"width":834,"height":11}},{"id":"1ad19f4b-66e0-44f0-9543-b3f36297753b","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":146,"box":{"x":70,"y":662,"width":808,"height":11}},{"id":"40202fa9-1c44-4383-8069-46fd1956b337","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":146,"box":{"x":69,"y":677,"width":837,"height":11}},{"id":"650b8ed6-3bf4-4838-a234-80ab34600015","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":146,"box":{"x":70,"y":692,"width":820,"height":11}},{"id":"614d8736-0b1d-4932-9866-3ab7d5c328bf","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":146,"box":{"x":69,"y":707,"width":813,"height":12}},{"id":"8bdfb5d4-02cf-4ff4-bed0-598ca1fd37c4","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":146,"box":{"x":70,"y":723,"width":831,"height":11}},{"id":"5f57bebf-dc6e-463b-a318-bb1fe354dcd6","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":146,"box":{"x":69,"y":738,"width":783,"height":11}},{"id":"9b82c1b9-1a28-4821-a183-95d5a93d5371","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":146,"box":{"x":70,"y":753,"width":668,"height":11}},{"id":"1990e47b-d8ca-4a2b-bd89-9032101f5fb6","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":146,"box":{"x":102,"y":775,"width":754,"height":12}},{"id":"3d973fc1-d193-4e11-a802-9bb7d2d97287","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":146,"box":{"x":70,"y":790,"width":823,"height":12}},{"id":"ee0f9cd2-8714-4010-aac7-499ee1409188","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":146,"box":{"x":69,"y":806,"width":833,"height":10}},{"id":"bdc49f02-5fce-406f-96a8-9703a3e6898e","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":146,"box":{"x":70,"y":821,"width":802,"height":11}},{"id":"50834ff1-65a9-4172-95e8-77c8d7fcae95","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":146,"box":{"x":70,"y":836,"width":781,"height":11}},{"id":"85b86435-f844-4e38-8c7b-8114e84e7d41","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":146,"box":{"x":70,"y":851,"width":819,"height":11}},{"id":"a96c14e4-2b9b-41d2-a205-c22ad5b606bc","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":146,"box":{"x":68,"y":866,"width":835,"height":11}},{"id":"5966d33e-fd76-44aa-b2bf-c23abce204cc","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":146,"box":{"x":69,"y":881,"width":813,"height":11}},{"id":"bd42c181-263b-47f5-af72-96dc4c31156c","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":146,"box":{"x":70,"y":896,"width":792,"height":11}},{"id":"458b1374-323a-4201-9ab4-f0d07887f771","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":146,"box":{"x":70,"y":911,"width":813,"height":12}},{"id":"41b5548f-0007-4050-b402-1d35c582781f","block_type":"box","text":"II-104","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2dbf6f57-1b16-4e42-b6e1-3a413263c1ba","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"555ca26f-4504-49dd-a984-68ba155a4b9e","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":147,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"38d608d4-856e-4c44-ad30-b0ac47b65aba","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":147,"box":{"x":70,"y":60,"width":790,"height":11}},{"id":"061fefc2-ad42-46d1-9cb5-5591104feed1","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":147,"box":{"x":69,"y":75,"width":736,"height":11}},{"id":"a59f7381-74fe-4948-b1b5-38f7a4b66eb2","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":147,"box":{"x":101,"y":98,"width":763,"height":11}},{"id":"3d108e35-c720-4b3e-b48d-a198a8d58d55","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":147,"box":{"x":70,"y":113,"width":782,"height":11}},{"id":"f65047ec-fe40-4db7-854e-fb886ceb5dd8","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":147,"box":{"x":70,"y":128,"width":832,"height":11}},{"id":"46e79213-fbbe-42a8-b076-459ab2106d0e","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":147,"box":{"x":68,"y":142,"width":839,"height":12}},{"id":"10b0173b-c62f-4043-9c02-2148e58de0b9","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":147,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"1c35fd81-90eb-4657-85f1-c6eb53cc4b40","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":147,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"030f674e-253b-4c02-bf58-fcbbf36dcdb4","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":147,"box":{"x":70,"y":188,"width":818,"height":12}},{"id":"ae51c6b0-ceec-4f9a-a534-cdefbe5d8b63","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":147,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"bb988c44-3a2f-4cf2-8164-524b5a69c43c","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":147,"box":{"x":69,"y":218,"width":830,"height":12}},{"id":"f5a4e6dc-2672-4e3d-9e57-e06ffe48d812","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":147,"box":{"x":70,"y":234,"width":778,"height":11}},{"id":"a9fc81d4-dfb1-422c-a929-87022d64835e","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":147,"box":{"x":70,"y":249,"width":526,"height":11}},{"id":"9635149e-0469-45c6-9def-17ea618fa30b","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":147,"box":{"x":101,"y":271,"width":788,"height":12}},{"id":"e0b78da4-6c26-4ae8-b980-a875d2cea77e","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":147,"box":{"x":69,"y":286,"width":819,"height":12}},{"id":"f1839c11-d425-44ad-a0f1-362d4840b45a","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":147,"box":{"x":69,"y":302,"width":820,"height":11}},{"id":"3111ce87-7959-4096-9381-f4cf577aa965","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":147,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"9f164166-4325-416e-8d51-1660dfacf8df","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":147,"box":{"x":68,"y":332,"width":812,"height":11}},{"id":"cfa16f4f-08eb-46ce-b0e7-38e2ffd0149c","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":147,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"50487549-db6c-4d6a-b113-c7ea0f448060","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":147,"box":{"x":69,"y":362,"width":772,"height":11}},{"id":"7b7df740-201f-46fa-8800-f465402882d2","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":147,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"d7882c74-387d-4130-9a8d-e4660dadc058","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":147,"box":{"x":69,"y":392,"width":814,"height":12}},{"id":"d5ff0257-ca47-4a06-82bf-947a46fa3f85","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":147,"box":{"x":70,"y":408,"width":772,"height":11}},{"id":"1b86e68f-3889-4f20-bcde-9d047358bc2e","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":147,"box":{"x":69,"y":423,"width":805,"height":11}},{"id":"a65f4533-7cee-4f9b-9cb8-886ebba103ea","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":147,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"b53b58f1-67aa-44ee-9d7a-b9c8af1129cc","block_type":"box","text":"the absolute discretion of a Fund.","page_number":147,"box":{"x":68,"y":453,"width":239,"height":9}},{"id":"434818eb-5455-4606-af53-788b95ee8edb","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":147,"box":{"x":101,"y":475,"width":794,"height":12}},{"id":"bc38c337-ffbd-4f2a-bde2-d29798cee77a","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":147,"box":{"x":68,"y":490,"width":776,"height":12}},{"id":"1a782194-9d1a-476e-91a5-6b71abb36195","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":147,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"536938ae-9a09-488e-9464-afd315db2c3f","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":147,"box":{"x":70,"y":521,"width":800,"height":10}},{"id":"4287d14d-6ff0-4955-b5c5-08916f1e62fc","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":147,"box":{"x":70,"y":536,"width":806,"height":11}},{"id":"8dc90d62-df51-4623-b6ae-2223e2ced188","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":147,"box":{"x":70,"y":551,"width":823,"height":11}},{"id":"02ba79bd-78ec-4c46-aa52-c113f94cefed","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":147,"box":{"x":70,"y":566,"width":770,"height":11}},{"id":"d25c551c-ed63-4d9d-b32e-b27f3b60f327","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":147,"box":{"x":70,"y":581,"width":766,"height":11}},{"id":"d9319c4a-fa48-42f9-9dbe-b6c1b668333b","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":147,"box":{"x":69,"y":596,"width":837,"height":12}},{"id":"d70daca6-c27e-4298-8b0d-eecb501a2443","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":147,"box":{"x":70,"y":612,"width":805,"height":11}},{"id":"9a68d657-5b0d-4574-b9e4-f47c663d06ef","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":147,"box":{"x":70,"y":626,"width":832,"height":12}},{"id":"0814127e-b1e4-4e5c-b2b6-80a3244f77e6","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":147,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"689c8da9-a03e-473e-8cf9-702bc222ac5a","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":147,"box":{"x":70,"y":657,"width":746,"height":11}},{"id":"aa9e3d27-76fb-47a1-83fe-9856fb792ae8","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":147,"box":{"x":70,"y":672,"width":307,"height":11}},{"id":"50c795a2-9708-4ac7-adf6-3759fbcae365","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":147,"box":{"x":102,"y":695,"width":799,"height":11}},{"id":"18b6998b-5247-4491-81bd-b40c491440bd","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":147,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"75864a92-dc08-4968-803c-32ff386badaf","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":147,"box":{"x":68,"y":725,"width":317,"height":11}},{"id":"02414731-e47d-4353-a2b6-17e9cd131688","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":147,"box":{"x":101,"y":748,"width":326,"height":11}},{"id":"3d6dec95-318c-4df3-b486-44751f5a1c31","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":147,"box":{"x":434,"y":748,"width":413,"height":11}},{"id":"b3f30305-1755-4727-8647-2710eb23a8b4","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":147,"box":{"x":69,"y":763,"width":811,"height":11}},{"id":"73e12725-522e-4cdd-b851-f484000c9aa0","block_type":"box","text":"public or private investment company.","page_number":147,"box":{"x":70,"y":778,"width":266,"height":11}},{"id":"a597977b-7ac4-440c-913e-f4ccde6868eb","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":147,"box":{"x":102,"y":801,"width":372,"height":11}},{"id":"4e43676f-96f8-4a47-92e2-f65a2b52b989","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":147,"box":{"x":481,"y":801,"width":421,"height":11}},{"id":"0464e463-7ef7-4acc-882d-8adf3ee11082","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":147,"box":{"x":70,"y":816,"width":825,"height":11}},{"id":"88b1bc8c-1eee-4b3a-841d-8a5017da5d61","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":147,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"b9379bc4-4d00-415c-92e0-c26b9c4f8eda","block_type":"box","text":"II-105","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1ee5f862-6ea1-4e67-b616-076ad00e9853","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"020ce22d-d0a4-4978-9290-8e73aee64462","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":148,"box":{"x":69,"y":45,"width":405,"height":11}},{"id":"ebab1fc5-fc2c-4efa-87ad-6c727aca1cea","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":148,"box":{"x":102,"y":67,"width":799,"height":12}},{"id":"8df6d17a-5560-4a89-b6f2-9ef931b16701","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":148,"box":{"x":69,"y":82,"width":828,"height":12}},{"id":"2c0e1c15-0b74-4b03-8451-4a55f71224fb","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":148,"box":{"x":70,"y":97,"width":778,"height":12}},{"id":"2a3ef619-1f8e-4bff-856d-bf6a160fa8f8","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":148,"box":{"x":70,"y":113,"width":826,"height":11}},{"id":"7eaece81-540f-4006-a758-0bcaf88a830b","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":148,"box":{"x":69,"y":128,"width":311,"height":9}},{"id":"84b2ed88-b22c-41c6-9ece-a62b3ee30be7","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":148,"box":{"x":102,"y":150,"width":789,"height":12}},{"id":"9c309462-b9e0-4298-ba4f-6f17194811cd","block_type":"box","text":"intermediary associated with the account.","page_number":148,"box":{"x":70,"y":166,"width":297,"height":11}},{"id":"cf8123a5-2722-4d05-9fd1-3ef97b800162","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":148,"box":{"x":102,"y":188,"width":669,"height":12}},{"id":"d9d67023-b872-40cc-9854-c3f7402ff6cd","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":148,"box":{"x":101,"y":211,"width":763,"height":11}},{"id":"5d7aa889-83e4-4718-8ee6-a75423a7dabb","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":148,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"cef2a354-a252-4386-85f6-0c1131d8b565","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":148,"box":{"x":68,"y":241,"width":813,"height":11}},{"id":"683928c3-fb4b-4555-bcaa-9876a2453e46","block_type":"box","text":"CDSC shares.","page_number":148,"box":{"x":69,"y":256,"width":97,"height":9}},{"id":"2cc9f2e0-c1a4-4495-9cb1-6ecb39d15c44","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":148,"box":{"x":102,"y":279,"width":804,"height":11}},{"id":"7bcb7745-f7b8-4793-a0b2-8352467917e0","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":148,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"a3956b48-225b-4bc3-bf5d-c36577422389","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":148,"box":{"x":69,"y":309,"width":786,"height":11}},{"id":"e2b09de1-a7f7-460b-a1b9-827c8cd4b253","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":148,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"d803ce74-80cd-460f-94ee-95c857e26406","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":148,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"b5a138d6-32a5-4268-8b10-202cde5b1b01","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":148,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"4852d987-0c42-4313-b457-ec0a5add8590","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":148,"box":{"x":70,"y":370,"width":822,"height":11}},{"id":"26e19411-7160-4474-ae74-6f2ef1b435dd","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":148,"box":{"x":69,"y":385,"width":618,"height":11}},{"id":"03f8e55c-834c-4ea6-aca0-1ddd834d497d","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":148,"box":{"x":102,"y":407,"width":782,"height":12}},{"id":"3c58e6da-918f-47f3-9c60-b705bd206e9a","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":148,"box":{"x":70,"y":423,"width":764,"height":11}},{"id":"b9753904-770a-41a9-892c-07f801b877eb","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":148,"box":{"x":69,"y":438,"width":820,"height":11}},{"id":"b2fcad04-c1ba-4169-83e8-7f0ebada4a54","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":148,"box":{"x":70,"y":453,"width":806,"height":11}},{"id":"d9421b86-0843-4856-a51c-f6f5ebd6a570","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":148,"box":{"x":70,"y":468,"width":813,"height":11}},{"id":"e82543a3-c2fa-495b-9bd8-b31c317f3a1a","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":148,"box":{"x":68,"y":483,"width":811,"height":11}},{"id":"ab5f2ec0-1eb7-4d3e-8d88-360e33503efe","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":148,"box":{"x":68,"y":498,"width":554,"height":11}},{"id":"a0320858-1ce9-4dae-8857-2e2c35b726f0","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":148,"box":{"x":102,"y":521,"width":783,"height":11}},{"id":"893e40cd-397e-491b-b71d-83edbbe1bf12","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":148,"box":{"x":70,"y":536,"width":808,"height":11}},{"id":"7b672d51-b8b3-42ef-9371-17522d2584f6","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":148,"box":{"x":70,"y":551,"width":797,"height":11}},{"id":"b9bc0032-3876-47b1-a7d5-ae377c3f2c55","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":148,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"ff50a8fb-a3ee-4b92-a869-31d3a1686310","block_type":"box","text":"Investor A Shares.","page_number":148,"box":{"x":70,"y":581,"width":128,"height":9}},{"id":"d4254a1a-e984-411d-b1ea-1b22609bb819","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":148,"box":{"x":102,"y":604,"width":378,"height":9}},{"id":"5b5f2111-b354-4502-b70e-9cc84b4ee2d0","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":148,"box":{"x":102,"y":627,"width":804,"height":11}},{"id":"ef354522-b2ab-4037-a63a-e84a977fbef1","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":148,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"eac560c2-8661-4744-9aae-6adecd2254a0","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":148,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"34fb5b0a-cbb1-46d4-9cd1-61cbbe42fb91","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":148,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"9cb957cc-0a8a-49bd-8c2e-2d341d79a4cc","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":148,"box":{"x":70,"y":687,"width":793,"height":11}},{"id":"37281b4b-3aeb-4899-995a-98c751b80797","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":148,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"b5976a16-39dd-4a6f-9cb6-b357499eaec7","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":148,"box":{"x":69,"y":717,"width":802,"height":12}},{"id":"e804bb84-8f70-49d8-b935-2f0f87f88bac","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":148,"box":{"x":69,"y":732,"width":793,"height":12}},{"id":"cbfd370b-021b-47b6-bd98-6cf479c42ed8","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":148,"box":{"x":69,"y":748,"width":817,"height":11}},{"id":"303506ca-1da2-49fe-9157-9484b8ab5c05","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":148,"box":{"x":68,"y":763,"width":814,"height":11}},{"id":"2e776be5-cd15-4c8f-b340-d8b36e93e59b","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":148,"box":{"x":69,"y":778,"width":828,"height":11}},{"id":"f3b76a85-934b-47fa-9691-aad2c66cbe1f","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":148,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"5c45e720-6294-47d1-8212-7adad34f4b90","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":148,"box":{"x":69,"y":808,"width":718,"height":11}},{"id":"5ae825e1-a4e8-4521-ad2a-d7db7e0affc8","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":148,"box":{"x":102,"y":831,"width":764,"height":11}},{"id":"d8e0983f-8570-4299-828c-11815b4d21db","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":148,"box":{"x":70,"y":846,"width":816,"height":11}},{"id":"60d71410-d3f4-460c-b769-5ef8137cdcd6","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":148,"box":{"x":69,"y":861,"width":772,"height":11}},{"id":"8d492c4b-6b97-4d1c-bc92-dec456f2155f","block_type":"box","text":"“Investor C Conversions”).","page_number":148,"box":{"x":70,"y":876,"width":186,"height":11}},{"id":"151a77bc-8cb5-4f58-881c-7888f3e6290b","block_type":"box","text":"II-106","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c58e3d31-70f7-4c8b-8c76-97103c1b607d","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15a36abb-079d-49e2-8532-d63a33c7c454","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":149,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"aaa2d3d7-f918-4df7-a187-a6c9bb834c51","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":149,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"ebe16dce-a6e0-4e1d-b95f-e70a26951253","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":149,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"0e8c43e3-3ef1-491f-83f5-4e28180059ac","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":149,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"c0286ba2-ea53-4f9b-92c5-700c0fb727fb","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":149,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"18d3d4e4-3b5a-4467-913b-af98fd4be44e","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":149,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"80bf2177-9d0b-47b3-9e3e-fdf4b625cb4a","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":149,"box":{"x":69,"y":136,"width":445,"height":11}},{"id":"4d14c0ba-7cd1-4182-8b32-86ec52a6780b","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":149,"box":{"x":102,"y":158,"width":396,"height":11}},{"id":"044d8702-ee1c-4268-8cff-65e9fe140c47","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":149,"box":{"x":102,"y":181,"width":804,"height":11}},{"id":"e35161ae-9b0c-46dd-9162-f4ee28a68ece","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":149,"box":{"x":70,"y":196,"width":826,"height":11}},{"id":"a2e9c53d-44f0-4c92-81aa-d5beacbe97a4","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":149,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"176e8ce4-4573-4e73-b2cf-df1ac6fb0cb2","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":149,"box":{"x":68,"y":226,"width":795,"height":11}},{"id":"9d7837ac-3757-4997-a956-5410614de559","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":149,"box":{"x":69,"y":241,"width":840,"height":11}},{"id":"345bf69b-c98d-4f71-a4ab-aa1253e5495b","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":149,"box":{"x":70,"y":256,"width":804,"height":12}},{"id":"7785d771-293d-4993-9df0-528f6c8a6395","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":149,"box":{"x":69,"y":271,"width":772,"height":12}},{"id":"8161c73b-2c9e-4072-beb4-3b878cdca9eb","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":149,"box":{"x":70,"y":286,"width":790,"height":12}},{"id":"a20f66dd-f42e-463c-a360-cdd8d857870a","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":149,"box":{"x":69,"y":302,"width":776,"height":9}},{"id":"f80b7ec2-7d31-4a16-adb7-4ebe5cc8903c","block_type":"box","text":"redemption.","page_number":149,"box":{"x":69,"y":317,"width":83,"height":11}},{"id":"e446e925-0ceb-4066-ba5f-9137994330eb","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":339,"width":734,"height":12}},{"id":"3696f79c-8bed-484e-9dfc-3308c51762d3","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":149,"box":{"x":70,"y":355,"width":769,"height":11}},{"id":"200c54e2-3962-425e-b67c-a8ac48589efe","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":149,"box":{"x":102,"y":377,"width":572,"height":12}},{"id":"c131427a-2ed9-478d-9925-de6b9cf4bcc4","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":149,"box":{"x":101,"y":400,"width":740,"height":11}},{"id":"3cf5200a-eac5-46a1-9ca6-f3d5b67d1405","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":149,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"88d603aa-d1f0-42e4-a0ab-08377231e5b2","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":149,"box":{"x":69,"y":430,"width":786,"height":11}},{"id":"81219a85-1a3d-420c-be0e-5a71d4b219a2","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":149,"box":{"x":70,"y":445,"width":797,"height":12}},{"id":"c3bcda04-0832-48c6-a163-e1dfa838cbd4","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":149,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"205a0134-ea17-44d9-b58f-084ba867b707","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":149,"box":{"x":69,"y":475,"width":747,"height":12}},{"id":"f2b15577-576c-4382-8e4e-a92e40dfc052","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":149,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"7ce5808d-cedf-4f0d-9b25-767265272732","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":149,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"0d1c5928-4615-4973-a513-e6ec99ea72f7","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":149,"box":{"x":69,"y":521,"width":806,"height":11}},{"id":"385c22a4-82ef-433f-ad3f-d181129f4e09","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":149,"box":{"x":69,"y":536,"width":786,"height":11}},{"id":"63ed4774-1cca-4334-9038-dc159a4505d6","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":149,"box":{"x":70,"y":551,"width":834,"height":11}},{"id":"4a362d6b-bb3f-4066-984a-b0d15898a527","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":149,"box":{"x":70,"y":566,"width":809,"height":11}},{"id":"5e96f879-c1a6-4eb3-af05-5077bf0294d0","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":149,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"e60d5967-ec60-4ca4-b9bd-e68f1e6dea20","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":149,"box":{"x":70,"y":596,"width":784,"height":12}},{"id":"d1d5fd0b-4b5b-4aad-8397-36bbe2976603","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":149,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"fbc7d6ce-0046-436a-894c-bfda5daeaf42","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":149,"box":{"x":69,"y":627,"width":451,"height":11}},{"id":"debd7bcf-71bb-4c83-819f-a25847948fd7","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":149,"box":{"x":102,"y":649,"width":781,"height":12}},{"id":"4ba49964-444b-4e5b-9063-d4ad9b9d9725","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":149,"box":{"x":70,"y":664,"width":813,"height":12}},{"id":"ff6a7efe-26f9-4b7b-9f88-20e76f15436f","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":149,"box":{"x":69,"y":680,"width":462,"height":11}},{"id":"65fa7c02-3b8f-4300-bbfd-ba6c801fb936","block_type":"box","text":"Class R Shares","page_number":149,"box":{"x":69,"y":710,"width":110,"height":9}},{"id":"2ec039b4-4a14-42be-9fbd-4fff8d505af6","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":149,"box":{"x":102,"y":732,"width":775,"height":11}},{"id":"150c955c-09d9-4489-ac75-59171f02a0ab","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":149,"box":{"x":69,"y":748,"width":799,"height":11}},{"id":"25fabcb7-9062-4e47-8bf8-d1171bbfb0d7","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":149,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"c191c6a7-ea73-4650-93bf-3d377be48073","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":149,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"7d5c9901-b434-4d04-9a24-cf75a4738e3b","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":149,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"790702cc-a819-49e5-b978-5abc2dbfed4e","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":149,"box":{"x":68,"y":808,"width":636,"height":11}},{"id":"77db5c7a-6c41-468f-898c-949a13a6df8b","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":149,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"58c6c8a5-47fd-4f95-84f3-dde2abffcff9","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":149,"box":{"x":69,"y":846,"width":440,"height":11}},{"id":"f522e11d-ce85-4174-8046-f2b52c1ca3d9","block_type":"box","text":"II-107","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f1ad8aa2-6f80-40af-bded-b2acfff0b141","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"afb48de6-de63-46e4-89a8-4bcf66a25a6a","block_type":"box","text":"Class K Shares","page_number":150,"box":{"x":69,"y":45,"width":109,"height":9}},{"id":"1713a0dd-9ad3-41e5-ad16-00de7c0c55f3","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":150,"box":{"x":102,"y":67,"width":797,"height":11}},{"id":"54fbaa23-e7df-49ca-8917-b24ecc9c2d00","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":150,"box":{"x":69,"y":82,"width":772,"height":12}},{"id":"004fc21c-a8f1-400d-9721-371e4980b64c","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":150,"box":{"x":69,"y":98,"width":827,"height":11}},{"id":"4abfe4df-4f35-45c6-9031-f5f6a6cfc0d5","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":150,"box":{"x":69,"y":113,"width":817,"height":11}},{"id":"f8d56e02-240c-495c-939d-341a3deb4a89","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":150,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"e039959e-7ddc-4e05-b022-5f32b03fff78","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":150,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"6f6536df-ff70-4520-96f4-ee4ef00dc229","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":150,"box":{"x":68,"y":158,"width":828,"height":11}},{"id":"95d6f20b-62b7-45bd-8228-14176ab343a7","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":150,"box":{"x":70,"y":173,"width":760,"height":11}},{"id":"02a1a608-5396-4d4d-8ef8-85b536adaf6e","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":150,"box":{"x":70,"y":188,"width":823,"height":12}},{"id":"a96f33b2-f5e6-4aa3-a0f8-a36d8e97ce33","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":150,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"90c0293f-6158-4daf-bf6c-2e75a0e841c5","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":150,"box":{"x":70,"y":218,"width":814,"height":12}},{"id":"c50069f2-224a-47e1-a498-dedfbfcf7985","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":150,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"60af8681-1ab5-4822-831a-a8984bf61239","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":150,"box":{"x":69,"y":249,"width":823,"height":11}},{"id":"140b7819-a8c1-4ced-bf18-92c814a8d093","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":150,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"22faf2be-4ced-4082-92ed-c9b23e080943","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":150,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"bb0f4148-8176-469f-99ae-1aa769707ad2","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":150,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"5300dfd9-fcf8-4df1-a229-bf69c04da970","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":150,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"79435b55-3c1e-4fea-b131-c6a8ece68f13","block_type":"box","text":"distribution and marketing agreement.","page_number":150,"box":{"x":69,"y":325,"width":270,"height":11}},{"id":"4bd20747-60ab-4866-b131-d81c815d39d5","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":150,"box":{"x":102,"y":347,"width":734,"height":11}},{"id":"b577dc5e-9c3e-4988-a9c0-81a6a702c619","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":150,"box":{"x":70,"y":362,"width":817,"height":11}},{"id":"9e04fb34-25e4-4c45-822f-99122047538e","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":150,"box":{"x":70,"y":377,"width":753,"height":12}},{"id":"97ad46db-6b31-456e-9c33-a31be03b457b","block_type":"box","text":"Class G Shares","page_number":150,"box":{"x":69,"y":408,"width":110,"height":8}},{"id":"8d6af34f-27ee-4452-b2f9-f6cfa745e266","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":150,"box":{"x":102,"y":430,"width":804,"height":11}},{"id":"1bfb5577-9453-45e1-bafa-9dc27d82b6fe","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":150,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"7b8d4546-ba32-4eff-81f5-11615bb77fb7","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":150,"box":{"x":68,"y":460,"width":836,"height":12}},{"id":"446d919d-d950-4afe-870b-b5ea4fbf89bc","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":150,"box":{"x":69,"y":476,"width":803,"height":11}},{"id":"0cf2c51b-0975-4c36-9e88-60ef69165327","block_type":"box","text":"eligibility requirements.","page_number":150,"box":{"x":69,"y":491,"width":164,"height":11}},{"id":"4c85bbe6-8fce-4f89-a16b-737a28c14560","block_type":"box","text":"Service Shares","page_number":150,"box":{"x":68,"y":521,"width":109,"height":9}},{"id":"bcfffb9c-2b7e-4382-94ad-86c3cdf64c54","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":150,"box":{"x":102,"y":543,"width":788,"height":12}},{"id":"cae193c8-6d19-467c-ac84-8d030b8d3202","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":150,"box":{"x":70,"y":559,"width":815,"height":11}},{"id":"4ff1fbfd-8106-411a-b1be-caefcc1a9b62","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":150,"box":{"x":69,"y":574,"width":693,"height":11}},{"id":"85bec168-ba82-4900-ac46-66af39f310e8","block_type":"box","text":"®","page_number":150,"box":{"x":763,"y":574,"width":6,"height":5}},{"id":"006ce0a4-552f-49a3-a3b6-01518e2db6ea","block_type":"box","text":"Fund in 1996; and","page_number":150,"box":{"x":775,"y":574,"width":130,"height":10}},{"id":"8615c56c-4380-42d8-b5ed-c80bd5b47e6b","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":150,"box":{"x":69,"y":589,"width":287,"height":11}},{"id":"8941969d-ed48-455b-824e-812ec62957be","block_type":"box","text":"SM","page_number":150,"box":{"x":357,"y":589,"width":11,"height":5}},{"id":"9508b02d-1a39-445c-8bff-6e74ee02ac76","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":150,"box":{"x":374,"y":589,"width":534,"height":11}},{"id":"1b83c5aa-296d-404a-9a8f-c88620772764","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":150,"box":{"x":69,"y":604,"width":776,"height":11}},{"id":"38b3f7b4-7049-463c-b72a-068aa0b6c418","block_type":"box","text":"BlackRock Shares","page_number":150,"box":{"x":69,"y":634,"width":133,"height":9}},{"id":"f5795df5-5aa3-4164-9c77-6b8bd734dc06","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":150,"box":{"x":102,"y":657,"width":760,"height":11}},{"id":"8af0363c-ed1c-46fe-8ec3-5f103371a30c","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":150,"box":{"x":69,"y":672,"width":813,"height":11}},{"id":"9b7b39d9-fb2f-46c4-a29e-75e0d89b958c","block_type":"box","text":"fee-based programs.","page_number":150,"box":{"x":68,"y":687,"width":145,"height":11}},{"id":"146e395b-4803-484f-b35c-ec4abf0fedb2","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":150,"box":{"x":69,"y":718,"width":348,"height":11}},{"id":"1967673f-47b8-471d-8906-c28c87aac09e","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":150,"box":{"x":102,"y":740,"width":790,"height":11}},{"id":"882fb9d8-da22-4a25-98b5-c2f97ea8ab90","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":150,"box":{"x":69,"y":755,"width":761,"height":11}},{"id":"f4ea6b12-c26a-4ddf-a37d-2350bbce3f9b","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":150,"box":{"x":69,"y":770,"width":541,"height":12}},{"id":"da953d20-263a-42b0-a953-c4dfca9faea5","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":150,"box":{"x":102,"y":793,"width":803,"height":11}},{"id":"0f3a5789-399c-4be5-bb13-c24f820a6345","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":150,"box":{"x":70,"y":808,"width":783,"height":11}},{"id":"68a6dfb6-df57-4850-887a-74201ed468c4","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":150,"box":{"x":70,"y":823,"width":809,"height":11}},{"id":"a7ff1bde-2d90-4436-939f-6af7a2601efd","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":150,"box":{"x":69,"y":838,"width":360,"height":11}},{"id":"356bd9ee-b0d4-4ea6-a41b-c72dce334a8f","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":150,"box":{"x":102,"y":861,"width":770,"height":11}},{"id":"754e62af-a213-471a-83f7-fe0febc1cc08","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":150,"box":{"x":69,"y":876,"width":824,"height":11}},{"id":"2ebfe298-e231-4d8d-8727-c01ffa5728f5","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":150,"box":{"x":69,"y":891,"width":812,"height":12}},{"id":"e1117ef6-a196-4f76-89dd-ce5bd54aa6af","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":150,"box":{"x":68,"y":906,"width":355,"height":11}},{"id":"8442d011-65f2-45ea-86b1-29e9915049bc","block_type":"box","text":"II-108","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"441690b0-6233-4b4e-b4c7-e2fa5f1077e7","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"54069802-d6ad-427d-b908-74e029e9532f","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":151,"box":{"x":102,"y":45,"width":727,"height":11}},{"id":"46ac5676-b732-43cb-9c48-fda8aca308f5","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":151,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"0482a1a5-9bbc-4896-94ca-993a731f5278","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":151,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"b06f3567-bd8d-4a57-a68b-47f3865e7f8c","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":151,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"33ea22c9-e52e-4e1e-83ae-91acd372786a","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":151,"box":{"x":68,"y":105,"width":786,"height":11}},{"id":"e2e65014-7bae-4f0e-a77f-41dfe9532088","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":151,"box":{"x":69,"y":120,"width":789,"height":11}},{"id":"6e8fb6b2-43d7-42a1-9c6e-969dff9c1cce","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":151,"box":{"x":70,"y":135,"width":562,"height":12}},{"id":"4590e32d-3ce3-4be4-a0ca-ca5ab94e1509","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":151,"box":{"x":101,"y":158,"width":798,"height":11}},{"id":"983e9c21-1fa1-468e-96a3-90597964f7dc","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":151,"box":{"x":69,"y":173,"width":808,"height":11}},{"id":"29df1999-e217-4592-bcb0-a081dedd7e5f","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":151,"box":{"x":70,"y":188,"width":776,"height":12}},{"id":"649d4854-57a3-40e3-a603-31633cb17aaf","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":151,"box":{"x":70,"y":203,"width":835,"height":12}},{"id":"6cc57336-be15-4450-a998-429931edc794","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":151,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"4fe3f02c-18ee-49ff-b177-b76dcd59695a","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":151,"box":{"x":69,"y":234,"width":813,"height":11}},{"id":"4a23293e-b542-4475-98a5-1e0a64eef582","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":151,"box":{"x":68,"y":249,"width":501,"height":11}},{"id":"a39d32b9-cf26-455b-9a62-99960b504869","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":151,"box":{"x":102,"y":271,"width":783,"height":12}},{"id":"43bf889a-4352-4bbd-85cf-97acac63214e","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":151,"box":{"x":68,"y":286,"width":810,"height":12}},{"id":"7766a44c-9b06-414c-9118-3664dbec7a72","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":151,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"a8273a94-b5d1-4ac9-9905-6512aef13284","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":151,"box":{"x":68,"y":317,"width":836,"height":11}},{"id":"b0c50d9d-fab3-43d3-bf2f-15a195764960","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":151,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"a8d80302-a20f-4e00-8c75-b0ee84007775","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":151,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"b73f8190-cf52-4d0d-bf1a-76943f2de700","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":151,"box":{"x":68,"y":362,"width":803,"height":11}},{"id":"39a5360e-c71b-48c9-83ab-dd3fc0cf9acf","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":151,"box":{"x":68,"y":377,"width":788,"height":12}},{"id":"ea5d9f8e-dc8a-4bcc-b9a5-f9c6fd991538","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":151,"box":{"x":69,"y":393,"width":798,"height":11}},{"id":"834d3d78-8c4e-421a-a5de-2d560a5ba4c4","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":151,"box":{"x":69,"y":407,"width":755,"height":12}},{"id":"7f12db5b-41b2-47ce-b6e8-cb2dbb6133b5","block_type":"box","text":"compensation for selling different classes of shares.","page_number":151,"box":{"x":69,"y":423,"width":375,"height":11}},{"id":"0b3912c9-7535-4b3e-be1f-98d90f501516","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":151,"box":{"x":102,"y":445,"width":803,"height":11}},{"id":"6152adc1-8062-4da1-a240-f6ffea8a845f","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":151,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"07c39013-fd97-49f1-8c42-5e90c3d46b13","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":151,"box":{"x":68,"y":475,"width":788,"height":12}},{"id":"5beae0dd-e035-4782-bcfd-48dd5cb3aaa7","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":151,"box":{"x":70,"y":491,"width":818,"height":9}},{"id":"89cd52e1-cc78-4c43-8f55-21da17410a19","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":151,"box":{"x":69,"y":506,"width":824,"height":11}},{"id":"0e6f0445-b972-468b-9598-addf1adca648","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":151,"box":{"x":69,"y":521,"width":821,"height":11}},{"id":"9791bf0a-569a-4c62-a307-8b7bc267d212","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":151,"box":{"x":69,"y":536,"width":778,"height":11}},{"id":"d54fe394-de54-48dd-b20a-c93a6623d9eb","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":151,"box":{"x":70,"y":551,"width":773,"height":11}},{"id":"5886586e-43dc-4781-8c51-1a8e83b2c55d","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":151,"box":{"x":69,"y":566,"width":796,"height":11}},{"id":"7cc60831-7c03-4072-9087-1e7fb2ab810d","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":151,"box":{"x":69,"y":581,"width":837,"height":12}},{"id":"4ca81c42-289c-4c42-9303-65c8ccaf159b","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":151,"box":{"x":70,"y":597,"width":801,"height":11}},{"id":"1ff6ceff-abe0-4068-8e6e-e32d3aec2c94","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":151,"box":{"x":69,"y":612,"width":787,"height":11}},{"id":"3a34d1c0-ec53-4d7e-91c6-0490d3552aaa","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":151,"box":{"x":70,"y":627,"width":802,"height":11}},{"id":"b1da71b4-dbda-419c-a5a8-2099722316b4","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":151,"box":{"x":69,"y":642,"width":826,"height":11}},{"id":"86768f63-1847-4b0e-81d5-d4b389fa1e26","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":151,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"78ee7b3f-d83c-48c5-a507-37789d017f2c","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":151,"box":{"x":69,"y":672,"width":836,"height":11}},{"id":"679cf002-8abf-49cd-a2b1-735f6e293ec3","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":151,"box":{"x":68,"y":687,"width":792,"height":11}},{"id":"30ede316-8be9-43d9-a796-70f5c807efff","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":151,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"eb21ae07-e205-4e55-a202-7c136da29f06","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":151,"box":{"x":69,"y":717,"width":807,"height":12}},{"id":"8b851270-9876-4a60-b2e0-d779d35d2ce2","block_type":"box","text":"easily accessible place.","page_number":151,"box":{"x":69,"y":733,"width":167,"height":11}},{"id":"6528fcfa-eb96-460c-a95d-9d3dcf31962a","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":151,"box":{"x":102,"y":755,"width":804,"height":11}},{"id":"e178625e-50bf-4565-b072-b76d9a9c6464","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":151,"box":{"x":70,"y":770,"width":542,"height":11}},{"id":"45c4bb40-9002-48fe-806f-32174beca14c","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":151,"box":{"x":102,"y":793,"width":734,"height":11}},{"id":"0a97c0c3-eb65-40de-a7bc-b85007f1c9ba","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":151,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"6c76114e-d372-41c7-aa8d-b0deb32bc707","block_type":"box","text":"fiscal year.","page_number":151,"box":{"x":68,"y":823,"width":75,"height":11}},{"id":"ea887311-795f-4b14-b958-b8e7b5f26730","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":151,"box":{"x":69,"y":854,"width":396,"height":11}},{"id":"2f09be56-9f38-4d8b-aeec-86c988f5601c","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":151,"box":{"x":101,"y":876,"width":777,"height":11}},{"id":"03082877-2aa6-45f2-8d42-9eb7cc1f8a43","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":151,"box":{"x":70,"y":891,"width":835,"height":12}},{"id":"0978cbe3-45a4-4960-8325-76a7f5b55806","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":151,"box":{"x":68,"y":906,"width":822,"height":12}},{"id":"b3e83b9c-43a5-48e4-b820-4e95a5e0c724","block_type":"box","text":"II-109","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8f971359-5d7e-4e96-95b0-393a43cabd75","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db68cb78-ae08-49af-a594-3f3b814b1bdf","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":152,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"51378de9-5488-413b-8f4d-695259f80b05","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":152,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"a8f547fb-bf3f-49cf-8dc5-b977beb0ef04","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":152,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"11a21bdf-61d7-4bc7-983f-da022a842cf6","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":152,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"1036209a-2e19-4a97-83b1-3e2c4b0acc85","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":152,"box":{"x":69,"y":105,"width":839,"height":11}},{"id":"7904f016-2b5e-4173-bfcd-ed02c334d08f","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":152,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"34646428-4c38-40ce-9d3b-31f54a6e94f3","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":152,"box":{"x":68,"y":135,"width":839,"height":11}},{"id":"804c4e39-e6b1-440f-b998-4219c84859ba","block_type":"box","text":"and Class R Shares of your Fund.","page_number":152,"box":{"x":69,"y":150,"width":236,"height":12}},{"id":"d0fd3b3b-d0ee-4412-9dcb-c19d99c06065","block_type":"box","text":"Other Payments by the Fund","page_number":152,"box":{"x":69,"y":181,"width":206,"height":11}},{"id":"192605da-c3b1-4e78-9aad-9d0377aece7a","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":152,"box":{"x":102,"y":203,"width":800,"height":12}},{"id":"d3d4f62c-5cda-4367-80d3-35df8e579f35","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":152,"box":{"x":68,"y":218,"width":816,"height":12}},{"id":"ebd8ac86-08c2-4567-836a-2b39149e8a94","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":152,"box":{"x":69,"y":234,"width":794,"height":11}},{"id":"ebb46c14-aa7d-44df-ab95-e689409c59d3","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":152,"box":{"x":69,"y":249,"width":792,"height":11}},{"id":"92965dd9-fbdf-410c-bc79-816a613f3ebd","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":152,"box":{"x":68,"y":264,"width":841,"height":11}},{"id":"4fdfcae0-f88a-4705-83d1-3676c65b8abc","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":152,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"11d8ee4e-4d1e-48a3-a679-02050e0463d7","block_type":"box","text":"of these payments may be substantial.","page_number":152,"box":{"x":69,"y":294,"width":276,"height":11}},{"id":"b31f09ac-d0fc-49f0-ab43-a1ac92fee109","block_type":"box","text":"Additional Payments by BlackRock","page_number":152,"box":{"x":68,"y":324,"width":256,"height":11}},{"id":"60a43e26-17c0-4052-bb50-bb7f941d4818","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":152,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"30e321f3-65f8-406e-a416-f0749d88a1c1","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":152,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"a87b8cdc-c3cb-44cd-97b3-d78716606164","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":152,"box":{"x":70,"y":377,"width":768,"height":12}},{"id":"b33abee8-6341-48bc-9c4e-c0f9af51abf2","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":152,"box":{"x":69,"y":392,"width":830,"height":12}},{"id":"67cf0dbf-f61d-4000-87b3-fae4cb088416","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":152,"box":{"x":69,"y":407,"width":599,"height":12}},{"id":"47f6aa7e-d61d-4feb-99b7-5c7bfb27c847","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":152,"box":{"x":101,"y":430,"width":776,"height":11}},{"id":"4d2ac704-c6ed-41d0-bfe9-957ca4fdab3a","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":152,"box":{"x":70,"y":445,"width":832,"height":11}},{"id":"16742773-3cf6-44a5-9925-c8a3c768f865","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":152,"box":{"x":69,"y":460,"width":833,"height":12}},{"id":"3a336768-09f4-46b5-a661-a5f61219b8c0","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":152,"box":{"x":69,"y":475,"width":802,"height":12}},{"id":"5591f2e4-f5f4-4a25-8c40-27b08bef05e8","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":152,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"83c49864-2c33-4612-97d6-c25b8698f283","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":152,"box":{"x":70,"y":506,"width":796,"height":11}},{"id":"d657f446-57ee-448c-9cc5-2c95019e59c2","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":152,"box":{"x":69,"y":521,"width":836,"height":11}},{"id":"e6c33e40-f292-427b-84c3-588bbe057cfd","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":152,"box":{"x":69,"y":536,"width":828,"height":11}},{"id":"7f1ac4e1-0034-4742-abed-80cbcec5db78","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":152,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"407a07ee-ddea-4582-998a-139b31543047","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":152,"box":{"x":69,"y":566,"width":818,"height":11}},{"id":"68e92a90-5384-4beb-89ce-273bf8238de5","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":152,"box":{"x":70,"y":581,"width":294,"height":11}},{"id":"f9ab9e79-2e4c-4338-a249-a3338b0da11c","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":152,"box":{"x":101,"y":604,"width":803,"height":11}},{"id":"26518893-97b8-4c99-b33f-ed50170f2e86","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":152,"box":{"x":69,"y":619,"width":792,"height":11}},{"id":"c0b2a82e-c29e-4e70-bd6b-ab218fc1de2c","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":152,"box":{"x":69,"y":634,"width":623,"height":12}},{"id":"6abbfc4d-f822-4106-a7bc-dfa5347525e1","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":152,"box":{"x":102,"y":657,"width":765,"height":11}},{"id":"7195b102-9d0f-42a1-9838-be95411c5834","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":152,"box":{"x":69,"y":672,"width":841,"height":11}},{"id":"8f465fc5-a532-44fb-ad1c-78de311a0791","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":152,"box":{"x":68,"y":687,"width":806,"height":11}},{"id":"c893cc48-3f92-4c4c-96f8-2a4d6e57feb0","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":152,"box":{"x":69,"y":702,"width":776,"height":11}},{"id":"2667ef5c-315a-46bb-90a0-ce23b801fb5b","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":152,"box":{"x":70,"y":717,"width":802,"height":12}},{"id":"2a5cef10-64a7-4bbb-97d3-b07c9d2e574e","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":152,"box":{"x":68,"y":732,"width":811,"height":12}},{"id":"fd1fdc72-459c-4c20-86d4-59773ac641fe","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":152,"box":{"x":69,"y":748,"width":538,"height":11}},{"id":"b17e4c6d-e1c0-43d9-a736-468132e08459","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":152,"box":{"x":101,"y":770,"width":795,"height":12}},{"id":"3550e21b-2cdd-42de-bc37-a902a24a2d4b","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":152,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"752030d9-a990-4dbe-9eb9-6d3560411996","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":152,"box":{"x":69,"y":801,"width":823,"height":11}},{"id":"40a65bb4-9276-4b94-9b52-54f351079dee","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":152,"box":{"x":68,"y":816,"width":819,"height":11}},{"id":"af3dff5d-28c6-4fee-9ab9-45e99f07c340","block_type":"box","text":"Funds.","page_number":152,"box":{"x":70,"y":831,"width":44,"height":9}},{"id":"f20f16fe-6ea7-4b78-a2e7-57f96ec3e536","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":152,"box":{"x":101,"y":854,"width":270,"height":11}},{"id":"cb44aa89-506a-443a-9e53-12932a1dca83","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":152,"box":{"x":101,"y":876,"width":740,"height":11}},{"id":"fca49922-3f36-4815-8cb4-9d75b5a09005","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":152,"box":{"x":70,"y":891,"width":764,"height":12}},{"id":"06d80c3e-e09e-43dd-82c1-6b4552036837","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":152,"box":{"x":69,"y":906,"width":811,"height":12}},{"id":"ecf28f3d-1d2e-4b9c-b360-fa4eb5091c54","block_type":"box","text":"II-110","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d8dff3b7-1dc3-4a0b-9c5e-bc620c7ce3ef","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c1578465-5823-4e70-93f0-6676e99ebd66","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":153,"box":{"x":69,"y":45,"width":742,"height":11}},{"id":"ad69608d-0f71-4522-90ac-2565c129f1fb","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":153,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"20763b0e-a5f3-4917-9bab-2666ccdaaec9","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":153,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"c821348b-714b-4021-a68c-7f0a77da6d2e","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":153,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"33cec9d6-2b13-42b4-86a8-e995d7a998a1","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":153,"box":{"x":70,"y":105,"width":803,"height":11}},{"id":"dc188342-4215-4c91-9571-f099d69f79de","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":153,"box":{"x":70,"y":120,"width":783,"height":12}},{"id":"2578b650-d284-4098-aded-69c0637ebc7b","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":153,"box":{"x":69,"y":135,"width":823,"height":11}},{"id":"6186de32-0347-4a12-9c6a-595272725f5a","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":153,"box":{"x":68,"y":150,"width":805,"height":12}},{"id":"7b037cc5-e27f-4769-b467-bb348d0571eb","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":153,"box":{"x":69,"y":166,"width":828,"height":11}},{"id":"440762cb-b7bc-43d8-82a7-0941b2b0da18","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":153,"box":{"x":69,"y":181,"width":523,"height":11}},{"id":"64d3671f-452c-4e98-8ca0-2f1a2ff4bf85","block_type":"box","text":"B. Shareholder Services","page_number":153,"box":{"x":102,"y":203,"width":172,"height":9}},{"id":"962ecfa3-b47e-4755-aa18-a2256498a49a","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":153,"box":{"x":102,"y":226,"width":754,"height":11}},{"id":"d132d0ff-7285-47b2-8c09-87f23be5911b","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":153,"box":{"x":69,"y":241,"width":830,"height":11}},{"id":"a249f037-ad7e-441f-84ac-b4e0d06715e0","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":153,"box":{"x":69,"y":256,"width":823,"height":12}},{"id":"1e2b436c-e4a1-4ec2-b9e5-71825afa7aee","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":153,"box":{"x":69,"y":272,"width":839,"height":11}},{"id":"dd2b7cbb-c33b-4ba8-bd0a-169c67879116","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":153,"box":{"x":69,"y":286,"width":796,"height":12}},{"id":"d6ee3c4e-884c-4bb5-9e9e-91ea497bbb91","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":153,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"e6cb8101-473e-48b5-8e65-1562b2318c36","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":153,"box":{"x":68,"y":317,"width":828,"height":11}},{"id":"56f6f235-6678-43e9-9b83-02d10662b5aa","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":153,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"716ad292-88e4-4e90-94c9-1155b4737108","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":153,"box":{"x":70,"y":347,"width":328,"height":11}},{"id":"208d298a-f712-450b-93a2-f1a9be2d9cfe","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":153,"box":{"x":102,"y":370,"width":299,"height":11}},{"id":"0d7a6a5a-c697-4f07-956b-1e8e82a43c28","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":153,"box":{"x":102,"y":392,"width":805,"height":12}},{"id":"e35ccf2d-299a-49ca-8fa2-54ad034b1968","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":153,"box":{"x":69,"y":407,"width":788,"height":12}},{"id":"59b24156-7735-4aa5-975f-b41aa08d7bc3","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":153,"box":{"x":69,"y":423,"width":821,"height":11}},{"id":"f87dc7c8-64bf-4b47-aeda-20fa07a9a648","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":153,"box":{"x":102,"y":445,"width":397,"height":12}},{"id":"dc144fa6-eb14-4c93-8d1f-ec3f02dd5671","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":153,"box":{"x":101,"y":468,"width":774,"height":11}},{"id":"d5962bda-ac8f-4139-9bd6-240f451a58de","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":153,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"f478345f-b1c6-446b-aa65-d8e594106ff8","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":153,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"865a5b01-1e27-4a56-be8e-2f3ea801b2f5","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":153,"box":{"x":69,"y":513,"width":791,"height":12}},{"id":"57c16dde-7186-4d61-a2ce-3ffc49185ca8","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":153,"box":{"x":70,"y":528,"width":523,"height":12}},{"id":"4255ba35-c98f-4f87-9ef0-667a1d001e25","block_type":"box","text":"&Par 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The","page_number":157,"box":{"x":69,"y":558,"width":810,"height":11}},{"id":"ee0aa3d9-cdfe-491a-bcaf-97b22c7d5e4d","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":157,"box":{"x":68,"y":573,"width":827,"height":11}},{"id":"51b6a6a4-90cf-402e-822a-459556089737","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":157,"box":{"x":69,"y":588,"width":832,"height":12}},{"id":"6b6cdfe2-2a4c-40cf-b74d-2529b50a103e","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":157,"box":{"x":69,"y":603,"width":828,"height":12}},{"id":"ba9e9114-ac77-4849-aa46-6417aede6c98","block_type":"box","text":"you are liquidating your holdings you will receive all dividends reinvested through the date of redemption.","page_number":157,"box":{"x":68,"y":618,"width":746,"height":12}},{"id":"29812f0a-0b42-48bd-a301-0457961b94dc","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":157,"box":{"x":101,"y":641,"width":807,"height":11}},{"id":"f71ebaaa-7204-4ef6-be14-70a5118e256b","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":157,"box":{"x":69,"y":656,"width":835,"height":12}},{"id":"cddf1cb7-5d5c-446a-9f48-c5eca283ad21","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":157,"box":{"x":68,"y":671,"width":811,"height":12}},{"id":"9e6f743d-f8b2-466f-a0f2-f144e3726d86","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":157,"box":{"x":69,"y":686,"width":741,"height":12}},{"id":"9eb87af1-40a8-4465-98c0-b8024268bf04","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":157,"box":{"x":69,"y":702,"width":813,"height":11}},{"id":"007f1b85-2365-4d3c-9091-2794646325d8","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":157,"box":{"x":69,"y":717,"width":787,"height":11}},{"id":"e61200bc-7108-4a78-ac70-d4d242baaadf","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":157,"box":{"x":69,"y":732,"width":685,"height":11}},{"id":"31ab471c-b3c4-41f3-b4cc-2ad1706a0eb2","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":157,"box":{"x":102,"y":755,"width":798,"height":11}},{"id":"47afefb9-39f7-4a5a-88aa-5e99f8d669b3","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":157,"box":{"x":69,"y":770,"width":820,"height":11}},{"id":"3eb7b564-d258-4669-bcf1-3a9a212764c7","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":157,"box":{"x":69,"y":785,"width":653,"height":11}},{"id":"15a809a4-d232-437e-bb10-7b99817722e2","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":157,"box":{"x":102,"y":807,"width":803,"height":12}},{"id":"272adc18-b9ea-44a3-b2c1-fd260e0bca59","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":157,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"316d986e-f079-4249-b91f-09f078b1298f","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":157,"box":{"x":68,"y":838,"width":824,"height":11}},{"id":"42d14ff5-eb58-44b1-931e-fb4e7b5e02c4","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":157,"box":{"x":70,"y":853,"width":825,"height":11}},{"id":"1deca551-8b6e-4b54-803f-59d306722589","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":157,"box":{"x":69,"y":868,"width":825,"height":11}},{"id":"c32b70a2-1d75-411c-b5de-2af3c1d53ef7","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":157,"box":{"x":69,"y":883,"width":823,"height":11}},{"id":"f6dca078-bb1f-4b70-950e-b3da347ac56f","block_type":"box","text":"II-115","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0cdb60bb-7627-47fc-b155-d84011883302","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6918219-eb7c-4730-8388-8ac8f511e6d9","block_type":"box","text":"Redemption","page_number":158,"box":{"x":69,"y":45,"width":86,"height":11}},{"id":"7e9b1105-4783-47f1-a9d7-398e37cf507a","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":158,"box":{"x":70,"y":67,"width":481,"height":11}},{"id":"ea97d428-daff-4c6f-a6d3-4b48cd9cb44e","block_type":"box","text":"Redeem by Telephone:","page_number":158,"box":{"x":102,"y":90,"width":162,"height":11}},{"id":"8d2f6071-2956-4a91-9e15-6638adffceab","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":158,"box":{"x":270,"y":90,"width":571,"height":11}},{"id":"3b90cc1f-a91e-4e57-a6eb-923852b95f7b","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":158,"box":{"x":68,"y":104,"width":829,"height":12}},{"id":"6f3bbf12-9bed-4915-897c-abe2a7c0eb98","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":158,"box":{"x":69,"y":120,"width":798,"height":12}},{"id":"b64158d3-b8d4-4034-a1f3-571e37c062c9","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":158,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"bb72a035-5133-4f9c-9502-22484f364aa6","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":158,"box":{"x":68,"y":150,"width":831,"height":12}},{"id":"4437c9f3-9e20-4de1-bd46-53ec14c10817","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":158,"box":{"x":69,"y":166,"width":822,"height":11}},{"id":"e3cde9be-0e2e-4d9e-8ec5-72a838cb5a95","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":158,"box":{"x":70,"y":181,"width":791,"height":11}},{"id":"914944bd-3053-44a8-84cb-5373a99edc90","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":158,"box":{"x":68,"y":196,"width":818,"height":11}},{"id":"50155048-e3bb-454c-bd99-458fc81aa763","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":158,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"d02a4f9b-27c1-4b61-bef6-68ed26eb3738","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":158,"box":{"x":69,"y":226,"width":803,"height":11}},{"id":"b7b40df9-a1bc-4259-8a00-8867496466fb","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":158,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"f6477ea7-aa2a-4f31-8275-2fd27baccdae","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":158,"box":{"x":69,"y":256,"width":825,"height":12}},{"id":"30ada5c2-f50f-4049-b6fa-b0bf02dd5d37","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":158,"box":{"x":68,"y":271,"width":840,"height":12}},{"id":"41602290-2024-4ef2-9776-ceee63783dfd","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":158,"box":{"x":68,"y":287,"width":835,"height":11}},{"id":"d7f3a601-da56-49f5-8eaf-420bfe5251b2","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":158,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"bf1d898d-d4db-493d-b4de-e88265d8cd2c","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":158,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"1628ea8f-1cc8-496c-a473-df8cc5cb5894","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":158,"box":{"x":70,"y":332,"width":603,"height":11}},{"id":"00b87d63-47ab-460f-a3f1-951c612a5d83","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":158,"box":{"x":102,"y":355,"width":774,"height":11}},{"id":"68236682-6db7-4716-8b53-58b391b0c321","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":158,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"79d1b206-b4b5-4e29-8d29-e9b8d208408f","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":158,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"6c4e49d4-b1af-48d1-bd81-a57258867376","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":158,"box":{"x":68,"y":400,"width":823,"height":11}},{"id":"be52bdf8-bd71-42c8-8a3d-1de6fbbfa8ec","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":158,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"69a62c80-7833-4bd8-9c93-e3a12c5cf8a1","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":158,"box":{"x":69,"y":430,"width":809,"height":11}},{"id":"2d4cb0c7-0e57-43a0-ac21-52e37f786b0a","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":158,"box":{"x":69,"y":445,"width":833,"height":12}},{"id":"e05a5a64-c8a6-4b4b-9533-5030d6d0e52a","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":158,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"799545ef-3e0e-4ea3-9632-7c6a5e3023a7","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":158,"box":{"x":69,"y":476,"width":785,"height":11}},{"id":"4ecd7d6e-a9de-4e61-9d71-f1523cede460","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":158,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"b7c24de4-a20b-49bb-b4e2-7f6b927679a0","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":158,"box":{"x":69,"y":506,"width":782,"height":11}},{"id":"c10747b3-8ec2-4cd2-9d2a-4cd7e33994f6","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":158,"box":{"x":69,"y":521,"width":838,"height":11}},{"id":"6e1e3f69-de0b-479e-9763-e25fa8d5b46b","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":158,"box":{"x":68,"y":536,"width":837,"height":11}},{"id":"2139324f-c4b0-42fe-874d-f8671772e86e","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":158,"box":{"x":69,"y":551,"width":800,"height":11}},{"id":"a0f60d53-cd62-4136-b99c-18437d22c85b","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":158,"box":{"x":102,"y":574,"width":776,"height":11}},{"id":"e7ce0479-fbaa-4462-9003-bf472691e044","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":158,"box":{"x":70,"y":589,"width":823,"height":11}},{"id":"ef9164bc-d1cc-4d28-9592-beece8b54609","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":158,"box":{"x":69,"y":604,"width":820,"height":11}},{"id":"6f0d7e4d-f2c8-4eb8-b16c-5c817ab06edd","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":158,"box":{"x":68,"y":619,"width":826,"height":11}},{"id":"dc490aa3-d3fe-483e-8a2e-d93feb5e9f94","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":158,"box":{"x":68,"y":634,"width":817,"height":12}},{"id":"b05e023e-40f1-45b8-8e2b-291efa8a14aa","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":158,"box":{"x":70,"y":649,"width":648,"height":11}},{"id":"572b370d-ea3d-4a1c-8894-8e339a84ee13","block_type":"box","text":"Redeem by VRU:","page_number":158,"box":{"x":102,"y":672,"width":120,"height":11}},{"id":"754bf915-44d7-4126-8b1f-a399dec574db","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":158,"box":{"x":229,"y":672,"width":667,"height":11}},{"id":"5186ba58-c538-41d4-a9c2-6447c6b04648","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":158,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"4cd9d0ba-381b-49cc-a92a-69a665c61725","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":158,"box":{"x":68,"y":702,"width":644,"height":12}},{"id":"15ae8213-70f1-4af3-874e-c2ce5916d16c","block_type":"box","text":"Redeem by Internet:","page_number":158,"box":{"x":102,"y":725,"width":147,"height":11}},{"id":"d3f8b40f-5b42-4219-9e1b-59fe955d6ca2","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":158,"box":{"x":255,"y":725,"width":637,"height":11}},{"id":"6093bf9e-c1b7-4de9-b4ab-f9102d0cbd65","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":158,"box":{"x":70,"y":740,"width":836,"height":11}},{"id":"fc6f16fb-004e-48c6-b8fd-8a5f9c65000d","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":158,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"50493bbb-5ad8-4d59-82ab-d7e5b9b7cdb7","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":158,"box":{"x":68,"y":770,"width":789,"height":12}},{"id":"4fb06ede-9052-4047-9593-a4d1d4d36acc","block_type":"box","text":"institutional investors.","page_number":158,"box":{"x":70,"y":786,"width":155,"height":8}},{"id":"91a00ea7-095f-491c-941a-0a761c5dfeb6","block_type":"box","text":"Redeem in Writing:","page_number":158,"box":{"x":102,"y":808,"width":137,"height":11}},{"id":"0894e50c-aafc-466a-bcad-07c89e1c4977","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":158,"box":{"x":247,"y":808,"width":639,"height":11}},{"id":"9e1cf169-80db-41a0-aa92-f35add9f6c79","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":158,"box":{"x":68,"y":823,"width":831,"height":12}},{"id":"bc0e6e8b-51ee-4b90-a7c2-1b3f5c9a0944","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":158,"box":{"x":68,"y":838,"width":745,"height":12}},{"id":"22f3ff3a-c605-4ac2-bdaf-4ae4d2ca1178","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":158,"box":{"x":69,"y":853,"width":764,"height":12}},{"id":"9a3c83ad-1e4b-44ec-a527-4ba4b0317c46","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":158,"box":{"x":69,"y":869,"width":831,"height":11}},{"id":"b742bd33-f38a-43a1-b227-9883275664c4","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":158,"box":{"x":68,"y":884,"width":794,"height":11}},{"id":"08da5df1-3d6b-484c-8df7-101458eb61e6","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":158,"box":{"x":68,"y":899,"width":782,"height":11}},{"id":"6fec8f4d-a913-4c10-9b7a-ea57825ccafd","block_type":"box","text":"II-116","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"35c4a381-6416-4db8-bcf0-694c5d53a28a","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d959c334-1a51-4120-9fe6-88603665b4c2","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":159,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"172ba58e-e6d0-435d-af7c-e81976bc69f1","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":159,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"00277e73-c777-481f-ac10-937b016c87e0","block_type":"box","text":"or wire to the bank account of record.","page_number":159,"box":{"x":69,"y":75,"width":266,"height":9}},{"id":"22db04e3-f3dc-472e-8e18-86026b168b5a","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":159,"box":{"x":102,"y":98,"width":802,"height":11}},{"id":"15a445af-b7b9-456e-aea9-65ab5a012c96","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":159,"box":{"x":69,"y":113,"width":489,"height":11}},{"id":"f25efefc-fe6b-40d5-9362-ea322b7bd45a","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":159,"box":{"x":101,"y":135,"width":668,"height":12}},{"id":"9a41ca33-88c2-41e4-a962-b4c1b21f4820","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":159,"box":{"x":102,"y":158,"width":800,"height":11}},{"id":"d603f2cf-47b3-48b8-9a60-f346c68cc18e","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":159,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"29ddb1fa-ea9e-4916-af40-7b240ebc0d25","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":159,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"5491c670-9e42-452e-a8bf-bf688750e80b","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":159,"box":{"x":69,"y":203,"width":789,"height":12}},{"id":"1b56533f-381b-4416-8c94-7e4899e4d779","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":159,"box":{"x":69,"y":218,"width":775,"height":12}},{"id":"9f041861-699a-4e01-8d51-fb601cc6eba1","block_type":"box","text":"redeemed by the Fund.","page_number":159,"box":{"x":69,"y":234,"width":162,"height":11}},{"id":"1fbe40fd-fdc8-4c3b-809d-8b53bd59d088","block_type":"box","text":"Note on Low Balance Accounts.","page_number":159,"box":{"x":102,"y":257,"width":223,"height":8}},{"id":"89aa4892-7111-41b8-83ac-9c19ecc473d8","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":159,"box":{"x":332,"y":256,"width":503,"height":12}},{"id":"a55fbbd7-e627-4b48-838a-a4e4fdb6967d","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":159,"box":{"x":70,"y":271,"width":752,"height":12}},{"id":"84a6a513-34f9-4ee9-9e07-8ef4c08fc134","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":159,"box":{"x":70,"y":286,"width":829,"height":12}},{"id":"c824abc7-3153-460f-8d41-edceae4278de","block_type":"box","text":"for any reason, including market fluctuation.","page_number":159,"box":{"x":68,"y":302,"width":313,"height":11}},{"id":"25fb9b55-4532-4190-83a7-eb9ac1c2ac36","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":159,"box":{"x":101,"y":324,"width":775,"height":11}},{"id":"384d98be-ec3c-48a0-99a4-6eecbe77e052","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":159,"box":{"x":70,"y":339,"width":773,"height":12}},{"id":"e3200946-154f-47eb-b57e-b5d8dc29fe51","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":159,"box":{"x":70,"y":354,"width":776,"height":12}},{"id":"254c9b6b-860e-47a5-93f9-72de63c37123","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":159,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"03e4cd49-c3d6-460c-92bb-d39e01719368","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":159,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"8f72e9ba-0697-4da9-b543-1a43667caa48","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":159,"box":{"x":69,"y":400,"width":435,"height":11}},{"id":"2bb2b4e9-4871-453e-b24c-e1c4a0d8998f","block_type":"box","text":"Repurchase","page_number":159,"box":{"x":69,"y":430,"width":85,"height":11}},{"id":"e0ac5b18-d5e0-416d-985e-4cc4dd3211bc","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":159,"box":{"x":101,"y":453,"width":800,"height":11}},{"id":"c5fcfebd-0f80-4072-9778-1bbc9748f5e6","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":159,"box":{"x":70,"y":468,"width":833,"height":11}},{"id":"3f11e98c-c538-4093-8568-00bca80f361e","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":159,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"eaae1d4f-05bb-4c6f-ba70-972c9b2ecb74","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":159,"box":{"x":70,"y":498,"width":809,"height":11}},{"id":"e5523848-6042-4f66-9441-339e14e108d6","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":159,"box":{"x":69,"y":513,"width":831,"height":11}},{"id":"18318514-2741-479d-be6f-4363c0231bed","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":159,"box":{"x":70,"y":528,"width":796,"height":12}},{"id":"a493f147-166f-4842-91cb-7cd95e8313f2","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":159,"box":{"x":69,"y":543,"width":812,"height":12}},{"id":"04c3c2b5-0d90-4cbd-95c7-a670bcf6a860","block_type":"box","text":"next business day.","page_number":159,"box":{"x":69,"y":559,"width":130,"height":11}},{"id":"6be6eb35-779e-432c-b784-932f5b7291e8","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":159,"box":{"x":101,"y":581,"width":783,"height":12}},{"id":"1565e77e-f36d-4ff5-8f03-344b5517c3b3","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":159,"box":{"x":69,"y":596,"width":813,"height":12}},{"id":"e113e1c3-9b62-40ff-8618-2fa2dfb3c003","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":159,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"d7cba727-6823-49ac-8f6e-ac2111cdc4d2","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":159,"box":{"x":70,"y":627,"width":814,"height":11}},{"id":"4a3c29f2-f51c-4196-9128-7fd742103085","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":159,"box":{"x":69,"y":642,"width":788,"height":11}},{"id":"3ed845b2-a855-43d6-ab10-f7c31ed86a7f","block_type":"box","text":"redeem shares as set out above.","page_number":159,"box":{"x":69,"y":657,"width":235,"height":9}},{"id":"9b4f33ed-9551-4070-9c9e-78ae05062579","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":159,"box":{"x":69,"y":687,"width":440,"height":11}},{"id":"2086801c-46ca-4744-b46e-445ec05370ec","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":159,"box":{"x":102,"y":710,"width":791,"height":11}},{"id":"07bf09d1-8a99-43d1-96d2-8bdf987438c0","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":159,"box":{"x":69,"y":725,"width":815,"height":11}},{"id":"9b8d23d1-f026-42bf-a055-3ab9eeb91d52","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":159,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"28680cc8-37f2-408e-92a7-1ed00b0b7fe6","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":159,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"f7c00a1b-5d35-4f96-8ce1-71ad14130f1b","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":159,"box":{"x":69,"y":770,"width":768,"height":11}},{"id":"9f53ecb1-64c6-4581-90c0-c969b5c14f74","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":159,"box":{"x":70,"y":785,"width":827,"height":12}},{"id":"e515dd65-0155-4a20-8ca6-f2018bc4adfa","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":159,"box":{"x":68,"y":801,"width":809,"height":11}},{"id":"ee923872-1e55-4d39-b8cd-23d30bd78a14","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":159,"box":{"x":69,"y":816,"width":764,"height":11}},{"id":"9e26532f-30d7-4be3-b95f-5002bb6f02b0","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":159,"box":{"x":69,"y":831,"width":400,"height":11}},{"id":"5827a792-1e7f-4e49-b253-a91ff1efccfd","block_type":"box","text":"II-117","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d563e81a-415c-4eab-8b56-2eb54afa8a47","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4027559-f2ee-4ada-9f2d-f45e02e0a886","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":160,"box":{"x":384,"y":45,"width":210,"height":10}},{"id":"3d05cf23-044b-48a6-a9ac-b7ddd612b1c4","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":160,"box":{"x":102,"y":68,"width":747,"height":11}},{"id":"b0d65afa-4891-4420-af1b-a5dba1ef61b9","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":160,"box":{"x":70,"y":83,"width":781,"height":11}},{"id":"f499f5f7-b9bf-4faf-a4a1-d2b21cb0900d","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":160,"box":{"x":68,"y":98,"width":836,"height":11}},{"id":"a4bcf69b-6ab9-433f-987a-b37ed1dd615d","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":160,"box":{"x":69,"y":113,"width":641,"height":11}},{"id":"27b3dbb6-7d75-4bbb-9f6e-fcc48ae0ed30","block_type":"box","text":"Investment Account","page_number":160,"box":{"x":69,"y":144,"width":146,"height":9}},{"id":"48c49e9b-b435-4b08-b34e-77b9b9fe7b91","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":160,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"8b5b71ae-82df-4d6c-ba04-27943dfb2c18","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":160,"box":{"x":70,"y":181,"width":796,"height":12}},{"id":"1a124622-d1ee-43c5-b76c-1cee5f6a1a90","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":160,"box":{"x":70,"y":196,"width":807,"height":12}},{"id":"6a0c2514-da69-4e62-80a9-e4a042e09a53","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":160,"box":{"x":68,"y":212,"width":830,"height":11}},{"id":"5f9df90f-9c61-4c35-9d63-3f474e3c4b52","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":160,"box":{"x":69,"y":227,"width":829,"height":11}},{"id":"22b9eb3d-53e4-4fba-b987-3ff39575d818","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":160,"box":{"x":68,"y":242,"width":815,"height":11}},{"id":"c7fc3166-138b-4f8b-8d05-1c36fe96b79f","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":160,"box":{"x":70,"y":256,"width":781,"height":12}},{"id":"f3910070-1f1b-4a2f-9786-618240346d51","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":160,"box":{"x":69,"y":272,"width":825,"height":11}},{"id":"5d36ebd2-6822-4312-95fd-61f013d5605f","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":160,"box":{"x":69,"y":287,"width":785,"height":11}},{"id":"50de3c5d-5474-4975-b98e-c291126ce29c","block_type":"box","text":"automatically at the Transfer Agent.","page_number":160,"box":{"x":69,"y":302,"width":251,"height":12}},{"id":"5193a66e-8043-4c3f-abd3-fada033adcfd","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":160,"box":{"x":101,"y":325,"width":750,"height":11}},{"id":"b3b34a76-a657-480d-b773-dc116b44c7db","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":160,"box":{"x":69,"y":340,"width":797,"height":11}},{"id":"725b5557-49bd-4a08-8056-fd1d94811607","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":160,"box":{"x":69,"y":355,"width":797,"height":11}},{"id":"5377ae51-a8f7-447b-a028-4c6906a5e4a6","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":160,"box":{"x":69,"y":370,"width":826,"height":11}},{"id":"f0490ebe-30fd-4cd5-bea1-6e8ae25eb256","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":160,"box":{"x":68,"y":386,"width":792,"height":11}},{"id":"2915cbda-9fa9-4509-89c4-f4a7082c5968","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":160,"box":{"x":69,"y":401,"width":824,"height":11}},{"id":"c6bbcaff-666f-428d-b4ba-662521bf5d0d","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":160,"box":{"x":69,"y":416,"width":820,"height":11}},{"id":"2c8bded4-2719-4aad-85c1-0d94d9dbd5dc","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":160,"box":{"x":68,"y":431,"width":833,"height":11}},{"id":"e82a5c86-dd6c-4039-8795-b20611f522e4","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":160,"box":{"x":68,"y":446,"width":795,"height":11}},{"id":"2ac7ecc1-abd5-4efd-b46d-9b9979e06773","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":160,"box":{"x":70,"y":461,"width":822,"height":11}},{"id":"8df21f1a-9ea8-409a-a171-0b843ff04c2c","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":160,"box":{"x":69,"y":476,"width":814,"height":11}},{"id":"35e57a8a-9015-4e17-9e19-a0e282d90fc7","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":160,"box":{"x":68,"y":491,"width":822,"height":12}},{"id":"14daed80-8e72-49c2-92c5-19d1f9c0c328","block_type":"box","text":"issued.","page_number":160,"box":{"x":70,"y":507,"width":49,"height":8}},{"id":"3d906292-d614-49e9-a8fc-d37122667b3c","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":160,"box":{"x":102,"y":529,"width":785,"height":11}},{"id":"59063257-1d09-4a83-a4e3-be7288ec0d5e","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":160,"box":{"x":68,"y":544,"width":830,"height":11}},{"id":"b33ccb49-3081-43b7-bed4-341040314f18","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":160,"box":{"x":68,"y":559,"width":790,"height":12}},{"id":"90a8bea9-106e-4755-a3ce-986ae465333e","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":160,"box":{"x":69,"y":574,"width":831,"height":12}},{"id":"d4a940f0-2153-4fe4-96bb-84333fc8c12d","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":160,"box":{"x":68,"y":589,"width":652,"height":12}},{"id":"48552be1-a930-43b2-a42c-0ae42033ce90","block_type":"box","text":"Exchange Privilege","page_number":160,"box":{"x":69,"y":620,"width":138,"height":11}},{"id":"eccd58a0-5e37-4621-8ab3-09bb6b01bd53","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":160,"box":{"x":102,"y":642,"width":797,"height":11}},{"id":"187264ab-d658-4f0d-89d0-95de76499671","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":160,"box":{"x":69,"y":658,"width":832,"height":11}},{"id":"3687294d-e7e9-4279-bd3a-26fc057fdee4","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":160,"box":{"x":68,"y":672,"width":788,"height":12}},{"id":"5a5700d4-2bad-4172-8f06-d4e795117a55","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":160,"box":{"x":69,"y":687,"width":796,"height":12}},{"id":"2fd6869e-99e1-4ea6-8edd-a004a55376cc","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":160,"box":{"x":69,"y":703,"width":824,"height":11}},{"id":"50572944-8520-4fa7-a235-d061f1a11a96","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":160,"box":{"x":69,"y":718,"width":835,"height":11}},{"id":"6174ad2c-4ecd-46b3-b46d-1868ad251d03","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":160,"box":{"x":70,"y":733,"width":820,"height":11}},{"id":"62233d0c-81d6-4f20-80c5-c5d4fcd3fcbc","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":160,"box":{"x":69,"y":748,"width":600,"height":11}},{"id":"8fb8da38-b053-4433-bfb6-3b6c2ed163f8","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":160,"box":{"x":102,"y":771,"width":648,"height":11}},{"id":"32c332da-a529-449a-887e-bf9634f906e5","block_type":"box","text":"Institutional Shares","page_number":160,"box":{"x":757,"y":771,"width":137,"height":9}},{"id":"e9af3575-0e8e-40a3-8279-3d01fb79d4b9","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":160,"box":{"x":69,"y":786,"width":817,"height":11}},{"id":"d4d0ea3a-1e4a-421a-b4db-85fee24ba6ff","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":160,"box":{"x":70,"y":801,"width":798,"height":11}},{"id":"e4dc8aad-18e9-4729-9717-e69eb02c3192","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":160,"box":{"x":69,"y":816,"width":838,"height":12}},{"id":"666ff2ff-f2d6-425e-9cfb-b24801b8e720","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":160,"box":{"x":70,"y":831,"width":834,"height":12}},{"id":"86070b50-dedd-4fbb-bf28-4acf95d3f408","block_type":"box","text":"for Class G Shares of other Funds.","page_number":160,"box":{"x":68,"y":846,"width":246,"height":10}},{"id":"685a163d-45f3-47e5-ac93-5de4b14339a7","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":160,"box":{"x":102,"y":869,"width":800,"height":11}},{"id":"24ded34a-50f0-4e13-8593-c15735e351d2","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":160,"box":{"x":69,"y":884,"width":826,"height":12}},{"id":"62a42d1d-baf7-4210-b7c0-44b55cc7ca1d","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":160,"box":{"x":69,"y":899,"width":795,"height":12}},{"id":"e9d1ead5-95d4-448e-861f-b18b424cb693","block_type":"box","text":"II-118","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"45b86610-3cd2-42fc-895c-c0ec907689e9","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"46624f5d-58d9-4a87-908c-89575b8184e3","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":161,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"15c4f18a-348f-40b6-8821-a8e344d149b1","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":161,"box":{"x":70,"y":60,"width":814,"height":11}},{"id":"e3c8acd3-7bcd-4c88-8ed9-e1dbc4ea9291","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":161,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"07b69dd4-b0f1-40f7-98bc-5916fde10901","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":161,"box":{"x":69,"y":90,"width":828,"height":11}},{"id":"c5dee1d0-adc6-4d15-845a-6194bf8f4a77","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":161,"box":{"x":69,"y":105,"width":561,"height":11}},{"id":"8599dd18-ff66-4150-afb1-d7af83fac7bd","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":161,"box":{"x":102,"y":128,"width":229,"height":11}},{"id":"fe4e032a-4db4-47af-9171-0f163cd4d3a7","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":161,"box":{"x":338,"y":128,"width":570,"height":11}},{"id":"518f758f-1149-427a-aa55-94681e99a4c0","block_type":"box","text":"Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new Investor C Shares”) or","page_number":161,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"bbdb3a3f-bbf8-408e-8f2b-b33d484048f7","block_type":"box","text":"for shares of a money market fund (“new money market fund Shares”) on the basis of relative NAV per share, without","page_number":161,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"504dd404-3f77-4a39-b9bd-212ff71eebb7","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":161,"box":{"x":68,"y":173,"width":811,"height":11}},{"id":"fef094a9-b556-4e2c-88cd-c70ff0ea2f6d","block_type":"box","text":"upon redemption of new Investor C Shares or new money market fund Shares, as applicable, the time you held both","page_number":161,"box":{"x":69,"y":188,"width":827,"height":11}},{"id":"fc696221-5410-4d79-a48c-6e7323fc2fd3","block_type":"box","text":"the exchanged Investor C Shares and the new Investor C Shares or new money market fund Shares will count","page_number":161,"box":{"x":68,"y":203,"width":781,"height":12}},{"id":"1700ba24-aba8-41c9-93df-f79324aff70f","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":161,"box":{"x":68,"y":218,"width":654,"height":12}},{"id":"c72f0cb7-c845-4dd9-86c7-26d636c838e5","block_type":"box","text":"Exchanges of Service Shares.","page_number":161,"box":{"x":102,"y":241,"width":211,"height":11}},{"id":"8795d586-cf38-43c3-b3bb-5ea5bd44bff2","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":161,"box":{"x":319,"y":241,"width":588,"height":11}},{"id":"926dc458-6d3c-49fb-bf11-d6a5f5ba8537","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":161,"box":{"x":69,"y":257,"width":342,"height":11}},{"id":"84b855a0-d5d7-4b35-bc9d-664cfe915e7a","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":161,"box":{"x":102,"y":279,"width":335,"height":11}},{"id":"4e1bc661-510e-47e6-99c9-3baf8e5a20e5","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":161,"box":{"x":443,"y":279,"width":455,"height":11}},{"id":"bcaa6c08-b97f-45c2-9089-8d16df6c099c","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":161,"box":{"x":70,"y":294,"width":788,"height":11}},{"id":"19f3d46b-47ae-4d23-b622-f89ded507301","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":161,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"389385fc-5674-4daf-bc02-49828281ef05","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":161,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"79152490-e449-456e-a229-1a2911604f13","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":161,"box":{"x":69,"y":339,"width":824,"height":12}},{"id":"9f082e31-02b1-444c-a86c-c7305a98e8ba","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":161,"box":{"x":69,"y":355,"width":805,"height":11}},{"id":"8522c6ce-1342-4a88-b84f-af929d838691","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":161,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"f1e38798-96d5-46fc-9b40-64acbf58185f","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":161,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"b566ffd8-9bcf-4a43-a6d0-24c750df2176","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":161,"box":{"x":69,"y":400,"width":822,"height":11}},{"id":"6a3bd82a-f32f-4d1a-9639-c9dd222827a1","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":161,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"db912214-48f5-4bd4-a77f-e435c04f1df1","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":161,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"f0abe78e-4943-4b98-ad46-04c3c57506eb","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":161,"box":{"x":69,"y":445,"width":830,"height":12}},{"id":"73bc6a47-3f64-4850-864d-6ca28b74f3fc","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":161,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"90ec1be4-cb13-4776-997d-4909f7da240a","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":161,"box":{"x":69,"y":475,"width":823,"height":12}},{"id":"98141f42-f3a0-490f-87ef-f45ac2862b5c","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":161,"box":{"x":70,"y":491,"width":781,"height":11}},{"id":"3648926f-a2e8-4e33-8128-564e4c3ee0c9","block_type":"box","text":"exchange.","page_number":161,"box":{"x":69,"y":506,"width":70,"height":11}},{"id":"4f36c219-e833-4aa7-8e9e-a0b4092030e8","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":161,"box":{"x":102,"y":529,"width":337,"height":11}},{"id":"d429411c-b7ab-411f-a55a-496b42e875f4","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":161,"box":{"x":445,"y":528,"width":448,"height":12}},{"id":"d28ba338-c119-4900-a0c5-6959db15e1d2","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":161,"box":{"x":70,"y":543,"width":828,"height":12}},{"id":"9e50674a-6240-4d74-9412-acc392fe086e","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":161,"box":{"x":69,"y":559,"width":796,"height":11}},{"id":"37478ec8-07cf-47d7-9c8b-01a9fd2f20c1","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":161,"box":{"x":70,"y":574,"width":324,"height":11}},{"id":"be727f9c-8bd6-44b8-9c2c-24e93504db64","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":161,"box":{"x":102,"y":596,"width":245,"height":12}},{"id":"2d38025b-059c-4dba-af0e-894f8c598132","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":161,"box":{"x":353,"y":596,"width":543,"height":12}},{"id":"ed1cc7bd-1b12-4b1a-b498-7869a036126b","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":161,"box":{"x":69,"y":612,"width":794,"height":11}},{"id":"9b963cdb-df3f-4024-bea9-230ccfc89ccf","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":161,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"8e5c414e-b4cf-451c-a772-d7d2cebc9dea","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":161,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"7d7d0612-e8a4-4ad2-a660-fee7c8de27d0","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":161,"box":{"x":101,"y":665,"width":772,"height":11}},{"id":"aef30fc6-04d2-48fb-a4ea-254cb1c0f714","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":161,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"3b6ca305-19df-41b2-aa0b-67af729d7769","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":161,"box":{"x":69,"y":695,"width":801,"height":11}},{"id":"4c7eb3bc-9205-4f3c-9979-bf08b3ecf182","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":161,"box":{"x":68,"y":710,"width":817,"height":11}},{"id":"78192723-20de-4eae-b08e-6d3aa116e834","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":161,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"b591d404-282a-4fe3-a259-d7e0f132fc5e","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":161,"box":{"x":69,"y":740,"width":840,"height":11}},{"id":"396154e4-655e-49d8-8af6-7895477ad4ec","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":161,"box":{"x":68,"y":755,"width":811,"height":11}},{"id":"fc189e57-059c-4484-bc19-6849d59955dd","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":161,"box":{"x":68,"y":770,"width":815,"height":12}},{"id":"aa2c57a7-2b4b-434a-9be9-ec7e62f1991a","block_type":"box","text":"Transfer Agent in writing.","page_number":161,"box":{"x":68,"y":785,"width":175,"height":12}},{"id":"ea1438fd-e158-4002-8d9f-d1b7f9b7a5ca","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":161,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"12067af5-284e-4e44-ad44-d702e78683b1","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":161,"box":{"x":69,"y":823,"width":828,"height":12}},{"id":"3f6a3948-5f62-4e13-971d-2c18c6408aa6","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":161,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"7ba5364f-3922-417b-a976-dd038cdbbcb6","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":161,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"339ee037-9edd-4f46-be79-f1beb67ba24e","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":161,"box":{"x":68,"y":869,"width":763,"height":11}},{"id":"99d7d235-e104-4fb4-8fe9-f92d9b055f21","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":161,"box":{"x":69,"y":884,"width":424,"height":11}},{"id":"13520f62-f661-4872-8542-856fc1d006bb","block_type":"box","text":"II-119","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9e5d174e-567f-4fc1-bf6a-26c1ce0c8716","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c0a65c90-effb-482c-a591-7ce173a6c1f0","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":162,"box":{"x":101,"y":45,"width":790,"height":11}},{"id":"8d9670ff-d1f2-4205-a7eb-10d61cc0e867","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":162,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"2a9d9bd8-5bd4-4356-b3f1-28490611b5fd","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":162,"box":{"x":69,"y":75,"width":771,"height":11}},{"id":"b598d2ae-da82-4cca-8234-bbbb7a99eb3a","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":162,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"a48073d5-728e-42c4-b64a-46b2244d8612","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":162,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"b935def4-77e3-448f-b0da-8edbdb5dfa5e","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":162,"box":{"x":70,"y":120,"width":354,"height":12}},{"id":"ee78f632-043b-4834-8385-c490fff970f5","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":162,"box":{"x":101,"y":143,"width":782,"height":11}},{"id":"391a0193-993e-44fb-8be4-7358b529cc2a","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":162,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"6e378831-a72c-4435-a9ca-129adf2450f3","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":162,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"c42b135c-9db7-4379-b551-e7db5a013d6d","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":162,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"6100a430-16b4-4a4d-bcff-d67e2baa1126","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":162,"box":{"x":69,"y":203,"width":506,"height":12}},{"id":"353b6c2c-6fb8-49bb-9e5f-826a1a11215f","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":162,"box":{"x":101,"y":226,"width":733,"height":11}},{"id":"857b2ad4-a9bb-44d3-ad13-6a0bba1035c3","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":162,"box":{"x":69,"y":241,"width":793,"height":11}},{"id":"34d40b73-da3f-420a-b24f-12cae8b3236e","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":162,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"aeb126da-ec35-4afc-a0fc-d4a82d4fd3b4","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":162,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"981561fc-55d6-4dfe-8c21-8fc03d519faf","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":162,"box":{"x":68,"y":286,"width":825,"height":12}},{"id":"f4551986-0135-4c38-ba9e-7c1ede499f53","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":162,"box":{"x":68,"y":302,"width":837,"height":11}},{"id":"3873a95e-d966-4bb1-a605-a9cb6b69c0d3","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":162,"box":{"x":69,"y":317,"width":767,"height":11}},{"id":"05a3beb0-9fd9-4df1-9dda-e9529973de71","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":162,"box":{"x":69,"y":332,"width":750,"height":11}},{"id":"7550e50a-c0c9-4eae-854a-90cd05170798","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":162,"box":{"x":102,"y":355,"width":757,"height":11}},{"id":"cf8c6851-c609-47fa-b882-483853553946","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":162,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"c0ba430b-0538-4734-ac12-da5016115ec4","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":162,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"9c81de8b-0e00-4498-814e-cf71c207f638","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":162,"box":{"x":69,"y":400,"width":817,"height":11}},{"id":"9dfc7795-d0c4-47b4-af18-50eb5a369e7d","block_type":"box","text":"may be distributed by the Distributor.","page_number":162,"box":{"x":69,"y":415,"width":262,"height":11}},{"id":"0ace6e6c-99f9-4b11-ae79-efae83a2674d","block_type":"box","text":"Participation in Fee-Based Programs","page_number":162,"box":{"x":69,"y":445,"width":266,"height":11}},{"id":"f9fcb30c-296e-4f0b-8bb1-13618a9e73e8","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":162,"box":{"x":102,"y":468,"width":780,"height":11}},{"id":"52bb7e80-590d-43b1-abd0-722111639d6e","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":162,"box":{"x":69,"y":483,"width":826,"height":11}},{"id":"f4dca789-05a3-4408-8499-212d4af1b002","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":162,"box":{"x":70,"y":498,"width":825,"height":11}},{"id":"94b5e614-9f09-4d79-96f0-0c8b2d0a3861","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":162,"box":{"x":69,"y":513,"width":770,"height":12}},{"id":"4e30aef3-2ef3-4079-97e1-bd86c4601e5a","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":162,"box":{"x":69,"y":528,"width":837,"height":12}},{"id":"31ef87ed-2b88-4db3-8ed0-1a823343314d","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":162,"box":{"x":70,"y":543,"width":808,"height":12}},{"id":"3757de11-e6b0-4fc8-b335-ba8d07b4b0f2","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":162,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"67d81dbb-64ee-4a07-bbef-7e5d8c097dec","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":162,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"a04e5752-9e11-4b4b-89c3-78131b4f73ad","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":162,"box":{"x":70,"y":589,"width":555,"height":11}},{"id":"46942227-df17-465b-814b-8bbc726f4f03","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":162,"box":{"x":102,"y":612,"width":788,"height":11}},{"id":"ec6456ec-61c2-4ab6-8df1-cc190be381dd","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":162,"box":{"x":69,"y":627,"width":817,"height":10}},{"id":"bc179016-af34-4d49-8385-a3a12983ae98","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":162,"box":{"x":69,"y":642,"width":796,"height":11}},{"id":"e4ac5d69-39d5-48b9-88d8-e4fa38746edd","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":162,"box":{"x":70,"y":657,"width":754,"height":11}},{"id":"d596df1b-002e-47e5-a6a5-9befab7d0a69","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":162,"box":{"x":70,"y":672,"width":820,"height":11}},{"id":"936af3f4-8baf-45e1-918c-b617bd4e6ee5","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":162,"box":{"x":70,"y":687,"width":777,"height":11}},{"id":"695928c4-3966-4e00-9877-45ef5a078ab5","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":162,"box":{"x":70,"y":702,"width":791,"height":12}},{"id":"c3256c43-7514-4952-ad19-0f1013d2cb65","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":162,"box":{"x":69,"y":717,"width":756,"height":12}},{"id":"9b6c5f29-7122-432a-b158-fbeeaf51fbd4","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":162,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"011142b4-699f-4ef9-92de-f0cefca9ab7e","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":162,"box":{"x":68,"y":755,"width":791,"height":11}},{"id":"39af3a3e-254f-49c1-ac2c-363f4cb6da93","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":162,"box":{"x":70,"y":770,"width":830,"height":12}},{"id":"c6b8f961-7ed5-4409-905d-269cca7206ad","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":162,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"fddca596-c16f-448b-888a-48fb81e46f18","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":162,"box":{"x":69,"y":801,"width":801,"height":11}},{"id":"e1c9d132-7a80-481b-a517-4cf8166030a8","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":162,"box":{"x":69,"y":816,"width":424,"height":11}},{"id":"246f7e00-80c7-45ab-9cc6-6ea89a188730","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":162,"box":{"x":102,"y":838,"width":752,"height":12}},{"id":"df3fd600-ac01-4b84-82cd-5ced4f62d074","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":162,"box":{"x":70,"y":853,"width":789,"height":12}},{"id":"df4c15ac-15af-44b6-95ae-3128aa1f01e1","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":162,"box":{"x":69,"y":869,"width":785,"height":11}},{"id":"2240f1a9-3d41-4914-a97d-cd99284d28a9","block_type":"box","text":"information.","page_number":162,"box":{"x":70,"y":884,"width":83,"height":9}},{"id":"61ef0db9-76ed-4535-ae0b-5974ef7874df","block_type":"box","text":"II-120","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6e1dd2eb-cf10-41bf-857e-01ea77393a4a","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ff88916-ffc6-4885-baa7-8fbc593e33f8","block_type":"box","text":"Retirement and Education Savings Plans","page_number":163,"box":{"x":69,"y":45,"width":296,"height":11}},{"id":"4ef8a3d4-8ad2-4338-b68f-cbd7d5a6abc8","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":163,"box":{"x":102,"y":67,"width":805,"height":12}},{"id":"55f84b22-088a-4fa4-9a3e-189724dc79c9","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":163,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"8751ce2f-2eca-40ef-b942-9d22f2edbc08","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":163,"box":{"x":68,"y":98,"width":819,"height":11}},{"id":"049bc451-3e9a-41c6-ad25-f260c38a8782","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":163,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"cb39d12d-0093-48b0-ae5c-d58374634b87","block_type":"box","text":"your financial intermediary.","page_number":163,"box":{"x":68,"y":128,"width":191,"height":11}},{"id":"0db5898e-8788-409c-a9f3-00d153162116","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":163,"box":{"x":102,"y":150,"width":796,"height":11}},{"id":"cdcb89f9-4dcd-4b93-bb17-97d501ddd3af","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":163,"box":{"x":68,"y":166,"width":784,"height":11}},{"id":"9ad31057-0e81-41a1-811c-526bc134c05c","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":163,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"fca51a3e-c15d-481d-93ad-1f3000e094db","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":163,"box":{"x":69,"y":196,"width":753,"height":11}},{"id":"5d3fc5c2-ac07-46bf-94e4-3db012e6fc46","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":163,"box":{"x":69,"y":211,"width":354,"height":11}},{"id":"1903b17d-ec38-4fee-baa7-3e164996f04d","block_type":"box","text":"Automatic Investment Plans","page_number":163,"box":{"x":68,"y":241,"width":207,"height":9}},{"id":"ce06769f-a394-4e72-85c9-15224e30b3ef","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":163,"box":{"x":102,"y":264,"width":773,"height":11}},{"id":"82ff5aca-b934-44a9-8f9c-a59019862416","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":163,"box":{"x":69,"y":279,"width":477,"height":11}},{"id":"50172be3-9387-42ae-bea5-f85e3d02d671","block_type":"box","text":"®","page_number":163,"box":{"x":547,"y":279,"width":6,"height":5}},{"id":"9fc3f22d-afa2-4976-bb10-b5d5822eb81f","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":163,"box":{"x":559,"y":279,"width":272,"height":11}},{"id":"9786022c-d976-459d-9f54-c6b21295c612","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":163,"box":{"x":70,"y":294,"width":787,"height":11}},{"id":"ff2086f5-2ba3-478f-8549-9f9a89057e48","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":163,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"fe799b72-0a24-4795-bac0-770878c0acfe","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":163,"box":{"x":68,"y":324,"width":805,"height":11}},{"id":"5b77baa0-ac5e-48b1-ae89-6c3c9d22cc21","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":163,"box":{"x":68,"y":355,"width":285,"height":9}},{"id":"2d62f496-6760-49cb-9aef-4f39fc285aaf","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":163,"box":{"x":102,"y":377,"width":782,"height":12}},{"id":"aca3c025-4e2e-4444-8b53-2b07cfcc7cef","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":163,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"3ef21f63-a87f-4730-a158-3e6676dc9357","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":163,"box":{"x":69,"y":407,"width":839,"height":9}},{"id":"3df1d9a8-3235-422d-99dd-f311cf7a5f21","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":163,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"3b5aeee4-2eab-4f1b-b17e-ed5a092c371d","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":163,"box":{"x":69,"y":438,"width":614,"height":11}},{"id":"34cd729d-2782-4862-98fb-9d3ed1b981cc","block_type":"box","text":"Systematic Withdrawal Plans","page_number":163,"box":{"x":68,"y":468,"width":214,"height":11}},{"id":"75a4b748-369e-4f2f-935f-5e6f555cf4c2","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":163,"box":{"x":102,"y":491,"width":780,"height":11}},{"id":"566dafa9-0613-45be-9fd6-85a282354340","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":163,"box":{"x":70,"y":505,"width":742,"height":12}},{"id":"46b869b2-da58-413c-9bc9-e72ddf49f4bd","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":163,"box":{"x":69,"y":520,"width":834,"height":12}},{"id":"40b80c02-1953-47f2-a927-b5605dd11477","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":163,"box":{"x":68,"y":536,"width":823,"height":11}},{"id":"8497242b-bc6b-4ae9-af14-9cdcefc441dd","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":163,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"a9bdec5c-8862-42fe-8d56-403892655e33","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":163,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"26c9d67e-eee0-4fc2-9c54-7dc2dbaf6ce3","block_type":"box","text":"www.blackrock.com.","page_number":163,"box":{"x":68,"y":582,"width":142,"height":8}},{"id":"39aa29ea-1f2d-4f71-b7aa-66302320ee90","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":163,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"8cd20d85-dcb0-4e20-9450-ec6e4a2b2d74","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":163,"box":{"x":68,"y":619,"width":774,"height":11}},{"id":"6e222b71-bc7b-43b7-b08c-82f914b6b039","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":163,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"23de2209-4de7-4c2a-86d2-1dbe837e3de1","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":163,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"9f108966-b9a2-4d12-a2dd-42c64c9c7ba8","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":163,"box":{"x":69,"y":664,"width":803,"height":12}},{"id":"26a58866-3052-4674-b5df-27bea19f6763","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":163,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"d2b4a0eb-bd27-4b91-a8e9-645e5023057d","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":163,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"b6db4822-04cc-43a3-9422-7de0e11620be","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":163,"box":{"x":70,"y":710,"width":816,"height":11}},{"id":"68d12924-0129-4b24-bcb0-5da430e2ca96","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":163,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"22c867d4-2a96-4e5a-a3c8-595c3a83dd7f","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":163,"box":{"x":69,"y":740,"width":367,"height":11}},{"id":"c0fb1dcd-4580-417f-9a44-58be1aa422d7","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":163,"box":{"x":102,"y":763,"width":798,"height":11}},{"id":"f0c3739f-f039-43a2-82e4-4e13f974bcb4","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":163,"box":{"x":68,"y":778,"width":834,"height":11}},{"id":"c58ab6fa-d44c-46ee-8930-3e5e11dcced2","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":163,"box":{"x":69,"y":793,"width":311,"height":11}},{"id":"a49d618e-5a56-46ee-869a-a8a4daa19563","block_type":"box","text":"Dividend Allocation Plan","page_number":163,"box":{"x":69,"y":823,"width":176,"height":9}},{"id":"7d36d9aa-ed06-4638-9225-9d8fc78237c2","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":163,"box":{"x":101,"y":846,"width":807,"height":11}},{"id":"8c8fbfd5-3df6-4bc6-ae58-8b7f59240985","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":163,"box":{"x":69,"y":861,"width":763,"height":11}},{"id":"2561ddce-a157-4913-9c7c-ced5b6519a2f","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":163,"box":{"x":69,"y":876,"width":814,"height":11}},{"id":"d8b378c1-b4c0-4398-b9a3-a371a5e3e839","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":163,"box":{"x":70,"y":891,"width":771,"height":11}},{"id":"ed8ede3b-8eb7-4e3c-9885-9413435effbb","block_type":"box","text":"II-121","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"15150d54-6213-42aa-84b0-7e38d157dd07","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1b3f54cd-c397-4853-a7d8-ffb53d3a4eaa","block_type":"box","text":"PRICING OF SHARES","page_number":164,"box":{"x":406,"y":45,"width":167,"height":10}},{"id":"c2787eb6-8c8f-4186-addb-df8c9b867984","block_type":"box","text":"Determination of Net Asset Value","page_number":164,"box":{"x":69,"y":76,"width":243,"height":8}},{"id":"5b919f1d-1350-4158-bb8c-5f4c63b935a6","block_type":"box","text":"Valuation of Shares.","page_number":164,"box":{"x":101,"y":98,"width":145,"height":9}},{"id":"59203625-3ca9-49e0-bccc-b02b57f3076b","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":164,"box":{"x":252,"y":98,"width":626,"height":11}},{"id":"68bc67f7-23f8-49a1-a340-4d11c2756b27","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":164,"box":{"x":69,"y":113,"width":785,"height":12}},{"id":"50c3c2b9-e30a-4cfc-847e-977bbca369fb","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":164,"box":{"x":68,"y":128,"width":343,"height":12}},{"id":"5a4b1ef7-fcc8-4d7b-87f8-a4613c212de6","block_type":"box","text":"Equity Investments.","page_number":164,"box":{"x":102,"y":151,"width":143,"height":11}},{"id":"7c78e146-30bb-42b2-872a-346600fecd9d","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":164,"box":{"x":252,"y":151,"width":439,"height":11}},{"id":"991a1013-ad75-447e-a6b6-c887b94172b5","block_type":"box","text":"e.g.","page_number":164,"box":{"x":693,"y":153,"width":25,"height":9}},{"id":"05159831-cb85-4235-b1a8-20976afad562","block_type":"box","text":", NYSE), on separate","page_number":164,"box":{"x":720,"y":151,"width":147,"height":11}},{"id":"152589e7-fe46-4d77-b3cf-76465d5e0e37","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":164,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"6a407a29-7242-429d-b4cc-8faa433791c3","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":164,"box":{"x":70,"y":181,"width":808,"height":12}},{"id":"4bfc0ab6-3852-4e39-9373-0842bde3b4ad","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":164,"box":{"x":68,"y":196,"width":820,"height":12}},{"id":"1c39d067-bc8e-4bd9-a7c2-a2dba5a6da53","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":164,"box":{"x":70,"y":212,"width":805,"height":11}},{"id":"a8e37030-d53d-4af0-a90e-d82bb2afec17","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":164,"box":{"x":69,"y":227,"width":793,"height":11}},{"id":"f0834582-86c2-4559-a52e-d8e0666acd9a","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":164,"box":{"x":70,"y":242,"width":836,"height":11}},{"id":"dfcb866d-e734-4211-9b99-67bc2e6f3666","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":164,"box":{"x":68,"y":257,"width":815,"height":11}},{"id":"f5ae11f2-fb9c-4536-be9f-b632de513ad0","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":164,"box":{"x":70,"y":272,"width":837,"height":11}},{"id":"bb135c1c-f1bf-4abb-ae1b-f501f26afbae","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":164,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"0be4a481-01f5-47dc-9993-2056deb79c34","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":164,"box":{"x":68,"y":302,"width":828,"height":11}},{"id":"fea75fea-c2c0-46be-ac76-3f7d6a9f3632","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":164,"box":{"x":68,"y":318,"width":819,"height":11}},{"id":"7af7926c-d9aa-4294-a289-b772009c3995","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":164,"box":{"x":70,"y":332,"width":798,"height":12}},{"id":"d80716e0-9bb5-40a4-bd5b-403eaf1ced4f","block_type":"box","text":"defined below).","page_number":164,"box":{"x":69,"y":348,"width":106,"height":11}},{"id":"8073d7b1-5c98-41cb-b062-0f4aaf494025","block_type":"box","text":"Fixed-Income Investments.","page_number":164,"box":{"x":102,"y":370,"width":194,"height":9}},{"id":"398e87be-012e-4316-82aa-633a4f60254f","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by dealers or","page_number":164,"box":{"x":304,"y":371,"width":592,"height":11}},{"id":"096215ad-c9c0-49c5-8211-aeb66c524b7b","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":164,"box":{"x":70,"y":386,"width":825,"height":11}},{"id":"10261284-9b85-4657-b8ef-7f4e2f4b7ca5","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":164,"box":{"x":69,"y":401,"width":823,"height":11}},{"id":"088084b6-fca8-48fb-a5e6-ce27d3a02994","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":164,"box":{"x":69,"y":416,"width":443,"height":11}},{"id":"d3190b5b-64c5-4c54-b46b-30262ae66296","block_type":"box","text":"e.g.","page_number":164,"box":{"x":514,"y":417,"width":24,"height":10}},{"id":"f60ab85b-428e-45cd-a731-15dd4ee156c5","block_type":"box","text":", recent representative bids and offers), credit","page_number":164,"box":{"x":541,"y":416,"width":328,"height":11}},{"id":"ca3e9733-31d8-48cf-9e5b-ab71835f9f0f","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":164,"box":{"x":69,"y":431,"width":834,"height":11}},{"id":"e02c1e54-676c-4e87-a9c5-423abc8ee27f","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":164,"box":{"x":69,"y":446,"width":769,"height":11}},{"id":"9b0e8297-660b-4c99-a7a1-427e52c6e125","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":164,"box":{"x":70,"y":461,"width":797,"height":11}},{"id":"e5eeab39-dfc3-4ac2-bbdb-5775e7aa1434","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":164,"box":{"x":69,"y":476,"width":821,"height":11}},{"id":"dd6d763b-ea01-48d5-b1d4-4bb33321f99d","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":164,"box":{"x":68,"y":491,"width":798,"height":11}},{"id":"c0746db7-c300-483d-913d-2750312df723","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":164,"box":{"x":69,"y":507,"width":825,"height":11}},{"id":"a9427ed2-efb1-412d-b2fc-fefa5f977d98","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":164,"box":{"x":69,"y":521,"width":791,"height":12}},{"id":"2b1627df-53c6-48cf-a810-ca5346568f57","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":164,"box":{"x":69,"y":537,"width":814,"height":11}},{"id":"a1cdd253-eecc-4a52-91b6-2b9ef18de0f0","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":164,"box":{"x":68,"y":552,"width":802,"height":11}},{"id":"0d4898b7-f8d5-4ff9-82b6-6010573c551c","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":164,"box":{"x":69,"y":567,"width":773,"height":10}},{"id":"4d628949-fa46-475d-9671-d4800fbd9807","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":164,"box":{"x":69,"y":582,"width":795,"height":11}},{"id":"a51e82ee-33ff-47d3-a021-1aa44fd3f7ea","block_type":"box","text":"attributes of the tranche.","page_number":164,"box":{"x":69,"y":597,"width":176,"height":9}},{"id":"0e8ba132-7ac9-4da3-b13a-5a97a4c3ddb4","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":164,"box":{"x":101,"y":620,"width":344,"height":11}},{"id":"acbeadfd-50ad-44cf-a2da-d0b24e8873cb","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":164,"box":{"x":453,"y":620,"width":416,"height":11}},{"id":"2f41de0c-8639-4d45-9103-e02908a07b06","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":164,"box":{"x":70,"y":635,"width":829,"height":11}},{"id":"a67aed69-e8ee-489e-8087-a02f683682cd","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":164,"box":{"x":69,"y":650,"width":824,"height":11}},{"id":"f374a3f7-1216-471a-87f0-40df0c18fc56","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":164,"box":{"x":68,"y":665,"width":838,"height":11}},{"id":"fbd25383-0adb-4d52-911a-59d16571d1e4","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":164,"box":{"x":68,"y":680,"width":820,"height":12}},{"id":"e76484a4-0b9f-4e3d-aefe-ede36a45158f","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":164,"box":{"x":68,"y":695,"width":808,"height":11}},{"id":"77469c59-28d6-4d3a-a526-47c2af765d94","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":164,"box":{"x":69,"y":710,"width":824,"height":12}},{"id":"dc2ae101-bbd2-4e43-948f-15ebe254673d","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":164,"box":{"x":68,"y":726,"width":789,"height":11}},{"id":"5e2cd649-730b-4469-a341-a5cfa589e7f4","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":164,"box":{"x":69,"y":741,"width":807,"height":11}},{"id":"c8da41fb-a675-43ff-b83b-1a0ce6cf51f9","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":164,"box":{"x":69,"y":756,"width":824,"height":11}},{"id":"0a5cd39e-d036-42d8-921e-d2ff1489e3d9","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":164,"box":{"x":69,"y":771,"width":833,"height":11}},{"id":"4d88493c-5d43-4e97-b389-f74da4a25316","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":164,"box":{"x":69,"y":786,"width":830,"height":11}},{"id":"e3f23ae5-14e7-4cf8-8d25-70def57e42ea","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":164,"box":{"x":69,"y":801,"width":301,"height":9}},{"id":"610a5599-9b38-4734-bd86-2583cb6a86d1","block_type":"box","text":"Underlying Funds.","page_number":164,"box":{"x":102,"y":824,"width":128,"height":11}},{"id":"0f76588f-6457-4190-8bb6-83224e075c6b","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued at NAV.","page_number":164,"box":{"x":237,"y":824,"width":621,"height":11}},{"id":"9f61219a-f29f-4242-ac3c-506fb2a6075a","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":164,"box":{"x":69,"y":839,"width":837,"height":11}},{"id":"bb8aad9b-208c-4209-b2a8-ff0d5c96339f","block_type":"box","text":"General Valuation Information.","page_number":164,"box":{"x":101,"y":862,"width":220,"height":9}},{"id":"b4171155-f5d9-4fa6-9577-68ed0b69e03e","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":164,"box":{"x":328,"y":862,"width":564,"height":11}},{"id":"603a4fa1-695a-452a-9ad0-a3f3e381dd52","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":164,"box":{"x":69,"y":877,"width":831,"height":9}},{"id":"a0ae211b-f677-4ddf-915c-63a01787e63c","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":164,"box":{"x":68,"y":892,"width":828,"height":11}},{"id":"f4e7e592-85a8-4c50-8b75-503bcb8554e6","block_type":"box","text":"II-122","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fa4c32a0-1ff8-4e2b-ab4f-c7828571065f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cdb32f27-a50f-41a1-b302-4292f9c11374","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":165,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"ac08023e-de32-4ae3-82dc-2a17cfb7b0fb","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":165,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"b9583320-94c2-45ad-87db-8de3454b92ed","block_type":"box","text":"the revision.","page_number":165,"box":{"x":68,"y":75,"width":87,"height":9}},{"id":"18413d18-1f3c-493d-9eba-5ba73a4ec66b","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":165,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"5661d609-6b02-4508-9a2c-b092d95dd734","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":165,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"4bb0b738-a088-455d-96d3-1cb345f97e6a","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":165,"box":{"x":69,"y":128,"width":818,"height":11}},{"id":"c6978040-d35d-4abb-aeb0-e383f823e88e","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":165,"box":{"x":70,"y":143,"width":832,"height":11}},{"id":"3247bd8f-34e2-4db4-a2ea-6a8c6c4a03e9","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":165,"box":{"x":70,"y":158,"width":832,"height":11}},{"id":"47dbc632-7f3b-4cd4-9aca-305663be5119","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":165,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"0fff4ff4-bc35-4797-9b23-11d7fab244b1","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":165,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"bd315bf3-1794-49ad-bf9c-d2fc4ca6e0bf","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":165,"box":{"x":70,"y":204,"width":833,"height":11}},{"id":"196cdc12-3ba7-4bc7-b44c-87a0d0439285","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":165,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"058b089f-a4b6-48ca-be8e-842686417f2d","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":165,"box":{"x":70,"y":234,"width":741,"height":11}},{"id":"3cd9275d-8e82-47e1-8fb2-20433a2d1d25","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":165,"box":{"x":102,"y":256,"width":800,"height":11}},{"id":"63983752-c617-47aa-bc86-bf04f9845050","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":165,"box":{"x":69,"y":271,"width":811,"height":12}},{"id":"13272cca-e125-4a29-8b23-0ac5e530769c","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":165,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"8b3dec2d-96f9-499f-b0c9-e051b2bad033","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":165,"box":{"x":68,"y":302,"width":824,"height":11}},{"id":"49214451-913f-48de-99d0-c3d68e1a393f","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":165,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"88bd5a95-d01d-4b8d-97f0-1c9c6e881807","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":165,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"4dc5ec97-0f99-4146-be06-9e0901c28b07","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":165,"box":{"x":69,"y":347,"width":685,"height":11}},{"id":"a778e9a9-2a71-4f76-946a-f7a957c512dc","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":165,"box":{"x":102,"y":370,"width":795,"height":11}},{"id":"b246a8ce-5072-40d1-add0-b0ff46e7ef6c","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":165,"box":{"x":68,"y":385,"width":805,"height":11}},{"id":"d8e90444-571e-4ea5-8638-10d8b069689d","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":165,"box":{"x":69,"y":400,"width":529,"height":11}},{"id":"2e33068c-c854-49d9-a045-ec19a0f2240d","block_type":"box","text":"Fair Value.","page_number":165,"box":{"x":102,"y":423,"width":74,"height":9}},{"id":"bd0f1dd8-f3e0-4e2e-be13-254ad3df5d1e","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":165,"box":{"x":183,"y":423,"width":693,"height":11}},{"id":"83712485-7341-4213-a544-9369c0170912","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":165,"box":{"x":70,"y":438,"width":785,"height":11}},{"id":"5fabb0d5-79dc-463f-94bb-880e8caf0ca6","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":165,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"ce84d0ae-2ff9-4304-991c-eebc4810d472","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":165,"box":{"x":70,"y":468,"width":779,"height":11}},{"id":"4644abcc-176d-408f-b937-b73954dba1ba","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":165,"box":{"x":70,"y":483,"width":773,"height":11}},{"id":"b3cea024-aaf3-49d0-af58-7a8d24735261","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":165,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"f4dd1853-de54-4997-b038-37ef5e0b4f2b","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":165,"box":{"x":69,"y":513,"width":826,"height":12}},{"id":"b7865d17-b8ac-45a8-9c8f-5738cda36eed","block_type":"box","text":"(","page_number":165,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"c5bd0cd6-e6c2-4895-8626-3215df54949b","block_type":"box","text":"e.g.","page_number":165,"box":{"x":74,"y":530,"width":25,"height":10}},{"id":"cdac2f84-2145-41fa-a337-63382f3131f3","block_type":"box","text":", where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":165,"box":{"x":101,"y":528,"width":806,"height":12}},{"id":"1cb9fc60-cfe0-4a7a-b545-fe4dd25b387a","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":165,"box":{"x":69,"y":544,"width":813,"height":11}},{"id":"7a0e9a82-af36-4f84-bed7-2a024e4d3bbf","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":165,"box":{"x":68,"y":559,"width":837,"height":11}},{"id":"d072ae78-e369-49b1-bd7c-ec8c1dcd0c0e","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":165,"box":{"x":70,"y":574,"width":838,"height":11}},{"id":"dbffdd75-702a-4734-bd44-a5fd0dc8d18f","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":165,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"c60174ce-f757-4f49-9ad9-7042082083f4","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":165,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"26371d5b-194b-411f-9936-6e3fe5c99719","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":165,"box":{"x":69,"y":619,"width":793,"height":11}},{"id":"3a53a810-9824-45b3-8aa4-8bb5345fcc61","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":165,"box":{"x":70,"y":634,"width":819,"height":12}},{"id":"935273d4-1415-43b4-8065-012ed394f15c","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":165,"box":{"x":68,"y":649,"width":810,"height":12}},{"id":"d2d0aada-3ec4-4ac6-824c-655be5698276","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":165,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"af715e21-01b3-41ee-bf7f-b1006c872f15","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":165,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"e95acaa0-711c-4ccf-b219-f577d8d5b481","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":165,"box":{"x":68,"y":695,"width":814,"height":11}},{"id":"648c8f27-553f-40c6-921e-edb8e08ed0e2","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":165,"box":{"x":69,"y":710,"width":827,"height":11}},{"id":"5fb6a921-b171-452a-a070-19056fd00fa8","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":165,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"1268eb4b-93d0-48d9-aef6-bb18364ca639","block_type":"box","text":"pricing time.","page_number":165,"box":{"x":70,"y":740,"width":85,"height":11}},{"id":"99adec8b-22d7-4350-8224-136f81908c0e","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":165,"box":{"x":102,"y":763,"width":794,"height":11}},{"id":"becd5224-9f52-4a3f-a1bf-67ce49176536","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":165,"box":{"x":69,"y":778,"width":829,"height":11}},{"id":"cc3d735d-2ddb-4368-b7f2-f1f9cc4ac4e9","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":165,"box":{"x":69,"y":793,"width":813,"height":11}},{"id":"fce11c8f-917e-40df-aa3c-3fa2e7662504","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":165,"box":{"x":70,"y":808,"width":808,"height":11}},{"id":"551f622d-4d8b-425f-9af7-33ccd3076701","block_type":"box","text":"assets and liabilities of the Funds.","page_number":165,"box":{"x":69,"y":823,"width":245,"height":9}},{"id":"de3b29c5-a41d-4670-a269-ab96a56b613a","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":165,"box":{"x":101,"y":846,"width":795,"height":11}},{"id":"c92a48c3-42eb-4a16-9181-f3cf17e1e64e","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":165,"box":{"x":69,"y":861,"width":832,"height":11}},{"id":"5927ca15-a37f-4f34-b008-72fcb7769c04","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":165,"box":{"x":69,"y":876,"width":805,"height":11}},{"id":"bbb386f6-7337-48ae-90d5-b91b858cd153","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":165,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"fe195055-ec97-4f9c-8d86-5a5c6dd6264d","block_type":"box","text":"II-123","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ebe8d905-6048-4a2a-83a7-f04b7230ab78","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb118117-45dc-4de8-be53-3c68ed1393c4","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":166,"box":{"x":69,"y":45,"width":744,"height":11}},{"id":"bfc0281f-ece9-41b8-8659-a141f5dbdb14","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":166,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"7e222a5a-bbc0-4c4a-a276-da2d377eca7c","block_type":"box","text":"valuation models.","page_number":166,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"9cdf30fe-4cff-4517-80e2-f3e40dc9b50d","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":166,"box":{"x":102,"y":98,"width":785,"height":11}},{"id":"5dddb1fb-4bbe-4af4-9973-73d0a76b6c49","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":166,"box":{"x":68,"y":113,"width":822,"height":11}},{"id":"7d072763-edb0-464c-a4c1-466a2c114e91","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":166,"box":{"x":68,"y":128,"width":820,"height":11}},{"id":"e64d16e6-d76d-47ba-8a9e-331c359e4559","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":166,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"894180f3-5698-45f2-82d2-44c8455aebc9","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":166,"box":{"x":69,"y":158,"width":766,"height":11}},{"id":"e90f41ef-1f14-40e2-9e55-a841becf3d64","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":166,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"0261a50c-4a79-4e26-9be2-e7b927846bb4","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":166,"box":{"x":69,"y":188,"width":378,"height":12}},{"id":"b14f7bd2-1b63-4748-834e-60e52d369a67","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":166,"box":{"x":101,"y":211,"width":784,"height":11}},{"id":"de3cbc88-1fe6-4e36-9e7d-6d35cb7cfa76","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":166,"box":{"x":70,"y":226,"width":836,"height":11}},{"id":"079a5832-f36d-43c3-9d17-21ef97ee3bc3","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":166,"box":{"x":70,"y":241,"width":834,"height":11}},{"id":"0d103664-50e6-40a0-9b15-1eb89063980c","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":166,"box":{"x":68,"y":256,"width":728,"height":12}},{"id":"e2508d19-6e31-4ac2-b163-22e1768e3207","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":166,"box":{"x":102,"y":279,"width":786,"height":11}},{"id":"f72945b5-5703-4abf-87f2-39e0bf2e1598","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":166,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"5fd3497a-1b52-4ffb-9411-546b910ba543","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":166,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"c27d69f4-e24f-4433-8828-1ee6bffe9998","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":166,"box":{"x":70,"y":324,"width":818,"height":12}},{"id":"c9de635f-d8d7-4418-98c4-d53e0758a792","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":166,"box":{"x":69,"y":339,"width":641,"height":12}},{"id":"e4ffd628-9acc-405d-8983-929154e9994e","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":166,"box":{"x":102,"y":362,"width":786,"height":11}},{"id":"51158eb7-5e39-43db-86f9-f3b6215613b8","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":166,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"aafefbdf-961e-45aa-87e8-e4331b8f4dbf","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":166,"box":{"x":69,"y":392,"width":780,"height":12}},{"id":"fc075cc1-471a-49af-a49a-f1691d5f04b3","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":166,"box":{"x":70,"y":407,"width":810,"height":12}},{"id":"bb25a87b-20b4-4a1c-b7de-8d91bb24f74b","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":166,"box":{"x":70,"y":423,"width":810,"height":11}},{"id":"86231e28-9771-405e-bd0a-e51a1c6add85","block_type":"box","text":"par ty determination of fair market value.","page_number":166,"box":{"x":70,"y":438,"width":285,"height":11}},{"id":"109a1927-a62f-4b32-a13c-58df9cb0c6ea","block_type":"box","text":"Computation of Offering Price Per Share","page_number":166,"box":{"x":69,"y":468,"width":292,"height":11}},{"id":"19dadcae-7aee-4afb-80ae-3ddd6b9ee8af","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":166,"box":{"x":102,"y":491,"width":791,"height":11}},{"id":"85bc9486-e64f-4c82-b731-68608770a247","block_type":"box","text":"the offering price for shares of your Fund.","page_number":166,"box":{"x":68,"y":506,"width":295,"height":11}},{"id":"e9b10821-4be2-4446-bbcb-dcf5f5157868","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":166,"box":{"x":303,"y":535,"width":373,"height":10}},{"id":"cbb556eb-95ed-4794-919c-b0b55fdf0a47","block_type":"box","text":"Transactions in Portfolio Securities","page_number":166,"box":{"x":68,"y":566,"width":257,"height":9}},{"id":"c959adbc-f1f0-4ed1-bcd6-e802f544fe27","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":166,"box":{"x":102,"y":588,"width":798,"height":11}},{"id":"ea6aea5e-40be-4fe7-b439-d3bb38bf5302","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":166,"box":{"x":69,"y":603,"width":839,"height":12}},{"id":"025be739-e1e7-4e3a-8ffb-bdd2238824b3","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":166,"box":{"x":70,"y":618,"width":822,"height":12}},{"id":"af54c6f6-f0e9-4c26-8cc2-fa8856a38b26","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":166,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"d568bb48-e6e9-4640-bb42-21ac3a11d97f","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":166,"box":{"x":68,"y":649,"width":798,"height":11}},{"id":"bfe7402e-4a0c-4b05-87c7-660c9ff37e09","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":166,"box":{"x":69,"y":664,"width":765,"height":11}},{"id":"9f1b7e14-6463-4326-acbc-5c7eef3afc20","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":166,"box":{"x":69,"y":679,"width":768,"height":11}},{"id":"ff013834-44de-4aed-91e3-646988303c35","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":166,"box":{"x":70,"y":694,"width":830,"height":11}},{"id":"144ad671-6bde-4316-8f43-d5aa25f38bcf","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":166,"box":{"x":69,"y":709,"width":760,"height":11}},{"id":"31970486-d9ce-474d-8d37-b40cf4ca0f7b","block_type":"box","text":"reasonable in relation to the services provided.","page_number":166,"box":{"x":69,"y":725,"width":336,"height":10}},{"id":"94716ccd-638a-43f2-9833-18ffa241141b","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":166,"box":{"x":102,"y":747,"width":794,"height":11}},{"id":"59365eaf-edb7-468a-aeec-3780ee555d79","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":166,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"9b233197-fea8-447d-9845-2c9989481907","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":166,"box":{"x":102,"y":785,"width":784,"height":11}},{"id":"205dd762-70f2-4f56-9c79-7a904ca0b03d","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":166,"box":{"x":68,"y":800,"width":829,"height":11}},{"id":"12fd9bb4-3aa7-4a9e-b9ff-3ce651ebe89c","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":166,"box":{"x":69,"y":815,"width":802,"height":11}},{"id":"69a9c43b-6e9b-4f92-82b8-e1fa39025b1f","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":166,"box":{"x":69,"y":830,"width":826,"height":11}},{"id":"308da142-1bf0-42b0-ace9-c5aa5ea4bfe2","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":166,"box":{"x":69,"y":845,"width":789,"height":12}},{"id":"3e30e249-5b94-4b28-b171-1f16063bcd6c","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":166,"box":{"x":70,"y":860,"width":818,"height":12}},{"id":"a4ae2e67-435a-47d2-96f2-852a2de82f1d","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":166,"box":{"x":69,"y":875,"width":769,"height":12}},{"id":"ef32dd3e-d95b-483c-955a-bdcdd50db624","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":166,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"3521eced-7c3a-4783-af7a-d052283816ad","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":166,"box":{"x":69,"y":906,"width":391,"height":11}},{"id":"bf673d3e-c1b3-47ad-9a74-c4c03ccc8c72","block_type":"box","text":"II-124","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1f63ee78-2d68-4cf0-919e-6fef02a962ee","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6590c75-37d0-4179-810e-94387a59ae10","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":167,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"6a4b54e4-66e6-4365-a4f0-d6cc8653d0fd","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":167,"box":{"x":68,"y":60,"width":802,"height":11}},{"id":"3614bcf9-847f-44cc-beec-be56e460f6f1","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":167,"box":{"x":69,"y":75,"width":775,"height":11}},{"id":"e6fab52f-e60a-4c9e-a369-9b5c5ef43f46","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":167,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"6127103a-7757-4c46-955f-3b84a740ff25","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":167,"box":{"x":70,"y":105,"width":827,"height":11}},{"id":"31eccea5-697f-471a-8d75-2f419a1ebdd4","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":167,"box":{"x":68,"y":120,"width":753,"height":12}},{"id":"de3a2fe7-18b5-4fc6-91b5-7b4acee8ef15","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":167,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"bf82c079-3258-4e91-bc0d-77b0d5df111b","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":167,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"7f3ab086-3a3a-4a1d-962f-79e475d38e16","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":167,"box":{"x":70,"y":166,"width":775,"height":11}},{"id":"05d3dc8b-8919-44d4-8b56-aebcf07b1684","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":167,"box":{"x":69,"y":181,"width":764,"height":11}},{"id":"9868f46b-d3cb-493c-ad45-825b356a543c","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":167,"box":{"x":69,"y":196,"width":770,"height":11}},{"id":"a1c27cb9-6fc7-4cc7-b9a8-6c4abf574faa","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":167,"box":{"x":69,"y":211,"width":599,"height":11}},{"id":"dcabef2e-8b14-4463-bb92-116d0435295b","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":167,"box":{"x":102,"y":234,"width":796,"height":11}},{"id":"f48ecf9b-d11c-461a-8503-ef4e99653b58","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":167,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"034923eb-1785-444e-be39-5d9b5f6f78a8","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":167,"box":{"x":68,"y":264,"width":839,"height":11}},{"id":"fd93fc3f-edcf-424d-ab91-215c47c01f54","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":167,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"6c6e40e3-5cdc-48cb-ad05-e7b2e18f5df3","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":167,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"58178ed1-670f-40db-815c-09cd04d58df0","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":167,"box":{"x":69,"y":309,"width":808,"height":11}},{"id":"75db366b-f71f-47b9-a10c-cf45edce9ecc","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":167,"box":{"x":69,"y":325,"width":818,"height":11}},{"id":"4f5da0b1-6b19-41de-aed9-ed24bd9c8695","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":167,"box":{"x":70,"y":339,"width":813,"height":12}},{"id":"4e6b25eb-6db5-4599-a941-e6b52e5fbf2b","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":167,"box":{"x":70,"y":355,"width":801,"height":11}},{"id":"69cf6e75-cdd7-41ae-aee5-ac8a8e692989","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":167,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"638f2c8f-f98d-490d-b93c-86b9559aa6c0","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":167,"box":{"x":69,"y":385,"width":790,"height":11}},{"id":"91085191-82ac-475a-8905-fb9380961c89","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":167,"box":{"x":70,"y":400,"width":361,"height":11}},{"id":"2178765f-7b0d-4efa-923f-19cf7d64a1ff","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":167,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"ff678fbd-c88b-4f6f-a731-c38d8a57df40","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":167,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"c530ab3e-1a16-49cd-89e0-7faeeeb133e1","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":167,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"741cfe59-6e6f-469a-b657-498c54e08953","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":167,"box":{"x":70,"y":468,"width":785,"height":11}},{"id":"19d0d284-e460-4387-b4ba-a1022772c11e","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":167,"box":{"x":70,"y":483,"width":806,"height":11}},{"id":"9adc30bb-58e5-48d6-9fdb-b129e955f299","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":167,"box":{"x":68,"y":498,"width":772,"height":11}},{"id":"51a17238-d273-4c06-8414-eada91fd530b","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":167,"box":{"x":69,"y":513,"width":838,"height":12}},{"id":"5f7c285c-e5eb-4ef3-b364-b9ada6b86262","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":167,"box":{"x":68,"y":528,"width":769,"height":12}},{"id":"f509fb81-3bf5-4fb4-897d-6866c466acdc","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":167,"box":{"x":69,"y":543,"width":801,"height":12}},{"id":"90f12d35-0788-4c5a-8dc9-343a90a41dd3","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":167,"box":{"x":69,"y":559,"width":778,"height":11}},{"id":"1a798937-270f-41ff-bd95-a7eb2a508a5a","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":167,"box":{"x":69,"y":574,"width":363,"height":11}},{"id":"2fee817b-1e40-4b74-b9d0-ccdb8da7e877","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":167,"box":{"x":102,"y":596,"width":749,"height":12}},{"id":"71792740-bbc6-4e81-9d57-23220cd33be2","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":167,"box":{"x":69,"y":612,"width":799,"height":11}},{"id":"0c285be3-c6f4-4d55-bebe-1e06b6fa8234","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":167,"box":{"x":70,"y":627,"width":752,"height":11}},{"id":"3baa3497-5d85-4743-99a5-6ba18ecbb661","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":167,"box":{"x":70,"y":642,"width":823,"height":11}},{"id":"5e3e4186-df9a-4885-bf06-8cef529a3356","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":167,"box":{"x":70,"y":657,"width":822,"height":11}},{"id":"f274b1c3-b845-4589-9ed4-9d1b2e7677c2","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":167,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"d1fe7d99-06a9-4301-bafd-a465f21cf2d4","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":167,"box":{"x":68,"y":687,"width":805,"height":11}},{"id":"e0154144-e32e-446e-a610-1ec484ddc161","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":167,"box":{"x":69,"y":702,"width":798,"height":12}},{"id":"511b677a-3495-4797-9982-0c36eca6743c","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":167,"box":{"x":69,"y":717,"width":836,"height":12}},{"id":"75938de1-2e8a-4f23-82fb-b09c0854478b","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":167,"box":{"x":70,"y":732,"width":832,"height":12}},{"id":"d773aee4-31e0-4e07-8efd-ae448399ad0c","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":167,"box":{"x":70,"y":748,"width":798,"height":11}},{"id":"55cb84f8-dbe8-4959-a7ac-1d14d498244d","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":167,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"c31c6b3e-afb2-4423-9644-746a5c7e70da","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":167,"box":{"x":69,"y":778,"width":827,"height":11}},{"id":"df35c130-a816-47c2-98b5-c24020594c82","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":167,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"05411ec5-3b1a-4ce9-9485-06a1aa0a1a6e","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":167,"box":{"x":69,"y":808,"width":797,"height":11}},{"id":"ce036d48-5c8f-49a6-80f9-7d629c1cdfa7","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":167,"box":{"x":70,"y":823,"width":815,"height":12}},{"id":"19a07a43-c2be-4d10-a46e-863780bd2aef","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":167,"box":{"x":68,"y":838,"width":555,"height":11}},{"id":"075193ea-b1e4-450c-a29d-fb5ff0e8d358","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":167,"box":{"x":102,"y":861,"width":802,"height":11}},{"id":"6a814a28-678a-4b23-b91a-f1b00e271209","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":167,"box":{"x":68,"y":876,"width":825,"height":11}},{"id":"379a0f52-630c-41e5-8194-81da2cfc9aba","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":167,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"9aa350c6-f8f8-4d82-9e34-59ed110bc33d","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":167,"box":{"x":68,"y":906,"width":824,"height":12}},{"id":"e2722125-960e-4a17-b6ca-cbe0b43ecde4","block_type":"box","text":"II-125","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"40b94e5a-eca1-4941-8893-a63ba14a6a45","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c4e582fb-423d-4872-8c36-fde1df6c7664","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":168,"box":{"x":70,"y":45,"width":812,"height":11}},{"id":"02c2140c-f5fa-4d7f-9aef-17a34d41f636","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":168,"box":{"x":69,"y":60,"width":547,"height":11}},{"id":"d26ae136-b79d-4552-8bcb-8d9e82bb7ece","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":168,"box":{"x":102,"y":82,"width":804,"height":12}},{"id":"b1d9d312-6c11-492e-90d1-adbc58b8d0ee","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":168,"box":{"x":68,"y":98,"width":806,"height":11}},{"id":"d94d2e36-dfcb-4969-953a-27dce58b6dd2","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":168,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"e857e0b5-3ddb-4a40-bad5-0e71972657e4","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":168,"box":{"x":70,"y":128,"width":777,"height":11}},{"id":"fea51fa5-3886-4807-8480-ad2f992b3e4f","block_type":"box","text":"brokerage.","page_number":168,"box":{"x":69,"y":143,"width":74,"height":11}},{"id":"321c7146-3c32-4afb-a332-64cc0fbc5509","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":168,"box":{"x":102,"y":166,"width":781,"height":11}},{"id":"e86bb1e3-1484-48d4-bcf8-2f0617b5b67f","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":168,"box":{"x":68,"y":181,"width":810,"height":11}},{"id":"df4ee14a-4003-4bff-b872-c7a2b1b12b73","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":168,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"5dcd59af-4910-47f6-8089-992125be10f7","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":168,"box":{"x":69,"y":211,"width":818,"height":11}},{"id":"ad0fa292-2b3d-45f7-9c8c-0a310039d5e0","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":168,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"2a331126-38a6-498c-84e5-37a4fdc99569","block_type":"box","text":"Section 28(e).","page_number":168,"box":{"x":69,"y":241,"width":99,"height":11}},{"id":"e70b9c90-43a4-4725-8ceb-565eba3709cf","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":168,"box":{"x":102,"y":264,"width":755,"height":9}},{"id":"f3191ca9-4908-4055-80d9-9c6fda311712","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":168,"box":{"x":69,"y":279,"width":828,"height":11}},{"id":"627b8486-850c-455f-aeb2-63cb5b53706c","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":168,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"b8618136-2406-4117-9fa6-aa455b67500a","block_type":"box","text":"execute transactions for those mutual funds.","page_number":168,"box":{"x":69,"y":309,"width":319,"height":9}},{"id":"8e773c24-2c01-408d-9e0d-40280593a6b3","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":168,"box":{"x":102,"y":332,"width":770,"height":11}},{"id":"f0e38ed4-8fe6-4b4f-b1bd-c3d3d90b5af1","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":168,"box":{"x":70,"y":347,"width":825,"height":11}},{"id":"7874d600-984f-4054-ab21-e5490c016cc0","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":168,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"2c3b712a-0fca-4921-b4be-6cf26590b70b","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":168,"box":{"x":69,"y":377,"width":805,"height":12}},{"id":"cbf11aee-2c42-4012-8504-203a9db3a39d","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":168,"box":{"x":68,"y":392,"width":773,"height":12}},{"id":"b0548937-b38e-4db7-a59e-27779368e2b4","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":168,"box":{"x":69,"y":407,"width":798,"height":12}},{"id":"9d744317-8c39-463b-8835-b8f9aae484a5","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":168,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"5bf7cd9d-5422-4770-88d5-3b5b020424c6","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":168,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"54d2149e-ff05-4973-9018-0c6f2693cd81","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":168,"box":{"x":69,"y":453,"width":540,"height":11}},{"id":"bef00a37-f8d4-4bef-8a55-86f2c3334334","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":168,"box":{"x":102,"y":475,"width":798,"height":12}},{"id":"e90ef2e2-c6b1-4ffe-a266-a9db39ad9a54","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":168,"box":{"x":68,"y":491,"width":597,"height":11}},{"id":"453aabdd-8b92-426d-afe5-97ab6f662f94","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":168,"box":{"x":102,"y":513,"width":802,"height":11}},{"id":"0d8cbb20-f29f-42cb-88fd-824baab0fd63","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":168,"box":{"x":68,"y":529,"width":822,"height":10}},{"id":"e7f950bf-2748-416b-934f-0a4842533f01","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":168,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"da30a04c-d235-43e4-820c-c8d93347a35a","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":168,"box":{"x":69,"y":559,"width":832,"height":11}},{"id":"d0f0b632-5d29-42fa-8524-6f741828312d","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":168,"box":{"x":69,"y":574,"width":762,"height":11}},{"id":"6d459eea-6e8d-4fd2-9f17-ec29a66ecabc","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":168,"box":{"x":68,"y":589,"width":770,"height":11}},{"id":"cbd1daca-2dd7-4c84-bde5-62a93cb0d022","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":168,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"7fbedafd-ad44-47b5-8654-956fe85dab77","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":168,"box":{"x":70,"y":619,"width":814,"height":11}},{"id":"bf002096-d70c-44f4-9a96-d5f5e5f25e78","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":168,"box":{"x":69,"y":634,"width":825,"height":12}},{"id":"927ac4e7-c925-49ec-9e57-9f14546015c7","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":168,"box":{"x":69,"y":649,"width":645,"height":12}},{"id":"ec79f43a-5bf1-4ce0-8c5c-118c8119cb85","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":168,"box":{"x":102,"y":672,"width":797,"height":11}},{"id":"bb48032a-ff87-4e68-840c-676edc842e4f","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":168,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"d1650ca4-a0ca-4135-ab07-5e4eda5befad","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":168,"box":{"x":69,"y":703,"width":839,"height":11}},{"id":"dcb2e391-9c11-4571-abcc-db482437a7e4","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":168,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"7c6485ca-068b-49b4-96e0-fdaeb1004323","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":168,"box":{"x":69,"y":732,"width":826,"height":12}},{"id":"925bbfdb-5dfd-44e9-b130-352addb57670","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":168,"box":{"x":70,"y":748,"width":730,"height":11}},{"id":"4fb27712-0ecf-4164-94cd-b4da49518d03","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":168,"box":{"x":102,"y":770,"width":800,"height":11}},{"id":"0b341eda-3ae8-4919-97b7-066ee4f3e4b4","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":168,"box":{"x":69,"y":786,"width":807,"height":11}},{"id":"b1325197-2963-4357-8f37-6bfd81f66d20","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":168,"box":{"x":70,"y":801,"width":812,"height":11}},{"id":"08eb1f3c-969e-4fb9-9523-e5982ef561cd","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":168,"box":{"x":69,"y":816,"width":807,"height":11}},{"id":"c1712c2d-28d6-41ec-b5a5-5522ed2ff793","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":168,"box":{"x":68,"y":831,"width":827,"height":11}},{"id":"b7db2061-0278-43d7-bfd4-31dcc24451ae","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":168,"box":{"x":68,"y":846,"width":817,"height":11}},{"id":"ba150590-24de-4ca7-98a9-6e973caea351","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":168,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"e701e6be-584b-4f42-8b2f-aa9ddbc2f183","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":168,"box":{"x":69,"y":876,"width":700,"height":11}},{"id":"7178dbc3-5222-4b01-a929-86eb9619eb21","block_type":"box","text":"II-126","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e2d0bd27-7686-4e26-90e5-88aeb58470db","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55af31a3-80ef-4091-8836-5f8fcbee158a","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":169,"box":{"x":102,"y":45,"width":756,"height":11}},{"id":"1389b917-06e5-4924-ae4f-960884feb569","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":169,"box":{"x":68,"y":60,"width":804,"height":11}},{"id":"83ca2fd1-a4a2-4426-8633-5685a946dbc6","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":169,"box":{"x":69,"y":75,"width":766,"height":11}},{"id":"fd4bd030-5654-4112-b54e-dd0437f2757b","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":169,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"be2ac149-db99-484b-9969-e7bed519368b","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":169,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"af277121-aa8d-4c8d-b51b-2d7551f91c26","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":169,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"387abbc2-299c-4b7d-8c0f-0eb0f6062afc","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":169,"box":{"x":69,"y":143,"width":776,"height":11}},{"id":"cc9453b4-dee6-44cd-b838-32a942e59199","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":169,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"cbc0a2e9-f7e1-4a92-ad2a-b347df9800e2","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":169,"box":{"x":69,"y":173,"width":352,"height":11}},{"id":"ba25ce77-a3e6-4f3f-94fa-f8c16003c40d","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":169,"box":{"x":102,"y":196,"width":800,"height":11}},{"id":"b389c902-e80c-4715-880a-cc2552041891","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":169,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"b16d361b-43d4-46a6-ae46-3f8349a127d8","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":169,"box":{"x":69,"y":226,"width":828,"height":11}},{"id":"9f5a65bd-fcdb-49bb-8b9f-75f95cb4b15b","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":169,"box":{"x":68,"y":241,"width":788,"height":11}},{"id":"0bd4d8a4-420a-4199-ad16-47742ec155d8","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":169,"box":{"x":69,"y":256,"width":759,"height":12}},{"id":"09658f18-ccf7-499d-bf48-e651a30a2ba7","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":169,"box":{"x":69,"y":271,"width":780,"height":12}},{"id":"a75f3b4c-4bb1-4c24-9af0-5c47b97c643f","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":169,"box":{"x":69,"y":286,"width":777,"height":12}},{"id":"f106bf12-a3dd-43bc-a6f8-5cbc5689a0af","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":169,"box":{"x":69,"y":302,"width":788,"height":11}},{"id":"9ac8a593-f7db-4556-844a-a31388fd89b6","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":169,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"1e41c472-0536-409f-b031-5e9745c106d5","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":169,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"43917387-5e59-4923-8ca5-88e550e99517","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":169,"box":{"x":68,"y":347,"width":808,"height":11}},{"id":"94b5ba16-a013-4383-a0bc-d8cce6a9d134","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":169,"box":{"x":70,"y":362,"width":832,"height":11}},{"id":"7278646f-bc83-4106-878a-b6480e901bad","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":169,"box":{"x":70,"y":377,"width":836,"height":11}},{"id":"077cb096-9c3d-436d-a313-1d46dc670c18","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":169,"box":{"x":69,"y":392,"width":613,"height":12}},{"id":"b0ec5d9f-b440-4b31-8668-09638df698b0","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":169,"box":{"x":102,"y":415,"width":802,"height":11}},{"id":"8286ee8a-13ca-4a58-a4be-c4af48bbb803","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":169,"box":{"x":69,"y":430,"width":800,"height":11}},{"id":"aeb586d7-b756-4a50-b0da-38c96c899d37","block_type":"box","text":"accounts and compliance constraints.","page_number":169,"box":{"x":69,"y":446,"width":269,"height":10}},{"id":"a8d3f983-8b8b-44f1-ab69-33a4fbc30833","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":169,"box":{"x":102,"y":468,"width":736,"height":11}},{"id":"9cdd3831-add1-4719-bc33-eb68e8756332","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":169,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"5d64a012-1d52-4641-92ff-10fe1b14f750","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":169,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"e779ca29-ec7e-4520-9201-084e3495bcac","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":169,"box":{"x":69,"y":513,"width":823,"height":12}},{"id":"05f93890-a88f-405d-9ec7-1fb0c92aae44","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":169,"box":{"x":70,"y":528,"width":783,"height":12}},{"id":"854a9c96-fcac-4ba2-aa71-67396362b6c9","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":169,"box":{"x":69,"y":543,"width":793,"height":12}},{"id":"103954e2-ef4d-4a0c-b73c-1627d8912583","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":169,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"148d7ce0-fa15-4c8a-9fe3-6b8031b2daf2","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":169,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"0402471e-8b92-411f-9649-cb672fba6820","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":169,"box":{"x":68,"y":589,"width":839,"height":11}},{"id":"efc6ac46-3dab-4ae4-bbc7-b50877c5ae97","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":169,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"9009b2f6-9154-4af9-9697-d5174de598cf","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":169,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"04b7fc20-105f-4b20-a19d-ed80e2f0c2f3","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":169,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"93a6bc80-c69b-488f-838f-451b29183fc1","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":169,"box":{"x":69,"y":649,"width":791,"height":12}},{"id":"7d7ebb65-fd7b-4036-ab13-282019f55a19","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":169,"box":{"x":69,"y":664,"width":799,"height":12}},{"id":"027f927e-017f-4e94-bcaf-edd2c5168cfd","block_type":"box","text":"clients may be used as well.","page_number":169,"box":{"x":69,"y":680,"width":200,"height":11}},{"id":"1fc0bdb7-f156-4ea9-be92-b736a2b7d4bc","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":169,"box":{"x":102,"y":702,"width":789,"height":12}},{"id":"db2c9c05-5cf3-4e82-a0e3-9e2b4b460887","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":169,"box":{"x":68,"y":717,"width":815,"height":12}},{"id":"8d4858b4-1001-40ca-9e20-7dd4ff3d0220","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":169,"box":{"x":69,"y":732,"width":835,"height":12}},{"id":"6e7dbb72-70ff-4053-abb0-caa2cb949563","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":169,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"c577e22f-158b-4f03-85cc-4767a0bdba54","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":169,"box":{"x":69,"y":763,"width":829,"height":11}},{"id":"b249ffaf-0052-474c-9249-6b5ea6ba0c70","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":169,"box":{"x":69,"y":778,"width":825,"height":11}},{"id":"1ec546e2-0155-49e5-9145-781465dadabe","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":169,"box":{"x":69,"y":793,"width":806,"height":11}},{"id":"76d7e5d3-d2e5-43dc-8940-b3fea94a2b94","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":169,"box":{"x":69,"y":808,"width":814,"height":11}},{"id":"ee5ff907-6765-4ef8-ae96-94410373feee","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":169,"box":{"x":69,"y":823,"width":836,"height":9}},{"id":"c605d220-7e01-4e56-b441-9dea4b08f768","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":169,"box":{"x":69,"y":838,"width":773,"height":12}},{"id":"99a597f5-aced-47ba-a5bb-6b8e6e48936f","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":169,"box":{"x":69,"y":853,"width":467,"height":11}},{"id":"06299963-af8d-45c8-a3c0-62e1810f8b34","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":169,"box":{"x":102,"y":876,"width":741,"height":11}},{"id":"6ab9151d-ec71-4bbe-ab60-60a1933a341a","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":169,"box":{"x":69,"y":891,"width":721,"height":12}},{"id":"421dbde5-9e03-49c2-822d-648f437a2a37","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":169,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"67dccaef-5713-48e0-b0dc-8e974a55103e","block_type":"box","text":"II-127","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9f4b81c4-3460-429e-b644-13af8a8343b2","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15d946c0-a3af-4f6b-ad28-6e6433c05e32","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":170,"box":{"x":68,"y":45,"width":795,"height":11}},{"id":"de506563-ee9c-43e2-8dd6-ceb00b30649c","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":170,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"9e0b54f4-cf0a-435e-9b1a-3961ff54eecc","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":170,"box":{"x":69,"y":75,"width":783,"height":11}},{"id":"f503babb-f930-4cdc-abe1-6b5bf6c4eb73","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":170,"box":{"x":70,"y":90,"width":796,"height":11}},{"id":"81d23cfc-ff83-4928-8a63-fa2d33f6f32a","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":170,"box":{"x":69,"y":105,"width":821,"height":11}},{"id":"85854cf0-c1c8-462b-9cb1-535c777f2f8c","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":170,"box":{"x":68,"y":120,"width":819,"height":12}},{"id":"047197b7-3b03-4b3e-b2b9-6b0f3971eace","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":170,"box":{"x":70,"y":135,"width":771,"height":11}},{"id":"a7d05296-f725-4cbe-a12b-497be43feba8","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":170,"box":{"x":68,"y":150,"width":815,"height":12}},{"id":"c24507ab-998f-445a-9851-9735b66c7076","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":170,"box":{"x":68,"y":166,"width":835,"height":11}},{"id":"b2a4ada2-d06e-4cf5-9d0e-dc6ccc5cd2b9","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":170,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"88a75d43-a1fe-4d1e-a7f8-a404a599082d","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":170,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"b5282e33-65e6-440c-80e0-6373f4e7510b","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":170,"box":{"x":69,"y":211,"width":803,"height":11}},{"id":"881e6806-e138-4a85-bcce-5424a78ad0fa","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":170,"box":{"x":101,"y":234,"width":767,"height":11}},{"id":"86573cf1-490e-4775-a001-1539fa47d1c1","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":170,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"f466ef42-88cb-4a0a-a175-e5ff6b217c27","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":170,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"8d42edb9-b872-4275-b838-233796552689","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":170,"box":{"x":70,"y":279,"width":833,"height":11}},{"id":"70624180-505e-4bc0-a1a5-7a14bd5e8232","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":170,"box":{"x":69,"y":294,"width":818,"height":11}},{"id":"98c57c08-99e4-4e61-bfa0-a3b2ccfcbae2","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":170,"box":{"x":101,"y":317,"width":786,"height":11}},{"id":"bfe2dbb9-6486-4a1e-aaa9-4f9fc3241696","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":170,"box":{"x":69,"y":332,"width":814,"height":11}},{"id":"32d1a8f1-2edb-44a3-a9d0-9535e8f8cb85","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":170,"box":{"x":69,"y":347,"width":751,"height":11}},{"id":"fcaec162-66d5-4124-a7d2-7bfe7169b596","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":170,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"23ae3d43-256b-4488-825e-dca6c6d815ed","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":170,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"5c8e8cc5-6bb5-40c7-af08-36fb8f250952","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":170,"box":{"x":69,"y":392,"width":834,"height":12}},{"id":"0d6ae2cc-bf2a-45c7-b999-082a34325749","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":170,"box":{"x":68,"y":407,"width":820,"height":12}},{"id":"84cbda2e-a671-4790-a4ed-829aeb2751fb","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":170,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"6974e680-9599-4baf-89d0-85f0d0f454bf","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":170,"box":{"x":69,"y":438,"width":781,"height":10}},{"id":"f32d4cbe-15e5-43bf-8237-b80af011aa1f","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":170,"box":{"x":69,"y":453,"width":805,"height":11}},{"id":"1b07e4f9-7040-45eb-89f3-b4f27589901d","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":170,"box":{"x":69,"y":468,"width":840,"height":11}},{"id":"d48d2f87-8549-40af-9514-f6c17258673a","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":170,"box":{"x":69,"y":483,"width":815,"height":11}},{"id":"7971f88a-a30f-48b9-a738-334c2e84bf98","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":170,"box":{"x":69,"y":498,"width":713,"height":11}},{"id":"b5f984ed-92e6-4820-926d-eba2ae68c883","block_type":"box","text":"Portfolio Turnover","page_number":170,"box":{"x":69,"y":528,"width":129,"height":9}},{"id":"038ae57f-2dbd-492e-8707-2a9c4c323f29","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":170,"box":{"x":101,"y":551,"width":798,"height":11}},{"id":"9ec14e97-24da-45d6-9ce1-33686b69bc5c","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":170,"box":{"x":69,"y":566,"width":839,"height":11}},{"id":"190de9d1-00df-42cf-b39a-e41c86b9f934","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":170,"box":{"x":68,"y":581,"width":814,"height":12}},{"id":"584e0446-2c3d-48d0-927c-db1d9b79bbe6","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":170,"box":{"x":68,"y":596,"width":777,"height":12}},{"id":"7950d499-d1ab-4e41-a486-b868161fae45","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":170,"box":{"x":69,"y":612,"width":818,"height":11}},{"id":"ddf011cc-e02c-4bb8-9d10-0ec9f2c96e2b","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":170,"box":{"x":69,"y":627,"width":519,"height":11}},{"id":"47407be7-5d40-4f61-922a-ed990f5a4bc0","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":170,"box":{"x":396,"y":656,"width":186,"height":10}},{"id":"ec9c1743-e96e-4d9e-9024-b719dac79ec8","block_type":"box","text":"Dividends","page_number":170,"box":{"x":69,"y":687,"width":69,"height":9}},{"id":"51de5c97-6a6f-4a37-bfb7-3eebdb2fc6a3","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":170,"box":{"x":102,"y":709,"width":776,"height":11}},{"id":"95a5d143-9896-4d72-9222-2c61cceea4fc","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":170,"box":{"x":70,"y":724,"width":795,"height":11}},{"id":"75de23b1-cdd3-4c8c-9275-67585ebcc0e7","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":170,"box":{"x":69,"y":739,"width":837,"height":12}},{"id":"ecbad1cb-2d3f-4988-873a-993950462f5a","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":170,"box":{"x":69,"y":755,"width":836,"height":11}},{"id":"17507422-3221-433a-b388-5f2d33abcc22","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":170,"box":{"x":70,"y":770,"width":822,"height":11}},{"id":"fdbadcf3-fba6-4f27-a910-0030b432e49d","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":170,"box":{"x":69,"y":785,"width":739,"height":11}},{"id":"c5ce51f6-3962-4b27-83a0-48bc5d8cb1ec","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":170,"box":{"x":102,"y":807,"width":773,"height":12}},{"id":"155d1226-6ee3-4393-9b01-1ee31a46ef84","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":170,"box":{"x":70,"y":823,"width":819,"height":11}},{"id":"66561bca-26af-4a1f-85aa-745fe588358e","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":170,"box":{"x":69,"y":838,"width":807,"height":11}},{"id":"c2c05aa0-40f6-4a21-816f-9e4c8279dc0c","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":170,"box":{"x":68,"y":853,"width":800,"height":11}},{"id":"d62af8a6-1644-477c-b566-42950cc36dcd","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":170,"box":{"x":69,"y":868,"width":801,"height":11}},{"id":"afe3a98b-8b2e-4dc6-83c7-0c437e4c1622","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":170,"box":{"x":69,"y":883,"width":783,"height":11}},{"id":"b85a1e95-e7d6-4b61-84b0-dd06e7112d4a","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":170,"box":{"x":69,"y":898,"width":820,"height":11}},{"id":"075e1458-038e-43e7-88e0-51c5bd429357","block_type":"box","text":"II-128","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c0591aeb-f078-415c-a1b6-a18cd75a23a0","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b35b4fdf-631a-4622-a9c8-09e8c13159c2","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":171,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"62fa6855-1f5b-4668-b25a-ae756709de88","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":171,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"c6ee5f0b-d022-460e-80b0-a87299cee58b","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":171,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"e2a95d0d-2e1a-46c1-b8ec-9d224ec75a97","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":171,"box":{"x":69,"y":90,"width":816,"height":11}},{"id":"30e09de6-8109-400f-aa7d-b4bf4328b442","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":171,"box":{"x":68,"y":105,"width":461,"height":11}},{"id":"a4bdc626-fe89-4b3a-984e-b9fa76ad53d7","block_type":"box","text":"Taxes","page_number":171,"box":{"x":68,"y":136,"width":42,"height":8}},{"id":"9e05ca56-3383-4c65-9880-eaca85ba9de0","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":171,"box":{"x":102,"y":158,"width":732,"height":11}},{"id":"f3925598-91ea-4e84-a954-fac3d25d9500","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":171,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"c0c2f29b-b5e0-43de-8cf5-b802326fe058","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":171,"box":{"x":70,"y":188,"width":817,"height":12}},{"id":"7b9f4819-9663-4ffc-84a0-c607e61583e3","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":171,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"7b58d6f3-45d2-436c-a803-23da808b6f89","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":171,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"7be0b95f-c601-4c47-b495-6cc75370fa35","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":171,"box":{"x":69,"y":234,"width":786,"height":11}},{"id":"67293ba6-5328-432d-ba7d-fe95a1b837d9","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":171,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"a909b8db-5778-4e2f-9c83-890001c58aaa","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":171,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"a32a0f60-e92f-46b6-b43a-b16a059a3847","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":171,"box":{"x":69,"y":279,"width":824,"height":11}},{"id":"c2aa091f-734e-4934-bf71-1c80a7a0548e","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":171,"box":{"x":69,"y":294,"width":739,"height":11}},{"id":"bd2efd38-5976-4670-9768-9f79d2188706","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":171,"box":{"x":101,"y":317,"width":792,"height":11}},{"id":"ed37cf64-9bed-44f2-8f3a-944ab894d323","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":171,"box":{"x":68,"y":332,"width":819,"height":11}},{"id":"4c0f271b-552e-4221-91fd-cb98a06acaa6","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":171,"box":{"x":70,"y":347,"width":830,"height":11}},{"id":"81a59c67-a61e-4a5f-9c5b-4b48ebad24dd","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":171,"box":{"x":68,"y":362,"width":744,"height":11}},{"id":"eaeeceb1-561c-4f5f-ba30-1224ea60265d","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":171,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"a1fcdac1-098b-49d7-b868-f49bbea55e43","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":171,"box":{"x":69,"y":392,"width":808,"height":12}},{"id":"17c3539b-2523-445e-b5a4-eabeafe1719c","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":171,"box":{"x":69,"y":407,"width":767,"height":12}},{"id":"2b3d0e3e-9b59-4984-b6bf-43a0466cafa3","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":171,"box":{"x":70,"y":423,"width":826,"height":11}},{"id":"1a1f2801-f205-48b4-a03e-dc4ef4afd3cb","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":171,"box":{"x":68,"y":438,"width":521,"height":11}},{"id":"0d8db983-31d8-4192-9ad4-94a3be051f98","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":171,"box":{"x":102,"y":460,"width":798,"height":12}},{"id":"e0c5ffd8-5ea1-478d-88d3-a95fc6b2eaec","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":171,"box":{"x":69,"y":475,"width":762,"height":12}},{"id":"ccb58900-a664-424c-960c-b6f253dbe9fe","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":171,"box":{"x":70,"y":491,"width":789,"height":11}},{"id":"ad4f1c15-9e21-4b3e-8330-fa767c7e72af","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":171,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"6f6eb95e-fca8-4491-84be-2ea40cdb3b8a","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":171,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"158da57f-b7a3-4527-9cda-9648d630ad4e","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":171,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"75034b47-8243-443b-a52c-6c70150df3fb","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":171,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"c29acf72-6581-441e-ba69-a08cc5612ba1","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":171,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"da6b8013-77ce-4315-ac24-71af201cf995","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":171,"box":{"x":70,"y":581,"width":813,"height":12}},{"id":"6e8a2ce5-832a-4047-8366-faf85807301e","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":171,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"60235265-34d0-4856-ab1b-7f95c77f7798","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":171,"box":{"x":69,"y":612,"width":790,"height":11}},{"id":"44618387-d696-48e6-903c-916f55f5fdf7","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":171,"box":{"x":69,"y":627,"width":771,"height":11}},{"id":"ee257eb6-f4ce-432b-be0c-fe74b71e52f4","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":171,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"07705956-d88a-41ea-9769-0516c1ac6a8c","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":171,"box":{"x":101,"y":665,"width":759,"height":11}},{"id":"bd0023ae-ff6d-4222-b333-5d66a6d28379","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":171,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"d40b199c-0de8-4ebc-8220-98702bedb9bb","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":171,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"bd15db88-3271-4eed-8aad-fe542c005bd9","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":171,"box":{"x":68,"y":710,"width":832,"height":11}},{"id":"171f0ed4-a436-401a-ae73-eec7098a09f6","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":171,"box":{"x":70,"y":725,"width":825,"height":11}},{"id":"0c95b20e-e303-41c8-b567-d4d1410a18cb","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":171,"box":{"x":70,"y":740,"width":810,"height":11}},{"id":"bc7e4d48-75b4-43a3-a8b4-cf16e160d9e5","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":171,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"55d16acb-a7d5-492c-a422-b102590ebfbd","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":171,"box":{"x":68,"y":770,"width":666,"height":12}},{"id":"9ab48042-8505-4a7a-9850-203358abcbee","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":171,"box":{"x":102,"y":793,"width":790,"height":11}},{"id":"9f32e949-0882-4a42-8a66-87125e03891c","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":171,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"8f922b94-57fb-497b-8102-f8cefa2eccd8","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":171,"box":{"x":69,"y":823,"width":770,"height":11}},{"id":"fc07776a-4875-42b8-888b-ad24b17a2758","block_type":"box","text":"limitation.","page_number":171,"box":{"x":70,"y":839,"width":68,"height":8}},{"id":"0bfd4273-6bb5-4568-ae1f-1f701910c51f","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":171,"box":{"x":102,"y":861,"width":803,"height":11}},{"id":"aa13b656-a632-4a40-bc29-13aa32a8ce0f","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":171,"box":{"x":68,"y":876,"width":790,"height":11}},{"id":"ba31d189-c9a6-4bfe-9f22-f7612da9f6c1","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":171,"box":{"x":70,"y":891,"width":815,"height":12}},{"id":"a3319991-1ed8-43fd-8217-3f7e3514b9c6","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":171,"box":{"x":68,"y":906,"width":748,"height":12}},{"id":"3283832f-4f57-4f57-b142-1882403d5c68","block_type":"box","text":"II-129","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"12a74b4e-a0bb-4e99-8d6a-5fa96274192e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d90a9012-a4c8-4554-a6c9-0cb618aaa314","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":172,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"c4e88306-be63-40e1-9fc4-4ffafff2142f","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":172,"box":{"x":70,"y":60,"width":829,"height":11}},{"id":"eecf157a-dcb8-4f2d-b854-3250aed89607","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":172,"box":{"x":70,"y":75,"width":785,"height":11}},{"id":"70047054-1b86-427c-a088-35a8a44b7ee0","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":172,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"77cfa879-e6ed-402b-b214-7567ebb7e957","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":172,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"57f54675-e706-4300-bb29-473ff9e1ea31","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":172,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"cdc6c475-6fb0-4244-8448-36d442782cfa","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":172,"box":{"x":68,"y":135,"width":822,"height":12}},{"id":"ffad7a3b-7dac-485a-9b9a-0413e0b88ccf","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":172,"box":{"x":68,"y":150,"width":751,"height":11}},{"id":"f7bf4f70-da3f-4715-83c9-f4d11762a23a","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":172,"box":{"x":69,"y":166,"width":823,"height":11}},{"id":"ece15e2c-1df3-4c8c-87f1-166cfc7d3335","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":172,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"c5a34a45-9544-4f96-abf8-e4db26df7f2d","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":172,"box":{"x":68,"y":196,"width":813,"height":11}},{"id":"017c6a4e-630c-4854-a6b7-b9e5ca7a0c90","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":172,"box":{"x":69,"y":211,"width":825,"height":11}},{"id":"6e9b40ef-60b7-4f0f-b2a1-20c692f459a4","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":172,"box":{"x":68,"y":226,"width":789,"height":11}},{"id":"b76c3b0f-eb40-4353-8956-5cd22e85c70c","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":172,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"58e3e53c-ad99-4974-bed9-da6e4140e508","block_type":"box","text":"constitute “qualified dividend income.”","page_number":172,"box":{"x":69,"y":256,"width":275,"height":11}},{"id":"9f98c156-8681-4f71-9702-3f19ab23786a","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":172,"box":{"x":101,"y":279,"width":806,"height":11}},{"id":"d710cf95-e9d5-4cbf-8f1c-92891347926b","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":172,"box":{"x":70,"y":294,"width":368,"height":11}},{"id":"af741157-42ef-4069-a7e7-fe236ddffeff","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":172,"box":{"x":101,"y":317,"width":772,"height":11}},{"id":"e9b456c8-a1b8-4eee-b4dd-fc587ccc81b4","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":172,"box":{"x":69,"y":332,"width":811,"height":11}},{"id":"0d016760-40d8-47a9-a895-b513585071ba","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":172,"box":{"x":70,"y":347,"width":745,"height":11}},{"id":"2c096035-ac5b-4895-90cd-146fa0eaeeba","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":172,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"392097c4-10bc-4a67-bf2b-16ee8281cee7","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":172,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"61de5856-13ed-43c5-8d09-fe67c2ee54eb","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":172,"box":{"x":69,"y":392,"width":809,"height":12}},{"id":"742d5e6b-30ae-4e60-8ec8-329fbe2ab036","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":172,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"876211cf-7f70-4bc8-9e6f-d772f377567a","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":172,"box":{"x":69,"y":423,"width":838,"height":11}},{"id":"568e863a-47df-4722-9178-fc4b0ceeec03","block_type":"box","text":"against their taxes.","page_number":172,"box":{"x":69,"y":438,"width":135,"height":11}},{"id":"cdb8483c-78d3-41c2-8f91-9271c1f6e2c4","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":172,"box":{"x":102,"y":460,"width":783,"height":12}},{"id":"3b4b8de7-dec2-40ab-9b43-86447a31120e","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":172,"box":{"x":68,"y":475,"width":812,"height":12}},{"id":"d1019c7a-7b87-48f0-a1b5-23f151108ce9","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":172,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"328a2978-dfea-44bd-bbaa-a4103445b206","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":172,"box":{"x":69,"y":506,"width":805,"height":11}},{"id":"21b26281-94da-4f35-bed8-714452351075","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":172,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"64668b8d-aaf1-45f9-b6b4-4d44dea2a4e7","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":172,"box":{"x":68,"y":536,"width":831,"height":11}},{"id":"777fa8af-aa19-46b4-8bff-caeb74b4f9fb","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":172,"box":{"x":68,"y":551,"width":817,"height":11}},{"id":"25086fb3-2108-4160-ada9-071ebdd1bdf9","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":172,"box":{"x":70,"y":566,"width":797,"height":11}},{"id":"95320b86-d5e8-4968-97e8-f580534b49d6","block_type":"box","text":"dividends received by the shareholder.","page_number":172,"box":{"x":69,"y":582,"width":272,"height":10}},{"id":"52fbbfd9-7c28-48d6-b3b2-e08fcb159d82","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":172,"box":{"x":102,"y":604,"width":792,"height":11}},{"id":"4e210b27-51c2-4396-82b3-512601b4d012","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":172,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"be028adf-f027-425f-bc15-6e839a876f10","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":172,"box":{"x":68,"y":634,"width":809,"height":11}},{"id":"30fb7161-543a-4ca0-8cd8-28fb87571678","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":172,"box":{"x":68,"y":649,"width":819,"height":11}},{"id":"3e767fcf-c628-4b2d-8a50-36ce2c3ef10f","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":172,"box":{"x":69,"y":664,"width":839,"height":12}},{"id":"de97c226-00c1-43b9-9cbb-6e0bb711749f","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":172,"box":{"x":69,"y":680,"width":794,"height":11}},{"id":"4557274d-0f8b-4709-845d-47b5ffc920dc","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":172,"box":{"x":69,"y":695,"width":804,"height":11}},{"id":"533e82fa-05d9-4443-bf9c-63285c2bfd4f","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":172,"box":{"x":70,"y":710,"width":797,"height":11}},{"id":"daaab5df-9896-4395-9702-092f7bbf4515","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":172,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"ca1ed117-d128-4e99-9dcb-fb2ef6841771","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":172,"box":{"x":68,"y":740,"width":826,"height":11}},{"id":"27927a4b-db4c-4cfd-ab3d-66eac4980868","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":172,"box":{"x":70,"y":755,"width":772,"height":11}},{"id":"66e96fd8-cc02-4eb0-89d3-68dfad3fdd18","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":172,"box":{"x":70,"y":770,"width":795,"height":12}},{"id":"95da0166-b7da-4b69-a6d3-81a94f94e943","block_type":"box","text":"taxable year.","page_number":172,"box":{"x":68,"y":786,"width":89,"height":11}},{"id":"14318824-f815-4f74-ac7e-d763f1e8930a","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":172,"box":{"x":102,"y":808,"width":733,"height":11}},{"id":"3afcb127-43f7-4be1-ac83-2fa3a02bb257","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":172,"box":{"x":69,"y":823,"width":832,"height":11}},{"id":"d8f47551-de68-4132-a408-83f5bf113161","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":172,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"9aa45552-4fd4-47bb-9a98-b448d1a7c52c","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":172,"box":{"x":69,"y":853,"width":362,"height":12}},{"id":"de3b68e1-4277-4d23-81b3-77417bf31fdc","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":172,"box":{"x":102,"y":876,"width":795,"height":11}},{"id":"87ab0b3c-87ab-43e8-a86f-1c8095c22151","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":172,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"e0e43699-2b24-488a-81e8-3cd65a95c4dc","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":172,"box":{"x":69,"y":907,"width":797,"height":11}},{"id":"409f8cf9-c141-4ee8-ab5e-3e13c9e40054","block_type":"box","text":"II-130","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"872d95c4-1aff-4526-b770-d9b660e98532","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d082b4f-9d2d-4188-8a2a-d748f10f5ad9","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":173,"box":{"x":69,"y":45,"width":791,"height":11}},{"id":"9dcd2379-f072-4882-9277-2a250ac858fc","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":173,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"c62ab707-4eef-474d-ba5b-3f2632dcf8f2","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":173,"box":{"x":101,"y":82,"width":807,"height":12}},{"id":"c4762368-9266-43fb-a161-d0d8b6899b8e","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":173,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"0c54127f-b0c3-4985-8eb1-5c00a1a03a15","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":173,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"350c139e-a93c-42e5-ac5b-973f3f0bbea3","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":173,"box":{"x":69,"y":128,"width":534,"height":11}},{"id":"5f7f9754-e93d-43c8-8221-3075c61bc030","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":173,"box":{"x":101,"y":150,"width":792,"height":12}},{"id":"43d99bae-5e5a-4755-996e-d09d2f5af61c","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":173,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"8b028298-1b9a-4233-be5e-546ec2198c58","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":173,"box":{"x":70,"y":181,"width":828,"height":11}},{"id":"1ea24944-e4f3-443a-944b-5e9d12a14e56","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":173,"box":{"x":70,"y":196,"width":824,"height":11}},{"id":"2778260c-631e-4930-a71d-f8f06c75ad7d","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":173,"box":{"x":69,"y":211,"width":816,"height":11}},{"id":"d79e1135-0762-4b2a-90d5-5087e8be9432","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":173,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"fe641a67-39e4-4f2c-99a9-4f42d2c6ac1b","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":173,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"f5689c8d-5b31-4e08-93fe-13af90f2f871","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":173,"box":{"x":69,"y":256,"width":788,"height":12}},{"id":"c3fe2132-1d24-47ec-9cb5-b09f4c0b3a4e","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":173,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"3f62446b-7ed7-4d9f-94d5-c76e38ccbbcd","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":173,"box":{"x":69,"y":286,"width":821,"height":12}},{"id":"3db7b8e3-a705-4f37-9249-c5b022e68058","block_type":"box","text":"redemption of such shares.","page_number":173,"box":{"x":69,"y":302,"width":195,"height":11}},{"id":"3c9f7fbc-ea44-4086-8f3c-0775907fbfac","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":173,"box":{"x":102,"y":324,"width":799,"height":11}},{"id":"1ef89ff1-2048-47ed-8e2b-a607aa941524","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":173,"box":{"x":69,"y":339,"width":791,"height":12}},{"id":"b3403976-8146-4e3e-ba50-3dc16025e557","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":173,"box":{"x":70,"y":355,"width":826,"height":11}},{"id":"1126c769-1010-453b-aed0-20f54adf991f","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":173,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"7fea0a51-d947-47c0-9123-27a85da4887a","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":173,"box":{"x":70,"y":385,"width":825,"height":11}},{"id":"90a1c4b8-55a5-4195-82dc-67fb0a400ad4","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":173,"box":{"x":69,"y":400,"width":829,"height":11}},{"id":"3d09b1cb-5397-4ec9-b731-17f05796f138","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":173,"box":{"x":69,"y":415,"width":826,"height":11}},{"id":"bc479b4a-bbdf-4d5b-a2fc-ab61dc5c3cb2","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":173,"box":{"x":69,"y":430,"width":808,"height":11}},{"id":"de8af6a8-7189-4ae0-884e-a0003d55f539","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":173,"box":{"x":69,"y":445,"width":787,"height":11}},{"id":"1969ecb2-8ea0-4bf4-b716-28d64b08818a","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":173,"box":{"x":69,"y":460,"width":816,"height":12}},{"id":"103ea9c3-198f-48d9-b563-7a36d1bd0139","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":173,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"34d34852-5f4d-4ec1-bc69-7a6f1dc40689","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":173,"box":{"x":68,"y":491,"width":542,"height":11}},{"id":"41d2677b-66ed-4e05-94d2-7180fb739c60","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":173,"box":{"x":102,"y":513,"width":744,"height":12}},{"id":"12d0a5a9-cfa6-477b-8c95-7b0f20c5fa12","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":173,"box":{"x":69,"y":528,"width":751,"height":12}},{"id":"8a155d11-e363-428b-a3b1-a0b80947fe47","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":173,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"80316f7d-40c0-48b3-ba69-5c1e670b7227","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":173,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"84d8f0d2-ad20-4754-ad44-94d5e511d0d3","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":173,"box":{"x":68,"y":574,"width":823,"height":11}},{"id":"beb1ac8d-9ab8-4ed0-a6a8-66539927962f","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":173,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"33e38b44-8788-4fee-ac77-2022e71bc02c","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":173,"box":{"x":69,"y":604,"width":797,"height":11}},{"id":"257d7f06-0990-4925-b117-8cacc410c106","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":173,"box":{"x":68,"y":619,"width":838,"height":11}},{"id":"b39d08a8-ee29-4c9d-be9f-09d3924adb17","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":173,"box":{"x":69,"y":634,"width":695,"height":12}},{"id":"2ef7ce38-f875-41e5-a118-dcfed417f974","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":173,"box":{"x":102,"y":657,"width":768,"height":11}},{"id":"a69f8f8d-059e-4519-a196-13d778abd4bf","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":173,"box":{"x":69,"y":672,"width":769,"height":11}},{"id":"4b433aff-2aa7-460f-aeff-d2a7b243965e","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":173,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"03f581fb-d6d3-44dc-9bea-8b5bfff9769a","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":173,"box":{"x":70,"y":702,"width":819,"height":12}},{"id":"ac206f8f-1ce3-4765-93d0-b63f6fecc023","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":173,"box":{"x":68,"y":718,"width":818,"height":11}},{"id":"fba37acc-d271-4f4c-9af9-0fb18b641d1f","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":173,"box":{"x":70,"y":732,"width":830,"height":12}},{"id":"fd1ca23d-463d-4115-801e-761e8efd56c9","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":173,"box":{"x":70,"y":748,"width":792,"height":11}},{"id":"f7810e69-d4ad-4896-a4a0-e87454378c1c","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":173,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"bd6470c8-facb-4888-bfee-fde92ba10620","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":173,"box":{"x":70,"y":778,"width":812,"height":11}},{"id":"57208dd4-13a7-4147-a22b-bc02b315a5e1","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":173,"box":{"x":69,"y":793,"width":789,"height":11}},{"id":"816e2931-566a-414c-8418-ce69c3395dd2","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":173,"box":{"x":68,"y":808,"width":777,"height":11}},{"id":"d14e5f55-b16f-4330-9654-b4b779b9bbc6","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":173,"box":{"x":69,"y":823,"width":810,"height":12}},{"id":"945507d7-2642-4818-a338-e4b34ff6f145","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":173,"box":{"x":70,"y":838,"width":801,"height":12}},{"id":"48edb342-5ca3-466a-b557-96912a145715","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":173,"box":{"x":69,"y":853,"width":762,"height":12}},{"id":"02fd3c5f-04ad-4994-8908-04d19a6e6c10","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":173,"box":{"x":70,"y":869,"width":827,"height":11}},{"id":"5c5d88e8-48fd-4605-9374-9516c2243527","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":173,"box":{"x":69,"y":884,"width":787,"height":11}},{"id":"0da61fe7-9ce9-4d72-ab46-446fd095bf63","block_type":"box","text":"II-131","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"35c46746-1eba-453f-ac01-ed1bfca7fc63","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0dfacdd-05d7-42af-a1d9-728e3bfde10b","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":174,"box":{"x":70,"y":45,"width":822,"height":11}},{"id":"da621629-d6bc-4143-b32c-1e96f36588af","block_type":"box","text":"in subsequent taxable years.","page_number":174,"box":{"x":70,"y":60,"width":203,"height":11}},{"id":"cdf27758-edcc-4b4f-91f7-156c60f8ad6c","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":174,"box":{"x":102,"y":82,"width":795,"height":12}},{"id":"d61df663-1050-48cf-b5bb-19bdc6b728bc","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":174,"box":{"x":68,"y":98,"width":816,"height":11}},{"id":"00caa7f8-12d4-4709-95ce-5d4bac8f0873","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":174,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"7c9ffbdd-d5e3-4f2f-aabb-8043c37f9f35","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":174,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"18b7176b-e984-4887-a044-bd5ad9ba9fe9","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":174,"box":{"x":69,"y":143,"width":816,"height":11}},{"id":"76537d30-1202-4837-a0ac-d9cb3d4384f3","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":174,"box":{"x":69,"y":158,"width":840,"height":11}},{"id":"be2f7e99-d1cf-4d3b-b765-f12ebccc02a1","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":174,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"70f7a896-0b2b-4d82-9b2a-1735de8175f4","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":174,"box":{"x":69,"y":188,"width":824,"height":12}},{"id":"fdc86651-48da-466f-ac28-9f9c97e09828","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":174,"box":{"x":69,"y":204,"width":832,"height":11}},{"id":"c166a249-29bc-4761-9ced-11183e718dd5","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":174,"box":{"x":68,"y":219,"width":808,"height":11}},{"id":"5c2fb68f-0830-462e-bc02-63f45678d8b8","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":174,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"77b4a23f-4a50-4246-b5de-b3114de70ad7","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":174,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"00007926-d413-4315-8ec8-bfbd2a65798e","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":174,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"8ebc82f4-a7bb-48a8-842b-1f132072ddcd","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":174,"box":{"x":68,"y":279,"width":784,"height":11}},{"id":"438e5a7c-7dd0-4cd8-9c23-883751f810be","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":174,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"1eb8fcdf-ccf5-4088-ac96-8b4d4326b2af","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":174,"box":{"x":70,"y":309,"width":839,"height":11}},{"id":"4fa5a4ef-33c5-4b3d-b8e3-3d9c11c32407","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":174,"box":{"x":70,"y":325,"width":772,"height":11}},{"id":"b4dc5e0b-30c9-4484-98d4-b189534109bf","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":174,"box":{"x":70,"y":339,"width":791,"height":11}},{"id":"b09b4464-cf50-461b-8948-a4ba9a093bef","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":174,"box":{"x":70,"y":355,"width":787,"height":11}},{"id":"05fdc489-ee92-456a-b041-e3eddf95d1e4","block_type":"box","text":"dividends under these rules.","page_number":174,"box":{"x":69,"y":370,"width":201,"height":9}},{"id":"6854f66c-b23f-4a40-8d3a-0b3e3c6d3a04","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":174,"box":{"x":102,"y":392,"width":747,"height":12}},{"id":"cfff388c-0097-496b-9914-da39a64848e0","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":174,"box":{"x":70,"y":407,"width":838,"height":12}},{"id":"0d022465-a924-4404-a3c6-b7dcf042e797","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":174,"box":{"x":68,"y":423,"width":829,"height":11}},{"id":"da38ca7d-9a34-4689-9c1a-a57f0bd179d5","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":174,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"5a8a6375-f04f-462f-99b1-9588f3360f69","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":174,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"1226bd64-9ee7-469c-8acb-4cb723cd03cb","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":174,"box":{"x":69,"y":468,"width":800,"height":11}},{"id":"d189d5af-72a7-4ea5-b322-35ad1fd97f3b","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":174,"box":{"x":70,"y":483,"width":807,"height":11}},{"id":"0512bd2d-e73e-4b17-b937-f7dbb8e2c9be","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":174,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"95b7dd51-52aa-4bca-800b-173a049adfd4","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":174,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"86be66d8-8c82-446b-a383-71a8c10a73e8","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":174,"box":{"x":68,"y":528,"width":820,"height":12}},{"id":"297ef9d9-d010-4961-ae92-acd2a8a985d3","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":174,"box":{"x":69,"y":543,"width":833,"height":12}},{"id":"20891db3-692c-4d44-9bb5-e603e342d886","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":174,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"a67a042e-f4bc-40fe-b9fa-7ff2b42255e5","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":174,"box":{"x":69,"y":574,"width":774,"height":11}},{"id":"e5070a20-6845-4993-beb6-e5e1c9e31411","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":174,"box":{"x":69,"y":589,"width":839,"height":11}},{"id":"d6445e45-45a6-4f10-98b6-dc73f378a303","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":174,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"b180a86d-e307-4980-a558-f1dd3b0c165f","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":174,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"43b4754c-4a51-4438-9858-c2e7704575a7","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":174,"box":{"x":69,"y":634,"width":823,"height":12}},{"id":"3da4f46d-02f0-4102-b1e1-648e5c58f808","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":174,"box":{"x":68,"y":649,"width":827,"height":12}},{"id":"b519e521-fabf-4294-aeb0-7c9b29b2f232","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":174,"box":{"x":69,"y":664,"width":596,"height":12}},{"id":"fd097198-4013-4099-bc91-ee175344b65f","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":174,"box":{"x":102,"y":687,"width":802,"height":11}},{"id":"33d1c9b3-6388-442d-9b33-4b192aceb4e9","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":174,"box":{"x":69,"y":702,"width":827,"height":12}},{"id":"0975d24f-b10b-4519-9428-27740254d2cf","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":174,"box":{"x":69,"y":717,"width":804,"height":12}},{"id":"4eadc46f-7fd7-4458-a2a7-881bd09465cd","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":174,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"3cef9f64-f812-4a3e-9649-6c71933f9d51","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":174,"box":{"x":68,"y":748,"width":801,"height":11}},{"id":"7b78e272-7d37-4c74-8477-fbd68fb7b4c7","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":174,"box":{"x":69,"y":763,"width":803,"height":11}},{"id":"79f5765e-1c91-4d94-961a-22cb152d1367","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":174,"box":{"x":69,"y":778,"width":785,"height":11}},{"id":"c9716ce4-ee5d-40da-9072-e56ba672455f","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":174,"box":{"x":69,"y":793,"width":676,"height":11}},{"id":"3ace6acc-7168-47dc-af47-daa4d3d396dc","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":174,"box":{"x":101,"y":816,"width":798,"height":11}},{"id":"7d05abd0-31e3-4fee-a6c0-56eecfc7daa4","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":174,"box":{"x":69,"y":831,"width":651,"height":11}},{"id":"20673749-7241-4ab4-82cf-a493b971aacc","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":174,"box":{"x":102,"y":853,"width":731,"height":12}},{"id":"1b62ba1b-48c6-41c2-87ae-bc11d7749047","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":174,"box":{"x":69,"y":869,"width":570,"height":11}},{"id":"5c007e60-2198-466e-84fd-67745a3c3301","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":174,"box":{"x":102,"y":891,"width":763,"height":12}},{"id":"ae18278c-2599-4333-ac75-fc9467088176","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":174,"box":{"x":70,"y":906,"width":820,"height":12}},{"id":"c0ed23cc-437c-4db7-9d99-1ae4e4392a6f","block_type":"box","text":"II-132","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6e1b755b-53e3-4b71-974d-03d462afc4c4","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e5fa9d6-4be0-4c6b-a98e-2ac2428f6d29","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":175,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"9d02d7f7-0102-4c10-806d-5ce24e7a2b04","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":175,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"3d867ada-0203-42dc-b907-7b93541b6adc","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":175,"box":{"x":69,"y":75,"width":791,"height":11}},{"id":"f50099af-abf9-42af-b826-8f5060ce7b47","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":175,"box":{"x":68,"y":90,"width":791,"height":11}},{"id":"03e0557b-9347-4e20-87cd-496f72ad5946","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":175,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"9b17d130-fea0-4649-ae7e-3eac35619e74","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":175,"box":{"x":70,"y":120,"width":739,"height":12}},{"id":"a3a5d476-f057-47a7-99df-0fd160b1b9fe","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":175,"box":{"x":102,"y":143,"width":786,"height":11}},{"id":"b205adc2-8705-4db9-9f8b-cef00a4686cc","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":175,"box":{"x":70,"y":158,"width":820,"height":11}},{"id":"3be166bc-06f0-412b-a1bc-09dd01178ce6","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":175,"box":{"x":69,"y":173,"width":837,"height":11}},{"id":"ec99a688-e5d0-4ff7-84f0-1d57f0a5b3df","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":175,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"3b6a522f-a197-4d65-9626-30b6b23603ca","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":175,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"d6b76c42-673f-4929-a4ee-9b34d2a7e97e","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":175,"box":{"x":69,"y":219,"width":826,"height":11}},{"id":"e1fa9c1d-642b-43eb-be51-43d0a7ea0791","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":175,"box":{"x":69,"y":234,"width":802,"height":11}},{"id":"fe7ffb2b-ed86-45b3-b025-0ff8792ec3e1","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":175,"box":{"x":69,"y":249,"width":364,"height":11}},{"id":"3fe301df-43c3-4616-b82e-2c07ce03f244","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":175,"box":{"x":102,"y":271,"width":774,"height":12}},{"id":"d2e3047b-e679-4c6d-82cd-1a121d638c27","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":175,"box":{"x":68,"y":286,"width":787,"height":12}},{"id":"68f61909-9b79-4210-9f9c-1df4fd3c4f06","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":175,"box":{"x":68,"y":301,"width":835,"height":12}},{"id":"c91771de-9fae-4f14-9901-b3fd6afe2587","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":175,"box":{"x":68,"y":317,"width":809,"height":11}},{"id":"2d1f44bf-cbd2-4e29-87d3-84519c38cda1","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":175,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"828d0b5b-6db3-428d-9c8a-daa2a9369029","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":175,"box":{"x":69,"y":347,"width":783,"height":11}},{"id":"a3e6823c-bd3f-49a6-9e3c-d44aca81fd68","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":175,"box":{"x":69,"y":362,"width":710,"height":11}},{"id":"d1f33e5f-012c-4cb0-907e-c7b845a595f2","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":175,"box":{"x":102,"y":385,"width":758,"height":11}},{"id":"4ccbb9bf-8abc-4b31-8f25-2c67883647c4","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":175,"box":{"x":69,"y":400,"width":782,"height":11}},{"id":"cfda1fd4-36f7-46bf-be3c-59390413b0dd","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":175,"box":{"x":70,"y":415,"width":783,"height":11}},{"id":"e924d34b-bf63-41e6-8a00-50356af72b34","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":175,"box":{"x":69,"y":430,"width":797,"height":11}},{"id":"9e693fda-da54-4516-9dcd-21345574bd7d","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":175,"box":{"x":70,"y":445,"width":822,"height":12}},{"id":"82ec4db3-9bf7-4379-a981-44658a7ac631","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":175,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"0c377e5c-6315-4977-901b-7aa690fa0f03","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":175,"box":{"x":70,"y":475,"width":826,"height":12}},{"id":"fead5235-bed5-48e1-a690-774f68f07309","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":175,"box":{"x":69,"y":491,"width":808,"height":11}},{"id":"2f3bcdb1-49e3-46c6-bec5-24772bce4ec0","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":175,"box":{"x":69,"y":506,"width":800,"height":11}},{"id":"15797962-0e93-4f6a-ae23-641d51b150f3","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":175,"box":{"x":70,"y":521,"width":770,"height":11}},{"id":"7124ef07-9b99-4cf3-867d-7c15441f0f01","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":175,"box":{"x":70,"y":536,"width":816,"height":11}},{"id":"9f596f2f-7aae-431e-9149-6aa22d35dc5b","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":175,"box":{"x":70,"y":551,"width":796,"height":11}},{"id":"1c6f2c2b-4221-4f3d-8a13-bf244da0f252","block_type":"box","text":"investment oppor tunities.","page_number":175,"box":{"x":70,"y":566,"width":180,"height":11}},{"id":"5ba9b98f-cbab-4800-90f6-2e8f6c1afd92","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":175,"box":{"x":102,"y":589,"width":801,"height":11}},{"id":"9778f9bd-03c3-4cd8-857d-b8593dd697ce","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":175,"box":{"x":70,"y":604,"width":839,"height":11}},{"id":"890ada99-8c58-45d7-8c87-d821db32a494","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":175,"box":{"x":69,"y":619,"width":840,"height":11}},{"id":"c0a1ffa1-6377-48b1-9e1b-fe53149b3e34","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":175,"box":{"x":68,"y":634,"width":837,"height":12}},{"id":"4b05aba8-1458-406d-b265-d563fa2af0d0","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":175,"box":{"x":70,"y":649,"width":774,"height":11}},{"id":"6d56d324-3bf4-4c00-a704-773b648415b4","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":175,"box":{"x":69,"y":664,"width":820,"height":12}},{"id":"14021041-db2c-4db9-b556-98520aad1b1e","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":175,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"2c118b9c-a6ed-49c2-a1d0-56896e0a6804","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":175,"box":{"x":69,"y":695,"width":755,"height":11}},{"id":"1d7a8dba-c6dc-40ef-ab66-591d77f88dab","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":175,"box":{"x":69,"y":710,"width":811,"height":11}},{"id":"a37e09c0-00df-4bbe-a9ff-703ab2075072","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":175,"box":{"x":69,"y":725,"width":839,"height":11}},{"id":"0a4d3e67-4e02-48e9-bfe0-fd2bfb385648","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":175,"box":{"x":68,"y":740,"width":812,"height":11}},{"id":"939705c8-d662-4f43-9070-04c0878e2aa4","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":175,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"f3ab3533-4a5c-41d7-8904-0de562a6aa93","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":175,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"cc831431-2fcf-4eca-9b9e-d522155b50b6","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":175,"box":{"x":70,"y":785,"width":829,"height":12}},{"id":"a64e56e8-a700-43d6-b53a-387ff5c7582e","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":175,"box":{"x":68,"y":801,"width":825,"height":11}},{"id":"7efc19ac-b034-4765-bf95-58fde80276a2","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":175,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"cebdbae4-a528-41d3-95c3-c339d0930e62","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":175,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"6d228931-0fc5-4a37-96f4-d8b273ff8770","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":175,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"41651d65-b08b-49cb-9fd9-6bb0e93c74ed","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":175,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"a16ccd85-b02c-4bb4-93ee-9cd2cc947897","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":175,"box":{"x":70,"y":876,"width":814,"height":11}},{"id":"de262d73-3b95-4d77-b3ab-bff8874afbbb","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":175,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"0f7e7814-c2fd-4d87-af62-77aab8511a71","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":175,"box":{"x":68,"y":906,"width":527,"height":12}},{"id":"cd9758ea-f8b2-44a3-8fd4-6daefc14b749","block_type":"box","text":"II-133","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5cc529c4-b766-4c67-9af7-16e5dabb6bfd","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf089102-cdb5-4d1b-b5f7-6c97fe08c76f","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":176,"box":{"x":102,"y":45,"width":768,"height":11}},{"id":"efb77ace-3f92-4460-b1ff-835c7b5499f6","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":176,"box":{"x":69,"y":60,"width":780,"height":11}},{"id":"b9828bed-5127-4b91-b120-971e93f11270","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":176,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"c9f58c34-4a80-4101-b88d-0c2ce5f0a535","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":176,"box":{"x":69,"y":90,"width":802,"height":11}},{"id":"b3b6bfda-d98b-4663-8434-3be203059564","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":176,"box":{"x":69,"y":105,"width":831,"height":11}},{"id":"06f07407-6a7c-446b-b591-bf64b98e2b28","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":176,"box":{"x":69,"y":120,"width":776,"height":11}},{"id":"fbe1bb3e-62ce-4887-acbb-ff08c4aaa5ae","block_type":"box","text":"positions in its por tfolio (","page_number":176,"box":{"x":70,"y":135,"width":177,"height":11}},{"id":"1f8570e5-ba06-433b-92ce-17c40240b110","block_type":"box","text":"i.e.","page_number":176,"box":{"x":249,"y":136,"width":20,"height":8}},{"id":"7ba15dd2-6062-4f96-a034-b015563e4c50","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":176,"box":{"x":272,"y":135,"width":636,"height":12}},{"id":"b2b311ac-e608-44d4-b9b9-84a4065bac06","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":176,"box":{"x":69,"y":150,"width":795,"height":12}},{"id":"053850ca-b99c-4e67-9121-7fb55da16254","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":176,"box":{"x":70,"y":166,"width":830,"height":11}},{"id":"da2c2377-a3f6-42fd-a08f-41ba5982f6f6","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":176,"box":{"x":69,"y":181,"width":804,"height":11}},{"id":"9ef0e9ff-308e-4d26-b3fe-ea548c97ebf2","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":176,"box":{"x":69,"y":196,"width":415,"height":11}},{"id":"230ce1ca-7835-49e1-9fd2-47cfc25b4aa0","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":176,"box":{"x":102,"y":218,"width":781,"height":12}},{"id":"e245084e-4c6c-454d-9272-b1443e17572d","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":176,"box":{"x":69,"y":234,"width":835,"height":11}},{"id":"736453a1-5507-4830-9fa9-3c24ccaec51a","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":176,"box":{"x":70,"y":249,"width":811,"height":11}},{"id":"cddc0792-9f7b-4378-afa8-95d6cf88f6d7","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":176,"box":{"x":69,"y":264,"width":818,"height":11}},{"id":"c07cdf77-c6a2-42fc-950c-8cc6f5c7137c","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":176,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"53200a89-70c9-45cd-81ed-eb6a2650de3e","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":176,"box":{"x":69,"y":294,"width":834,"height":11}},{"id":"5c19f84a-d3f6-4326-a212-53b8776c9b62","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":176,"box":{"x":69,"y":309,"width":833,"height":11}},{"id":"3674fe6f-fc06-4428-bf4d-544274d56cb2","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":176,"box":{"x":69,"y":324,"width":805,"height":12}},{"id":"41a58c69-9366-40ab-8917-a56c6027dff7","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":176,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"95276e7e-d615-446d-8799-4a30f254aba2","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":176,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"5ed467a9-2f14-42b7-a3be-647365adc425","block_type":"box","text":"capital asset.","page_number":176,"box":{"x":69,"y":370,"width":95,"height":11}},{"id":"156d7523-61d0-42a3-975f-7c3027f3d210","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":176,"box":{"x":102,"y":392,"width":787,"height":12}},{"id":"5b799f2e-6570-41cb-b44d-6315d067af3a","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":176,"box":{"x":70,"y":407,"width":836,"height":12}},{"id":"34302561-d0f0-4417-8387-72189001bcc4","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":176,"box":{"x":69,"y":423,"width":812,"height":11}},{"id":"c18b289d-0e02-44e9-aabf-28e06d886464","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":176,"box":{"x":69,"y":438,"width":805,"height":11}},{"id":"529ca810-62e4-4767-a34e-0930eb308b9c","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":176,"box":{"x":68,"y":453,"width":829,"height":11}},{"id":"3721029c-dd8f-4698-98bf-d9085a71e949","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":176,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"771efced-c23f-4546-998d-5491e973d722","block_type":"box","text":"Fund were to invest otherwise.","page_number":176,"box":{"x":70,"y":483,"width":216,"height":9}},{"id":"2204fdbb-7405-42ec-b128-d3a665ff8b07","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":176,"box":{"x":101,"y":506,"width":721,"height":11}},{"id":"8f6f8749-7d01-456d-87af-bb1f0d8ab97d","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":176,"box":{"x":70,"y":521,"width":787,"height":11}},{"id":"393544c1-3d9b-4070-8fe6-f241af949a8f","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":176,"box":{"x":70,"y":536,"width":831,"height":11}},{"id":"1bcb6d1f-285e-4d8d-80c4-6edb8cbdf6c5","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":176,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"2ac09b20-e7e5-4646-99d0-858e54e0af29","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":176,"box":{"x":69,"y":566,"width":825,"height":11}},{"id":"806ede95-33e4-4353-83eb-0044128258e2","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":176,"box":{"x":68,"y":581,"width":838,"height":12}},{"id":"2c4e6238-59f2-454a-800c-706227865b51","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":176,"box":{"x":68,"y":596,"width":830,"height":12}},{"id":"8a915765-ddbb-4d5b-a63b-33bdf0c66314","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":176,"box":{"x":69,"y":612,"width":515,"height":11}},{"id":"283fd1c1-d623-45b6-806c-67fa03c7fb2d","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":176,"box":{"x":102,"y":634,"width":798,"height":12}},{"id":"663264ee-bb81-48bc-84e3-905ce1057276","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":176,"box":{"x":68,"y":649,"width":835,"height":12}},{"id":"a07b04d2-3d66-4678-b507-fa0afc701623","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":176,"box":{"x":70,"y":664,"width":827,"height":12}},{"id":"b889a61d-534c-4033-9285-30eb7f2aa193","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":176,"box":{"x":68,"y":680,"width":830,"height":11}},{"id":"702b54ff-4484-4600-a33b-e4f02ed44ba7","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":176,"box":{"x":69,"y":695,"width":802,"height":11}},{"id":"305a42df-9e24-415e-84f2-efc8b475d027","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":176,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"1b1a6579-3e39-4a07-aaa2-2329eb2c7563","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":176,"box":{"x":70,"y":725,"width":797,"height":11}},{"id":"140cb8b5-5dea-4588-be00-987ffb7b2d88","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":176,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"dcb5977b-eaed-4ff1-b537-3242132b7ad4","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":176,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"bb105caf-cf34-49c0-89d8-4f9cefbb7e70","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":176,"box":{"x":68,"y":770,"width":797,"height":11}},{"id":"a0dda8cd-2731-4555-9270-59ddd4da515e","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":176,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"01991117-ebb4-4de7-a766-d99da7301b74","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":176,"box":{"x":68,"y":801,"width":804,"height":11}},{"id":"69b796f3-4cd0-46d7-94a0-39b438119d26","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":176,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"9d7b9ea4-9802-4445-a08f-75cd28a3f596","block_type":"box","text":"PFICs.","page_number":176,"box":{"x":69,"y":831,"width":42,"height":9}},{"id":"a95302ca-bc6f-499e-98f9-02ba46c08aa2","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":176,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"c9df7457-7650-403c-9fde-1728f07392f4","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":176,"box":{"x":69,"y":869,"width":816,"height":11}},{"id":"43a82ad7-e4fe-4123-8bcc-6d83b0c11b7f","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":176,"box":{"x":69,"y":884,"width":816,"height":11}},{"id":"30853336-815c-40d9-a7b5-a9ff828b0894","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":176,"box":{"x":68,"y":899,"width":840,"height":11}},{"id":"b2bd4953-07c3-43fc-b8d2-f1f196dd4bb9","block_type":"box","text":"II-134","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a0d937ab-ab75-49ee-8ea1-f645ff7d5003","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f46fa7c2-56ec-4d2e-9005-5aaea981ea99","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":177,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"e0edc53f-14c5-48c2-b6ee-32df8c170bf6","block_type":"box","text":"difficult or impossible to obtain.","page_number":177,"box":{"x":69,"y":60,"width":225,"height":11}},{"id":"96c3fc36-bd67-404a-b95a-172bbcf08587","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":177,"box":{"x":102,"y":82,"width":796,"height":12}},{"id":"d4f48cac-057c-4312-92f8-8584d684d6e7","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":177,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"54257c66-7845-4fb1-a748-e16dcfd3282a","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":177,"box":{"x":69,"y":113,"width":778,"height":11}},{"id":"da65cbf4-d269-45af-b0d4-ac5e977ed6d9","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":177,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"ca03077a-68d9-4755-ad75-58415876482f","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":177,"box":{"x":68,"y":143,"width":824,"height":11}},{"id":"f7e86058-1e3a-43fa-b0e0-b6de09b165ff","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":177,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"cd3db6bd-f6e7-4b6a-bf37-c0bf9eb01d74","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":177,"box":{"x":69,"y":173,"width":511,"height":11}},{"id":"9a1b6a50-c410-4f87-9e73-9a37cfc45e8d","block_type":"box","text":"Municipal Funds","page_number":177,"box":{"x":102,"y":196,"width":115,"height":11}},{"id":"476586ea-3e9c-4051-9a42-ad9cf6f9f10a","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":177,"box":{"x":102,"y":218,"width":798,"height":12}},{"id":"8a32423d-0ac3-4e33-b5d4-aeb7ebc48e13","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":177,"box":{"x":69,"y":234,"width":815,"height":11}},{"id":"daeb2804-31d0-49e9-baa6-36e3131b6e38","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":177,"box":{"x":70,"y":249,"width":803,"height":11}},{"id":"37c601f8-04a5-4f1e-96d8-417de9feeded","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":177,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"9e38d736-f4e4-4a5a-b1e6-9cc82907a8a5","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":177,"box":{"x":69,"y":279,"width":752,"height":11}},{"id":"e1002b88-5cbc-4e39-a03b-e2d3a5ff0b66","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":177,"box":{"x":70,"y":294,"width":817,"height":11}},{"id":"6d294ce8-4673-4ef1-9755-705ef137a316","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":177,"box":{"x":70,"y":309,"width":780,"height":11}},{"id":"5db6f962-20b1-4cbb-8de6-3443e1792362","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":177,"box":{"x":70,"y":324,"width":815,"height":12}},{"id":"39f0e83b-602b-48eb-bcbf-eb1844148d65","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":177,"box":{"x":69,"y":340,"width":839,"height":11}},{"id":"a67c2c4b-6566-4c8c-b5e2-d2382174c467","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":177,"box":{"x":70,"y":355,"width":835,"height":11}},{"id":"6da3d07c-2bdc-4125-acfe-d2493132c83b","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":177,"box":{"x":68,"y":370,"width":730,"height":11}},{"id":"3980f6a0-eadb-4cf5-afc9-b00de6c2941e","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":177,"box":{"x":102,"y":392,"width":763,"height":12}},{"id":"c3e7156a-fb91-416d-bce3-23561b156020","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":177,"box":{"x":70,"y":407,"width":809,"height":12}},{"id":"143e0b11-2830-46d8-8128-28051b343c77","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":177,"box":{"x":69,"y":423,"width":821,"height":11}},{"id":"8e2425b5-a924-4760-954d-cdb7aa93ac49","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":177,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"4c38a9c3-2129-4631-b582-0894c51d27d9","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":177,"box":{"x":68,"y":453,"width":800,"height":11}},{"id":"9e1c54b8-3502-47ad-9361-942cb2a0e3fb","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":177,"box":{"x":69,"y":468,"width":810,"height":11}},{"id":"1036b378-4ffd-4c0b-ba0a-94a62e1540c8","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":177,"box":{"x":70,"y":483,"width":836,"height":11}},{"id":"71d62331-cd80-456e-b646-8b9dafb5aa65","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":177,"box":{"x":69,"y":498,"width":835,"height":11}},{"id":"b8325a90-0b1b-41bc-988a-1ba6a92b504d","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":177,"box":{"x":69,"y":513,"width":217,"height":11}},{"id":"694aa02a-3488-4cca-add6-4273656f6925","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":177,"box":{"x":102,"y":536,"width":788,"height":11}},{"id":"a38b4198-8d3e-4bbd-a61b-01bfcbcd5257","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":177,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"941ccd3a-4a53-4bde-a9b9-9ff163df01eb","block_type":"box","text":"constitute exempt-interest dividends.","page_number":177,"box":{"x":69,"y":566,"width":261,"height":11}},{"id":"d0f985c5-bfca-4bf1-85b6-9bb14c7560f9","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":177,"box":{"x":102,"y":589,"width":765,"height":11}},{"id":"fa53d511-37c1-4474-921e-b0203097f938","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":177,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"0dbda2f1-120c-4cb3-baab-88da6c86c7c6","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":177,"box":{"x":68,"y":619,"width":813,"height":11}},{"id":"61e90a0f-05dd-4437-adc8-f9b2efc75ecf","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":177,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"6d9bc8c3-9b8d-4c94-8b10-5a8a5a59a5d6","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":177,"box":{"x":69,"y":649,"width":829,"height":12}},{"id":"558e8741-31f3-4aaf-8360-766fabb5eefb","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":177,"box":{"x":69,"y":665,"width":388,"height":11}},{"id":"2e0f821b-3b08-4592-bd85-4799449338a9","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":177,"box":{"x":101,"y":687,"width":787,"height":11}},{"id":"fd9bd946-f95e-4b96-a207-b7947873f2e9","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":177,"box":{"x":69,"y":702,"width":817,"height":12}},{"id":"62268144-3f88-4af4-9663-c24c0e267903","block_type":"box","text":"income dividends received by shareholders.","page_number":177,"box":{"x":70,"y":718,"width":309,"height":11}},{"id":"849ad432-c88e-4791-bd6c-6af36488475a","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":177,"box":{"x":101,"y":740,"width":766,"height":11}},{"id":"8495014e-eff2-42ec-a351-deab9374da56","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":177,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"7bb4f5e5-6cc2-433f-a96b-31da02bb77d4","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":177,"box":{"x":70,"y":771,"width":815,"height":11}},{"id":"3a1411ee-af3c-41f4-b2f0-208622edc597","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":177,"box":{"x":70,"y":785,"width":815,"height":12}},{"id":"faf627e0-7e2a-42e4-b118-b94413454b16","block_type":"box","text":"the accrued market discount.","page_number":177,"box":{"x":68,"y":801,"width":208,"height":9}},{"id":"102df0df-1502-44b8-8bf1-0863e18c959d","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":177,"box":{"x":101,"y":823,"width":801,"height":11}},{"id":"88493e83-b601-444b-94ac-455a30f9a516","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":177,"box":{"x":68,"y":838,"width":818,"height":12}},{"id":"f55af833-09a0-48ee-b45f-51f38ff5bff5","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":177,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"074c2a47-9890-4ba3-9b00-5691b487033e","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":177,"box":{"x":69,"y":869,"width":351,"height":11}},{"id":"15881c35-8fd2-4457-ba41-b6b85916da34","block_type":"box","text":"e.g.","page_number":177,"box":{"x":422,"y":870,"width":24,"height":10}},{"id":"4ddf26de-ef34-400d-b857-d37330b465ee","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":177,"box":{"x":449,"y":869,"width":441,"height":11}},{"id":"de1f7a23-7eb4-470a-b241-72d9e433575e","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":177,"box":{"x":70,"y":884,"width":827,"height":11}},{"id":"3f8a05cf-ee39-41ff-8f52-5893c647bf9c","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":177,"box":{"x":69,"y":899,"width":786,"height":11}},{"id":"8e17b910-fd7f-4896-ae9f-8cf65468b584","block_type":"box","text":"II-135","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e75ce650-3cbf-4d9a-8d78-1e11edc624ee","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cdfb0274-6184-4dd9-82e2-264711a8a8e1","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":178,"box":{"x":70,"y":45,"width":782,"height":11}},{"id":"524217cf-331a-4947-a1b5-f540c23799fa","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":178,"box":{"x":69,"y":60,"width":740,"height":11}},{"id":"d8468816-0e1c-4b8b-9e4e-94690d292dbc","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":178,"box":{"x":102,"y":82,"width":802,"height":12}},{"id":"f7e0cf1e-152b-49cd-bbe9-faa8131ffeef","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":178,"box":{"x":68,"y":98,"width":812,"height":11}},{"id":"15fb4115-59ef-4405-a9ab-8e517b4630eb","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":178,"box":{"x":69,"y":113,"width":794,"height":11}},{"id":"a4a36f7e-c21d-44e4-9b14-6ab113c5bc35","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":178,"box":{"x":70,"y":128,"width":776,"height":11}},{"id":"35940e3d-fabe-4a20-a636-14da0aa77e92","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":178,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"c7c48ff7-098c-4060-95e8-35d828c24a5e","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":178,"box":{"x":69,"y":158,"width":436,"height":11}},{"id":"38a2e9d3-3417-408e-8010-812e43d5e735","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":178,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"7a214b3c-8cdb-442f-bb9f-e85e48ca2bd0","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":178,"box":{"x":69,"y":196,"width":828,"height":11}},{"id":"e288db9b-53e6-4568-9d7b-30671ef2ed24","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":178,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"9967f680-e311-48ce-8358-141925a65154","block_type":"box","text":"within each applicable state.","page_number":178,"box":{"x":68,"y":226,"width":203,"height":11}},{"id":"d522adba-570f-403c-adfe-d1fa93818c2f","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":178,"box":{"x":102,"y":249,"width":774,"height":11}},{"id":"597eac0d-9dc4-43ad-84e9-e03bfbeec6b8","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":178,"box":{"x":68,"y":264,"width":837,"height":11}},{"id":"d6f21e70-d91f-47b3-8992-eac2e7e38c0e","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":178,"box":{"x":70,"y":279,"width":816,"height":11}},{"id":"41577607-547b-492a-9c8a-5975109e6f15","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":178,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"c3f0effd-e6a7-490f-aeb6-52323f374710","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":178,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"252375e2-95ca-4541-b336-b01ef429da86","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":178,"box":{"x":70,"y":324,"width":783,"height":11}},{"id":"3a5bd262-4fe8-4f16-a12f-f9f9265391f5","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":178,"box":{"x":68,"y":339,"width":822,"height":12}},{"id":"867a0bb3-2a5a-453f-bb90-a380ecf50ead","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":178,"box":{"x":68,"y":355,"width":710,"height":11}},{"id":"e6e7a582-71d1-41cb-8933-e56aa2c8658a","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":178,"box":{"x":102,"y":377,"width":796,"height":12}},{"id":"f6eddfab-f5d6-4aa8-8ea3-9630f4757d16","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":178,"box":{"x":68,"y":392,"width":828,"height":12}},{"id":"17d65b1e-fa05-4a9b-885d-fe952d9e771f","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":178,"box":{"x":68,"y":408,"width":841,"height":11}},{"id":"ed29fd1a-5852-4af9-99d7-3fa53a535f3d","block_type":"box","text":"exempt from state income tax.","page_number":178,"box":{"x":69,"y":423,"width":216,"height":11}},{"id":"b8e053bb-bee2-4a74-8184-5077f1444b00","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":178,"box":{"x":102,"y":445,"width":771,"height":12}},{"id":"7b59d78c-73fd-4bc8-b0fd-4c6681b2acd6","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":178,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"37390102-5541-43c4-8ecd-ded5d5a48c2c","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":178,"box":{"x":68,"y":475,"width":309,"height":9}},{"id":"1e433031-9c08-4558-b17b-95f6c931c447","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":178,"box":{"x":101,"y":498,"width":749,"height":11}},{"id":"3d9e85f4-999b-4db3-b825-4af4f30ac43d","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":178,"box":{"x":69,"y":513,"width":803,"height":12}},{"id":"f9703c13-61ba-4af5-aa1b-f2f3e1e9d6b5","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":178,"box":{"x":69,"y":528,"width":801,"height":12}},{"id":"55fbbc23-0da1-4cb0-bf6c-2c4cbc7266c5","block_type":"box","text":"decisions may have a retroactive effect.","page_number":178,"box":{"x":69,"y":543,"width":283,"height":12}},{"id":"a7eb8725-8141-46e9-bae9-e2f78887e75b","block_type":"box","text":"PERFORMANCE DATA","page_number":178,"box":{"x":403,"y":573,"width":173,"height":10}},{"id":"36b6d3d3-f29e-43d7-bc1a-4a2db322fb70","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":178,"box":{"x":102,"y":596,"width":738,"height":11}},{"id":"68294227-ac26-4f3b-86d4-0258117a340f","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":178,"box":{"x":69,"y":611,"width":779,"height":11}},{"id":"fe9bf112-0721-4bda-8a2a-bb4ba72ad41f","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":178,"box":{"x":69,"y":626,"width":833,"height":11}},{"id":"cf541893-d78f-4dd7-844c-e3a129cb15e3","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":178,"box":{"x":70,"y":641,"width":792,"height":11}},{"id":"484a4229-08c5-49fe-854e-290223ffb897","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":178,"box":{"x":69,"y":656,"width":473,"height":11}},{"id":"8c8d5eb5-494e-46c4-a45d-10ddf64e26ab","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":178,"box":{"x":102,"y":679,"width":761,"height":11}},{"id":"ca7343d5-e1cb-49a9-9e64-688da8325dad","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":178,"box":{"x":69,"y":694,"width":836,"height":11}},{"id":"364f78a1-5aa8-43c9-a7b1-ef8eec18629a","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":178,"box":{"x":68,"y":709,"width":798,"height":11}},{"id":"47a482bc-b921-409e-af3c-3c4047fae5f4","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":178,"box":{"x":69,"y":724,"width":765,"height":12}},{"id":"32379abf-4613-4867-986c-37d116c88129","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":178,"box":{"x":69,"y":740,"width":808,"height":11}},{"id":"b7e59d36-d576-41bc-af91-03e451dfc759","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":178,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"f78b5500-2380-4948-a48d-cf2fdb935908","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":178,"box":{"x":69,"y":770,"width":839,"height":11}},{"id":"70ca50ff-beeb-46c4-b7d6-7f665d75cad3","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":178,"box":{"x":69,"y":785,"width":546,"height":11}},{"id":"142f4eb3-5555-488d-8a5a-dbdbb9f1aa31","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":178,"box":{"x":102,"y":807,"width":781,"height":12}},{"id":"231a8a3e-7a17-45a6-9912-51454b70b7b9","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":178,"box":{"x":68,"y":823,"width":819,"height":11}},{"id":"3ab769a1-e404-4e7a-a9d9-4ef11e814950","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":178,"box":{"x":68,"y":838,"width":810,"height":11}},{"id":"8958e015-1b59-4639-8e3a-76c610d2239b","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":178,"box":{"x":70,"y":853,"width":823,"height":11}},{"id":"613cf858-c825-4261-8941-baed17a70aaf","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":178,"box":{"x":69,"y":868,"width":780,"height":11}},{"id":"bb3e2453-8c39-4250-8f82-14fba2951e80","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":178,"box":{"x":70,"y":883,"width":825,"height":11}},{"id":"a5a07fcb-5a06-4f8f-b20e-c6fe7e1b9c37","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":178,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"c90f988c-1709-432c-86f9-f13d7135c1fa","block_type":"box","text":"II-136","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f5fab9d5-cd34-4965-9217-04a927990eb1","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e19ca9f-4fd3-4975-9c58-c3db5f3a5667","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":179,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"b2463ca5-c109-4a86-b775-03b232adbcfe","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":179,"box":{"x":70,"y":60,"width":833,"height":11}},{"id":"58e15437-9f9e-47a6-b81b-10065f2be2ad","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":179,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"d5bd4074-381d-4c57-8ea2-c975ef826e2b","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":179,"box":{"x":68,"y":90,"width":824,"height":11}},{"id":"d65dd364-8c8a-4979-817a-e64f5146d020","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":179,"box":{"x":69,"y":105,"width":837,"height":11}},{"id":"80f4371c-fa0f-4d25-82ae-52199a0def93","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":179,"box":{"x":69,"y":120,"width":814,"height":12}},{"id":"162df11a-0d2e-469c-a56e-4f1672c47495","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":179,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"3352d305-a441-4b14-b15c-0d07605de5a4","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":179,"box":{"x":69,"y":150,"width":774,"height":11}},{"id":"a3ddf900-5136-49ac-ba6c-23a8160d0027","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":179,"box":{"x":102,"y":173,"width":752,"height":11}},{"id":"29e02edb-d52f-4f5d-be20-4c9ee0e5633b","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":179,"box":{"x":70,"y":188,"width":835,"height":12}},{"id":"abd496af-5ee5-4219-a890-5fab1391b6ab","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":179,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"68557cb9-7410-4b40-86ec-db26c70cd6c3","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":179,"box":{"x":69,"y":218,"width":756,"height":12}},{"id":"c1e80f24-fe28-43df-b144-9647eede0550","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":179,"box":{"x":69,"y":234,"width":772,"height":11}},{"id":"26a0f050-2210-4926-b979-38f099e7cbd4","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":179,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"82133320-2262-4205-bc5a-a70a4536ccae","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":179,"box":{"x":69,"y":264,"width":825,"height":11}},{"id":"3995a792-f7e1-47dc-900d-eec1049673aa","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":179,"box":{"x":70,"y":279,"width":812,"height":11}},{"id":"d2f7b348-d792-4831-a781-e0f7ee067af2","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":179,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"553a9ddc-5b2b-4655-af6c-05097c155785","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":179,"box":{"x":69,"y":309,"width":768,"height":11}},{"id":"8393c7ce-ea66-436a-bc8a-650ff240f75e","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":179,"box":{"x":69,"y":324,"width":810,"height":12}},{"id":"17b1589a-3ebf-496a-bff7-dec916306679","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":179,"box":{"x":69,"y":339,"width":802,"height":12}},{"id":"644c3ebc-1b60-4e2c-9195-03f90cd72b81","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":179,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"97611a80-3b9d-4cf8-85fe-bf4872131a58","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":179,"box":{"x":68,"y":370,"width":823,"height":11}},{"id":"f929214f-68db-4f66-a9af-e969bff77d3c","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":179,"box":{"x":69,"y":385,"width":743,"height":11}},{"id":"27236507-74b6-4e97-8720-22515204d7b3","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":179,"box":{"x":69,"y":400,"width":814,"height":11}},{"id":"946d47bf-fb22-4035-bd3e-0d3952866b6c","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":179,"box":{"x":68,"y":415,"width":422,"height":11}},{"id":"5e07bb55-0100-44c7-9caa-a1f456837115","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":179,"box":{"x":101,"y":438,"width":720,"height":11}},{"id":"7ca863f8-9fed-426e-849d-923f9afa064a","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":179,"box":{"x":70,"y":452,"width":813,"height":12}},{"id":"81e91733-b46d-46f7-8a94-d3cbfd87c8bc","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":179,"box":{"x":69,"y":468,"width":781,"height":11}},{"id":"dcb8e558-4b3f-4814-b625-0ebdeca318da","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":179,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"4d6916eb-5ccd-48ad-a5e1-08d0fb3aadf0","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":179,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"f7f5a2ed-2f1f-4472-8f8a-cfe4f1418d1b","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":179,"box":{"x":68,"y":513,"width":815,"height":11}},{"id":"885447ea-2572-45fd-a7af-1740d1bf0e60","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":179,"box":{"x":70,"y":528,"width":801,"height":12}},{"id":"3c68a3b0-c245-45f1-b661-5fdf3d737e58","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":179,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"647eb099-4c07-49bd-9b34-432262f066c3","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":179,"box":{"x":69,"y":559,"width":811,"height":11}},{"id":"97cc2946-2929-419d-8519-decc7966530f","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":179,"box":{"x":69,"y":574,"width":686,"height":11}},{"id":"d3cc0d73-ccc6-4f0a-86c9-509b0ace4de3","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":179,"box":{"x":101,"y":596,"width":796,"height":12}},{"id":"8f2dc49a-a02e-4018-ac55-2be5b0f8c7a1","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":179,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"fb2e1ae2-cb4d-4ea0-8d21-119411b9b311","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":179,"box":{"x":68,"y":627,"width":817,"height":11}},{"id":"1cee26b9-4b2c-400b-82d7-d67d6df69da2","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":179,"box":{"x":68,"y":642,"width":837,"height":11}},{"id":"568d071b-ea39-406b-908a-de87aa385607","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":179,"box":{"x":69,"y":657,"width":759,"height":11}},{"id":"97e0bae5-2930-4857-919b-c49307ca905f","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":179,"box":{"x":101,"y":680,"width":779,"height":11}},{"id":"cb061cc9-e9bb-431c-b152-a6a057e76bd6","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":179,"box":{"x":70,"y":695,"width":819,"height":11}},{"id":"95665bcf-15d0-4f2d-8027-f290bc1fe08b","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":179,"box":{"x":68,"y":710,"width":830,"height":11}},{"id":"bcb25f81-6f9b-4eab-9875-26258ec3572f","block_type":"box","text":"less than their original cost.","page_number":179,"box":{"x":70,"y":725,"width":196,"height":11}},{"id":"7b10f605-33d0-42cd-9519-d2fa14fa14cd","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":179,"box":{"x":102,"y":748,"width":782,"height":11}},{"id":"6b6b0a1a-0bf9-4747-85f0-e3efe3a45a94","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":179,"box":{"x":68,"y":763,"width":836,"height":11}},{"id":"ac9a91f8-e8b3-45cf-b4b7-eb432270bf0d","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":179,"box":{"x":69,"y":778,"width":807,"height":11}},{"id":"d291342a-8bff-4c9c-9d87-ab7e7a2d0e59","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":179,"box":{"x":68,"y":793,"width":820,"height":11}},{"id":"9082b03b-d73e-48c5-950e-db62aafa0d7b","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":179,"box":{"x":68,"y":808,"width":824,"height":11}},{"id":"44c7533e-edd7-4f01-ab52-00f55598a4e2","block_type":"box","text":"lower amount of expenses is deducted.","page_number":179,"box":{"x":70,"y":823,"width":278,"height":11}},{"id":"e485ee69-e248-434d-8e6d-584dd06868d6","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":179,"box":{"x":102,"y":846,"width":741,"height":11}},{"id":"44654908-39ea-4e9e-80aa-7079a5d37bc7","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":179,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"c508e1bc-5387-4acb-85fb-6e24b31c35ca","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":179,"box":{"x":70,"y":876,"width":646,"height":11}},{"id":"b6aeeafb-85a5-4eee-bf51-e588d83431f4","block_type":"box","text":"Money Magazine, U.S.","page_number":179,"box":{"x":724,"y":876,"width":156,"height":11}},{"id":"4337fed4-f892-40e4-8f93-53eee265137e","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":179,"box":{"x":70,"y":891,"width":533,"height":12}},{"id":"1a57ec60-4e2b-4a8c-bc7a-1d2a936fc284","block_type":"box","text":"or other industry publications. When","page_number":179,"box":{"x":608,"y":891,"width":257,"height":11}},{"id":"026dd227-0f96-4e8d-a0af-ff37f289197c","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":179,"box":{"x":69,"y":906,"width":797,"height":12}},{"id":"995fb25e-b1ab-42ed-9c5b-3bf4aedaf47c","block_type":"box","text":"II-137","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ea5e7355-492d-4d25-8bc2-19b1b2df29ef","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bad5cded-cb18-42aa-b278-b6286ede4097","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":180,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"7219469d-864e-4332-a341-679cb1eb8ec4","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":180,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"adc352b6-0877-4d1e-a896-ecb45b55107f","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":180,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"eaad4fe8-479d-43b9-b081-c2bcdb4a56ce","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":180,"box":{"x":69,"y":90,"width":793,"height":11}},{"id":"79afc1f5-5e2c-4d9b-afcc-434c4086de19","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":180,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"9892d587-d930-4641-a5eb-658ac44afd10","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":180,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"cfd0906a-fbd0-4a2c-a5da-b0c997e5879b","block_type":"box","text":"developed by Fund management.","page_number":180,"box":{"x":69,"y":136,"width":233,"height":11}},{"id":"ef601e1e-e353-4fcd-ba91-650752a3c295","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":180,"box":{"x":101,"y":158,"width":780,"height":11}},{"id":"70ddadb4-f0ed-438b-bf59-109511a86dee","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":180,"box":{"x":70,"y":173,"width":810,"height":11}},{"id":"1a4e44d8-5ed6-4995-ac64-5d7320a46beb","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":180,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"2084948d-b36d-4d90-bcb9-7292f23652ff","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":180,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"8c4858c1-e4ba-48af-a2f6-9037e1aded77","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":180,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"9ef05562-9079-4b12-85e7-965da7daedb0","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":180,"box":{"x":70,"y":234,"width":835,"height":11}},{"id":"4c0c062a-8c1c-452e-8b58-0482d3980bd7","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":180,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"145d7567-235a-462b-9ff8-2a4647a95d09","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":180,"box":{"x":68,"y":264,"width":461,"height":11}},{"id":"fbc9c960-4f22-449f-b902-dc4b5828e349","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":180,"box":{"x":308,"y":293,"width":362,"height":10}},{"id":"3a34d5c8-b432-4194-ae2e-3f61f5432942","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":180,"box":{"x":101,"y":316,"width":802,"height":11}},{"id":"437f02a9-94ce-41a6-9f65-a7a07961f942","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":180,"box":{"x":70,"y":331,"width":809,"height":12}},{"id":"713f8394-573a-47f0-b491-19b2e57fadcd","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":180,"box":{"x":69,"y":347,"width":833,"height":11}},{"id":"43a9acba-4576-44af-9740-60136c5e0dae","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":180,"box":{"x":70,"y":361,"width":755,"height":12}},{"id":"c8a0158d-6f13-4082-98e9-b0a8ca8a5551","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":180,"box":{"x":101,"y":384,"width":785,"height":11}},{"id":"e83b6086-83ad-4a10-bf88-5d764769657b","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":180,"box":{"x":68,"y":399,"width":822,"height":12}},{"id":"95f3dd79-9dda-420d-9e71-e4a31b9181ab","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":180,"box":{"x":70,"y":414,"width":824,"height":12}},{"id":"87b1406c-da98-4e53-8c74-9abc72a4c3f8","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":180,"box":{"x":68,"y":430,"width":812,"height":11}},{"id":"db91a7ab-c227-4156-9c54-b6ac6d423023","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":180,"box":{"x":69,"y":445,"width":392,"height":11}},{"id":"020e4302-209e-4d5d-8330-13f05b1c94d2","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":180,"box":{"x":101,"y":468,"width":749,"height":11}},{"id":"70720de9-e51a-46d2-943a-bfdf0d26e879","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":180,"box":{"x":70,"y":482,"width":759,"height":12}},{"id":"25b6d213-048d-4bf1-935b-3de5c32da729","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":180,"box":{"x":70,"y":498,"width":830,"height":11}},{"id":"6e222db9-470a-4b89-8481-41611c00de0a","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":180,"box":{"x":69,"y":513,"width":838,"height":11}},{"id":"d1a21e77-798e-4bb2-9210-c9d708723c2f","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":180,"box":{"x":68,"y":528,"width":822,"height":11}},{"id":"3198801f-fe6a-47d9-b1f8-b8b27107d36c","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":180,"box":{"x":69,"y":543,"width":392,"height":11}},{"id":"79556783-3902-4189-99d0-4d7305bd6a25","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":180,"box":{"x":102,"y":566,"width":767,"height":11}},{"id":"4d218415-7245-490d-9e31-69b3d2d08dde","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":180,"box":{"x":68,"y":581,"width":827,"height":11}},{"id":"aebea97c-3d28-4b21-b12e-b1ed2cf8a130","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":180,"box":{"x":69,"y":596,"width":819,"height":11}},{"id":"98276e03-5098-42ab-a8d1-bd5599b00729","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":180,"box":{"x":69,"y":611,"width":684,"height":11}},{"id":"16edf63c-454d-46fd-a0f7-1d65739102c3","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":180,"box":{"x":102,"y":634,"width":766,"height":11}},{"id":"a7a1fd07-d640-4620-8462-9a5d3be15b4f","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":180,"box":{"x":69,"y":649,"width":784,"height":11}},{"id":"0c94fcfe-5066-4ffb-8544-a218daf2fb20","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":180,"box":{"x":69,"y":664,"width":805,"height":11}},{"id":"0488d202-6ea5-404f-9754-dfc25d74ef01","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":180,"box":{"x":68,"y":679,"width":790,"height":11}},{"id":"c6fdf815-7347-4361-b028-a349e98d5764","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":180,"box":{"x":70,"y":694,"width":810,"height":11}},{"id":"ef2ad4e8-1a00-4495-890a-94b0c1012ee0","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":180,"box":{"x":69,"y":709,"width":788,"height":11}},{"id":"f4814255-92be-489a-abbb-b0dc612e2fab","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":180,"box":{"x":69,"y":724,"width":327,"height":12}},{"id":"9251c2a7-72be-42c2-aa9e-d8a456a757ec","block_type":"box","text":"GENERAL INFORMATION","page_number":180,"box":{"x":391,"y":754,"width":195,"height":10}},{"id":"13504559-8222-44f8-8908-8ec53682881b","block_type":"box","text":"Description of Shares","page_number":180,"box":{"x":69,"y":784,"width":156,"height":11}},{"id":"afd5da88-8bbb-4559-b1d0-2a70adb88334","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":180,"box":{"x":102,"y":807,"width":800,"height":9}},{"id":"89355a2c-420a-43e6-a763-2e6611a305cb","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":180,"box":{"x":69,"y":822,"width":811,"height":11}},{"id":"7a5fbf7a-9264-463d-97b9-b216bbc308cd","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":180,"box":{"x":69,"y":837,"width":825,"height":11}},{"id":"3114332a-eded-4302-90b5-9488ebcab08a","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":180,"box":{"x":69,"y":852,"width":838,"height":11}},{"id":"5f37ab86-18b3-4587-b900-a3532708d0ab","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":180,"box":{"x":69,"y":867,"width":835,"height":12}},{"id":"58ca241f-d15b-4551-b9d0-6aa3bfc05bbb","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":180,"box":{"x":69,"y":882,"width":781,"height":12}},{"id":"5b389bea-21fe-4d20-853b-c3a09451bda2","block_type":"box","text":"II-138","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fd462d55-6fe3-4052-9fb4-234454d7310f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b357413-dcdb-4383-b632-6e11153d67a3","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":181,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"4e50ef45-773b-4095-a228-ec9258fb9282","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":181,"box":{"x":69,"y":60,"width":760,"height":11}},{"id":"70c411d2-6aca-4870-82b0-60fad30a7cd2","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":181,"box":{"x":69,"y":75,"width":810,"height":11}},{"id":"98fe3b55-219f-4d88-bf77-06ee9009d92b","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":181,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"d41540f3-0945-47f7-908f-34889cb719c1","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":181,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"2270ed15-39d0-41d0-bbaa-fef628f076cd","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":181,"box":{"x":69,"y":120,"width":797,"height":11}},{"id":"3ec01933-5abd-4887-b9f7-742e13a47d74","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":181,"box":{"x":69,"y":135,"width":658,"height":12}},{"id":"7b20dbd8-267e-4e25-9326-821a96448c4d","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":181,"box":{"x":102,"y":158,"width":741,"height":11}},{"id":"ae55fdd8-3fe2-4d61-a8d4-fef521310fea","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":181,"box":{"x":69,"y":173,"width":790,"height":11}},{"id":"feb538ad-ca1e-4698-a7f8-9d6c2d332ebd","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":181,"box":{"x":69,"y":188,"width":546,"height":12}},{"id":"0ed93a20-3af9-444e-bd68-4d365c8f7f0c","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":181,"box":{"x":102,"y":211,"width":712,"height":11}},{"id":"5717d623-22dc-4817-b699-6015d98c2e43","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":181,"box":{"x":69,"y":226,"width":765,"height":11}},{"id":"8bd69f4c-2d1c-44f9-88a4-e6346a697ea4","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":181,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"41d59209-9d1b-4f1f-b89b-695163499252","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":181,"box":{"x":68,"y":256,"width":729,"height":11}},{"id":"fcd203e2-9b09-4bda-aafc-40d4c840b1ac","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":181,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"4e80400c-d725-473d-82b0-176b110d945a","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":181,"box":{"x":68,"y":286,"width":761,"height":12}},{"id":"f78d07d6-24d7-4aad-ac9e-3c4eef57b36b","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":181,"box":{"x":69,"y":302,"width":824,"height":11}},{"id":"e4e876b6-bdbc-4737-9bf6-aa76b3d33cf6","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":181,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"afa956a2-e536-4cf8-9a76-af0055a6a02b","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":181,"box":{"x":69,"y":332,"width":813,"height":11}},{"id":"cf9ea623-23b9-4e61-90d2-3767f11b4309","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":181,"box":{"x":68,"y":347,"width":827,"height":11}},{"id":"330cb012-fff5-496c-b94b-3ab9ce60c79e","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":181,"box":{"x":70,"y":362,"width":699,"height":11}},{"id":"2852da7d-4281-453b-a1e3-b8255d65ac76","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":181,"box":{"x":102,"y":385,"width":413,"height":11}},{"id":"97a1b689-34a1-477d-b534-70afb2d9e4ff","block_type":"box","text":"Additional Information","page_number":181,"box":{"x":68,"y":415,"width":161,"height":9}},{"id":"cd2cf081-fa2b-47e5-a37e-885248efa8e7","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":181,"box":{"x":102,"y":438,"width":789,"height":11}},{"id":"491423cc-64b4-4d4c-bd32-b85d533319f0","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":181,"box":{"x":69,"y":453,"width":799,"height":11}},{"id":"61242c95-1db5-49a0-a83b-14b4e4ab20f2","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":181,"box":{"x":70,"y":468,"width":837,"height":11}},{"id":"adf03dec-323c-4f82-93f4-4983c3312be7","block_type":"box","text":"such name to any other company.","page_number":181,"box":{"x":69,"y":483,"width":238,"height":11}},{"id":"c6f3d9d6-69c4-43ab-873b-2b85cfa153ac","block_type":"box","text":"II-139","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"21326a42-0c08-4854-ba73-aba36f1aac82","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d654a650-aab7-4c34-9d09-ff633b6cc9b6","block_type":"box","text":"APPENDIX A","page_number":182,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"58e559bb-bd4f-403f-8795-7624d1663eb4","block_type":"box","text":"Description of Bond Ratings","page_number":182,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"3a0e924e-a1d1-46ea-a0dd-094ddc3c0ac7","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":182,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"f28acccf-d78b-417c-817a-2ce90eaa4fb9","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC. While NRSROs may from","page_number":182,"box":{"x":69,"y":106,"width":827,"height":12}},{"id":"7c7fc131-a9d8-45c5-ac97-91d1878ac918","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":182,"box":{"x":68,"y":122,"width":775,"height":11}},{"id":"ac93d69b-cf55-4a18-87a7-bfe8d12e11d3","block_type":"box","text":"issuance do not necessarily represent ratings which would be given to these securities on a par ticular subsequent","page_number":182,"box":{"x":70,"y":137,"width":815,"height":11}},{"id":"239b6b75-ce0a-467a-b20e-cf39d599713e","block_type":"box","text":"date.","page_number":182,"box":{"x":69,"y":152,"width":34,"height":9}},{"id":"a40dcc35-183a-4fb2-aadb-5906f817ad44","block_type":"box","text":"NRSROs may rate specific investments (","page_number":182,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"978f024a-27a9-4f94-b8e5-053b35d9bd39","block_type":"box","text":"e.g.","page_number":182,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"5374b1f5-566f-4c01-aaed-b0784fa6dede","block_type":"box","text":", bonds), issuers (","page_number":182,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"68a87b90-9efd-4cda-b9f2-999a6868c12d","block_type":"box","text":"e.g.","page_number":182,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"d00dffa5-f9b0-4d2b-99ed-d48e25fd05d6","block_type":"box","text":", corporations, governments and financial","page_number":182,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"407e42ba-0f81-4eee-98f0-6d5d61d1ed64","block_type":"box","text":"institutions) and/or programs (","page_number":182,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"11e3aae8-159e-4137-bb50-a299daae4163","block_type":"box","text":"e.g.","page_number":182,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"bdc665b6-8ee4-42cc-a371-81ddf81bb64a","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":182,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"1e61fd74-62bb-47bf-9c64-1731a3b4c117","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":182,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"51aec4ac-900f-49b8-94b0-8a4fd6342628","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. 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If applicable, when","page_number":182,"box":{"x":69,"y":378,"width":804,"height":12}},{"id":"0b5a4444-2e73-4840-836a-843576c0af86","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":182,"box":{"x":69,"y":394,"width":831,"height":11}},{"id":"13b0764f-50d0-4fc7-bb74-366c261b76f0","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":182,"box":{"x":69,"y":409,"width":777,"height":11}},{"id":"3a942671-84ee-4f2c-bc03-954177a276ea","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":182,"box":{"x":70,"y":424,"width":779,"height":11}},{"id":"b158ecbc-3df3-4efc-a8b2-adde6f3c5d84","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":182,"box":{"x":70,"y":439,"width":819,"height":11}},{"id":"c44b8041-6c49-4f53-8aaf-764f192e6655","block_type":"box","text":"prior issuance having a similar structure or the same sponsor.","page_number":182,"box":{"x":70,"y":454,"width":441,"height":11}},{"id":"22782237-0b80-40be-a00d-831374b6a9c9","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":182,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"40c92429-60e7-4b7e-9a1b-ec88599d7e4e","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":182,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"4274d09d-62dd-4ecd-a7f3-05613dbb4f65","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":182,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"3a6ea395-51de-4f4e-95db-2f762fcee6b2","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":182,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"13c95b67-d6f0-43ed-beae-d49bb09acfb0","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":182,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"6c81a486-c830-47ea-8a62-938d2b382dd6","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":182,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"6e94b79f-3c36-4e95-8186-ea85d796201c","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":182,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"f5f89116-68a2-43e4-93e1-ff5db970b483","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":182,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"be3fc055-ba8e-4860-9f94-3c5947bf6df0","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":182,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"5adc76b6-f54d-4d8f-a6e0-81f55ae0ae23","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these","page_number":182,"box":{"x":70,"y":620,"width":773,"height":12}},{"id":"7084bb10-6352-4b59-9f3e-4bca7ed6fc06","block_type":"box","text":"securities is dependent on BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":182,"box":{"x":69,"y":635,"width":791,"height":12}},{"id":"0f9a40a7-39ec-4cd8-9f9e-432551a1f8fd","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":182,"box":{"x":102,"y":658,"width":776,"height":11}},{"id":"e85613f1-51c3-4a1c-8148-ead39ae8fd64","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":182,"box":{"x":69,"y":673,"width":818,"height":11}},{"id":"3b196978-b624-42bb-941f-c927e8d353e6","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":182,"box":{"x":102,"y":696,"width":799,"height":11}},{"id":"1364506a-e87e-4720-b8c5-3df10142a77b","block_type":"box","text":"Fitch.","page_number":182,"box":{"x":70,"y":711,"width":35,"height":9}},{"id":"ba81849a-be2c-49c1-8663-5a6627c8497d","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":182,"box":{"x":101,"y":734,"width":643,"height":11}},{"id":"ba70f49e-4a07-468d-81c4-fcede5d7dc4b","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":182,"box":{"x":68,"y":764,"width":616,"height":11}},{"id":"a3d567ef-5976-4b3d-a3ae-12ed0298ea7b","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":182,"box":{"x":102,"y":787,"width":787,"height":11}},{"id":"6de26ac7-95ce-493b-a067-a1a9f5ebb9ad","block_type":"box","text":"relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured","page_number":182,"box":{"x":69,"y":802,"width":785,"height":11}},{"id":"4aa2f3a4-cf90-4749-aa86-205f15c839ab","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":182,"box":{"x":68,"y":817,"width":820,"height":11}},{"id":"f805777b-fef3-4ef7-9de2-a5892db16575","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":182,"box":{"x":69,"y":832,"width":807,"height":11}},{"id":"4c022d61-b6e1-4621-9c32-e2f2a0bc2934","block_type":"box","text":"event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are those that call","page_number":182,"box":{"x":69,"y":847,"width":835,"height":11}},{"id":"ec768f6f-25ca-4a85-abeb-50e42d4a9481","block_type":"box","text":"for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based upon standard","page_number":182,"box":{"x":68,"y":862,"width":822,"height":12}},{"id":"48dee7c9-8445-4ccc-9cd1-3608d9946163","block_type":"box","text":"sources of variation (","page_number":182,"box":{"x":69,"y":877,"width":149,"height":11}},{"id":"4bc99ed3-a271-47c5-8746-a89d68fff7fd","block_type":"box","text":"e.g.","page_number":182,"box":{"x":220,"y":879,"width":25,"height":10}},{"id":"79c1f390-7ee7-44bc-8bf7-01d912c59096","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses the issuer’s","page_number":182,"box":{"x":247,"y":877,"width":637,"height":12}},{"id":"6be3d901-5be7-48a4-9aed-8a0a6a47a677","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":182,"box":{"x":69,"y":892,"width":820,"height":12}},{"id":"1fff7561-65aa-4bf4-b1c4-41436baed770","block_type":"box","text":"non-standard sources of variation in the amount of the principal obligation (","page_number":182,"box":{"x":69,"y":908,"width":536,"height":11}},{"id":"cc8c5312-1a39-4704-b52e-537ca01b502f","block_type":"box","text":"e.g.","page_number":182,"box":{"x":607,"y":909,"width":25,"height":10}},{"id":"defff731-a327-409d-9061-3382d66611b8","block_type":"box","text":", equity indexed), absent an express","page_number":182,"box":{"x":634,"y":908,"width":257,"height":11}},{"id":"f13074fa-d3da-4399-9983-be4da19d8451","block_type":"box","text":"A-1","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"90e7d8a0-b2e0-4279-8d87-0f9703955590","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c1783925-31d0-45f1-9201-20f4c0e7e9ae","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":183,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"c0862148-4582-4006-97b4-7d6f467092d4","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":183,"box":{"x":69,"y":60,"width":761,"height":11}},{"id":"90307f8a-a311-45a3-aaf5-fe8106a9a080","block_type":"box","text":"impairment on contractual financial obligations and the expected financial loss suffered in the event of default or","page_number":183,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"d0c6f8ca-08d5-4c77-8e58-da73e5dd4914","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":183,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"bf5bb8b1-c953-4447-9b99-73d7a442988c","block_type":"box","text":"reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":183,"box":{"x":69,"y":105,"width":775,"height":11}},{"id":"4a2866cc-7a09-4bc5-9c25-b6fd28386b7d","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":183,"box":{"x":68,"y":120,"width":764,"height":12}},{"id":"d5b21816-4787-4a29-acee-ea8e60933b73","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":183,"box":{"x":70,"y":136,"width":819,"height":11}},{"id":"238ff326-4419-44c7-9335-6382de9eb10e","block_type":"box","text":"although private and unpublished ratings may also be assigned.","page_number":183,"box":{"x":69,"y":151,"width":454,"height":11}},{"id":"d469b126-1649-4cde-b072-f470f257d251","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":183,"box":{"x":102,"y":173,"width":542,"height":11}},{"id":"fbb113db-1242-4e6e-b7d3-ffc104b1efc8","block_type":"box","text":"i.e.","page_number":183,"box":{"x":646,"y":173,"width":20,"height":9}},{"id":"bdfb2c40-f34b-4383-a6dc-a2ee64abb2a8","block_type":"box","text":", ratings on nonfinancial","page_number":183,"box":{"x":669,"y":173,"width":169,"height":11}},{"id":"a3144fcd-11f2-49e8-8f46-36071f698005","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":183,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"334633ce-e6fa-4f16-ad23-0261bce7ab21","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":183,"box":{"x":68,"y":203,"width":828,"height":12}},{"id":"c1074161-cf78-4b99-9576-c0874baae740","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":183,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"7142e672-adc4-43f4-99cb-d589ca4dfc6e","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":183,"box":{"x":69,"y":234,"width":797,"height":11}},{"id":"cff69126-aeee-4bba-a03c-6dbb16b60d7a","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":183,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"c7973274-e511-46d9-a09a-f3ef9d67dc1d","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":183,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"f4fa500d-94b6-4b3f-aff6-1a646636e08b","block_type":"box","text":"of time.","page_number":183,"box":{"x":69,"y":279,"width":53,"height":9}},{"id":"36f97ad8-2be9-4250-a3e8-71205a7e4762","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":183,"box":{"x":69,"y":309,"width":395,"height":11}},{"id":"a4a19ca6-e9db-40c3-afdf-208ccd1d45e4","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":183,"box":{"x":68,"y":337,"width":815,"height":11}},{"id":"4c67475e-b215-4f28-8d43-573ed1d27b37","block_type":"box","text":"risk.","page_number":183,"box":{"x":197,"y":352,"width":28,"height":9}},{"id":"6764990b-f4a3-46d4-a5d0-0c6f53587997","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":183,"box":{"x":68,"y":372,"width":773,"height":11}},{"id":"e4857522-e959-442b-ae91-2fe09db29b4f","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":183,"box":{"x":68,"y":392,"width":776,"height":12}},{"id":"01d1dfcc-9133-4751-aece-4432a8959695","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":183,"box":{"x":70,"y":413,"width":813,"height":11}},{"id":"46d249e1-c4dd-4949-92c6-ba74d57b820c","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":183,"box":{"x":196,"y":428,"width":385,"height":11}},{"id":"15a43464-2cb2-4618-a799-3b9b2802c6cc","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":183,"box":{"x":70,"y":448,"width":775,"height":11}},{"id":"e4182fa2-f54c-4654-984c-1fde178753e8","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":183,"box":{"x":70,"y":468,"width":707,"height":11}},{"id":"53783ea2-62dc-4f68-9375-e6390fd1d523","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":183,"box":{"x":69,"y":488,"width":810,"height":11}},{"id":"9f56611f-965b-44d0-aadc-b23b11e6ff84","block_type":"box","text":"credit risk.","page_number":183,"box":{"x":196,"y":503,"width":74,"height":9}},{"id":"394b05eb-28a2-4bd7-9682-a369b7802397","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":183,"box":{"x":69,"y":523,"width":783,"height":12}},{"id":"45d4ca5f-178d-4937-87bb-4da2f3b10d4e","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":183,"box":{"x":197,"y":538,"width":322,"height":12}},{"id":"46d01991-3af2-4dbf-8b12-39e8eff87d31","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":183,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"fb69eb65-0bd3-49c4-86db-488e84209a59","block_type":"box","text":"of principal or interest.","page_number":183,"box":{"x":196,"y":574,"width":160,"height":11}},{"id":"02a452e2-3249-4cf7-89e8-1c1f1ecac68b","block_type":"box","text":"Note:","page_number":183,"box":{"x":102,"y":594,"width":37,"height":9}},{"id":"ae94239c-86c4-4f20-a30b-4d12205df07e","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":183,"box":{"x":146,"y":594,"width":731,"height":11}},{"id":"1e9c8f05-6d8d-4618-9acc-d670a334d803","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":183,"box":{"x":69,"y":609,"width":831,"height":11}},{"id":"c47972c2-7f6f-45c3-bc40-38a0344495bf","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":183,"box":{"x":70,"y":624,"width":829,"height":11}},{"id":"491a4f05-adea-4895-a6da-c5f1bc5a68ac","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":183,"box":{"x":68,"y":639,"width":795,"height":12}},{"id":"408d0389-5a14-4a2b-a8a4-b1bc04e7f02a","block_type":"box","text":"companies, and securities firms.","page_number":183,"box":{"x":69,"y":654,"width":232,"height":11}},{"id":"f677b65c-d7f0-4cbb-aad8-9bc8e9e060ff","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":183,"box":{"x":102,"y":677,"width":787,"height":11}},{"id":"b67e2036-e621-4a8b-8b10-fcffb9953e91","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":183,"box":{"x":68,"y":692,"width":788,"height":11}},{"id":"925e16ec-0535-42b9-80bc-f1373d2a8301","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":183,"box":{"x":69,"y":707,"width":833,"height":12}},{"id":"a93cb4f8-cdef-4d2a-8b8c-7f52fb01dde6","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":183,"box":{"x":70,"y":722,"width":809,"height":12}},{"id":"7e0825bc-b3a4-46a9-ba69-1286ac1d5802","block_type":"box","text":"that security.","page_number":183,"box":{"x":68,"y":738,"width":91,"height":11}},{"id":"55538437-f2d3-4c2e-aeed-bbf137883c67","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":183,"box":{"x":69,"y":768,"width":400,"height":11}},{"id":"8624b11e-bdd1-4ebf-8973-7987d17cf04e","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":183,"box":{"x":69,"y":795,"width":658,"height":12}},{"id":"9e1e2224-f760-4fa9-9c38-157bc261ef61","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":183,"box":{"x":69,"y":816,"width":645,"height":11}},{"id":"6f03cf34-e749-43e3-8091-f5d0adda4288","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":183,"box":{"x":69,"y":836,"width":686,"height":11}},{"id":"17d209e7-abb6-4868-a62e-87d48085e074","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":183,"box":{"x":70,"y":856,"width":778,"height":11}},{"id":"e0744f31-0732-4c0c-b3e2-f19cef91b0f6","block_type":"box","text":"categories.","page_number":183,"box":{"x":196,"y":871,"width":77,"height":11}},{"id":"ee2ea920-e453-478d-bf01-ecc28c4e3f58","block_type":"box","text":"A-2","page_number":183,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"5aa92708-481c-49d7-a8f0-17bb87a6987e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"362cbd44-83b2-4229-ac57-c0194d70af61","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":184,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"1af90890-54bf-4644-8277-5c5c42808640","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":184,"box":{"x":69,"y":75,"width":391,"height":11}},{"id":"3b4adf6a-a76d-4a9f-a2fb-e51caf682d73","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":184,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"e089aae7-8283-4fa6-9c19-759452444587","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":184,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"a39e46d5-89a3-4cd0-88c4-38d6f9d1278a","block_type":"box","text":"an issuer’s self-liquidity.","page_number":184,"box":{"x":69,"y":128,"width":170,"height":11}},{"id":"01f730f3-7585-43b0-91c3-930f5694f26c","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":184,"box":{"x":102,"y":150,"width":736,"height":12}},{"id":"cf9a6065-7269-4f03-8932-69a31bb1e59c","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":184,"box":{"x":70,"y":166,"width":796,"height":11}},{"id":"0f284a94-ba5e-4995-985d-d68d5d22ed5b","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":184,"box":{"x":102,"y":188,"width":803,"height":11}},{"id":"0cccbca4-2b53-46e5-a58c-426144ec4893","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":184,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"1bcd2237-5493-47c1-8c05-e8cb679eaaff","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":184,"box":{"x":69,"y":218,"width":480,"height":12}},{"id":"6b079c61-a90e-48c3-8aa9-05865f7acd91","block_type":"box","text":"MIG Scale","page_number":184,"box":{"x":102,"y":241,"width":71,"height":9}},{"id":"350a2165-35cc-4d27-a27c-06f54929945f","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":184,"box":{"x":70,"y":269,"width":802,"height":11}},{"id":"14b11dbd-f6ac-4f36-b618-b69311a0de70","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":184,"box":{"x":196,"y":284,"width":703,"height":11}},{"id":"6f401542-29c9-4a56-ab1f-b84ddb6b84ae","block_type":"box","text":"refinancing.","page_number":184,"box":{"x":197,"y":299,"width":80,"height":11}},{"id":"690fb8e4-96ee-41ba-ad73-e04bec249a2e","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":184,"box":{"x":70,"y":319,"width":809,"height":12}},{"id":"3e646b7b-4925-4a09-80fc-d07f492d5e74","block_type":"box","text":"large as in the preceding group.","page_number":184,"box":{"x":197,"y":335,"width":224,"height":11}},{"id":"01ad9248-7e32-4b7e-891f-f75834d28aaf","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":184,"box":{"x":70,"y":355,"width":785,"height":11}},{"id":"0c888ec5-9758-4ea9-938b-a15c2b9f5e87","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":184,"box":{"x":197,"y":370,"width":554,"height":11}},{"id":"40ca920c-2f86-4deb-b6e6-6a1e944264a6","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":184,"box":{"x":69,"y":390,"width":813,"height":11}},{"id":"0a1618e0-7446-4afd-a05b-a3f0e3fc22e2","block_type":"box","text":"lack sufficient margins of protection.","page_number":184,"box":{"x":197,"y":405,"width":259,"height":11}},{"id":"4ed6b123-c8bb-4e73-9149-0a0bf5699bb0","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":184,"box":{"x":69,"y":433,"width":371,"height":11}},{"id":"3281cb23-fef9-4af5-b4bb-412514eef57f","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":184,"box":{"x":102,"y":455,"width":804,"height":12}},{"id":"bb61d69e-e929-49a1-b3de-76d95e66a7c4","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":184,"box":{"x":69,"y":471,"width":826,"height":11}},{"id":"ea9044a3-0502-402f-8da7-e773601f428b","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term demand obligation rating addresses the ability of","page_number":184,"box":{"x":68,"y":486,"width":832,"height":11}},{"id":"e007922a-9412-4e71-8c3d-c9334e38a2df","block_type":"box","text":"the issuer or the liquidity provider to make payments associated with the purchase-price-upon-demand feature","page_number":184,"box":{"x":68,"y":501,"width":784,"height":11}},{"id":"dcc0eba4-07ca-438f-9ee2-d651e9a9652c","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":184,"box":{"x":69,"y":516,"width":811,"height":11}},{"id":"591328fb-20dd-4218-8f9c-d9690c4fa0a8","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":184,"box":{"x":70,"y":531,"width":819,"height":11}},{"id":"48ad5ab4-6971-48c0-a664-a8886e0ad3f3","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":184,"box":{"x":68,"y":546,"width":802,"height":11}},{"id":"1466cadb-e376-413a-95e0-640727cbb45f","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":184,"box":{"x":69,"y":561,"width":833,"height":11}},{"id":"be753113-1516-44d0-bbf5-59b0976c0c74","block_type":"box","text":"external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment grade.","page_number":184,"box":{"x":69,"y":576,"width":719,"height":12}},{"id":"1cf7985f-6e24-44c2-ad7c-902accf9da0f","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":184,"box":{"x":102,"y":599,"width":807,"height":11}},{"id":"7cdff2c7-b073-4a4f-9717-afafb424a41a","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":184,"box":{"x":70,"y":614,"width":833,"height":11}},{"id":"f11c27c7-0a4f-4f60-afbc-5f1f8068bb25","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":184,"box":{"x":70,"y":629,"width":635,"height":11}},{"id":"42d06042-998e-46e9-9a66-b571e1dddd52","block_type":"box","text":"VMIG Scale","page_number":184,"box":{"x":101,"y":652,"width":81,"height":9}},{"id":"60501214-b63f-4534-a3f9-72e0f42dce26","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":184,"box":{"x":68,"y":680,"width":808,"height":11}},{"id":"9ce0b0c9-206f-487a-9905-08f40249d87f","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":184,"box":{"x":196,"y":695,"width":695,"height":11}},{"id":"79d31e1b-a01e-498d-9028-49a2fb4019c1","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":184,"box":{"x":195,"y":710,"width":370,"height":11}},{"id":"14a7edd1-abf3-42b5-b4be-0bdde65a4743","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":184,"box":{"x":68,"y":730,"width":834,"height":11}},{"id":"5e073ba0-4f2f-44c2-a2a7-af58517318a9","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":184,"box":{"x":196,"y":745,"width":691,"height":11}},{"id":"7567a67f-cb80-4950-ade6-c6b662bcc3fa","block_type":"box","text":"payment of purchase price upon demand.","page_number":184,"box":{"x":197,"y":760,"width":294,"height":11}},{"id":"f4a2aadb-a193-4fd1-b336-373874d2a66d","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":184,"box":{"x":68,"y":780,"width":768,"height":12}},{"id":"e8a1e897-2c0b-468d-bf6e-1f18e20614f6","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections","page_number":184,"box":{"x":196,"y":795,"width":697,"height":12}},{"id":"2d68164a-aaaf-44ec-b2dc-7c683fb28c67","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":184,"box":{"x":195,"y":811,"width":457,"height":11}},{"id":"26ce4cc2-3f45-40c0-b087-e35b3b3c6326","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":184,"box":{"x":69,"y":831,"width":820,"height":11}},{"id":"ca4f8d9e-e349-49c4-a545-9a3682afa088","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":184,"box":{"x":197,"y":846,"width":711,"height":11}},{"id":"e7f731e0-0dea-465b-acc2-785f269f6098","block_type":"box","text":"may lack the structural or legal protections necessary to ensure the timely payment of purchase","page_number":184,"box":{"x":197,"y":861,"width":684,"height":11}},{"id":"720c7031-d2cd-4ec2-826e-a826606c2967","block_type":"box","text":"price upon demand.","page_number":184,"box":{"x":197,"y":876,"width":139,"height":11}},{"id":"062e0f5a-e378-457c-a604-9adfc7c1c0fc","block_type":"box","text":"A-3","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"7515fd42-688f-44e7-b9c6-0cab373f75b2","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c82edfa6-744e-4b38-93f2-6fcd89892e75","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":185,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"ffa219e0-4bf7-42e9-98eb-ccba9aca6b6a","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":185,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"401ea99d-dbdd-4b6f-bf60-b43cb48872af","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":185,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"0b3cb845-e28c-433f-a9b8-b394913db2c1","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":185,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"aaef7571-e353-4902-9af3-a6d190f04144","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":185,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"36befa86-a7d8-423c-a58f-6ed4be536b4b","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":185,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"0a60b48b-8841-45b1-b5cd-ebec4a0a8dff","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":185,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"2cdfa805-4620-4955-b99b-96528b93eb55","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":185,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"1f8826e3-fcf6-4b52-b0e1-41f9e0ea5f27","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":185,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"6c681480-8fc3-4edf-83bd-c3382719c4e4","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":185,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"a18967c6-401d-4d60-807b-eaf46357a2b6","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":185,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"1d2f6c10-704b-4adc-8ea2-28b2bd56d3d3","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":185,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"4793bf95-9893-479a-a81c-3b75a0efa1f1","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":185,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"f0f4bfb4-1552-4799-8e33-9fc1c0f19907","block_type":"box","text":"from these guidelines based on market practices. Medium-term notes are assigned long-term ratings.","page_number":185,"box":{"x":68,"y":256,"width":724,"height":12}},{"id":"5488ad07-0a3f-45fc-9a6d-1c6826f2e9e7","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":185,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"c925e471-c92f-4851-8556-bf3ab4e15d8e","block_type":"box","text":"•","page_number":185,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"06b3694d-0ddf-4614-b314-17bdca4b5a0b","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":185,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"05525701-b469-44d4-a95a-2e9cee0f918b","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":185,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"0c4f7d9c-69b0-43c8-a63d-f91d69163d4b","block_type":"box","text":"•","page_number":185,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"36c4f288-b9a5-42a7-9f14-c5a436044907","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":185,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"84bbce5b-3f47-4493-b417-d9d77d2ec98b","block_type":"box","text":"•","page_number":185,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"40926c6b-d208-49fb-95dc-5ce487ad7115","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":185,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"6fe879b3-40cb-4e43-acfe-ba884f7d142d","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":185,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"92d12a07-81ca-454a-8eb9-89c2a8eb4f4a","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":185,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"5ca7cdb4-e321-48d4-9f5a-0f2ffd808f8d","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":185,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"689d7862-f672-4dcf-8539-a1b3883b56ff","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":185,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"e20630c5-0701-474f-9a55-0eae37225559","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":185,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"028ce2f9-1f02-4e04-aaef-7f8c39bb6152","block_type":"box","text":"obligations.)","page_number":185,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"57096f6e-3509-4ea8-8b2c-387c3120a1de","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":185,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"24fe6878-2c98-4e31-a804-b32c4f3be6a5","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":185,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"3a25eaff-4f61-4ed6-b98e-d84c970b2e4c","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":185,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"5422c342-ac5a-44de-8772-0fe5e20b88fc","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":185,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"be780092-3054-4d95-9763-cbb818df9ce6","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":185,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"fca0d1e3-c391-479d-815d-c5cb5ce47376","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":185,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"75fbe3e1-37e0-41cb-a573-745717ab554f","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":185,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"2194d3d9-3ce8-4142-a523-39fb23949195","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":185,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"cb261f0d-0f63-4757-945c-c5a122d8d0cf","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":185,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"e01af345-20a1-4819-abd4-b9a84702ec85","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":185,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"627da193-5a47-4a3f-b61d-c198c28da5ac","block_type":"box","text":"financial commitments on the obligation.","page_number":185,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"58ab4084-bd13-4815-8edd-4c0671acd769","block_type":"box","text":"BB,","page_number":185,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"16a8e03e-1600-400c-8568-226f8bbfe5ab","block_type":"box","text":"B,","page_number":185,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"c55a4a9d-f8a9-4051-b6e9-5e955d7a7fba","block_type":"box","text":"CCC,","page_number":185,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"96a25dfb-5c05-495f-b6cf-21c31eb8ba0d","block_type":"box","text":"CC,","page_number":185,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"1d183ae0-e084-4631-b4ac-52bd83ca734d","block_type":"box","text":"and C","page_number":185,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"f57c1baf-ebe5-4d62-830a-f27280300e5f","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":185,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"2cb885fd-c7e0-4c2c-9632-3e4805df6ed3","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":185,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"f8dcd78d-3cd5-4bc9-aff4-fa374d08907d","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":185,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"5ae6b9c9-206c-4b2e-9171-32c59c93d498","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":185,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"488dbfb2-22d0-4f35-8716-ae2f4e06b95f","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":185,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"23c9d366-a664-431e-9965-527851523935","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":185,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"7423140c-c4fb-47d8-99e7-d0e5fe373863","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":185,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"dc08e20f-c131-4b59-9542-864242764a3f","block_type":"box","text":"on the obligation.","page_number":185,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"f9f1d428-12d9-47b0-8477-ac650d357a8a","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":185,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"db50d113-0b6e-4ad7-87c9-b8ef7c0e5eaa","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":185,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"1f0fef8a-85d4-4f65-9612-0fbac35d1724","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":185,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"2675aa6f-4d02-45ca-afdc-f6e6c11da078","block_type":"box","text":"financial commitments on the obligation.","page_number":185,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"2375ad6c-4a26-4927-89c7-ed520a8f9291","block_type":"box","text":"A-4","page_number":185,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"4d205bc8-3d28-48fb-8059-37b25341789a","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"463788c5-0063-4614-b7aa-8e896c7bb044","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":186,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"f314f916-7a7c-4c6d-b833-b7b25c9df710","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":186,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"d711ebc5-39b9-42ec-bc03-f3f008e0fa06","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":186,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"4bd53a5a-5403-46cc-b94d-baa3704044a0","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":186,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"a03833ad-7ce1-40b6-927e-63d307427a6b","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":186,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"b2795a1f-ace2-45f2-83bb-f67b489c6372","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":186,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"8701f03d-826a-448a-99f7-b308f991683f","block_type":"box","text":"anticipated time to default.","page_number":186,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"bdaae650-0f1d-45fb-a8c5-f6c08a40b5d5","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":186,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"44385b9b-d270-49e4-beef-138fbdb385f2","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":186,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"97b90170-6b7f-4db2-bc80-2020dff904da","block_type":"box","text":"higher.","page_number":186,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"1e3ed542-8ae4-4e50-ae05-c6fc8670ab2b","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":186,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"681ca92e-0247-4ebb-bf3a-65f620474e8b","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":186,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"e2043dbf-5e51-4772-a9ae-4d01ac26d306","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":186,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"fbbd77d5-d0a3-4e47-8f48-a4eb54091ae3","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":186,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"52a701ea-b017-45ab-9fa3-9d7437e658f2","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":186,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"1b5b33af-16f9-47db-81a1-400c13dbc308","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":186,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"e0df59b3-ab35-442b-996c-46b628dacc19","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":186,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"cc5915e1-7f26-461e-80f7-d8c59eed82e8","block_type":"box","text":"restructuring.","page_number":186,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"dcedf5d5-7a13-4764-9e3f-ed946a0771d4","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":186,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"3c272500-48f3-47f1-86ae-ce72f9af0d7b","block_type":"box","text":"standing within the rating categories.","page_number":186,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"77afbba7-7d88-4ee7-bd4c-95d105c15f10","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":186,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"af3e4cbc-d24e-4726-bef4-24816dc800dd","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":186,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"b7ded764-1216-487c-a6f7-5517f2dccd10","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":186,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"3c190935-0258-4fce-b192-33c7a7c8dc7c","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":186,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"53020b4f-e050-4052-8db1-417b9f8a0b18","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":186,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"b9c67d69-9c18-4512-b543-c222365eb530","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":186,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"e78f6af9-f6a5-416d-9c87-ba723cf74130","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":186,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"4f982447-28f3-4688-bd18-51159b1d8925","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":186,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"c10fd946-c544-476d-87ac-d14504c943ca","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":186,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"55652ecc-92f9-4cb4-b4a9-b7b9e0e3f0f8","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":186,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"0efdf295-a2d2-4ca8-87fd-1de062e903a4","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":186,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"1120b3e4-38a2-4821-955d-f6b6be91911c","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":186,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"db52df41-bf1e-4c02-9c30-0ea0511d0c1c","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":186,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"593e073b-8a48-43e0-a315-5446316ac36f","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":186,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"ad4f10e8-8b44-46ba-beb6-9ecd7d6a0145","block_type":"box","text":"financial commitments.","page_number":186,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"e2301181-f57b-4c46-8363-8d4c6ba90c22","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":186,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"e76db9c9-b80e-4c7d-9869-f90e5f130bea","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":186,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"e901b316-42f3-4d0c-a69c-9f1b4f6fb3b8","block_type":"box","text":"commitments on the obligation.","page_number":186,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"3945d93e-ad60-4209-b626-f02ab41b7172","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":186,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"5c16bd1a-6bc9-4b3d-8398-27b3fbb1c5e9","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":186,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"eda0f459-b7fa-46f0-b271-159079b47d3e","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":186,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"21e43503-48f9-46de-8ce6-2e8cb191763b","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":186,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"0b41c797-1774-4d8d-a7ca-865ac911ed4c","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":186,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"8794627b-c157-4943-8d66-4808c8b3a1c1","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":186,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"c9f33855-08b3-4565-9034-340108f6b9ee","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":186,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"e437aa0a-294a-4b17-82a2-d4a3f61ac62e","block_type":"box","text":"debt restructuring.","page_number":186,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"00946cb3-b8e9-4236-8437-902fe87546d7","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":186,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"ccee3911-ac2c-4e84-8fc9-792734e94238","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":186,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"5b67bf26-408b-447f-ab36-3d2e5326fe8b","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":186,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"25185103-a52d-4129-8fc8-2adee1b8c9ba","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":186,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"0374752e-b3ea-4f5d-b895-94f446de730f","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":186,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"d521ed40-ea7c-4677-bb7e-af922d0da2af","block_type":"box","text":"A-5","page_number":186,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"165c4194-9c27-4c38-87dd-3e615d870172","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8038e06b-ace4-41dc-971b-5777c8565895","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"1c2426b6-31d4-41b4-b024-1a1d4da567e1","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":187,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"15aea64c-2fb2-4ea1-9d2a-7ac8c47e0504","block_type":"box","text":"as a note; and","page_number":187,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"6aaaa4e2-c565-4d3f-87e8-9cf4bb77defc","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"274241c8-edb6-47d5-9615-8682eb782f8a","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":187,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"f35f4c82-9180-4a9b-9931-d1bed40045be","block_type":"box","text":"treated as a note.","page_number":187,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"8074be0c-e33d-4f82-9ee1-bd3554ae7544","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":187,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"9cc48bb5-26ea-4b19-a76e-8454c603d51d","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":187,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"3e74cab2-0f29-4813-9dd2-7a31b05d3736","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":187,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"d4e52e5e-2524-41c5-b0bd-aa5a6c7695a0","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":187,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"ec7cee9b-c66b-4665-82c0-15ae365ee4e9","block_type":"box","text":"economic changes over the term of the notes.","page_number":187,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"c21b9e5b-db0d-409e-8407-167f3330d214","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":187,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"03cd7ad4-37b5-4be1-873d-510d253c1366","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":187,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"6da382f7-a64c-484f-bbd3-f03d53a9b707","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":187,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"4cc73972-449a-49a2-8d7f-d042d4d5ec49","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":187,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"75d10abc-5a4e-437b-86ef-602152d74287","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":187,"box":{"x":69,"y":294,"width":455,"height":11}},{"id":"b3ec120b-5061-4170-8bc0-9dea054aa51d","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":187,"box":{"x":102,"y":317,"width":778,"height":11}},{"id":"cf22da20-b5e5-4c7f-9c5f-8dc5bb1b640a","block_type":"box","text":"agency also publishes ratings, scores and other relative opinions relating to financial or operational strength. For","page_number":187,"box":{"x":69,"y":332,"width":804,"height":11}},{"id":"e29a0cdd-bee6-4a54-8d0d-52b2f55c94cc","block_type":"box","text":"example, Fitch also provides specialized ratings of servicers of residential and commercial mor tgages, asset","page_number":187,"box":{"x":69,"y":347,"width":776,"height":11}},{"id":"d78ed192-6325-4642-9ccd-29256db9e192","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":187,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"96b7aeaf-fdcf-44c4-adc4-4c29661953f5","block_type":"box","text":"dimensions of risk covered in each assessment.","page_number":187,"box":{"x":69,"y":377,"width":344,"height":9}},{"id":"792517cd-8307-4792-82d1-ca4b6662bce8","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":187,"box":{"x":102,"y":400,"width":747,"height":11}},{"id":"f4580ec7-e431-4efc-8722-4414978b6600","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":187,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"8643ccad-f408-4e06-b2b4-e01dc0d3f14e","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":187,"box":{"x":69,"y":430,"width":793,"height":11}},{"id":"1477ca99-9565-42fc-9421-944ee1428e41","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":187,"box":{"x":69,"y":445,"width":761,"height":12}},{"id":"97bfeee6-4ebb-4792-9f90-c6782b7cb6f8","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":187,"box":{"x":69,"y":460,"width":766,"height":12}},{"id":"58550516-6a95-4ec2-ab9d-e6fd24348206","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":187,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"2ddbbe29-bd4e-48ff-9a3d-4bd7125ddc6e","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":187,"box":{"x":69,"y":491,"width":779,"height":11}},{"id":"fd6e2bf2-45de-4a51-95f5-6bf55a6cf053","block_type":"box","text":"receivables or other financial assets.","page_number":187,"box":{"x":69,"y":506,"width":262,"height":9}},{"id":"7a598b66-4677-498d-a813-22141eca2344","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":187,"box":{"x":101,"y":529,"width":794,"height":11}},{"id":"8bf93583-92f8-4920-b06e-a16a0093ac5f","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":187,"box":{"x":69,"y":544,"width":826,"height":11}},{"id":"3d4dcd84-fa63-45fd-be2d-f960a24cef5b","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":187,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"fc3ac30f-1817-4e49-946b-71471be14805","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":187,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"1397d787-fa7b-4420-acd7-b5fb0890636a","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":187,"box":{"x":68,"y":589,"width":793,"height":11}},{"id":"c04d2d0f-8983-434e-a9d6-ea969b64d4d8","block_type":"box","text":"occurred.","page_number":187,"box":{"x":69,"y":604,"width":65,"height":9}},{"id":"a8a0d92f-ca93-4e9c-b7cf-aedc56077d0c","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":187,"box":{"x":102,"y":627,"width":788,"height":11}},{"id":"2ffc2eeb-6e32-4322-8062-62479624ec76","block_type":"box","text":"not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":187,"box":{"x":69,"y":642,"width":506,"height":11}},{"id":"29ce42ff-b4f1-4ecf-b9d2-4ebb6fc2af65","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":187,"box":{"x":102,"y":664,"width":797,"height":12}},{"id":"54dfa88a-afd8-48f4-b36d-72b7180925d5","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":187,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"ead5763f-3ef9-4a81-82b4-ef6dfc217a6d","block_type":"box","text":"please refer to Fitch’s Ratings Transition and Default studies which detail the historical default rates and their","page_number":187,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"3aab750c-6f95-4ecd-ab0e-426e7c23d4c7","block_type":"box","text":"meaning. The European Securities and Markets Authority also maintains a central repository of historical default","page_number":187,"box":{"x":69,"y":710,"width":801,"height":11}},{"id":"4d3591db-068a-4de8-92a9-4d28a47f2878","block_type":"box","text":"rates.","page_number":187,"box":{"x":69,"y":726,"width":39,"height":8}},{"id":"85d00244-6dd9-4a51-b5f1-0ea3b950822a","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":187,"box":{"x":102,"y":748,"width":798,"height":11}},{"id":"8f67bebf-673c-458f-87b2-f72191ab669d","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":187,"box":{"x":68,"y":763,"width":780,"height":11}},{"id":"803b2a0e-f388-4e73-b7b4-2362cbb455ea","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":187,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"91dbc0a5-19d3-452f-88a3-43220611710c","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":187,"box":{"x":69,"y":793,"width":531,"height":11}},{"id":"323b236c-f768-4076-a968-f61f2a8be840","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":187,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"92e7f2fb-8e6f-4e81-b95b-feffac8cc787","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":187,"box":{"x":68,"y":831,"width":639,"height":11}},{"id":"19ae5bdd-9f90-4df5-b51d-c34fb1de80dc","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":187,"box":{"x":102,"y":853,"width":799,"height":12}},{"id":"d49c5a7e-1638-4a34-945c-08c1520a477a","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":187,"box":{"x":68,"y":869,"width":794,"height":11}},{"id":"796f70af-57b5-4f65-b279-0d9296b41a99","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":187,"box":{"x":70,"y":884,"width":420,"height":11}},{"id":"446ee520-da5b-458c-bb05-166c413e1d34","block_type":"box","text":"i.e.","page_number":187,"box":{"x":492,"y":884,"width":20,"height":9}},{"id":"3e422b6d-9acf-41e8-9eb2-664d51a88374","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":187,"box":{"x":519,"y":884,"width":380,"height":11}},{"id":"36a97fe2-8d57-4290-aaaf-bfc0d7098f3d","block_type":"box","text":"the obligation’s documentation).","page_number":187,"box":{"x":68,"y":899,"width":230,"height":11}},{"id":"d568c692-adb9-4822-84cb-99eebdf32f01","block_type":"box","text":"A-6","page_number":187,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"46f0ca2d-026a-4557-b5f7-58348d97eb65","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"01eda85a-36aa-444f-9852-6f91fc158a06","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":188,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"c1666a69-ac3e-42dc-b95f-773c365f2976","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":188,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"dffbb61a-d41b-4dc0-a3fb-46edc971c43f","block_type":"box","text":"agents in the form of a rating letter.","page_number":188,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"69e82715-5509-4e32-b9a1-6ab8eaa3f59f","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":188,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"af0c19df-3f91-4436-b436-c2bd054b78c9","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":188,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"eba9141c-0510-4781-b144-141bb3611c67","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":188,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"38ab08ed-ee1c-4fb9-939e-6baf3dccc349","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":188,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"7554bae6-29ef-4edb-84e4-d119777004fb","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":188,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"284bd60c-635e-44a2-9bea-1d47577105b9","block_type":"box","text":"e.g.","page_number":188,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"4d51a786-1f24-4c37-b257-37c64f44e4df","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":188,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"15ff37ad-95a2-4ee5-9972-bc4e6901b14b","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":188,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"28248ea2-1725-4348-8cce-9b4db5f57b14","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":188,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"8133c5ee-9458-4db2-861f-b9ebba8751e9","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":188,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"c55c2295-dd94-4e9a-a2c2-384230787e68","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":188,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"439810c5-e48c-4ed9-bca0-9d0a4361ed73","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":188,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"747b9584-e665-4305-b9f4-b9b33e387b9e","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":188,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"e1871746-7abe-4944-9fe0-37950bb9c2c7","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":188,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"20839193-3176-4509-9ebc-3fa85b450185","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":188,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"1ea8f6ac-3ed3-43b2-87f7-ca15b967050d","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":188,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"9b636263-8ad6-45d6-bcf4-9eaebfdf6b43","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":188,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"e8d61618-018c-4bef-8de1-6f463501ba60","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":188,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"8f0b4fed-411b-47bc-9022-ce541c1b1d36","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":188,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"3fd7d043-cbc1-472d-94bb-27f5eaf6dd85","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":188,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"b87d63ab-7d5a-427f-9475-ed80a13bcaa6","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":188,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"c9f4c1f9-00c6-47b0-9b82-32fa404a4908","block_type":"box","text":"Ratings.","page_number":188,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"0dada582-88b4-4f22-a587-cb516b25a2e4","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":188,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"4d6f72fe-ede5-476c-98cc-dea00b57bd61","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":188,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"10c79ac0-5e7f-4c6f-bc18-a2f5fb51c130","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":188,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"2792207a-43ea-4bc2-98af-f2ea519af26a","block_type":"box","text":"obligation ratings.","page_number":188,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"2cbe80b3-17c3-4a2f-b1a9-65a064df1699","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":188,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"d734f98e-24c3-40f5-bf34-e751e92f9cdd","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":188,"box":{"x":68,"y":533,"width":833,"height":12}},{"id":"319ecb96-0949-4341-a370-10c67799d5f0","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity","page_number":188,"box":{"x":196,"y":549,"width":697,"height":11}},{"id":"3764e616-83cc-4c24-b3dc-d995ece3a4a7","block_type":"box","text":"is highly unlikely to be adversely affected by foreseeable events.","page_number":188,"box":{"x":197,"y":564,"width":457,"height":11}},{"id":"b2b70cef-0480-4f2b-bd3d-a32ea7cf590a","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":188,"box":{"x":68,"y":584,"width":829,"height":11}},{"id":"f1dd84bc-2a07-4e45-861d-81c1595e6458","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":188,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"2f417ef8-e5de-4e73-80a9-3c9acbfd9512","block_type":"box","text":"to foreseeable events.","page_number":188,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"90b7179c-74b1-4426-8917-039a5b071e71","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":188,"box":{"x":68,"y":634,"width":819,"height":12}},{"id":"517561a7-3c3e-4dfe-b4c8-f79a888ea929","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":188,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"5f5e5405-7098-487b-9756-aed1299d6f02","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":188,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"d945624d-7140-4574-a2c9-cec3d86fcb60","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":188,"box":{"x":70,"y":685,"width":805,"height":11}},{"id":"e74b134d-8b11-481d-9129-bc838dfb48f4","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":188,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"a01e2ebb-fb00-4d9e-86d0-296d11bf843d","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":188,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"21ccdf12-496c-48bd-8b2d-bad323151870","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, par ticularly in the event of","page_number":188,"box":{"x":70,"y":735,"width":830,"height":11}},{"id":"5d0aa1cc-1b6a-4068-b0fb-3dbcab03bd47","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":188,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"9bac53cf-2f3b-43b4-9ae5-30fe6bac541a","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":188,"box":{"x":196,"y":765,"width":511,"height":11}},{"id":"a1c05afd-5167-484a-8966-1604869a1e98","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":188,"box":{"x":70,"y":786,"width":650,"height":11}},{"id":"5dbacbea-2a84-498c-9b5d-668616be9431","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":188,"box":{"x":69,"y":806,"width":727,"height":11}},{"id":"20905835-e56c-4de1-9e42-7b5cb8a146a0","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":188,"box":{"x":69,"y":826,"width":712,"height":11}},{"id":"e220da48-d7f0-492e-8b8d-ad2a03686929","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":188,"box":{"x":69,"y":846,"width":780,"height":11}},{"id":"34190280-47a0-4cf1-b31f-7502c1bf5e51","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":188,"box":{"x":101,"y":866,"width":808,"height":11}},{"id":"fa7ed115-d482-4974-a20f-9b1db20b97e8","block_type":"box","text":"relative status within major rating categories.","page_number":188,"box":{"x":69,"y":881,"width":320,"height":11}},{"id":"2be626e0-12e2-499a-b784-fdb0d6c1fa97","block_type":"box","text":"A-7","page_number":188,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"bb7e4de3-cdde-499f-9579-ac47ecbe2292","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9f865ce0-b2aa-43d4-be7b-b82a7d4b16d3","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":189,"box":{"x":102,"y":45,"width":761,"height":11}},{"id":"b2aa74ff-6a2b-449b-bd30-6e0bd3fbd21d","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":189,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"7a10d5b5-bcaf-478b-b2b5-f46c25f59b67","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":189,"box":{"x":69,"y":75,"width":289,"height":11}},{"id":"91a99868-e741-4a11-bdb2-578d3a7c618c","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":189,"box":{"x":69,"y":105,"width":568,"height":11}},{"id":"8fcafcac-7688-45a7-ae0e-f6fa65cbc19b","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":189,"box":{"x":101,"y":128,"width":806,"height":11}},{"id":"df497360-3e28-4521-bc38-d3f55f8502c2","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":189,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"a00aa169-d2e8-4c61-9dad-42b0098236c9","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":189,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"055ddeb9-adec-4182-9fae-b700a187f77f","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":189,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"0e61c614-08a8-4e91-a368-56b55fe13892","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":189,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"4e3f8c42-0126-4d8e-99e1-4c4ad3a84c1c","block_type":"box","text":"finance markets.","page_number":189,"box":{"x":68,"y":203,"width":118,"height":9}},{"id":"7a4f7258-9d32-41bf-a8e9-b6a87ce610e0","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":189,"box":{"x":102,"y":226,"width":273,"height":11}},{"id":"5a92465d-d731-4457-a254-86a7c9e8b692","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":189,"box":{"x":70,"y":254,"width":816,"height":11}},{"id":"84cb1368-2083-45ea-9792-34e1477d368b","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":189,"box":{"x":196,"y":269,"width":692,"height":11}},{"id":"a35259d7-9845-41f8-b75c-27a9ebdaad78","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":189,"box":{"x":70,"y":289,"width":734,"height":11}},{"id":"d9455d9e-07d1-499d-8f12-6e277f26164a","block_type":"box","text":"commitments.","page_number":189,"box":{"x":196,"y":304,"width":100,"height":9}},{"id":"fcf232f0-4887-4ef0-b820-ad89620b92e0","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":189,"box":{"x":70,"y":324,"width":831,"height":11}},{"id":"e3bea395-c637-4ec9-a91f-32162b018514","block_type":"box","text":"adequate.","page_number":189,"box":{"x":196,"y":340,"width":70,"height":10}},{"id":"d1abebe8-69d7-42d4-b409-aa9f63fe2737","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":189,"box":{"x":70,"y":360,"width":737,"height":11}},{"id":"d6e241be-138e-4612-a773-a6b94c69991a","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":189,"box":{"x":196,"y":375,"width":641,"height":11}},{"id":"00c86479-02c9-4fd4-8d96-71e9de2860e5","block_type":"box","text":"economic conditions.","page_number":189,"box":{"x":196,"y":390,"width":149,"height":9}},{"id":"2743d0b0-e45a-485a-b574-9c6be37b70b0","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":189,"box":{"x":69,"y":410,"width":535,"height":11}},{"id":"60348316-2089-4dba-8ff9-f956ba993daa","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":189,"box":{"x":70,"y":430,"width":749,"height":11}},{"id":"814282a2-345c-4ea8-8b94-3a2117eabfed","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":189,"box":{"x":196,"y":445,"width":714,"height":12}},{"id":"e3ec99a5-ecbc-487b-867e-0d809c928941","block_type":"box","text":"ratings only.","page_number":189,"box":{"x":197,"y":461,"width":83,"height":11}},{"id":"25f78535-1a6e-4fd5-a6b3-5ecd66a18b84","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":189,"box":{"x":70,"y":481,"width":761,"height":11}},{"id":"491d6a7d-cd75-48c8-a2a3-89f5aa3f17e7","block_type":"box","text":"obligation.","page_number":189,"box":{"x":196,"y":496,"width":72,"height":11}},{"id":"2942895c-6a3f-40fe-8609-7286fa511653","block_type":"box","text":"A-8","page_number":189,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"abe9913e-01a7-4b45-a9b6-4fd65bcaaf94","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f9363a6e-7b31-4da7-8b41-c13af5d6e946","block_type":"box","text":"APPENDIX B","page_number":190,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"6c8e0311-ffad-4458-899c-ff860f9b9d8e","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":190,"box":{"x":247,"y":76,"width":484,"height":11}},{"id":"7925bed4-f428-46d8-97ad-a4dc26e6e5b8","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":190,"box":{"x":247,"y":91,"width":486,"height":11}},{"id":"e5caa818-f8fe-41bf-acc1-3200fff3b6e5","block_type":"box","text":"Effective Date: January 1, 2025","page_number":190,"box":{"x":376,"y":106,"width":227,"height":11}},{"id":"a8eb005e-b40d-4241-8366-be25ab3f7d39","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":190,"box":{"x":231,"y":128,"width":515,"height":12}},{"id":"f4071ca1-959a-4cf3-ab6a-5c7a44b448d9","block_type":"box","text":"□","page_number":190,"box":{"x":284,"y":151,"width":15,"height":11}},{"id":"953eef3d-babf-4c3f-80c4-98437037278b","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":190,"box":{"x":306,"y":151,"width":388,"height":11}},{"id":"c469a45b-3fdd-44a0-ab0a-873c79b5f88a","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":190,"box":{"x":205,"y":174,"width":589,"height":11}},{"id":"86309aa7-8fdb-4e2a-8e07-76cb67960a63","block_type":"box","text":"□","page_number":190,"box":{"x":405,"y":196,"width":14,"height":12}},{"id":"1d07e255-a119-48d0-a79c-0056af09cbe7","block_type":"box","text":"Money Market Funds","page_number":190,"box":{"x":426,"y":197,"width":147,"height":11}},{"id":"602d5de2-44b6-4ec3-979b-0901946ae7fa","block_type":"box","text":"□","page_number":190,"box":{"x":416,"y":219,"width":14,"height":11}},{"id":"6b7d6db5-81b0-49e8-ab88-4a5e67feda6f","block_type":"box","text":"Closed-End Funds","page_number":190,"box":{"x":437,"y":219,"width":125,"height":9}},{"id":"1a644127-a53e-4d7f-972b-9c8547beec96","block_type":"box","text":"□","page_number":190,"box":{"x":460,"y":242,"width":14,"height":11}},{"id":"96340fa6-828b-4c30-83ce-b540f569a714","block_type":"box","text":"Other","page_number":190,"box":{"x":481,"y":242,"width":38,"height":9}},{"id":"59bef3de-976d-4829-8d18-cac9e872ae60","block_type":"box","text":"Objective and Scope","page_number":190,"box":{"x":101,"y":265,"width":149,"height":11}},{"id":"a03531ea-1ecb-4f0b-b75f-f9a357ac29d5","block_type":"box","text":"Set for th below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":190,"box":{"x":134,"y":287,"width":622,"height":11}},{"id":"04eda5db-8338-4997-b503-99a9ba672564","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":190,"box":{"x":102,"y":310,"width":354,"height":11}},{"id":"6396111d-661c-4fc2-9259-1aa4120c6a5a","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":190,"box":{"x":134,"y":332,"width":702,"height":12}},{"id":"44f4b2ea-1eb9-403c-94d1-b8c4ce53285a","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":190,"box":{"x":102,"y":348,"width":789,"height":11}},{"id":"83da5cdc-4912-4369-84b8-f9f777cd6edb","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":190,"box":{"x":101,"y":363,"width":801,"height":11}},{"id":"517433ca-1176-4154-8d35-452e98ea7e3e","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":190,"box":{"x":101,"y":378,"width":763,"height":11}},{"id":"dc95a356-e71c-46d1-947c-0ef31a975f2c","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":190,"box":{"x":102,"y":393,"width":775,"height":11}},{"id":"c82e8158-170d-43d7-8951-7eb84635062a","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":190,"box":{"x":102,"y":408,"width":651,"height":11}},{"id":"b1687497-1ce4-45fb-a40b-43aab140a17f","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":190,"box":{"x":135,"y":431,"width":718,"height":11}},{"id":"b6c73be4-3d45-49a8-a489-a96431c3f119","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":190,"box":{"x":102,"y":446,"width":788,"height":11}},{"id":"7702ccb6-a60a-43d5-915f-99e90715f20e","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":190,"box":{"x":102,"y":461,"width":766,"height":11}},{"id":"0290c919-f43c-4916-9202-8f190fe68fac","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":190,"box":{"x":102,"y":476,"width":325,"height":11}},{"id":"623f0b24-fd58-40fb-b656-91ec892baaf2","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":190,"box":{"x":135,"y":499,"width":751,"height":11}},{"id":"2b72df79-a84a-489a-b5bb-995123201d09","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":190,"box":{"x":102,"y":514,"width":765,"height":11}},{"id":"a9c458ae-91ed-4baa-b3d1-b07f25166371","block_type":"box","text":"Conflicts Management","page_number":190,"box":{"x":101,"y":537,"width":165,"height":11}},{"id":"cc74711c-27d4-4fb7-9053-0c913d8081cb","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":190,"box":{"x":135,"y":559,"width":758,"height":11}},{"id":"07956912-4af0-4ffd-b7c4-8eaf2594b4c5","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":190,"box":{"x":102,"y":574,"width":797,"height":12}},{"id":"0ab352a4-c085-4af7-b425-c9521efbf091","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":190,"box":{"x":102,"y":589,"width":805,"height":12}},{"id":"fb14eaa4-a76a-4347-98b1-b10a330881af","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":190,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"6303f60c-b58a-4053-ade4-aabffcbedaa0","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":190,"box":{"x":102,"y":620,"width":756,"height":11}},{"id":"f20536c1-0a43-4065-ada7-fa1b0e5ce957","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":190,"box":{"x":101,"y":635,"width":800,"height":11}},{"id":"120bd515-37eb-4638-8594-cae215046f25","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":190,"box":{"x":102,"y":650,"width":244,"height":9}},{"id":"dd23b9b0-9cf8-49b6-9aff-5e3aed8013cb","block_type":"box","text":"In cer tain instances, BAIS will engage an independent third-par ty voting service provider to make proxy","page_number":190,"box":{"x":135,"y":673,"width":731,"height":11}},{"id":"f9fc3e64-5ef0-4a2d-a45c-d5c693f69e55","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":190,"box":{"x":101,"y":688,"width":763,"height":11}},{"id":"1bd3d6da-c7c4-4274-8d05-7bcbe998b5f0","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":190,"box":{"x":101,"y":703,"width":550,"height":11}},{"id":"d407b3d7-cf0b-49c8-81f6-3e6946b0e44e","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":190,"box":{"x":134,"y":726,"width":774,"height":11}},{"id":"6214f8fd-a47b-46ca-a171-c6a730440ec2","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":190,"box":{"x":102,"y":741,"width":791,"height":11}},{"id":"0ee00c3d-5366-4cd8-a615-750b97ccd36b","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":190,"box":{"x":102,"y":756,"width":778,"height":11}},{"id":"90e035cf-3300-4652-acf0-f59624bf406a","block_type":"box","text":"connection with proxy voting.","page_number":190,"box":{"x":101,"y":771,"width":203,"height":11}},{"id":"88f110f6-f337-4d68-8b81-d6744fa20e9d","block_type":"box","text":"Reports to the Board","page_number":190,"box":{"x":102,"y":794,"width":153,"height":11}},{"id":"195203e6-b557-4de4-a25c-5bdf25a1c212","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":190,"box":{"x":135,"y":816,"width":755,"height":12}},{"id":"15f7686f-163d-4cfa-9dd4-87bd6a4000ad","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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The money BlackRock manages is not its own — it","page_number":195,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"630657f9-b37d-4175-a069-a8f66486149e","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":195,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"33a1ad1d-f6f9-4d2d-9a6f-8907f7f11851","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":195,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"faee1a32-82c4-47f2-ae46-57599a59b934","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":195,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"5faea62e-ff5d-4109-858d-4849f0f30e77","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":195,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"173c1813-c8bf-46f1-ac2c-1fe4f7a480d3","block_type":"box","text":"this work with research, data and analytics.","page_number":195,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"7ab7ec6b-0d68-48f5-8c1b-da340f00c08f","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":195,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"601d924b-627e-49f8-8fc1-169a66844c1e","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":195,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"271298f2-3614-406b-a071-cde030ded490","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":195,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"1fa69a95-a2ea-4707-b862-b88d1e1d0efa","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":195,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"ec538aac-49d5-4c40-8313-4091bbb3d5e8","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":195,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"21b2881e-ecf2-494c-980d-c1a73fb914e4","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":195,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"46a0788f-ed0c-4576-ab9e-5c3add0ea870","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":195,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"04248d7a-6af8-4ae2-8a09-9ca96c88eed4","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":195,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"3d622e7e-7da8-4f69-a4d3-649a18531365","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":195,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"e10da61c-20ec-47ab-8817-35fec52092c2","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":195,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"e1da0d61-3c37-4821-bc08-ce291d16aa75","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":195,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"30d70a49-5984-4c93-b595-131a18d441e7","block_type":"box","text":"shareholder meetings.","page_number":195,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"96a12753-7656-424a-a849-918ac4b895a8","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":195,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"cd805a8c-d01c-46dc-9b4d-95221f7b4113","block_type":"box","text":"investing.","page_number":195,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"a323d7f3-aaa8-4c00-a55c-1cbd4057069e","block_type":"box","text":"3","page_number":195,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"d7e0eaa5-0a9a-4074-9d3a-cea0f8ea778f","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":195,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"09fd75ac-9fb0-4ab5-b608-cad7369dbbce","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":195,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"012d71bb-c5c9-4ba4-8654-784f87cd775c","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":195,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"8f137252-63be-46fa-9020-159cda431976","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":195,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"5294c9ea-0a66-4733-8a1a-02e2dc15ee8d","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":195,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"30a67ac9-b455-4472-98ee-cbf615b6e2a6","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":195,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"ebb94c38-3acd-42fd-b55d-c1d2ba816555","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":195,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"d66de127-df32-4c92-9eb9-0459e4b3cfa5","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":195,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"b7ed1b63-5928-4fd3-8cfd-8f769c338d94","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":195,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"35739c39-fd86-4c48-b551-927b4250fdfb","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":195,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"4602e154-3cb6-4d54-9df7-629f071a9c7d","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":195,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"7f42c829-a581-4224-970e-67b575363efb","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":195,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"87759888-78c6-4427-a940-21ab3f55f337","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":195,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"1db30138-5979-4352-891e-23b7af3e22d2","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":195,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"20280314-05a9-4b16-a450-5e3864d28d9d","block_type":"box","text":"management teams and board directors","page_number":195,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"33fc5048-7ceb-4011-afc8-95192861a4bd","block_type":"box","text":"4","page_number":195,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"712c2698-d703-4348-9a00-d3c49d6c72d8","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":195,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"ee858775-8227-4814-aecf-622d1fc0f8b6","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":195,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"227d39f1-00d2-4e3e-b0ee-7f6b9530745f","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":195,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"fdd86795-8a17-483b-ae65-097bf87fe067","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":195,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"2e072cc7-3ea1-42b4-9873-3903fef029bb","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":195,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"6af0b791-150f-49d7-b52f-1eb82c1ea351","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":195,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"619164f3-1bd8-4171-aac6-941fab7d607e","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":195,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"c06a562c-0900-4d7c-bf63-ec6af5791cd0","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":195,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"465f52af-9dfb-44ae-a7ca-f13faf81ccfb","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":195,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"4409afa9-d0c2-483e-b1ed-59b6c21a562b","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":195,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"b0446e93-8b46-4b55-841b-aaf590df41a9","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":195,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"3a405530-7f05-4afa-a68b-7bb33eb78ced","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":195,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"a23c7d73-b019-4973-9a17-e6902c750a19","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":195,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"f198151e-e68a-42e1-a91f-6e29af007bc5","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":195,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"576c24d6-dc44-4b5a-b97a-d19e4e2acb18","block_type":"box","text":"3","page_number":195,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"6a783b45-b709-4f81-9465-915b2fd83212","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":195,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"4d0621b7-e3ff-47ac-945f-ea7390988e71","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":195,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"987d4fbd-fc39-40af-84be-29633d058781","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":195,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"4320af32-6066-497e-bd0f-5677d0c677d5","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":195,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"45cd3f53-041c-4d25-8b0b-37308f78577d","block_type":"box","text":"4","page_number":195,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"9cb10739-07e3-4408-9e52-ec7645001c4a","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":195,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"96d1d9a6-e1fc-474b-9f1b-28c58ad710f7","block_type":"box","text":"boards and their members, where relevant.","page_number":195,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"1cd0d5b1-fab7-41ec-8cff-b064c20c6e58","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"42401bd9-020d-48f3-95dc-391026b12c77","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"913fae1c-db69-419b-9682-2c343be86ed0","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb6f38fb-92d4-48b4-9691-8a1bd1296a3b","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":196,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"8c8e2ba5-7491-4cce-8b17-9526f3a608ca","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":196,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"54b25ec3-05d2-4185-8ec2-960b71534706","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":196,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"9e30ee39-befb-4f69-8509-a31b19566487","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":196,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"8050558b-3229-484f-be7c-d5594d2e4369","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":196,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"4c44e5f1-2335-4adb-9187-adfc05487382","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":196,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"efaaf0ee-8492-4b7f-be99-3ae44d4a5225","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":196,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"50ea6bcd-8ac2-4a8a-aa6f-c2a4aefab7b2","block_type":"box","text":"5","page_number":196,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"bcb6445e-bfc4-407c-8714-4d7c851ba89d","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":196,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"c516c3e5-ab70-49b6-ba80-1e74c89e3851","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":196,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"7013820e-dde3-4697-9532-05f91111f3e2","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":196,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"21c0cb65-6d7d-4dc7-b466-2eed1de7144d","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":196,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"dce23b8a-c770-4b40-80b0-acc3808f4d16","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":196,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"c2813185-a4d8-4d51-92f7-618a0dba44bf","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":196,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"d5995e46-a61b-4d82-ae69-486e3cf1cf44","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":196,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"498555fe-a1f2-4ce7-aec4-9fdaccfa7841","block_type":"box","text":"5","page_number":196,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"0899df0d-40d8-40f1-810d-b52aa3c10d23","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":196,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"95b1843d-3f9c-4e24-9855-19c00fd3d65d","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":196,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"0248953d-8fe9-4e9d-874f-3d78016b12e7","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":196,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"47739485-7b73-4161-af5f-100afd836cbf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"144365c4-f5b5-432c-98f7-109601fe4060","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2a56b4b3-291a-4b2c-92e1-df083e8fb1bf","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94a0e974-fb05-4deb-9f08-4bfdf96587b9","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":197,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"300a4c00-bc32-47c3-9176-02bf2d31b3dd","block_type":"box","text":"Roles and responsibilities","page_number":197,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"62f40402-0af9-4872-a633-b699603f7369","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":197,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"f4474cfa-0103-4fa2-b1dd-9366ad6c720e","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":197,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"a309bdb3-ccbb-488d-889e-1260182a61bb","block_type":"box","text":"6","page_number":197,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"6039c340-62f7-4c4c-8ffc-36660af973ad","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":197,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"d6d1d4ec-1873-4097-8a0f-c960cf72590b","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":197,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"d8d55aa7-7291-49ab-936e-94626819d9a5","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":197,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"1fdb0d73-b340-4c03-ae95-75511bdf4b9c","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":197,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"9225095c-4475-45ee-bf17-f76fb7361244","block_type":"box","text":"per formance over time.","page_number":197,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"200e4b02-96d4-44ac-ad44-06620a65b73f","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":197,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"5513f7c1-4098-4d39-9963-ddd2153e9160","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":197,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"ca126316-951b-4f96-841d-39c11eaa75bb","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":197,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"99fba27f-e501-4810-b502-37a047cb2abe","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":197,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"c4bfcd60-ff02-480d-ade2-7fe120fb8166","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":197,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"405a6404-84af-4422-aacb-e8df1f8eb594","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":197,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"40429b6a-702e-4a41-a7a0-328af3b23535","block_type":"box","text":"Composition and effectiveness","page_number":197,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"97da5c52-8a44-4bb8-a060-9e6becdb506e","block_type":"box","text":"Appointment process","page_number":197,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"c5d26955-4bd1-4e3a-adec-d29c884a5622","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":197,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"98225909-1bd3-4cd3-abce-201d3d3cdc0e","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":197,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"f677fcf4-d3c7-43da-85d8-dc98ef2d98e7","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":197,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"8f3702a2-1957-4290-b9d4-110b79a521a3","block_type":"box","text":"e.g.","page_number":197,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"fd498b0f-0915-4561-9e83-de062e41616a","block_type":"box","text":", sector, maturity, geographic","page_number":197,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"8c33afc0-d6a3-412a-a5b6-377cf4c6b3f4","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":197,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"af6962b6-0c6f-4c92-b11a-08d57e7fdd5f","block_type":"box","text":"e.g.","page_number":197,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"c0ab3685-e089-425b-ac95-5441807e639f","block_type":"box","text":", financial exper tise, industry track record). To","page_number":197,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"89cf182a-a086-4eec-b1c5-0eac45cd66cf","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":197,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"429faf79-39bc-42a5-aeb8-3f7f28ebbf61","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":197,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"6700adc7-dd5d-4bbf-bd93-4fb47b7108a9","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":197,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"203718a3-5415-443a-b05c-1d489f4cbd52","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":197,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"5f0ab217-b0f2-4cd9-bf5b-5a33f88fa92d","block_type":"box","text":"and local market requirements.","page_number":197,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"cbb4c664-6894-4f57-8be2-15b55c7320f5","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":197,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"319d4cb2-178c-4cb4-9491-e525de3e719e","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":197,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"dd318c6d-5e35-4b93-83f0-d7ed1a12de03","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":197,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"7b9633b6-c960-4388-93e6-0f694f4acb37","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":197,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"f29a032d-8acd-4a7e-a4ff-45b20cd3a648","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":197,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"1c36593a-9d05-4744-98ca-1720a7a78631","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":197,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"07472419-02e3-452f-9785-0f48aed9cdce","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":197,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"d7c1bd2e-8b2b-4af9-9c60-c2e910942408","block_type":"box","text":"Independence","page_number":197,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"bb2de903-267f-44bc-a5d7-04cf05589855","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":197,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"6568afc1-2814-43eb-9201-86aaa9f7b679","block_type":"box","text":"e.g.","page_number":197,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"fc98624c-7d4c-4644-8d30-e73c04ec69bf","block_type":"box","text":", government or","page_number":197,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"3564086e-0ec4-46a2-a90d-1755feea551b","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":197,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"9952fc82-a99e-4e6b-8c8e-03aca21e900f","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":197,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"f551a71c-dd7c-4ee1-9e84-69b38b905454","block_type":"box","text":"conflicts of interest or undue influence.","page_number":197,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"4b355d2f-f632-4c08-a4f6-b40b663aca6d","block_type":"box","text":"7","page_number":197,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"e013df8e-1e3a-431c-a78a-c5ee14725e29","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":197,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"6c187515-cbd3-4af1-b9c8-edb46790f10c","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":197,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"080463d3-23c9-4c9f-bbfe-d8c7a61b8208","block_type":"box","text":"independence should meet those local requirements.","page_number":197,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"2a75773f-cef0-4392-a1b2-584b34fbaa55","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":197,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"d65bfe76-0e29-403c-9402-9f84ba21e250","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":197,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"85483a55-f290-4b5f-9df8-7945577fd3a3","block_type":"box","text":"composition if this is a perennial issue.","page_number":197,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"c57d7f8c-391a-487a-ad4f-e00fda2f8db4","block_type":"box","text":"6","page_number":197,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"17dc89a2-09b4-4311-b8ff-b407d88ba70c","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":197,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"baf0f7ab-4468-498d-b2bf-8d437d2636ef","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":197,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"8f21c289-f563-48c9-b088-b0cd688a8c7a","block_type":"box","text":"7","page_number":197,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"7ca60be7-6c9b-4735-8f74-641380e9a5f6","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":197,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"e8e18caf-9326-4950-844d-563d92f815fe","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":197,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"196cd0de-2a82-4e59-bec7-25f451591057","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":197,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"7aa6c351-b06b-4bc9-97bd-260bc0db9f85","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":197,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"ac44ce01-a2e8-40e8-a544-d78853aad6e6","block_type":"box","text":"of the company and shareholders.","page_number":197,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"d8b6b9cf-4572-4695-8702-fc87ea6d9cd9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"96ca537a-3ea5-431b-9e21-af2d191b00ad","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"afcc93aa-095a-4395-9f0c-c61e238f9283","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"31c79d67-fbd2-4acd-96af-41094e0f7cd9","block_type":"box","text":"Independent board leadership","page_number":198,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"1e675849-a335-4c66-b0aa-d4bdcd935be1","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":198,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"14e5fd03-2ec8-4a23-9bd1-995bcaa6bfe8","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":198,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"736c9a49-0f90-4518-838b-4152c6dd5e57","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":198,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"85cdcfcf-aa09-462f-a73e-1bc9fa8dcca8","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":198,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"1c69fd2c-8910-4101-809c-c54025100e67","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":198,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"ea293b93-f58e-456b-8c8a-8982c4eee890","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":198,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"aaecac5f-0aa6-46be-bb2e-8ab7ce72c070","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":198,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"619ed248-5110-414d-abff-ce0a8e83a345","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":198,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"919c8318-6745-4633-966e-3555301aeaac","block_type":"box","text":"how it serves the interests of shareholders.","page_number":198,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"279e9a34-d337-4750-aecd-b6fad04c4adc","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":198,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"eb7bbe25-9ab9-43a4-86cd-4535e633f3f1","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":198,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"635e55ab-5e37-47fe-bfc9-276543d092bc","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":198,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"b5be3c37-5a2b-4a70-9828-568d4b695e2a","block_type":"box","text":"Tenure and succession","page_number":198,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"792a629e-e1d0-4e0f-8354-448b8a48bf70","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":198,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"3e57dc17-0c8d-4dd6-96b5-c4791a86b896","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":198,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"a8b6a592-5b75-4dc4-9f1f-790f7e6a2432","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":198,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"8bb87f80-a916-48fc-8aed-7bce304130c7","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":198,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"a2189b92-dfe3-4cf0-8403-efb4b2c8b401","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":198,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"32dd8f62-abb4-47e4-965c-9cb315a32197","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":198,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"627db840-0703-430a-af1d-ffcbe2e1a08a","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":198,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"37bfe249-e1d4-4861-909b-7a357007c131","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":198,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"e523c36f-e1e5-49cb-989d-99ab20a31c3a","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":198,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"cee14d57-8274-402e-a2d9-73eb908c550b","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":198,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"d55ce111-7a03-46ca-b740-4aa2e7b9fd1a","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":198,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"621fccff-605f-4830-9641-f46172c0f0fe","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":198,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"3c0883f2-b9ce-48c7-b045-64ed549f38ee","block_type":"box","text":"for their continued service is not evident.","page_number":198,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"5accfef4-4746-43e0-b139-b5283871cfd4","block_type":"box","text":"Capacity","page_number":198,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"7f9c784a-f73d-4bc9-b52b-aeb830a5aa06","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":198,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"42266967-c99a-4a7d-902d-d426b524bf68","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":198,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"0748cf7d-efb7-48d4-bc59-63072532157a","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":198,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"ca5582f5-9ab1-4530-a06a-04828dfa225e","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":198,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"ed69b20d-0057-4559-a526-f2279d04205c","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":198,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"d3d04bad-c190-4bf8-9608-054999758fd9","block_type":"box","text":"determinations across markets.","page_number":198,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"fb6c03fa-4a57-44ea-a174-cb8c979f7585","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":198,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"db58ed29-39cc-4669-8b5c-adb90d0c5a59","block_type":"box","text":"their duties to the board and company.","page_number":198,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"cf2d9e20-be3f-4e92-8914-8e8c19066e5e","block_type":"box","text":"Director elections","page_number":198,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"78552bf4-92d5-481a-b002-245108b8a015","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":198,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"38b9d686-6daf-44fc-a945-8ac9e1f76dc4","block_type":"box","text":"structure","page_number":198,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"6935e0ef-5878-4343-835a-4564a2be7c5f","block_type":"box","text":"8","page_number":198,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"8a2413bc-ca13-48f4-8f77-3c7d89af99ae","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":198,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"b8cfc4aa-7968-4b57-8f96-f8de31154fa6","block_type":"box","text":"basis of its business model (","page_number":198,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"181b9130-a54d-46df-831b-f74be334c1fa","block_type":"box","text":"e.g.","page_number":198,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"700938ee-ac58-4411-912a-6917b80e845f","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":198,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"599f8fe9-73d4-43f3-a64e-db3169d0524c","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":198,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"95543909-4c5a-4247-ac6f-97b94680a2f6","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":198,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"4bc1e069-2b90-4af7-9ca4-8db16c389646","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":198,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"b66835cd-831f-4724-80d5-8f609c7a047f","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":198,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"8fd45d24-482c-47b4-8555-ddc20ee8a62a","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":198,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"7f5e52e7-6f92-4d4f-b023-36a1d2893f79","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":198,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"4233009d-2473-408c-b161-7435f9124cc7","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":198,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"8ddc8e97-0b21-4836-9120-a74c51398019","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":198,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"9ea29ab6-af89-4653-9cef-6f6411401792","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":198,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"13d5f1bd-7375-4c35-b6dd-f1ad8926cfbe","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":198,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"24fde1f6-d7a3-49a9-90d4-ec208635403c","block_type":"box","text":"8","page_number":198,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"0a0eeec7-9ef7-4cc9-9ff7-ff0d5f396f93","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":198,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"601e0e7b-1685-4885-829a-9ac7fccf743e","block_type":"box","text":"directors stands for election in any one year.","page_number":198,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"77979cc0-f349-4063-aed8-345e7db175dd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"698e66c6-03e9-4181-b3c4-98e805e93de3","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2079954f-fbf9-4873-a109-cfb9f6bb514b","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4e361f3d-7377-47f7-81da-d18a87cbf59a","block_type":"box","text":"Committees","page_number":199,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"ea94f19d-9e25-4ea1-8099-56f87f56f877","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":199,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"0fa688d5-b16f-479f-bd1b-7d653e18df47","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":199,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"a7ed3437-d4f4-43e0-aaa3-cb4f3ffd44f8","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":199,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"33fd543a-43bd-4483-a7c0-9149dcddbbb5","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":199,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"e3aa5856-dccb-40b0-9cb7-4777d0278625","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":199,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"e9f82b50-8a9b-47f0-b142-494405167144","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":199,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"b158dfe7-ffe7-43fe-8c07-36d4d5484e66","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":199,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"16cc0eb4-c814-4bfd-9fa6-b09f5de6dca2","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":199,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"fdda83f4-fbad-4619-891e-27c25dd52472","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"3ab7a0ff-78e7-4916-a8ee-02201d2ed4d6","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":199,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"af824864-c69e-4be6-960f-8c4fbe08b6c9","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":199,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"794e73de-042e-4c31-9c84-c8c24d9e838f","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":199,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"eaa0002f-6480-4a97-865b-a5ba464ea518","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"ae32575f-8454-4e2e-a777-f460a884cabc","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":199,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"f98192c9-72eb-4608-8df5-2c8ebe19c736","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":199,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"725f34e8-5ba2-4162-8da6-36fd101b387e","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":199,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"a6b7842b-2022-4cbd-aa00-111545adea61","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":199,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"01d6def5-5462-4ef9-afc3-7b63d507e4ab","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"27002903-3fc9-4455-8594-3b0d67985bba","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":199,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"41987b80-40c7-4c2e-bee1-2cd7b5e9b404","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":199,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"a43fcb29-ac0b-4a9e-a08c-a2b7dc774dee","block_type":"box","text":"firm-wide compensation policies.","page_number":199,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"811f57df-8e79-49b4-bbab-2c6da3b6c190","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":199,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"1759f7b3-4a0a-4ca8-a12e-d67fbe32bbdd","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":199,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"832fc200-b63a-4acb-bd82-75f7d671e702","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":199,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"d049cb3d-bb21-4064-baee-0fff07fe5582","block_type":"box","text":"Board and director evaluation","page_number":199,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"8b120f1a-1d76-4c03-9e79-5650cbdd9c47","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":199,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"c0ecce09-3ce3-410d-9087-f2e1ec2533d9","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":199,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"7c8a292f-4d80-4054-bff2-669554e275c6","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":199,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"040435bf-5820-4fae-b4e6-6d75d1032a8b","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":199,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"864a47f7-28da-47ff-a881-f7aa8bc7d5c3","block_type":"box","text":"a result.","page_number":199,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"d4b5c140-3e5c-49ff-9588-2909e8cef8f5","block_type":"box","text":"Access to independent advice","page_number":199,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"a5f6aeba-a122-4f58-870f-9bfa89c3dd83","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":199,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"dd000ebd-10e2-4596-82e4-7d4cd2ffbc85","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":199,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"88b5259b-fd9b-42d4-962e-c22ae253b806","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":199,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"ebb34188-f49c-4971-8b47-f5a7f5890564","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":199,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"74db64fb-b813-4bbc-87a6-d951e014508a","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":199,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"0ee6484c-e1ad-4bd8-830a-39cc8c7b30dd","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":199,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"646b6500-ce7f-4525-879c-6af61192cf0d","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":199,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"b5eb3e93-0f95-4c49-b371-68af50cf13f3","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":199,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"93e3f545-1571-41f9-a96e-10f2590b7f73","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":199,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"7b283b24-40f0-4ed5-9788-4cc330c09130","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":199,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"a7b32d04-0d51-4546-8266-893dcc75e8fe","block_type":"box","text":"per formance.","page_number":199,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"ddf52685-c086-4268-8305-a3ef97555498","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":199,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"5ed0f5f7-2abb-41c3-96d9-ec69f9211d1c","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":199,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"4da3037c-a1d4-4118-b72a-feb1156bb81f","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":199,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"8fe52bb5-0b2b-4f8c-8afa-7901f5df200e","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":199,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"4cb23431-5fb6-45a2-9324-be182ccba757","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":199,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"b62b72dd-238b-4f5a-96a0-d13ccaad7888","block_type":"box","text":"recruit and motivate.","page_number":199,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"d494a9fc-d86e-4433-97e3-3377d275b9ca","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":199,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"47bf29e0-bba4-4282-9b79-a56c6f5ea1d9","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":199,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"d8ced72a-1ed4-4a82-afca-a4074945cf42","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":199,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"98997574-b7b0-492b-ba37-a09e81cee47d","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":199,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"461e44b8-031d-415e-9490-049bcb032b3b","block_type":"box","text":"arrangements include:","page_number":199,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"e4c1ec30-0396-454e-a743-3cc5856d0bbf","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"415b03bc-1c07-4e91-8c73-b1ca59888870","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":199,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"5557dec6-dd56-4dec-be71-76925e7c9c33","block_type":"box","text":"the company’s size, sector and market.","page_number":199,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"c6b8fea9-f1b1-47c9-87bf-967a7130d84a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3330e756-bcbe-4215-8f2d-15bc70a653d1","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"92eaa5b6-8b83-4249-82a6-b8df82a9c1c3","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4bbfaf7-8766-4be9-b814-4e0db61aee49","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"86f10008-304c-4f3e-bba7-04b9f5ee3e30","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":200,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"6f6b74bc-b89b-4ad7-9fc2-b17a570c6f80","block_type":"box","text":"strategic objectives.","page_number":200,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"852848e0-1664-4efa-bdab-10e75e31ef75","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"b26d6719-f5f4-4e00-835b-b747afa8d67d","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":200,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"05f0ab5f-b6d9-46f2-90ba-7128dca016c6","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"b98f0749-3efc-421c-ae6b-ba601c639961","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":200,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"87f9835c-45dd-487b-9561-9e37a5af61a3","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":200,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"5845b9d8-9783-4555-8d41-ba56f8a56546","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"059ba7bd-4be1-45f3-98d8-688003579560","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":200,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"65e3c0ed-ed95-4a80-8633-91f2fc565fe9","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"012440d9-eb28-4ea5-a17b-80ae0592509f","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":200,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"8dc60481-b684-4c4a-aa25-ca7e70bc8236","block_type":"box","text":"transparently.","page_number":200,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"1cf63a36-d3f8-4b99-b158-0bfc4c643515","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"49dd26d1-3b99-40f4-bdbe-fff47568b054","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":200,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"03ff828b-e04e-4e5e-9e21-21f8948d6fdc","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":200,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"42bcd44e-e3db-49cf-b5ae-ddcd1a15fb66","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"0fd6d22f-36ea-4293-b8c9-c820380b5526","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":200,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"963f8745-b0dc-4ce2-b818-eb096b270e09","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"70c5fc74-d099-43fb-b7d7-ead516399520","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":200,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"d075c409-0111-4388-af7f-bf5b3700b9c5","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":200,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"e46f7196-80c9-4932-94e1-f7a9cdb9346a","block_type":"box","text":"misconduct.","page_number":200,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"aefea976-1c5f-46a2-bbcf-277de1b2d574","block_type":"box","text":"•","page_number":200,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"c754ac54-537f-41b1-9f76-3ef93fd3aaf1","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":200,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"737f6789-47da-4898-aa9f-4c3ad026369c","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":200,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"70842648-9b2b-48d0-9a69-48c7f2a25d82","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":200,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"0cc34416-788c-4ca0-89f9-d65e99aeb76a","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":200,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"a8a78700-c16b-4ca6-afeb-fa8ec0a19381","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":200,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"a0c174e2-491d-4a5b-b6b6-c113789f6a1e","block_type":"box","text":"committee, or the most senior independent director.","page_number":200,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"59a1a477-eaca-4d7c-b4ee-95e8fa76a53e","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":200,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"06756d83-d074-4cd2-908b-46c203c917ac","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":200,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"a472fc80-3bdb-4cb1-9fe4-54b717897783","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":200,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"2c347999-aaf6-4308-afc2-ab440c5c6fcb","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":200,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"77146336-f9db-4d80-ab80-7ba81b577238","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":200,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"a167d747-e9c2-42b1-b0c2-ecf00bacc485","block_type":"box","text":"CAPITAL STRUCTURE","page_number":200,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"99c4b99a-ec39-4eae-b8ff-88976c4dc03a","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":200,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"98e849a5-f3d0-41cc-a9b3-d87ce5d1b6d8","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":200,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"35ee0850-d177-4a7f-bc36-2fb3878f1858","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":200,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"98faa5e6-66ec-40fa-a25e-736663fb134d","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":200,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"5e1f83ac-4bb8-426b-8fe5-4a288cda1b4c","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":200,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"86e88995-a5b6-4986-b5bf-c52c50f075a6","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":200,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"069aa717-384b-45c9-91fa-e53daf9f5bb7","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":200,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"765ad3ae-5658-4cf0-a7a3-02aec2349df5","block_type":"box","text":"Share issuance","page_number":200,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"e083cf33-6b49-4eff-94cc-908f3a96f027","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":200,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"02486cb4-0c1b-411f-9c59-97fc0f45c008","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":200,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"3054f911-48a1-4120-978b-8ddad0c7bdda","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":200,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"fbe52c5f-e24f-4743-aa90-785c314641f9","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":200,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"96510092-3c07-47d6-81ff-f60a8f73d7a0","block_type":"box","text":"market environment.","page_number":200,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"0a43b1b1-2786-4813-a11c-3e76f2c8926e","block_type":"box","text":"Share buybacks","page_number":200,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"c90c8df8-e2bc-436c-9976-972e6ff126aa","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":200,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"41c0b3be-baae-494f-b578-5d9241817041","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":200,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"2aeec18b-12fe-4bf1-a3bd-f822cca8a23f","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":200,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"14d2b78e-1103-4f1a-bb6e-82423a399ebc","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":200,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"5d575379-03df-428d-b7ca-4f393082ddb7","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":200,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"60aa0838-b8fc-4047-aef1-7e486958b847","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":200,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"ffe73641-299e-4de4-90cd-d0b3ef7aef5c","block_type":"box","text":"of the company and the market environment.","page_number":200,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"5f8a2278-f18b-4819-90bd-8e5721d8f918","block_type":"box","text":"Dividends","page_number":200,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"fd6c0400-759f-4ac8-8ba7-91f64a9b4a04","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":200,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"5556355a-7179-45d3-85a2-a8b0d0216323","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":200,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"26952b54-2bbd-4a2b-ab6a-3f04af31e6ea","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"12862fab-e390-4da7-8801-c446c7b3a1fa","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ed814c5f-11c6-41e2-96e7-06f64aa17644","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea862c7f-cb27-454e-b69f-25d433020d7b","block_type":"box","text":"Differentiated voting rights","page_number":201,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"0483e987-f868-497b-9cf8-6b2d873ad3f1","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":201,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"09f36b20-dbfb-43b3-bcb5-8c465d307327","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":201,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"195196f4-231c-4df4-b684-31d72a2599c8","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":201,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"9299fb9e-07fe-4f53-bbc5-4afc02808c98","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":201,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"3288b572-332a-4250-a550-6a9efebd08eb","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":201,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"bd5a75b2-8c16-40a4-85fd-634712fb5994","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":201,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"132d4327-1ac5-4fd5-9345-46f1a46dfbf3","block_type":"box","text":"analyses of proposals.","page_number":201,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"9337e1a2-4fff-4f5e-9c85-cebcd7c53c30","block_type":"box","text":"Mergers and acquisitions","page_number":201,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"8e71c70a-06a0-4382-b569-413b520b2d75","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":201,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"7cc9c8a8-494b-4985-a73c-53a29074a80d","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":201,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"211ddfb9-0ef3-4c1d-9029-236a9fcf91f1","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":201,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"1d2ee7ad-91d4-4869-ae01-bd15feb3de15","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":201,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"79558c95-11d9-4827-8fb8-75a2a105dc84","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":201,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"2de63912-1cb6-4c9a-9757-ce8cacf19482","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":201,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"97b6ec06-c413-4a5b-9198-02f060626a6e","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":201,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"c2208c54-3e83-4e08-b481-ff3aec500291","block_type":"box","text":"Anti-takeover defenses","page_number":201,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"b0367040-735c-402f-840a-2bf7fa63eff9","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":201,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"08270fa5-a169-447f-b041-aa32c62659ec","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":201,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"22a0e87a-f557-4ea5-a1b1-c23a213e5c95","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":201,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"743dd893-f113-4422-8ed5-898beb9d8419","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":201,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"ba988ea0-cd17-4021-84d6-edf4182d6775","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":201,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"60e518f3-1686-49a2-9ce9-73632538473f","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":201,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"9301f247-648d-4864-b6a1-509c57a7662b","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":201,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"1fd43bfb-8776-4a3f-8147-7e3e6fe2c0d0","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":201,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"d971390b-24b8-4e61-98db-e5a3dcdd5014","block_type":"box","text":"Shareholder activism","page_number":201,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"ff8a5b7a-8829-443d-988c-83d6ebbca63d","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":201,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"11c1ef08-9d87-4bec-b8d0-e8f115bcfd42","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":201,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"004152fa-80a1-494b-90ce-98801c472474","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":201,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"8d9f801d-5ce0-48dc-b251-ee3235b55e08","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":201,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"3b3e2df4-7532-4631-8c3b-f30b8eb7c936","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":201,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"c0b925bf-2eb4-478a-8605-10aadc77b34d","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":201,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"594f4f6f-d774-45b0-b465-f9954d208013","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":201,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"2f6c2f95-04c1-4cc6-9dfe-a4e2ddf6d748","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":201,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"f6985250-1606-4cb1-852f-b65f3c21d8f5","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":201,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"cc162b8a-bbd0-40e0-864d-7d228678e3d7","block_type":"box","text":"protecting shareholders’ interests.","page_number":201,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"98c4bad0-784c-4efa-9668-75e05facf989","block_type":"box","text":"Significant shareholders and related party transactions","page_number":201,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"21ce6a11-fdc3-435e-830e-c510601fa641","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":201,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"2c71e211-4203-43d6-ae58-bf9f7101161a","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":201,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"7b72b617-611f-4de8-bca5-2d2edd199ca7","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":201,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"8a58401f-9c69-425a-8261-ed8c694a57a2","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":201,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"c0008f2c-f236-4183-9605-4ac879d4a6cd","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":201,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"ee514d9f-195e-4ab1-9a4b-9356c2cb7260","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":201,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"58e270d5-d037-433f-9292-f1575e767b84","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":201,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"f93fdd76-da6a-46c0-99bf-0b70d1fb967b","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":201,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"3fc589c0-8fa7-4269-a836-901f4383fe9b","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":201,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"3e9476da-7a88-46ff-bb38-ab01afcdaa10","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":201,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"94b487eb-74f6-4b8b-98f7-b12bb78a1c7b","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":201,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"e15278de-20d1-4773-b1de-41d13204e7be","block_type":"box","text":"audit.","page_number":201,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"451f1925-8d5f-48f8-8238-830284313154","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":201,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"c75c4042-57f3-4ddf-b1be-6434afd82282","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":201,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"3a945a09-b51e-49ef-b169-a5815a23e517","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":201,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"c0d3bbc4-1652-4c35-9baa-3b21c268618e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e7cfe1ff-ee4d-46ef-9fc7-a73daf9e5d7a","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"000c86ca-63c8-4f64-82d8-4d34ac1e9b9c","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ede37c5-27fe-4fd3-b546-248b4ee5e1ff","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":202,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"e8d6bcf4-c13f-4163-a02d-650c87bed0b8","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":202,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"f3f34654-294f-43ed-a8cc-1f3cadf65cef","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":202,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"760a6b40-deb0-4222-b079-eaa62e9d5626","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":202,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"5831582b-0dbb-4492-baa4-830909c09130","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":202,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"128941cb-c19c-4c6a-80bd-e2d5710b8c43","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":202,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"35e41702-b887-492b-878a-32804a74e43d","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":202,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"3317c24b-8c2b-401a-987b-66740a35830b","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":202,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"dbee5753-d63b-4e9b-89b7-6fc97de5382d","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":202,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"d1c104c8-9038-41ce-a1d2-e2fa5ba06a26","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":202,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"2266910f-ce12-4f7c-ba16-293ef8e67b57","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":202,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"e49243f8-3d97-4600-812e-02cc622fa236","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":202,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"b26b483b-3095-4203-9840-64011a099b60","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":202,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"6ce7cc87-cb62-4e29-9742-3270778199f3","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":202,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"2402d3f0-18c9-4fbd-ab9a-20796046ee53","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":202,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"9aceada4-dee8-4414-860e-8f972b922f6c","block_type":"box","text":"9","page_number":202,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"92a95758-ab7d-4abd-9206-349a2596deac","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":202,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"89205d36-d8d8-4d8b-84bf-ed7a77b2630b","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":202,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"9e1a7042-57c8-461b-8439-56779827a778","block_type":"box","text":"standards specified by policy makers.","page_number":202,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"910a120e-3640-407e-a26d-72312372e46b","block_type":"box","text":"10","page_number":202,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"5de3d9c8-b442-4279-9e32-2c0215b2c9a0","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":202,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"5528e03f-faa6-4610-b0d6-0ac120df0396","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":202,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"9ea2e005-4662-4bfc-a297-b77228515e8d","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":202,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"fc28359f-a0be-436d-acf4-0736dad495fb","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":202,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"d0df63fd-708e-4bc7-9cc0-41d7cc2bd733","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":202,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"6982887b-3ced-4201-acbe-824d794a0b8c","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":202,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"9866f651-c0c3-4669-be8e-65e9200b1e2e","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":202,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"6bf3d652-9a8b-4b06-8b0f-295511447b5c","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":202,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"8c9d6e2b-389a-4028-a22d-cbd6f9916921","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":202,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"db0ff033-d995-4596-a3eb-c4d230e9d62d","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":202,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"5e62cbeb-26cb-463e-bf1c-a514eb0c2934","block_type":"box","text":"remained independent.","page_number":202,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"fc34bfc1-164d-4937-8d9f-4b9da388bbea","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":202,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"4c61c263-d222-4a02-b59f-e4ee34ed5af0","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":202,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"7dceacdc-037b-48cb-858c-9a6f0577fbac","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":202,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"f2972568-b68c-4cdd-a150-ffefe0905529","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":202,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"43c96680-2982-4120-ae6a-86aa1c4c65d4","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":202,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"40fdc234-53a7-40c8-8dd5-bcdcfd00ddd9","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":202,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"d29d5903-acd1-4af3-a99f-e005d6a5de16","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":202,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"756ff79a-ca27-4bf7-bb21-855298fc133a","block_type":"box","text":"General shareholder meetings","page_number":202,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"82d7e65a-477e-4c65-9e8d-e28f7d05f159","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":202,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"57e63a06-6629-41b2-9e4c-8800cdd2bd4b","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":202,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"aebd2a72-be7f-4c5b-9d31-082f8c445316","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":202,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"456c9d4e-c41b-4ca8-84ba-7e890d3b328d","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":202,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"8e60126c-4470-4951-bf90-c48ca40cd632","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":202,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"8dc2f7c1-d849-42ad-b4f6-a222aa518cf2","block_type":"box","text":"an in-person meeting.","page_number":202,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"003ee70a-6176-4812-9c62-6fa38edbf700","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":202,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"09ebba67-0f5c-4bea-9eae-598a8d7f4c80","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":202,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"b5626628-4454-4848-9a40-a9642ec1bedd","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":202,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"0a57340e-37a0-43ff-a7e4-eef9c934f914","block_type":"box","text":"par ticipation.","page_number":202,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"80a04d0c-a721-49d3-b71b-ebc584224f17","block_type":"box","text":"9","page_number":202,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"76be2ba3-51ee-4c5d-b996-c81825b9b942","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":202,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"c7a55a0e-6e63-4ef3-b7e1-733e70c39611","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":202,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"6847cabf-1cce-4a35-a249-145ac41cae03","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":202,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"1f8b9a03-dbf5-4d8c-9ce0-0dd079bf050b","block_type":"box","text":"Disclosures.”","page_number":202,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"a4750abd-8cc1-40bb-974c-3c83b3325abc","block_type":"box","text":"10","page_number":202,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"3e41917b-4c6b-4093-a89f-d7b10c9f3a44","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":202,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"f61452c3-5fd6-4f50-a3c3-31d99e77d57b","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":202,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"7247e0ab-5c0b-4ea7-aebd-a0bb8aa0d30b","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":202,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"a00eecaf-15c5-4047-9acb-55c85fa08065","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0fcdca15-7b9f-4aa2-b108-0de65e68f72d","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8727da33-d349-4c68-8b1e-17f6e5500c3a","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c758ebd7-3466-4960-8a0a-27474ce94562","block_type":"box","text":"Bylaw amendments","page_number":203,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"e3eb41bb-3396-49b5-ac7b-ac4d3700e9d6","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":203,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"0221ecdc-ba90-42ce-96cf-1704e53ca24d","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":203,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"b18d2d7d-ff20-4d8d-b01d-ff818ec1d1e2","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":203,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"ed6f6c63-7da9-4e50-928c-175f24a8b7c7","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":203,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"36dcddb3-38fb-4922-a558-65a08c96bd4e","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":203,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"eec2375c-31a4-4f52-b610-970517af8eab","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":203,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"4ce2ee16-6c6d-476e-803f-0d2ff327f2b9","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":203,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"4acfc83b-ca3a-4e1a-a97c-291f809babc8","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":203,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"74e54625-04ab-4439-ac6b-1b70b12e7c3c","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":203,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"44e348cf-e327-4ee0-86bc-40d32eef170e","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":203,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"f3296c77-3fcb-4276-a65b-cb3f76e3b25d","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":203,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"4bb15f35-9839-4f99-b9ec-5bc917f67328","block_type":"box","text":"nomination process.","page_number":203,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"4babd044-5601-4d3a-99df-3887a25d1fd2","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":203,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"0bc39676-02d4-4f58-8ca1-75c471b0f143","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":203,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"5f403129-64f2-4bb4-b3f0-7c1f40d74203","block_type":"box","text":"Change of domicile","page_number":203,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"44b8c2c9-d5c4-4f59-9225-095cbc9f8fb7","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":203,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"fc036776-b6ec-4a50-a58a-6938bd62c50b","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":203,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"75e5a989-350c-4a5f-b0a1-32d40da1b634","block_type":"box","text":"immaterial.","page_number":203,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"5ee5a259-6544-43b7-8bfd-70711a28ee3a","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":203,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"30d0f9ee-1c5e-4cdb-abeb-a5ca09266aae","block_type":"box","text":"with our clients’ financial interests.","page_number":203,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"aa6614af-82d4-4d71-9227-6286d88dcfb4","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":203,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"0bddcc1d-4a69-4dfd-832a-596df2b439a6","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":203,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"ed00b3e2-1d05-4c00-b9fe-19aa0e27873b","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":203,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"f1780969-9e35-4a0e-b024-1bfd27bab1a6","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":203,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"5f9ebe62-9343-49a9-9a8a-a09234567f95","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":203,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"a5d22cc6-69cd-41f1-93df-884aa5a88051","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":203,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"db75bfa4-ac05-4f1d-8f29-314a1d792994","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":203,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"df0bc4da-5fbf-4131-b169-51b594cd9205","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":203,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"899eba78-c440-46c3-b7dd-c6f952f5aba7","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":203,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"e566a571-8c27-4391-b486-50f83b02a790","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":203,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"651cdc87-3133-4814-b9fa-a0b51da9d727","block_type":"box","text":"relevant to a company’s business.","page_number":203,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"82369f59-7c70-4926-aa86-744334ba2541","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":203,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"f71ebe9a-8b82-40db-86a0-9b6c479cf44e","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":203,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"17ba990d-e079-4c76-b443-e339fe3e3c61","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":203,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"841932f0-60d0-46d3-be4d-0cc18c49c623","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":203,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"366ac88c-c041-40a2-9482-1cc2d2f648ff","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":203,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"e7896276-b28f-49ae-95ed-08533edaf094","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":203,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"0e50f87e-6c18-4c0b-a025-c85baf72fee5","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":203,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"f33a26ae-bc4a-4c86-a6eb-5576f17c4c94","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":203,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"0d1f0e26-6b6b-4e7f-aa80-c7858b96896f","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":203,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"77e4d328-27a0-4430-a888-6fd7682a5121","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":203,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"60c8d735-789f-4f57-9eee-ffbb9599751a","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":203,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"190270e5-10e4-4f98-87eb-05d89e2f9a2f","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":203,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"c47d18b9-6179-4f58-adae-7957b6fd86ec","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":203,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"6430557e-efaf-4d77-9af8-1ce38c84a5aa","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":203,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"a3c766ce-6f54-424a-83a9-1072874084b1","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":203,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"6bbd16d4-5969-4e8d-b8fc-20123d404ada","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":203,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"c92c82d9-3399-4a8b-8e57-c452096ca6b8","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":203,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"85511f1f-2181-4dba-8344-60bcf581c551","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":203,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"027737b2-9a3a-45c4-8740-d4c71927609e","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":203,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"016c404c-8bf1-4a4c-87cb-fed524aa8557","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":203,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"cba2cd30-483c-45a6-a73d-bc9064ff79ad","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"694b7ca0-d019-456c-a709-cb524f1e011d","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9b5767a8-e5d3-4424-bc34-cbad4c5d2532","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1d0dc647-17fb-49fb-93c7-d63ef1cf2e21","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":204,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"76d3ee72-71a8-4dc5-ae25-da0dca083c03","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":204,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"168b224e-2827-4b5f-8822-930030116903","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":204,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"fe673694-3a32-40dd-a5d1-4bd89e7855ce","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":204,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"a89fe918-a09b-43da-84e8-98bfe5c29d91","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":204,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"e1814068-a1eb-4b30-99fa-cb9f8637b0ae","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":204,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"a6aef550-23e2-42e1-8a94-404655f9a5ff","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":204,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"9fdd5c96-db08-4cc8-9ca3-ffef2e600571","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":204,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"9d60b49d-c50e-48c6-884a-f366a09df51c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"119bdb5d-bcd7-4173-83d2-02c2774bd821","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f7555f03-dd68-4073-a254-5adf81ee8176","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d99aa577-a422-4085-ad0b-db2de05b2cfe","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":205,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"cbd01491-4f4f-4858-b1f5-ee4e1d2ad27d","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":205,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"862d7c9e-0a8b-436e-b904-d4f3eca72efa","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":205,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"7af3aed6-83ce-4ae7-8530-cd7e4143bfae","block_type":"box","text":"11","page_number":205,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"b6df290a-825e-40eb-9397-f488343d2d52","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":205,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"c82bda3e-d573-4b00-9b92-81a9cb2aa002","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":205,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"dc22ddaa-0ba9-40df-b51b-c6a84806f735","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":205,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"b04301bb-2bab-43a3-89a2-ecedb9b02777","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":205,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"9309fc5b-798a-40b8-8e29-458c1d495088","block_type":"box","text":"regulatory requirements.","page_number":205,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"57c38aee-fdd0-42ac-8bb5-79d821e43433","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":205,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"6408571f-a4a4-4c5b-8ba8-fa2207f687f5","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":205,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"87eee7fa-7fa0-4f7c-bc80-66547df8ce97","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":205,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"7e660281-1320-4916-8da7-a3d2c88f07dd","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":205,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"2596cd75-e13e-4e49-8e29-53eba110c000","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":205,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"a6976bd8-bc78-458e-b90e-ccced45716ae","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":205,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"127992b4-453e-4876-8a0e-74dee278cf59","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":205,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"ffc1a7ad-60d8-4d13-9b6d-5e1b6abecac7","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":205,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"381b78be-211f-44e2-8434-0a4dc6f29358","block_type":"box","text":"returns.","page_number":205,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"cfdfc8d2-6b37-4b42-8de4-beef74f45f45","block_type":"box","text":"KEY STAKEHOLDERS","page_number":205,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"3c159113-7345-436d-908d-723b985b55d4","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":205,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"c00c2af5-bfe2-49f1-ab3a-6be4f7b0d8f1","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":205,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"aa73db72-187b-4e0c-ad4f-27703cabdb83","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":205,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"cc7de32c-136a-4ca9-a593-00c3674f8e54","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":205,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"338adec6-ddaa-441c-b319-efefb6b88557","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":205,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"c886e868-b478-49bb-99c3-c2effd64d459","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":205,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"89264ca6-c807-48b3-93d0-5310ac7fff80","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":205,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"e9fbfc0c-ce5e-498f-beed-c351133effb4","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":205,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"f0014174-5bed-48d8-a15f-b56978349e7b","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":205,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"aaa0f8ea-808d-4c52-b570-a66ce4becf68","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":205,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"bc4e6ad8-289c-4151-922d-9ae0f90f03c7","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":205,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"2dff4b71-d731-4288-95b3-591d8441547f","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":205,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"09d48793-c8c3-4ea3-8886-7708b4454adf","block_type":"box","text":"i.e.","page_number":205,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"6ac943e8-1a74-4130-9849-def98bd1446f","block_type":"box","text":", one in which global","page_number":205,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"c90fda03-55f2-4d17-a837-38f704d67a7d","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":205,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"4a35ebef-d8f0-4c64-adf3-179c243213d8","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":205,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"52b07e31-e254-4d08-a14b-ac5b39700625","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":205,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"41940e55-55ba-4ad4-ac9e-9babcf3c555b","block_type":"box","text":"client.","page_number":205,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"05c77360-cb5b-4874-941a-542df7ddaa7f","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":205,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"dbcd258b-8770-495b-8bdf-dcb107a1407a","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":205,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"97ae481f-cf62-4825-b3c8-c6a1fb880a55","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":205,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"b7ece2f2-44eb-439d-972e-9aa8d4555e84","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":205,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"f65631f8-27ce-4ad6-b21c-9f6f78303aac","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":205,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"150bf7dd-7352-4436-863c-df510bb3595e","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":205,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"61e85a30-3abe-4d99-846a-0adc5a8c0d23","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":205,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"a512c24b-eb29-4290-9cc1-d04c6da6dc53","block_type":"box","text":"1 and 2 emissions.","page_number":205,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"060bdc3a-6c88-41d3-ad88-f276b63a8a23","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":205,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"f9dd96ae-31f1-44ac-bb88-5a9cd8aa5a58","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":205,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"dd240f31-6f2f-477b-89c7-8cea0a71705a","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":205,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"6ece540c-705b-4b58-aeeb-368d08ef0564","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":205,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"1832b331-6a2d-40ee-a814-a8d54ae98cb5","block_type":"box","text":"11","page_number":205,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"be359f4b-90af-478e-b0ac-0d4c6155e467","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":205,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"27ce3704-7f62-441f-8c09-7217fcfe6dd1","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":205,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"0dad9783-3297-4189-bd72-c8c258b7ac40","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":205,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"24b1d6ff-3927-4ec0-bb2d-d9c4e2cae2b9","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":205,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"00daef3e-a8e4-41b7-ae4d-f2c118d62ded","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":205,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"715f6fc4-fa75-4f0a-9546-4b9587fba069","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":205,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"e5287368-a24d-4b9d-89bd-d3350e5f002a","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":205,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"2a6d2706-d7da-4d1a-b3ee-dfe5df3df803","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":205,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"b31b71b6-3e9d-4789-a010-23ecfa3bba08","block_type":"box","text":"sound governance framework.","page_number":205,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"c8ee9a28-2f7a-45f0-9f10-460a02afabf3","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"2c270870-78c9-418e-844a-d24a11093186","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"da068d2f-be31-44b8-938c-c648d4ca63f0","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fc03bb10-fbb6-4c04-8562-0cedb9126327","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":206,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"60ab3925-2ae9-41b1-aef3-1394f3b1d609","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":206,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"1630ebca-a3d5-4f95-9677-0abb277499a9","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":206,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"d8f48e70-7750-411a-bbc1-1945f0bd0a9c","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":206,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"cee4dd51-b0ab-4acd-a0e3-8cc55cac7c1b","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":206,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"41b52474-526e-4284-8786-11c33d26050d","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":206,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"19ac858f-43c1-416d-aa44-0a3e493348b5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"aebe3b2f-bcb4-4f68-8e73-fe43fbf6ff76","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"00fffe9c-924a-4750-9afc-c6a893dc4d3f","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b51711b-7246-4124-a271-a65f5cabebbe","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":207,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"ecf9cf60-7367-4748-ad93-b304a15d26eb","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":207,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"5e4b7586-2730-48b1-af8d-41d233a5f4ae","block_type":"box","text":"Oversight","page_number":207,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"13dc5c58-a1f0-4961-818c-da47b5c9903b","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":207,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"8bb1a720-7fbd-4782-968c-fde5c91eced5","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":207,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"18b92b72-89a0-43dc-bad5-5d32ed809486","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":207,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"4911b0e2-0b42-49a3-9f89-aeede6537d45","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":207,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"06f6035a-857f-4c75-b61b-cc9b4239ef02","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":207,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"38fcf829-1870-476a-a4f2-c31f8c97c710","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":207,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"a9f3dcb4-53d3-4aec-b8f7-ba25973ce024","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":207,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"ec0bad37-d9db-4b90-894a-6f81bbd7673a","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":207,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"194b146d-173c-4b5f-ade3-81688908df30","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":207,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"a4bda502-0e90-4cc8-b889-92c0cf3011de","block_type":"box","text":"relevant active equity investors.","page_number":207,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"6dd15574-124b-4545-91c0-8f9d6aa7868d","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":207,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"87c0ee98-2879-41b4-96c6-89f40b7108b6","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":207,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"fc6eaa9c-5675-40e4-9e4a-adbe863cd06e","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":207,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"00b37ffe-0913-411e-b4fe-38eee4cf71ed","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":207,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"3fdc1e9a-c4b2-4937-853d-3dfdd43acd4b","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":207,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"2f10382d-e7e0-4791-9df5-4db84d608e50","block_type":"box","text":"third-par ty vote services providers” below).","page_number":207,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"a6e77edd-2eff-4110-9665-7a7c7f698308","block_type":"box","text":"Voting guidelines and vote execution","page_number":207,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"ae8e679c-2ed3-482d-a686-2353e4154688","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":207,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"c14f076d-b5b9-4f5d-8433-b0bdd9f32198","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":207,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"30625ecc-6f43-4ae3-b26b-b6ea035b4f98","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":207,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"0a36b0fb-c6d6-4b1e-8a2b-112a2281d099","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":207,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"ad81d2e9-a069-4582-90e4-998e3a79912d","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":207,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"73f9d4a0-41d5-4643-a88e-76b4387fcd6e","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":207,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"a9a5ae35-a2d5-4f97-b7c8-5ba135eff4bc","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":207,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"7f64b577-34aa-4f30-b2ae-eb313a47b04d","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":207,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"ad3b351e-9c7c-4dc3-9d2d-c570847918cd","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":207,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"f08371d4-4c6a-4c75-9949-02624dcf83ee","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":207,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"117b3493-040f-4650-b10e-724f5c5e15ee","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":207,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"e9b55af9-3439-43d8-82aa-4afdff57abfb","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":207,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"5e70c011-7924-4576-9e0f-ded35087d0cf","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":207,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"ab4fe4d4-5319-49db-84eb-bf071c8f09bb","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":207,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"2ad8fb80-7df5-482d-a8d7-eff5e29c8e80","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":207,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"1563ead7-7894-4ad4-bd90-7038dd3baf50","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":207,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"87dbb9fd-7e96-423a-a65a-a16d682e3f32","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":207,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"ae6a88f1-285e-4560-954d-20a1fd813868","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":207,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"a9b593d5-a94b-4c3d-b86c-c0f471a1b58e","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":207,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"8fa8b89e-2215-4902-8a42-95bb56d870a8","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":207,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"18c15e96-3c9d-4026-82e6-b930ca88296c","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":207,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"95feabaf-ecd0-465d-ad85-d16e729527a1","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":207,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"eadccf95-53b0-44fa-9e62-e79d7863af7b","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":207,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"8174a41c-05ce-44e7-9802-430511a02063","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":207,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"2ade491a-2dc1-4a5b-830e-f4c14b252b49","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":207,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"e4824b6e-bcdc-45f6-b38b-8d044daceeb4","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":207,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"c5b51951-1f42-4567-9e57-62225787eccb","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":207,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"9ec7288e-b9b0-4cb8-807b-7043f27a6b0c","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":207,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"cc6eb041-56c2-4eec-9964-0fb0cd4d352c","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":207,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"d5219e90-b831-48f1-95f1-63d0adeed251","block_type":"box","text":"Voting Choice","page_number":207,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"fe345f2b-b041-4c07-a0a0-d1f530065358","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":207,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"ca8da205-faf8-46d4-a529-d4782c25690c","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":207,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"b1e93a47-cd9e-4ef3-bafd-6f1ba89c5ea9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"7c7d25db-1794-4844-9c14-7faee3fbe08d","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"21f80c3d-4806-4b2e-b90b-7e15b8ea4dfa","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85fd36ac-0185-46ab-bc04-d54303f06058","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":208,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"6205c8fb-1f12-47ee-8391-1de518aeeb1e","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":208,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"02450c1c-1d19-44a8-8699-5f4d9b66e327","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":208,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"62d5bd5a-c5be-4f8d-8c72-388418690d49","block_type":"box","text":"strategies.","page_number":208,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"d2203d85-7ade-47ff-bb95-a7286ff1e6dd","block_type":"box","text":"12","page_number":208,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"8ff7fb81-d9f7-45e6-8d3f-22ae8ded8fb8","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":208,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"f3f0f5bc-5e1d-48d0-8ddd-10c4b3798527","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":208,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"5300f4e3-d2f6-4917-b0b4-67ed99e41142","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":208,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"42c69efa-374f-47dd-ba47-8f3251e5bf2e","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":208,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"1d7fc7fa-98af-4c5f-bb2a-dea6c5a3cae5","block_type":"box","text":"13","page_number":208,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"30758eaf-b78a-4281-9f91-a1b43a46f3d3","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":208,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"47050eda-3fb5-4a68-bf83-beef8eb73430","block_type":"box","text":"Third-par ty vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":208,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"d1ab5ad0-4c3e-478a-a814-2fa7daf72e0d","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":208,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"4db99c9b-ffaa-4bf9-9642-6f379e735363","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":208,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"bda1113e-01c1-4294-8c8b-4b080e044507","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":208,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"bd6a86d7-b977-41c1-944a-2307352d0dd5","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":208,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"538b4162-0509-4f49-b57f-0ffa48d558aa","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":208,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"8348ec6d-37b3-408f-97f0-af6aeba6c0ea","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":208,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"b7116b9e-4ca7-42f0-bb9c-9d7bf4dedb98","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":208,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"f10948dc-9032-40f3-9008-2cf4a0e17f30","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":208,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"cd26f088-087f-41af-80cb-2889aa1a739c","block_type":"box","text":"meeting agenda are routine. 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Both BAIS and the vote services provider actively","page_number":208,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"998ba4c6-fab5-4575-aab1-08af261e29ad","block_type":"box","text":"monitor securities filings, research repor ts, company announcements, and direct communications from companies to","page_number":208,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"d6be0498-cf2a-4894-8e4b-8d1ebc597bde","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":208,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"89dc8239-1c5c-4ed4-b947-8bc6a1f11815","block_type":"box","text":"BAIS closely monitors the third-par ty vote services providers we contract with to ensure that they are meeting our","page_number":208,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"65704b89-35ea-41c4-93ef-ab1c5cfb9766","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":208,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"c696c0ee-9f90-4583-8f39-3d42a8e382a1","block_type":"box","text":"interest. 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All other trademarks are those of their respective owners.","page_number":210,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"b74b7d2c-f226-4bd3-9d4f-50b595b6c3c6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c2f2ec63-fab9-4c5d-ae6e-ea1e12d2e4fb","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":210,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"7daee472-0ff2-4a94-862c-ddbeef7d0e73","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2afefa68-0b09-46ed-9949-9036e3c1d804","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":211,"box":{"x":352,"y":45,"width":275,"height":11}},{"id":"af9cdf00-f239-4ed6-a0b0-93598f936508","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund 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Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":211,"box":{"x":134,"y":286,"width":702,"height":11}},{"id":"2fe6826f-d84b-48f2-8ed2-add742319944","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":211,"box":{"x":102,"y":301,"width":789,"height":11}},{"id":"c912bef4-8e52-443f-9d4b-51ae68df0434","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":211,"box":{"x":101,"y":315,"width":801,"height":12}},{"id":"b46fd4a5-ddfe-43df-8363-85b84d46416a","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":211,"box":{"x":101,"y":331,"width":763,"height":11}},{"id":"641f5dfd-3b52-466b-b895-1cc73eb73899","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":211,"box":{"x":102,"y":345,"width":775,"height":12}},{"id":"40eecfdf-d93a-489d-b17d-d44ebaf32420","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":211,"box":{"x":102,"y":360,"width":651,"height":11}},{"id":"520ea58e-d516-4f00-bdfc-049f2bf97cee","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":211,"box":{"x":135,"y":379,"width":748,"height":11}},{"id":"9ab526ea-30f2-4cbd-9137-d3882ff4b9d7","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":211,"box":{"x":101,"y":394,"width":804,"height":11}},{"id":"5adc36e5-2897-461d-9527-4c3be70e16d2","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":211,"box":{"x":101,"y":408,"width":793,"height":12}},{"id":"87786b09-8a08-4b12-95cf-adf1d86ce415","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":211,"box":{"x":101,"y":423,"width":801,"height":12}},{"id":"fff2b992-8234-4791-9cdc-928f2e5c18ea","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":211,"box":{"x":102,"y":438,"width":777,"height":11}},{"id":"4fd5a26c-0d3c-4e2d-b201-615c8174303f","block_type":"box","text":"Appendix A.","page_number":211,"box":{"x":101,"y":453,"width":82,"height":11}},{"id":"6d26ea96-2b55-4e49-9c91-d5d64ed33be7","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":211,"box":{"x":135,"y":472,"width":751,"height":11}},{"id":"297c86b4-1bd8-4f9b-b915-2add16ae3bda","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":211,"box":{"x":102,"y":487,"width":791,"height":11}},{"id":"b1cfc404-d5be-490e-a4ba-20ed8b979c71","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":211,"box":{"x":101,"y":502,"width":591,"height":10}},{"id":"3aec0bb4-6cf9-448b-8016-206f43de8046","block_type":"box","text":"Conflicts Management","page_number":211,"box":{"x":101,"y":520,"width":165,"height":11}},{"id":"10c917ab-f5c6-4098-b1c7-d49789157e37","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":211,"box":{"x":135,"y":539,"width":751,"height":11}},{"id":"35ccc000-c9b9-4ff9-82ef-ba7414067c54","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":211,"box":{"x":102,"y":554,"width":767,"height":11}},{"id":"cbaf27e5-cc06-41ea-8789-d3916c17ca88","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":211,"box":{"x":102,"y":568,"width":787,"height":12}},{"id":"cea43e9f-0ff4-4207-a732-3551fd95f2cd","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":211,"box":{"x":102,"y":584,"width":797,"height":10}},{"id":"5e95c546-6bca-4369-858b-f101184b5c28","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":211,"box":{"x":102,"y":598,"width":756,"height":11}},{"id":"410ac1d1-5a6b-4ac5-a621-ceec1746f39d","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":211,"box":{"x":101,"y":613,"width":800,"height":11}},{"id":"9767f844-478b-4b97-910b-95aa17d27512","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":211,"box":{"x":102,"y":628,"width":235,"height":9}},{"id":"d987213b-1517-4c99-8b41-602ad9be7832","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":211,"box":{"x":135,"y":647,"width":769,"height":11}},{"id":"81c01442-d889-4380-9f00-b1cea2aa641e","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":211,"box":{"x":102,"y":661,"width":800,"height":12}},{"id":"7efcae99-fed3-4f55-9f97-4de727fab578","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":211,"box":{"x":102,"y":676,"width":463,"height":11}},{"id":"931acbc5-06fe-4889-83a8-f570140e833e","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":211,"box":{"x":134,"y":695,"width":774,"height":11}},{"id":"f2bb087f-2e41-40eb-b6e2-899856b2783b","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":211,"box":{"x":102,"y":710,"width":791,"height":11}},{"id":"f60f0b3c-4e46-4d8a-8a39-a4044dbd9685","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":211,"box":{"x":102,"y":725,"width":778,"height":11}},{"id":"c9187f96-a9fb-40a4-b6a6-6537531cdf4b","block_type":"box","text":"connection with proxy voting.","page_number":211,"box":{"x":101,"y":740,"width":203,"height":11}},{"id":"22bb5a4b-6ef0-4e61-acdb-591b6b51807a","block_type":"box","text":"Reports to the Board","page_number":211,"box":{"x":102,"y":758,"width":153,"height":11}},{"id":"325dd55d-97df-4dc2-a5d9-244dc3c39a66","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":211,"box":{"x":135,"y":777,"width":755,"height":11}},{"id":"8852de0f-fc95-4e56-a3a9-f8dc4e2a7a9a","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":211,"box":{"x":102,"y":792,"width":794,"height":11}},{"id":"2fa90bf9-8183-487c-bcde-bbfd433876da","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":211,"box":{"x":101,"y":807,"width":802,"height":10}},{"id":"53272963-9d8a-4999-a7fc-79b69d030ad6","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":211,"box":{"x":102,"y":821,"width":747,"height":12}},{"id":"18e01da5-a20a-446a-993d-62cf81307491","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":211,"box":{"x":102,"y":836,"width":798,"height":12}},{"id":"28a43f97-2f68-452f-a1e2-5cc001ac6b9c","block_type":"box","text":"been repor 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As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":216,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"109c239d-9f93-4d71-8e2c-d124a70b408e","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":216,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"102329b3-c099-4383-b83a-61a19d8ffb9c","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":216,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"b426ded3-152d-4d06-80b5-aae5b5fd6b5e","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":216,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"83a50628-e673-487e-85cb-60aae965e10f","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":216,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"e38a0216-fdc7-48da-853e-513dd8e407d7","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":216,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"b55a645f-52c4-4d53-b39e-a1a35687e95b","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":216,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"5e55e8b2-7373-4521-8293-30dc6c4b2921","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":216,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"a6c13065-19a0-41f1-a148-8edfbd48ad2e","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":216,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"96f6c740-1928-462b-a516-21b974e9f850","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":216,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"4ea562b0-2ecb-475d-85bd-fa7ae06c3bdf","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":216,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"7dc995b7-deec-40ef-9774-0732e9ebea6b","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":216,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"4c905c4e-af64-45b6-92ac-9388845b436a","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":216,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"1bf5164b-2604-4939-a4a4-cff46a94dd52","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":216,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"3ce0e0fd-4008-462e-9b34-0d8f7b198aec","block_type":"box","text":"3","page_number":216,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"b14a5bc6-c0e0-4381-a0a9-8bfdfbc6a449","block_type":"box","text":"For example, in","page_number":216,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"79409ce1-9ed4-4c60-8825-f108f917a1ad","block_type":"box","text":"most markets, shareholders have the right to:","page_number":216,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"e06e9cd9-2dca-4be5-82fe-8511456f10b5","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"37f4a19c-b802-42e8-ac8a-d99bf3e59723","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":216,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"892f6bf4-2d45-45b3-8a84-1a1e01099133","block_type":"box","text":"char ter or bylaws.","page_number":216,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"0d69562d-6add-4f17-b49f-dd73bb8abc4c","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"e5b1c5c0-188f-4487-93df-bff7a4424a33","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":216,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"ad9b36a0-4723-42b9-b63a-df599015e14c","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":216,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"c5dd5e02-d4a3-43ba-a56c-f8f9f2886ab9","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"01603a23-c0b1-41c8-a1ef-1d3ecdab65c4","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":216,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"64940bbb-48e2-4da8-a3a2-ba4d8fd9ee62","block_type":"box","text":"are material — to make informed decisions.","page_number":216,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"bf66d9bc-5d7f-4729-b7f6-be50bbce169f","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":216,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"8090275e-499e-4108-ae07-624ea18d91a0","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":216,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"b51b14e0-0bcd-44c4-b97c-39e8ac364a2c","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":216,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"1ba687f9-05eb-4de8-8e3e-dfd8f1d7aac3","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":216,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"3fdd1d27-35e3-4bcc-ad15-ef25e02c972c","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"98c12255-d12b-4e1c-a982-bdebf86caf81","block_type":"box","text":"Boards and directors","page_number":216,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"9cd60bac-41d1-457b-a011-e85097c3ca16","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"94093b93-b8f9-49bc-bcca-53b82987624d","block_type":"box","text":"Auditors and audit-related issues","page_number":216,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"68a1d842-11ee-485d-adb8-bad37c0a1f26","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"43f6b66d-d0b9-41e6-b1ff-90e0b5ac800c","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":216,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"e0835379-b172-43a1-ab79-6db4da99ae6c","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"93f7a8a6-adeb-42bc-a6b4-8ad926e1a089","block_type":"box","text":"Executive compensation","page_number":216,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"71134650-017d-4fce-8f87-775effbc4bf3","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"6c35293c-4c82-42c4-8778-3ae628bbb573","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":216,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"4a597c61-dddb-4752-b821-0277c67fc338","block_type":"box","text":"•","page_number":216,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"f72580da-c06f-47bc-a97c-f6caab56a62f","block_type":"box","text":"Shareholder proposals","page_number":216,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"32164f9d-a50d-42a4-8ce4-f6d336ffd1c0","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":216,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"5dc441ea-5c77-4b43-b5d7-833838cc1ce6","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":216,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"0563b4ef-4239-4ea4-a886-50e8f2db858a","block_type":"box","text":"which companies operate.","page_number":216,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"4b696b80-354e-4835-b0f1-0888830f6a7d","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":216,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"bd909094-268d-4898-aa4b-70a264b5ae5d","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":216,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"f430cabd-5492-4032-a001-b7d7b657210a","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":216,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"cb1b5322-3159-4299-874f-995815644c7e","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":216,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"ed5a6aec-be52-408d-8180-94247fb3ab51","block_type":"box","text":"4","page_number":216,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"5267ca1b-54bc-40ed-8eac-4dd77d895acb","block_type":"box","text":"3","page_number":216,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"f9495d10-2542-411b-8e2c-0f8eae06ddf9","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":216,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"c9d94005-c7e9-4644-8469-bf45f4a67243","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":216,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"79f7ce9e-a1fc-4d43-a867-db83273f7e11","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":216,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"c11f9bfc-9673-47f2-aff1-036f2a457dd0","block_type":"box","text":"4","page_number":216,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"e4ff89ce-36da-466e-be5b-cd46469c066a","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":216,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"e60d8fde-ba90-44c5-a5b9-1480b8f70f27","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":216,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"d31506e6-eacd-403a-98b4-aaea3999d5f4","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":216,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"27deeef4-5848-4c97-9bae-ca5a71636a60","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":216,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"024a4cb0-73ff-41e6-9f73-1580c6b64b6e","block_type":"box","text":"guidelines.","page_number":216,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"0f5883a7-d43e-4bbb-bc91-824ca60bf625","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8fa1f2b9-154b-4ca0-b8a6-3fb0ef24de78","block_type":"box","text":"Global Principles | 4","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"f9de0ae4-c11a-4e2e-8b10-c6186cc11c27","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5c950c53-de64-4221-876f-aca7ea7b4e0e","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":217,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"ab1ea1a0-b9c1-455b-ad71-a7444dc15e33","block_type":"box","text":"Oversight role of the board","page_number":217,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"1635d582-3ad1-44e9-ac85-5e884fbe49e1","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":217,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"a34a48f7-20e1-4ab7-a4ab-50f2baac3b18","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":217,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"2a30274e-b8da-4e0d-b129-6699df1324fc","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":217,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"c8b4ef42-0276-490a-b05c-4b93fbbc28aa","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":217,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"fd70761e-d85d-48ef-8135-b892c1851ea1","block_type":"box","text":"long-term financial per formance.","page_number":217,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"fcd2f270-13c2-41ea-8617-34970d2993b5","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":217,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"f01300ad-6e4b-420e-a39f-d5dc36b8eb07","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":217,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"bf36df1b-61b5-458d-969b-493dfdf41e5e","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":217,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"e7ae5b0c-fb5f-475c-9e92-0caac5bfdece","block_type":"box","text":"the business environment in which a company is operating.","page_number":217,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"706dbbbd-8961-482a-a972-bc8b03d8e88d","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":217,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"573962ae-cec6-4796-9d1b-4cca8efb7129","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":217,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"45b339c0-1849-4a1f-9a52-3928f68155a2","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":217,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"62ce4992-b10d-43cb-adb5-86ae0324f655","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":217,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"40033059-f520-4aab-bedf-35ea9b8cc1bb","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":217,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"e67b91a3-a69f-4530-b84b-37548015c735","block_type":"box","text":"mitigating such risks.","page_number":217,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"ca0bd1e9-6a9e-49c8-b873-0d80b152a39b","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":217,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"add5a76c-aa01-40b1-a6e2-b6b5bd4c3e86","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":217,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"5634adf5-c31e-452d-9b7f-c9a5c6cb2685","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":217,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"a604ac7a-9655-4ea1-b7ed-6d6a3734cf84","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":217,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"04cacff7-fc7f-4051-89a7-6ee96560d952","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":217,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"e7d4bf4c-b033-489f-998f-47a8a8c67400","block_type":"box","text":"strategy.","page_number":217,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"625456ca-0b79-432d-a2f3-257bc69fd56a","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":217,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"4ff79e3d-7c73-4793-99c3-1a04680cd1fc","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":217,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"8f24f3b4-67ac-4735-82ae-6ef082e56ca0","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":217,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"7b156610-31ca-447a-b536-00ad35aaf616","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":217,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"bced07a6-2d3a-455a-86a5-cd57930a27f2","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":217,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"4ae8451a-710b-4dcf-973f-64e7de21e388","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":217,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"2285b74c-33e5-4c84-811c-5a971a90c7bf","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":217,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"70d9ffd3-a841-4bea-89a2-7228cd61ccd8","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":217,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"6612707f-090a-4241-82f9-a7e856d52167","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":217,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"9efb7f86-8848-4d2d-a52d-1feeef9f9c4d","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":217,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"de1cdd5c-629d-4848-9093-36da0ab56afe","block_type":"box","text":"Regular accountability through director elections","page_number":217,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"ba1e13e5-8db3-4863-826b-d54c372eb7f1","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":217,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"4e4232b6-bb8d-4205-9084-0455e9e84ed4","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":217,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"860425a7-3fb4-4a23-b503-088a0bf48056","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":217,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"5fcc7110-65a1-4cd5-8708-d814d137a4f6","block_type":"box","text":"5","page_number":217,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"ba877fc3-9d9e-49d1-b9a2-d1721f8715ef","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":217,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"1a82bb48-0f46-4a8c-8a7a-723bf3f996e9","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":217,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"ddf5ecba-0171-4b61-9106-72a33d5c0f9e","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":217,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"66b34c58-1ac9-46e0-bafd-c524b92cccca","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":217,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"8f65b880-d0f4-4dc0-868b-ec480099c86a","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":217,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"aa1bad41-a19f-49c1-99f8-a4bd32ee86b2","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":217,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"eefd0ed1-07bd-48ab-abee-19b05ce2721b","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":217,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"d1427086-4409-4b93-a0a3-941f5f9d344f","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":217,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"792bef5b-b033-4682-ac32-e5fbb02a7f42","block_type":"box","text":"5","page_number":217,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"d3f89e91-783e-4685-9d36-1657d58947ba","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":217,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"48d1d1d7-062b-45cc-94e1-e888eb747dd7","block_type":"box","text":"market regulation or voluntary best practice.","page_number":217,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"bfc537d4-417d-47ca-8c9f-419b0f09cf33","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ae6ba4c7-03e0-4fc0-a953-d6da25cf2899","block_type":"box","text":"Global Principles | 5","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"e846b39b-f232-4cf9-b2f3-2518a1bcd13c","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4355f8db-64c3-4264-802e-c55750c90f7a","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":218,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"2983b84b-cbe7-4c6e-9b6a-cb5ea0e94cd6","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":218,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"31c6f2d6-89df-4ace-a099-d71d42f1f5ec","block_type":"box","text":"recently.","page_number":218,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"0ad3fcc5-1b53-4bec-a937-af088ae810ca","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":218,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"7721fc8b-b127-41fd-ab8c-033b90e09327","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":218,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"715ee777-b10a-4c01-bcc6-fff5266fb009","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":218,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"5d1b4be8-cce7-4200-82e2-046874268349","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":218,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"f38aefa8-b60f-471b-8645-17488b729001","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":218,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"1021334b-b934-4d74-9cf2-3b8aaa06fbf1","block_type":"box","text":"Director independence","page_number":218,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"bd62ad4c-ac28-4755-871b-8cad6554dba1","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":218,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"088cb937-b5c3-4783-ab73-dc3a33d5c215","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":218,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"90a68ebc-2db4-44fd-9d57-eadb48555429","block_type":"box","text":"6","page_number":218,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"e615ab3e-7773-49da-ba2e-1f9fec32ea0d","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":218,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"11249f11-e2b5-4a12-b463-d4595175350a","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":218,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"76feacb8-e175-4692-9ada-3346e06b88e7","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":218,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"0cb4aaef-e9fd-4831-aca7-caa1041dabad","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":218,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"b6546d0e-6796-41d7-ab26-66c83a97ee12","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":218,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"25146939-555f-45f5-82a1-7c5b1e0efbfb","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"0c95958f-638f-463c-9c4c-087e60e8d97f","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":218,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"46bc569e-d926-4381-b358-276a38b2a391","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"17724b13-3bac-445b-9efd-49a9c355ec70","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":218,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"53ada61b-ad2c-47ad-93b8-5272e85f8cfd","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"e7cf168c-164b-4fdb-bf94-639f7864945d","block_type":"box","text":"Interlocking directorates","page_number":218,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"7332221f-9fed-4431-9cec-91ff0bb062eb","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"6b5532c9-455b-41ac-8a27-6215cab2e3d6","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":218,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"e151fe87-2a39-4e74-98d7-0b603380b0a1","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":218,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"c784818c-44e6-438c-bd74-bed037799360","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":218,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"6ed2263a-5c4f-4f35-8422-46a47f9f07b3","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":218,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"5407eb33-cb32-4633-b02c-abed43d462d2","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":218,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"2a3ecf6b-2a7d-4901-9f55-fee96b063e25","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":218,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"beb3a756-c1f9-4266-978e-6c9157d0d47d","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":218,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"64289c2f-f6e3-4bac-b660-a4709a8df8bf","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":218,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"cc38b9ed-5774-48df-be5a-1e1ba04aa51e","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":218,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"33f674bb-8cfc-46b8-9fe9-262102cfb629","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":218,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"643f6162-5b53-4302-948a-1b44fd335263","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":218,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"d124f7c4-cc1f-4415-b29c-f41b445491b8","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":218,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"855a62c8-923f-4c54-ad63-56ecf348e585","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":218,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"9610fc0a-abf3-4b92-a3fd-29a4fb614420","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":218,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"661dd264-fe63-461d-a2b0-21d9d245f006","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":218,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"603bfb1b-b0b5-447c-8e4d-c1462a03d810","block_type":"box","text":"Sufficient capacity","page_number":218,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"bdba1f44-b899-41f2-8e4d-607c9c54dc86","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":218,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"f533ced3-4ef4-4902-9774-93b43decda79","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":218,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"a3af8a79-3b03-4fd9-91c8-a9c1f568fd5a","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":218,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"5e4df518-01f5-41b1-ae3e-1dc7da568f4e","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":218,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"25406cd7-2e06-4bc2-9c78-bd5c19dcf62c","block_type":"box","text":"Board composition","page_number":218,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"463833f1-4221-44e3-86d8-d85ac5c6d39c","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":218,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"64ef0dc6-dc98-4b62-9f2c-43c7cd386b5b","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":218,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"e5406ed1-4919-4140-be68-2346f2069e5d","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":218,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"4bf46ef0-dca9-40c8-8eb9-a74fa413b40d","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":218,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"6e8ec2e9-cd02-46a8-ba9f-7b185542f19e","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":218,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"3a7e31fb-8f8b-4dad-a5ae-f296f1f4e528","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":218,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"8a4352cc-10e3-4894-970a-7a3fe5592115","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":218,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"0f1ea57c-ed00-40d6-8a31-4adb6b8cd390","block_type":"box","text":"6","page_number":218,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"645594de-4523-4fdd-9a88-01c4f6db6ba6","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":218,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"393331f1-430f-4bb2-9c3f-4554bd1b55bc","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":218,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"30eb4db9-e23b-455e-ac86-ac05d87f5c92","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8a45ad15-5e2f-49e7-8649-48b91f0ff727","block_type":"box","text":"Global Principles | 6","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"fd2e555b-d5fc-4415-8cf2-367b5051649e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dae81184-8685-478e-8fde-3c968b0f1505","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":219,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"bc9b7fc7-9e9f-4b06-9ca7-3670a80c7f47","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":219,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"b5a25e42-7887-4871-8c5a-c067ccf01ee8","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":219,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"fb6f4140-6a33-4704-9c02-0580941542a1","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":219,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"faaa6e66-6d2c-4031-bce1-2cc2dac7f2f5","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":219,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"e530445f-e557-49bb-b1e1-6094c7acca14","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":219,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"4998387b-9341-4b3e-9cdf-1a1c4dcda9aa","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":219,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"2f1cb165-9f00-438f-8382-48f2c5ab3c94","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":219,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"3a16c074-216f-42e0-a290-80fc8355285d","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":219,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"0b278a58-d25a-4832-91d1-e5c36fb2e1b1","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":219,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"b7e816af-89d7-414e-8ac4-affbe7083f0f","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":219,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"13a8580b-aa28-4804-a0be-b91ba5a75a72","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":219,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"a20f9973-4828-4325-b18b-ffb2f1914c4f","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":219,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"b763b088-47d2-4bfe-a436-31295a91c044","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":219,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"b443e7a7-0128-4eca-bdf3-4029891828d5","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":219,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"2c960d26-dd3d-4d77-b5f0-4a82f8b3955b","block_type":"box","text":"systems.","page_number":219,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"bc4adc86-0c05-4f41-8115-a256f4efa907","block_type":"box","text":"7","page_number":219,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"7ad6dbd7-fc5d-43a2-823e-332d623dc87b","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":219,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"e66a2075-ffea-4624-86b9-27388b94510e","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":219,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"1b61ecd1-6298-4537-a4f1-2a1e1e7068d1","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":219,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"055d6838-c49a-43d6-9c1d-ec7bb9269d58","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":219,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"bff2fbde-cc77-4c76-9d19-86acf03e79d4","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":219,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"e37abdda-377b-4c87-870d-b22925a8ff0b","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":219,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"786e7644-aa9b-49a9-a29b-4723f20c4969","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":219,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"15bfefc0-97a5-406e-b4d2-245aba83aa6c","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":219,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"4a286795-0ec6-4785-88dc-9c8e70a36d6d","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":219,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"ee130b76-24c2-4f08-b894-bfa82f8e4f4b","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":219,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"50285b6e-3ca2-4918-bd1b-4e8d4273df6c","block_type":"box","text":"or internal audit function.","page_number":219,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"a28aadcd-9cdf-46bf-9f27-0a3ec283eeff","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":219,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"89504eb5-92df-48ab-9bc6-313c31737aec","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":219,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"c1925c76-f7d7-4fc4-bd40-73fd09cfb599","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":219,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"1c017f23-7e77-4a09-9a4e-0f244b105c5b","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":219,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"9499c0a4-d157-44a5-a341-eeb58d5e2bdb","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":219,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"c37a17bc-347d-4bf8-94a9-b795fc12cbea","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":219,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"92be3ddf-96e2-4c8f-8003-62d5de683b29","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":219,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"153af4ca-eea4-4466-b908-73531618ae87","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":219,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"6df252fb-0a74-4763-b900-cb0dd6ce1232","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":219,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"fff92c0e-afca-4223-9dd6-b6285b58b0bb","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":219,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"148a89d0-1161-494b-a67d-0e1362e9938f","block_type":"box","text":"risk.","page_number":219,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"5a17b0fa-8507-484c-987a-20654a873be7","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":219,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"6ed8874c-912b-4f82-9b5c-c317eeebbb40","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":219,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"de1c0beb-59e0-4342-9368-df57b1192e57","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":219,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"6ebe1f61-3485-4711-b186-fb721ac61dc4","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":219,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"c53426b0-0674-4650-adf8-4ed6790c15aa","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":219,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"7f7c52ba-e55f-4ea6-8c7f-dee65bb89d2c","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":219,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"98f3f02e-a792-4723-a57b-907a6984f8ac","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":219,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"89b7b558-d586-41f2-9733-3784e78ccd5b","block_type":"box","text":"7","page_number":219,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"b8f36452-b6d8-40e5-a0cc-9cb8de1d70a8","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":219,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"b0c76108-ef98-4adb-8d7f-c5c0b2e8713c","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":219,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"39e2bb1b-21b1-4607-96ef-471971ecf999","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":219,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"20b69ce4-1bbc-48b5-ac27-d40b4ddc4828","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":219,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"c2467572-0a65-4905-b949-9f37c2d3b602","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":219,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"abe5430c-6e88-4d65-95df-7f8dcc4aa64d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2b5b7231-328a-4d3a-93af-46d3418a99b3","block_type":"box","text":"Global Principles | 7","page_number":219,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"8518a76e-2779-4b40-b828-fba720fdce95","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1efb3114-30b3-4884-91c0-4c6c281b3f64","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":220,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"52f618fb-77ec-41c4-9ede-14a285ffdb16","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":220,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"df3018a3-a0dc-4ee5-8350-8dbad89398bf","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":220,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"57689469-7962-4d3a-8aac-61539a1f4789","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":220,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"37271d8b-2ca6-4df0-8ea2-275478ebe4c2","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":220,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"985b5f34-4e1c-43e2-b749-36e2bad421b3","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":220,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"d2313b24-0043-4289-b16a-c9bafe31588c","block_type":"box","text":"minimizing costs to shareholders.","page_number":220,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"032e381f-0d54-4325-9554-338120f482bc","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":220,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"6c5f232d-90f9-4e15-8665-125c82c17a1b","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":220,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"9ea39f85-2ecb-426a-bfc9-004f041eb6c7","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":220,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"5c0ac9ad-28f7-4736-aaa0-491ad7e78bf6","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":220,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"9bd0d0ee-8aac-4c57-a06c-8cf716102846","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":220,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"6ce49e11-ed23-43f3-b8c4-4af73334710b","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":220,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"9bbe5dcf-bec1-4aa9-9d0a-164b20dbf3ad","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":220,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"4a7ef069-0db1-4d5d-96bd-45ee00ffc7ff","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":220,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"04572675-0877-40ad-9c75-ec34f89380d9","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":220,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"372c2168-29db-4a11-95bc-0bfbf9aaf66d","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":220,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"5e0abf55-9ee6-4451-a214-0d9a2c929878","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":220,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"57fb52c9-c6ab-4ff1-bdeb-5c71eca53f13","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":220,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"6941e877-adaa-4f4f-a01a-975e0c6ded7c","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":220,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"5f4cb68c-c898-4005-bfab-18873be22b32","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":220,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"6ef04380-d27c-4fe0-9d64-602fbd5101cb","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":220,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"6f9a5117-1f28-4162-932c-c33867cf7495","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":220,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"8cd171fa-a626-45ea-885d-fb3ac03515fc","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":220,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"66163aae-11c5-4094-b4e1-83b6584a72dd","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":220,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"1f37d539-cd4f-4e7f-b799-3c777302e12e","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":220,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"16fb9a38-d02a-458b-bf3e-4aede0f8cdbe","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":220,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"6faa3efd-fed8-4570-8a65-e5619ede54b4","block_type":"box","text":"ownership.","page_number":220,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"26ddf9df-d9cc-47f7-a446-bb89649ed85f","block_type":"box","text":"8","page_number":220,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"87f03488-cba4-4b0a-95b5-148db2002f29","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":220,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"914868e2-6b0e-4afa-a7eb-6ffec3306f04","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":220,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"e176a133-c9b2-404c-81c4-4166a89dd09f","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":220,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"09e7fbf5-93ae-4d84-ab60-ea8e0766efce","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":220,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"f7d1fd9d-1ade-476b-929b-a5086f777e61","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":220,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"f304b160-2261-428f-8937-6803e7ded02a","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":220,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"c2cf0d00-3cc1-472c-993b-dc02f7c8c628","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":220,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"46c1f071-c0cb-4bd7-bd28-ea86b05c8000","block_type":"box","text":"results over a period of years.","page_number":220,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"537f83a5-9797-47e0-9bb2-d53c120f90b4","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":220,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"172ccad5-c508-4255-88cd-c372f197fec5","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":220,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"77c185d3-a9b4-4903-8b58-638e4f71b3b5","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":220,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"5f103915-967b-4c38-9b56-5a660fb8c2fd","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":220,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"a4c0993f-50ec-438e-b569-3803df1a3a39","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":220,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"abb4bfbd-7dba-451c-a289-24fe31d40063","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":220,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"2e11932e-a508-42a4-b7f6-50758b7815f7","block_type":"box","text":"executive compensation strategies.","page_number":220,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"3cde39f0-349b-49f1-9959-2817b41c5486","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":220,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"051d61f6-4672-42a5-b4a6-86dd946564fd","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":220,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"f569318b-2812-4ff3-97ea-2410133f1361","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":220,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"6d4a4ab4-84ee-4b7f-975f-7f4619de1c77","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":220,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"42afb101-2605-4953-9049-8ebf815c88e9","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":220,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"7180557d-e8c7-4224-b02d-103b22fabba1","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":220,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"87c04b96-3451-4239-9fc0-e4e1f7ee2caa","block_type":"box","text":"8","page_number":220,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"c3a20332-2329-4e75-ba02-243b4dce41d9","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":220,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"de4260b4-829a-4f99-b6d6-7c588a20755d","block_type":"box","text":"different markets.","page_number":220,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"4efa00b0-2e72-4cab-9f7d-ab37a26bfe9e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8489f140-9597-47b2-8e1f-ed32b91d0c0c","block_type":"box","text":"Global Principles | 8","page_number":220,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"7a1fb468-d1c0-4a69-a4c3-1e26a8fccf0b","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f364c5cc-8356-415d-bdbc-c61752f0ccd9","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":221,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"a8d66eb5-3cf3-4324-8efa-e9f1003d261a","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":221,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"b4fa4e22-7354-4ed6-966b-fea66d4f006d","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":221,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"b4051a1e-d186-46b1-b417-05dd053d5b02","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":221,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"76d2c086-e593-4803-81d1-28398a44232c","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":221,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"872a8c4d-5023-4cc6-9de4-70bcda43f3e3","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":221,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"65d6da83-f9fa-4fe2-8248-366fa7e67c30","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":221,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"ba27b6fd-28c4-4037-90e6-23ee095e9073","block_type":"box","text":"whom they are charged with overseeing.","page_number":221,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"b422afb9-2ce7-48aa-bc88-ddbf54897404","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":221,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"bddd78d2-a1ab-4951-b591-89cff2a42ffc","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":221,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"735db6c1-4620-4a51-93ef-b2a8b83a7981","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":221,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"b2db7d20-a112-4f5a-9652-16b7cc84f9ff","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":221,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"e983376e-f67c-403d-acb4-4a7890ef8db6","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":221,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"3c7756fb-e272-4929-a722-4dd6371b2d2c","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":221,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"da6f315c-8d38-46ae-8e15-36e5ba644ac5","block_type":"box","text":"structures.","page_number":221,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"47245072-32ce-466e-8082-87fda1bfae7c","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":221,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"98465b3e-35ba-4af4-b973-1239916c2af8","block_type":"box","text":"Corporate form","page_number":221,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"41a55718-7cd8-4f32-9dc0-4b5ee47afea1","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":221,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"959fef5f-6e3f-4af6-988b-35d51104df5e","block_type":"box","text":"the company’s purpose and business model.","page_number":221,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"f36c9330-b4c7-468f-ba6e-92414c8f4219","block_type":"box","text":"9","page_number":221,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"8096dc90-03fc-413c-82cb-98f7300922fb","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":221,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"5076033a-f5ae-47dd-8e64-76e9351883f7","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":221,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"a3303f4b-c4f1-41ad-884c-6da007554595","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":221,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"7713005a-a6b3-4e2b-a3b1-bfcb63cc7d30","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":221,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"099c8fe9-d2ec-4612-8675-843c6ca76b38","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":221,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"4eba1f8c-9adf-403e-8edf-4480d3f0b9ad","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":221,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"e914cc02-b36c-4cba-b518-df5601bf5461","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":221,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"089b1b2d-908f-47ab-9ec7-4c6c229593ca","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":221,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"c3036d61-9871-40b1-b0ff-5eef4e656de5","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":221,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"6c8763f2-7983-4126-936b-72154a3dbacb","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":221,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"a0c83e95-e3f8-4d61-bfe5-661221b6732a","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":221,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"828341c6-bbe6-4312-87d2-f424a32c7668","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":221,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"6cb7c5dd-f2fb-4bb0-a297-6e7256999727","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":221,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"79ef464e-e8ae-40e8-a83f-6b2ef4c04e91","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":221,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"8aae3c8e-3f96-44d4-bcb5-81b986ac8e62","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":221,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"e611a0cc-eb8c-4439-b849-83283085832e","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":221,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"b1e18e45-b3bc-49d6-89d9-cb05ceea8c33","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":221,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"b9c322cb-238e-4f5a-a932-cd23cd445727","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":221,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"3887694c-15dd-4106-b499-fe123db45dd4","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":221,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"d097eeda-07d6-4ea5-bcfe-b05630919704","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":221,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"ee15c7d2-fbce-4844-a5fb-e43b7fc87866","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":221,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"2ab94808-e3f2-43e6-a3bf-12cae21bf29f","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":221,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"e74751f9-9d14-4acc-9fe9-c23ee23d29ad","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":221,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"13131cc2-33cf-4ab2-9e99-3e5627031de2","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":221,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"ece43685-9baa-4c27-8994-b8a3c6a757ee","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":221,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"ccffe442-a818-431f-a5d4-ff37182bb256","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":221,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"f276b600-8dbb-4f29-a001-4115bce06c9c","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":221,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"75febdee-ab71-4fef-9ce3-ab39f7c245eb","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":221,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"84e67091-dc8c-42e8-a36b-21279013a4e7","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":221,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"05f76a4d-fb9b-4497-94f5-790e49f069f0","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":221,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"b4a2eaec-5d34-4517-816f-db9d36188e44","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":221,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"e1e871af-9d7b-438e-83ec-d14fabd398ec","block_type":"box","text":"9","page_number":221,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"8662b896-dafd-419b-b421-f2b43cdbccd3","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":221,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"5df4f5e7-1118-4853-ab57-ef345102d028","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"57fe03be-2066-4db2-a98f-2473b5a3e341","block_type":"box","text":"Global Principles | 9","page_number":221,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"45db139a-1d6a-4ae0-9c01-4b516c176323","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"44ca8502-8bf5-46ac-8b6d-5fcb2264675d","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":222,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"46d8a1a2-22c9-4be5-8e42-9cc2415a7fe6","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":222,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"7f35c14a-85e5-4181-886a-adaf8c7534fb","block_type":"box","text":"long-term financial interests.","page_number":222,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"d0ae0d26-df82-4c3f-8136-84431db16a0c","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":222,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"88d5a08c-e3b2-4213-9d05-57efc3ba7b14","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":222,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"3b66ba6a-792e-48ef-bdb9-c99b83faf90f","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":222,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"aca5afd5-8e6d-4e99-86d8-e7b59754c5db","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":222,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"8b47cbc8-3ca7-409a-9ebc-ff7478742a67","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":222,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"1371ebc8-aa95-434f-a9b8-324fbda1c207","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":222,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"54f9ab78-c87d-410b-9587-847ee72fd8b7","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":222,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"9263c586-21c0-4f70-9083-c9459f0927ea","block_type":"box","text":"term financial value creation.","page_number":222,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"a7a75ceb-6b7b-4967-aa56-98535355e66c","block_type":"box","text":"10","page_number":222,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"fee0b20d-c80a-480a-b36b-bb5c13415fbe","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":222,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"34e7deda-5762-4ee4-bc4e-513b0e10dd5a","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":222,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"9dc649eb-7440-45d1-965b-7babedc97af7","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":222,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"ea7819ce-4fb8-4059-ab16-6f10068786ea","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":222,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"aa0c2fed-3309-4060-afa4-4281c3cb649d","block_type":"box","text":"industry-specific metrics.","page_number":222,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"b4ae941a-89d6-4e4e-b05d-4160a6889a6e","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":222,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"560b3ea9-568b-4464-93ee-4876c42a8ff0","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":222,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"e9001f49-50b9-4372-9313-4dffae2780a0","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":222,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"534f879d-6ba8-4b35-b57e-3caffd5de8ef","block_type":"box","text":"11","page_number":222,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"576c8be0-f175-4e20-b068-fe30aef0f00c","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":222,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"8160cdaa-f24b-4584-8f68-06386583065f","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":222,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"8ea1e2e7-13b0-47a4-8705-e15666c6b4ca","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":222,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"3ae095da-7177-4b4d-88b0-141af4c3ddc9","block_type":"box","text":"specific.","page_number":222,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"c1365051-f065-48c9-9fc6-ef764d3a6598","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":222,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"210fe6cf-1e78-40e8-a980-0164cdbd30a7","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":222,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"b05256f1-c110-4f09-a5a6-e77bda1c745e","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":222,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"c1e04c54-0569-4b0a-93dd-d386c17655fb","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":222,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"2bfb2f5c-a316-42fb-8422-3ef90bad25db","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":222,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"71545cbd-93f6-4c0e-90ec-483b855f4c10","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":222,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"fcb668e7-d937-4b75-8273-ff4823ba6995","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":222,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"1a7c8de5-3bf9-47c8-ad4f-41eb9b053277","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":222,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"39108e7b-5385-4c08-9b27-45bdc7093797","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":222,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"4c51cba2-046d-4721-bbea-4aea1c1c1398","block_type":"box","text":"10","page_number":222,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"f03ed5e0-3185-49c7-8028-4c72ad9c723e","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":222,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"40fa8e1c-3cd9-4cba-bfdf-01167c7f4a7f","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":222,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"8b5f1baf-e188-47fe-a919-500d3aa9ac1f","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":222,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"aec147c5-aac7-4b1e-8683-b047ba66f03f","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":222,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"45aac3be-bc9e-430b-82c5-b471337562c3","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":222,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"a4af47b0-ba0b-45c1-8959-a3969ee67cc9","block_type":"box","text":"11","page_number":222,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"0d5a39d7-e62a-4f78-8368-72220a963c9e","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":222,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"28a6d86b-b487-41dd-b5a6-8defc5d417e4","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":222,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"2733acc9-9f53-435e-b2d6-447e39157346","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":222,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"3769fe69-fefc-4e95-aac9-fd292ed43c26","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":222,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"75fd19cf-1192-4a58-bf96-b4f76785e316","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":222,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"8876fdad-340a-473e-ab01-9eab8379d115","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":222,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"ce7538f0-f2b5-4ad4-b68b-c6f7c4d6102f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7ed0ae91-c927-4067-b9ce-d3c0787d83cd","block_type":"box","text":"Global Principles | 10","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"94c89e13-98c9-450c-9d4b-8c3f98573177","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"508938ce-7ee0-49a8-9b3f-e29910a8b558","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":223,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"54878cc0-e214-4924-81b2-d5896b88f191","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":223,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"3f97407a-b2ad-4ec8-9c20-d85ba7d031d4","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":223,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"d988bc77-50d3-4450-a61c-437b1e5db812","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":223,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"39dc2b4b-81d8-4927-8bc5-491dc795e3cf","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":223,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"ffb17783-261d-4bd0-9327-9cf7d68b30ff","block_type":"box","text":"12, 13","page_number":223,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"a03da50b-6b33-4816-af16-8440e68e5763","block_type":"box","text":"From company disclosures and","page_number":223,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"92cac201-dff3-40c9-b241-765d4a7cc3b2","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":223,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"790f446e-9b6a-41e0-84fe-1a5426fbb2d8","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":223,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"0e6ae0e4-7512-4535-8329-7f815c385692","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":223,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"f2571a88-3a5a-4907-ac59-bf98660f7662","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":223,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"3e2240f7-1be5-45a0-8c2b-b9bf14d47b56","block_type":"box","text":"viewed as best practice in the market.","page_number":223,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"db84e073-8723-4d95-8e91-f123c6a710d0","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":223,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"a94b773a-d900-4577-b76d-e04f7da1fd50","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":223,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"9339a1b0-ecb3-4656-a463-79e1ce3ff537","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":223,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"40977842-1153-4487-8443-c13284db24e9","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":223,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"a759681e-8ec7-49d0-9bc2-d59d36a62c99","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":223,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"286fb455-836b-41fb-b0e1-623c9ae77801","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":223,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"f400019c-27cc-4e48-8452-383567e741ed","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":223,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"a1b16ed1-aa8e-454d-b594-0eb19b99e0ab","block_type":"box","text":"interests of their investors.","page_number":223,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"86ca3476-97cc-4165-876d-71ac7ecf640e","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":223,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"fa8e7f17-ef54-455e-9572-22761a51fad5","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":223,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"c30b1e4a-2da9-4558-8857-2922105d52b8","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":223,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"406ee7b1-de7a-49b7-9491-a258f5d305d7","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":223,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"086c6120-72f7-4469-9fca-dcc3188a67b4","block_type":"box","text":"good-faith basis as methodology develops.","page_number":223,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"f4d71145-65c9-4de9-911e-dddf7842a8dd","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":223,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"12675323-e770-48cd-849f-a690afb519a8","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":223,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"e43f8677-3474-4407-b932-fef449037333","block_type":"box","text":"generate long-term financial returns.","page_number":223,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"17044d98-2d31-48c6-96db-bd876f022ae4","block_type":"box","text":"14","page_number":223,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"cc02609a-149e-4dbb-84aa-f54a8d911f56","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":223,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"40fbefed-d331-46d0-976a-e1cd8dc10a9a","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":223,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"6c70b89e-3aa7-44c1-a2f8-7c44cc05449b","block_type":"box","text":"15","page_number":223,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"add5bc48-9db3-4c20-8b7c-177cc465c51c","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":223,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"f15e7ef9-1dff-4754-9e0e-e8e8e6b7fe92","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":223,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"df9db30c-be24-4eff-9a47-bcd91c3d23ed","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":223,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"04b45411-619d-44e7-b9e3-c051ccd74007","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":223,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"c62d4fb2-f4d2-4823-b483-1f219c865761","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":223,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"0c8ef8a0-c79f-49a0-935f-8fa93a1798db","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":223,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"4dea2d34-222c-4cc4-b6f1-b97cf88220d3","block_type":"box","text":"12","page_number":223,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"1265d630-5822-4d95-ab3e-7f8df405d376","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":223,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"7f8ce13e-d699-4e96-94c1-acc3b1e6e790","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":223,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"4a8daa62-d4e2-45be-9adb-fb2327523c8a","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":223,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"0e22d84c-4429-4c45-8b2c-a9311c994174","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":223,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"c27cf98d-3803-4ba5-b80f-27e3cc4f37fe","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":223,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"8bb62185-f2ad-4ccc-85c8-1192eb52b661","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":223,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"587df239-87c3-4904-92fc-c150a83cb5b5","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":223,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"289d2081-b059-4e01-89bb-94a67e513b6b","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":223,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"38148a55-4809-495b-9bae-0f013bac1a0e","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":223,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"05e1b923-6917-45f4-844f-9c9db909d898","block_type":"box","text":"13","page_number":223,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"93d5b9cc-3e75-4e68-990d-ac13de6a73c3","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":223,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"f49e6e33-1762-49c0-925c-c2d3215f8c3a","block_type":"box","text":"2025.","page_number":223,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"4356957f-25bd-45db-8162-322c206bfa97","block_type":"box","text":"14","page_number":223,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"c03b878c-579b-469d-9fa3-28757e9a0647","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":223,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"6345804c-84ca-4bd7-8a3d-44f27e65a8ea","block_type":"box","text":"2025.","page_number":223,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"e9b97541-1c41-46fc-9ab9-95e10616c509","block_type":"box","text":"15","page_number":223,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"0f8ffa49-2ff1-493a-ab58-4b09c5ce42e3","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":223,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"d36ffdc2-9aa6-4c99-80dd-73443c01181c","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":223,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"3956e07b-6e79-4887-8a5c-5ddc8be067ae","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":223,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"b4b9024d-947e-4daa-9cb3-a40c91316874","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":223,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"ce7fcced-945b-4819-9f70-ee381476af4e","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":223,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"7a6801ef-62de-4581-96ff-7a59c481c8ea","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d781f529-2be4-4215-a567-75990e28a9a3","block_type":"box","text":"Global Principles | 11","page_number":223,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"e3e06716-f118-4384-a207-6e482990e885","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34777fac-eeb2-44cc-81af-19ba0ecee739","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":224,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"1fbb1c14-f362-400a-878d-301dd15bd9a5","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":224,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"bcffd4c3-1631-437b-bfc1-8a8d1f702c1b","block_type":"box","text":"16","page_number":224,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"a60a424f-2663-429a-876e-8982e906e237","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":224,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"75516d35-e44b-4e8b-b98e-ab166a859ba5","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":224,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"eca0510c-5d7f-4819-be31-d31a807713c6","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":224,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"9e88beb7-85d6-44a7-b2a1-fb752a2d3337","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":224,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"cef18978-289b-49c0-a1b8-0d91e308df72","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":224,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"a13ad3b7-80c3-4b67-9c7b-be522046b471","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":224,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"c8668d7e-d754-41cf-ac0c-c6e79b2d9bd6","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":224,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"6ba5ea4f-eb00-4c65-a9ae-57eb78424db9","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":224,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"95ab61b9-b274-4263-92b5-dafe8e9dda59","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":224,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"c3063b19-f58d-48e6-8b5e-d4d11af6483e","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":224,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"6c2528dd-d6e7-40a2-9be3-c69d16c7cfd0","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":224,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"dea258bd-cfc2-47a6-8c4f-8ccd86ca04fd","block_type":"box","text":"impacts.","page_number":224,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"6385d5ed-a9c3-43f6-ab16-d34bca8a657f","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":224,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"6d95303f-d04e-484f-84d1-89c4dfee89ed","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":224,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"d0c5dce3-7ea8-4f37-a87b-5c7fcad8208e","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":224,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"98ee13e2-7fab-4826-a5a0-70e6296dc993","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":224,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"ee35c550-4a27-4138-8279-9888cd319868","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":224,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"3aaac400-4f43-4052-a298-2b486aa522da","block_type":"box","text":"clients at the global and regional level.","page_number":224,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"34974933-bc1d-4397-aac9-b467d6498436","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":224,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"14f58a91-9957-44e3-95e7-7a325a79c5f2","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":224,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"32b32ccf-c514-4a51-a9ed-f83debe45df8","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":224,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"a5254069-e475-4bb9-b32a-94c999c30fe9","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":224,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"3e25c0bc-a9ad-4144-a4f6-4eabc282e47b","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":224,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"459efa2a-0051-4671-8fe7-ee16956e3b91","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":224,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"7e53f791-d22c-4179-8eb9-9418d6572527","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":224,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"862c85be-0c14-4c47-9f24-e4ca500f5f93","block_type":"box","text":"are independent from the investment stewardship function.","page_number":224,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"79b2e8f1-e81c-4beb-a4cd-3ec26e965860","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":224,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"f3f38056-a99d-4805-839a-688b4104d80b","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":224,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"5de17148-deae-4643-9971-e498cd763665","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":224,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"1f300046-3bc0-4414-93b3-72f7f6f21619","block_type":"box","text":"VOTE EXECUTION","page_number":224,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"212e288a-8fbf-4e05-a923-5cba9d57a8d2","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":224,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"848f07fb-82a6-429f-8022-bf80c53117c8","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":224,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"148460d1-2b8e-40b1-9254-afcf2fe9c491","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":224,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"c919dee1-7475-471c-a567-2a6fb3d9bbf8","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":224,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"c7e22990-7ee9-4ef9-865c-611fb60be866","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":224,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"deecf6fc-cbb1-4712-819d-0a8ce645aef6","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":224,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"44b1f925-d5ba-4129-9f9d-df3bf48ab412","block_type":"box","text":"management policies and procedures,” below).","page_number":224,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"2cdf5906-3c8d-4b76-b137-85957c44d310","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":224,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"9154c789-577a-4bf7-9293-45a729996dc0","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":224,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"99fc8d97-d97d-46f4-a17a-7635b021c54d","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":224,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"9c71f964-db9f-4ca8-a453-9de0973ba38a","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":224,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"a6d57560-c7c1-48a9-9f08-669f3848ae43","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":224,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"8918b769-71b7-4003-a3a8-b45d161f9aa9","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":224,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"73acef72-7a83-4366-85d8-5f28b638d3b2","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":224,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"3d21f553-d72f-4b1f-99fb-c9be3f252b8c","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":224,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"258f6c0a-1d5b-4f00-9e4b-97238e82a2ef","block_type":"box","text":"16","page_number":224,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"03315065-af6d-4b3e-aa58-992326170d17","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":224,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"7c13321f-ab8c-4e9d-a1bd-a6090996101b","block_type":"box","text":"December 2025.","page_number":224,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"68d0e36e-e1bb-46dc-a50b-99c67d6908b6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"94bc888d-69a7-4406-a7b9-84a5ed6d1064","block_type":"box","text":"Global Principles | 12","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"92eddf21-826b-4edb-b36c-d29ee86b3999","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b79ba470-7e86-4ca7-a0ed-61a0fa6fe089","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":225,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"60ec3377-b58a-4710-9354-480e795f2a90","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":225,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"97420227-5c1a-47ac-90f7-1e9fd785c509","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":225,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"f795fbde-58bd-48d7-83c2-d56a57ac69a6","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":225,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"18b8242f-13a9-4dfe-a3ce-563e2876fa06","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":225,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"d0b65996-ca74-4ca9-8505-a8570f37b66b","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":225,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"5bdb2879-ab9e-4e12-b4b8-72dad295d92b","block_type":"box","text":"enterprise-level vendor management activities.","page_number":225,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"2e02db0b-4f78-415d-822b-bef96b27b37f","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":225,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"98db596b-903f-40f4-a021-c148f388015a","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":225,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"20272b86-9a98-45be-8420-6ede0741e470","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":225,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"4dfc5911-30c1-4b8b-ae83-cccc3d4d4295","block_type":"box","text":"BlackRock employees.","page_number":225,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"9f21d990-62c0-4ca5-bbc1-79a987fd7856","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":225,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"2a7bb56c-94de-4214-b666-33ca8300417d","block_type":"box","text":"SECURITIES LENDING","page_number":225,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"65266791-59e7-4afd-82c5-433589f57faf","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":225,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"f0a59a13-c897-4e58-b8af-045e05565446","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":225,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"9049a5b2-c623-4223-8187-e9237f75f3f9","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":225,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"ac054b53-7446-49ba-a81a-7306b91adeb1","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":225,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"37e0b0db-0cc2-44ff-b6b0-cc3962fce57f","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":225,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"1c8763a6-7073-44b2-8136-93bf513977c5","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":225,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"48cedd3d-852a-4e31-a0bc-63237d61517e","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":225,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"274e4ba9-01db-411b-8fef-afe226fa21e1","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":225,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"6bf5b964-4497-448c-a207-6ee8c0672ad8","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":225,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"efd15d74-471c-4375-9128-be52991f6f25","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":225,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"886a990c-337f-4149-83df-60d1b08ebf72","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":225,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"9c71ac8b-03af-4e0f-a52a-6458f412460a","block_type":"box","text":"of recall consideration).","page_number":225,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"b9f4a07c-bb04-4142-86c6-aa50bb000c06","block_type":"box","text":"17","page_number":225,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"895c5741-4d33-44c5-b8a8-cdd61af89f9a","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":225,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"acd42e43-72d0-44e0-9e14-02f8c1fd0fcd","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":225,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"0c485e5f-6be3-473f-bdfe-52feac903ecc","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":225,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"6a196eae-cd86-4e3a-bf19-c694640c668d","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":225,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"5850ab9b-d888-4c73-9d40-12758db3a1a5","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":225,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"82e11373-4492-420f-a885-04f0bf41039e","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. 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All rights reserved.","page_number":227,"box":{"x":69,"y":883,"width":303,"height":11}},{"id":"ead7b448-3e39-42d9-834f-996c97c5f17a","block_type":"box","text":"BLACKROCK","page_number":227,"box":{"x":379,"y":883,"width":92,"height":8}},{"id":"9aaa7119-6561-4a58-8538-3a1dd1c1241d","block_type":"box","text":"is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":227,"box":{"x":478,"y":882,"width":417,"height":11}},{"id":"8b6488cf-1b36-4230-907b-3e19c66ef511","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":227,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"dbb7038b-f9fa-4c67-9099-63c11c3ee48f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a6d23109-d37d-4776-91cb-2b65f5f406d4","block_type":"box","text":"Global Principles | 15","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"058597af-28a2-49ef-83d3-901a2443b25e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"37691827-a799-4ca8-8d02-f2ddd04aaed3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"33cf7334-0d14-47b8-981f-90c25324f01d","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":228,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"cbbb2f77-a3c7-41cd-bdd1-33420b733a5e","block_type":"box","text":"Effective as of January 2026","page_number":228,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"fe54e871-af53-4c47-9c96-252d02c8da02","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5e50bf82-6cf9-49b9-b922-6d747fc51f68","block_type":"box","text":"Contents","page_number":229,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"fcb753d4-4387-4210-8b50-f143439acfb0","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":229,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"5fdbefd8-e043-4685-a4a0-8a4058f56ae3","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":229,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"76a85a35-5777-440c-a02d-e9b902b94fcd","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":229,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"f12faad5-ad4e-4ed7-9d6c-0335d39f9559","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":229,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"488570a6-d49d-41c5-8fdf-894273529d7f","block_type":"box","text":"The Guidelines’ design principles","page_number":229,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"ca47f067-9818-4e2f-9362-0c43820a5f86","block_type":"box","text":"4","page_number":229,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"82346107-a37d-4f56-a996-168fd82c9dc0","block_type":"box","text":"Voting approach under the Guidelines","page_number":229,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"24c38fc1-3db7-4eb6-b495-24b5a1230728","block_type":"box","text":"5","page_number":229,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"9c703c4e-c147-42db-92f1-45959b4c1874","block_type":"box","text":"Related matters","page_number":229,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"1eb9f2f3-add1-4db6-937c-a67c069ce468","block_type":"box","text":"8","page_number":229,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"64c82392-223f-4c4d-a826-0f7f33e15406","block_type":"box","text":"Appendix 1","page_number":229,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"e59283da-e800-44fb-9048-c535b15d79f9","block_type":"box","text":"10","page_number":229,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"3f6f79c1-5075-461f-a10a-1a50c2f5c2d6","block_type":"box","text":"Appendix 2","page_number":229,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"e47b071b-279c-4168-9723-bd175e68ad6d","block_type":"box","text":"11","page_number":229,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"73ab4a0e-57f3-4ed3-b38e-9d7b6988446c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"90208fb9-780d-44f2-b3ae-9c268316885b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"9f7ee04d-4b68-4224-9e9f-880d167319bf","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9259378c-8bf8-4f95-a2c0-aa35168ae626","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":230,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"a9056ac3-3332-4b27-a2fa-85f263ea4b23","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":230,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"6664d203-f1ea-497e-904d-5ac16b733430","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. 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Net zero commitments are sourced from respective","page_number":230,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"c8d778a9-0eb8-48e9-b3f6-a3293c4d99d8","block_type":"box","text":"company websites, as of January 2025.","page_number":230,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"46a10b74-9fd9-49b8-818a-d923a5e61879","block_type":"box","text":"5","page_number":230,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"929e98ed-d10e-462b-baa0-3e742006f265","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":230,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"740cc3ad-f2da-4e1a-86db-a084859a3609","block_type":"box","text":"6","page_number":230,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"b969ab53-a255-46ab-b447-54aae43348a8","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":230,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"5045722c-7fb1-40f8-9b5a-dea4d6c52c4a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8de7d2d1-e513-4dd3-b070-6e25e7529acd","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"563909f1-a4d2-41f5-a8e8-eb84f74e552e","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"03de001e-0cec-4b13-8f40-ccc406374441","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":231,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"9a656af0-c351-4f21-8b04-2e7a4291104f","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":231,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"653e2672-4814-478d-a01e-8cd74957bb13","block_type":"box","text":"7","page_number":231,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"2d765b3d-4541-4a1a-bfd8-eade92190c92","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":231,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"af523d68-1bbf-4778-ab9e-b28adbbff7fa","block_type":"box","text":"Benchmark Policies.","page_number":231,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"1d5a64e6-0276-45d4-a494-d6053e6bc8b2","block_type":"box","text":"8","page_number":231,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"291bc9c2-01c6-4142-866c-b8a17d8beb4c","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":231,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"b74cd880-b173-4951-89af-116fccf82369","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":231,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"743d5f5b-4559-4fa8-9f1f-2f9250ff2944","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":232,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"cdffbd25-50e5-4022-8532-88e259db57f8","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":232,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"7742ee5a-312a-43e9-bac9-97182643ab9e","block_type":"box","text":"14, 15","page_number":232,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"99abfebc-cebf-4dae-a779-038a905a6b5e","block_type":"box","text":"IFRS","page_number":232,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"604962bb-c752-4244-b329-3214fa9da39f","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":232,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"f5f3b398-2357-4b03-9f43-c863b789e48d","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":232,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"1841fd67-77fb-439d-959e-99a617c6c7ae","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":232,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"4497af1a-5780-4b88-985a-b57b5afb0a85","block_type":"box","text":"and assurance standards are developed.","page_number":232,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"1da00d46-b345-4017-bfac-4ad5dc6aa22f","block_type":"box","text":"12","page_number":232,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"674d8979-45c1-4f90-aeaa-a911bafc8707","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":232,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"8cee27e1-ccd9-4c9a-af5c-6b624f865e54","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":232,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"ceb5b129-eaec-42fe-b0b3-82d7b29aaedc","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":232,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"aa95403d-101e-4b13-94e1-aa40c81aee37","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":232,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"5b2c1d1b-95d4-4954-9a7a-2866497b660c","block_type":"box","text":"13","page_number":232,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"1a1b5f2c-8317-4bc4-a91a-f8b5c8cf54dc","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":232,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"6027328d-b985-4941-a5f5-c8e723428fbf","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":232,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"84b78719-903e-4d11-b0f1-fc13d4f759d4","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":232,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"7a4a0703-3f5c-4e0e-ba87-825be606d83d","block_type":"box","text":"14","page_number":232,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"cc1ca191-ef69-4d8a-96ba-c4d6a24378b1","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":232,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"0bbe3be6-8f5c-47ce-9279-1cd49131a549","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":232,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"cb2a2383-6e45-4866-b1c4-d8a89cad6fa9","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":232,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"959addeb-80db-4cfe-9faa-3be11988b1b1","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":232,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"f7f3b688-83f8-47c0-b4c6-8891db828b95","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":232,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"354dbd4d-0c68-4517-abb2-8648555a905f","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":232,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"fa86f201-38c1-41e9-bb19-ba65b16202d0","block_type":"box","text":"15","page_number":232,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"862f911f-9a4f-4ea6-b3a0-6d3fa9b13993","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":232,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"da5804ad-725b-4c57-9e16-33717a4914f5","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":232,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"4dc4c27c-4828-4f87-a0fc-f84425ca955a","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":232,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"e1f38553-1a38-44c1-a7c8-473e1a095ae4","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":232,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"f111ddee-a32b-4674-83d2-f01189ba778f","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":232,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"78fda577-fa15-4fc0-8d1c-ab50a5f59f8b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c38e5982-fe86-4b0b-a929-1e102f37c478","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"436cf82e-c09d-4d99-ba79-af654faede95","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f9f7434-473d-43ae-9d0b-51e5e21c57e9","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":233,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"313ffcc3-6438-42da-856a-599c03f5700c","block_type":"box","text":"16, 17","page_number":233,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"5cc5b07e-6129-4ead-8b35-1e8a3a01e5fe","block_type":"box","text":"In addition, the dedicated team looks to","page_number":233,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"2b7d0178-b187-4b57-995a-0dd5c09961e0","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":233,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"722c9c41-535e-48cc-a8a8-2fe5bcc3d18f","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":233,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"cbb8874c-531f-4ac9-80f1-d929344312a0","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":233,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"965479c0-775d-4533-94f7-78aa6b7194fc","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":233,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"c5cb4fe8-eccb-4d46-9555-ba418b2ecd84","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":233,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"4d63b2c6-b83d-4cb1-873d-cc32e50d85a5","block_type":"box","text":"18","page_number":233,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"f007c997-f313-4d81-93c4-4d57be5d6c98","block_type":"box","text":"However,","page_number":233,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"00ac2ea9-7c1d-4eb7-be78-b559cef10426","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":233,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"9b044047-0584-4446-bb0d-a46d1d1a94dd","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":233,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"30a13ab9-58c9-4d67-96a1-eab3f0ef3a31","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":233,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"91085fa4-1ac1-4fad-bd4e-697c751e7dc0","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":233,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"1114768a-5977-4909-b48f-1289857e64b6","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":233,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"b432beb5-5ddf-41b7-bd52-aa3d64989a58","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":233,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"df12b2d9-1c41-46a7-8810-8f862ab50112","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":233,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"7e92dbed-99ce-45c1-958d-7d8a1b667bf2","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":233,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"6f540f58-63ae-476c-a6bb-633c3851840c","block_type":"box","text":"transition risks.","page_number":233,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"c4a59e39-b011-465f-9878-34d7bda49aa9","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":233,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"ce51ac04-f822-4ec5-8375-a96553230bef","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":233,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"d45ba45e-5aae-4621-a203-f3ac5fff4592","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":233,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"4f07fd15-24e7-4544-90b1-646dcb50c07d","block_type":"box","text":"Transition plans","page_number":233,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"47365b11-92ac-4d45-a4df-a112b8168acd","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":233,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"84de0328-b38c-4ecd-9cb8-27304789341b","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":233,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"4bb63658-84d8-4efe-8834-7f87d822c6c3","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":233,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"183b7c59-7489-43ae-b016-403cd3f816a1","block_type":"box","text":"(see Appendix 1).","page_number":233,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"a3fef3ae-ae3f-4a41-bc85-a89f8c004dc3","block_type":"box","text":"19","page_number":233,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"26273acd-6126-4d6d-8515-8d35fea94afb","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":233,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"16cf4332-ac02-441f-8d1b-5dd4ae49119e","block_type":"box","text":"transition plans.","page_number":233,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"8096c963-2fe2-41d2-b03d-d3ad75202873","block_type":"box","text":"20","page_number":233,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"7209a67f-f667-49a3-a70e-329633605f3d","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":233,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"721988d3-fd07-4067-8526-d9974819bdac","block_type":"box","text":"repor ting approaches.","page_number":233,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"5ef8682c-ee81-4e8e-8b76-3b0da6a4be71","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":233,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"4e4f1870-0b9f-4267-a4a2-c4b06532e44a","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":233,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"b156e751-4149-466f-b10a-ab40ab4e8ff3","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":233,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"648c3be3-e188-4ecb-8b7c-9d437a85697c","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":233,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"e515940d-3c33-4248-8cf0-fb6a86900a2b","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":233,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"caeb4ebd-f170-4903-b7b3-41cac56b3315","block_type":"box","text":"informed voting decisions.","page_number":233,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"74b37d48-f50e-47e4-93a5-6900bd320a6e","block_type":"box","text":"16","page_number":233,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"c6df9220-573b-4863-9132-c79bc4b29f6f","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":233,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"8fdbe99b-01ab-46b6-ae2b-113d4e9808a2","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":233,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"bf55aeeb-248e-42a4-95e5-fb4a863332f7","block_type":"box","text":"December 2025.","page_number":233,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"4b9ada54-f7d6-45b5-8d23-abc95d7e9222","block_type":"box","text":"17","page_number":233,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"b4e5198e-8b3a-4bbb-bc03-45f7600b8284","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":233,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"c1e66096-3045-4b5d-b386-a409b0fdbda4","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":233,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"0d966303-9a14-4d60-a5e8-f222fe8b490c","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":233,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"fcf517ef-ec97-45f7-b5b0-0ab0cebcfd16","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":233,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"292cd503-7542-4094-b094-95ed12918b3e","block_type":"box","text":"18","page_number":233,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"d1a80a17-6cbb-4cd4-bb4e-01e07e2afbe1","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":233,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"91a93fa0-b6d2-4a0e-8b05-b3c7d70dc420","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":233,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"7e2154cf-ba27-4c2c-87d0-9be5b4cc82ca","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":233,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"f69fe903-42fd-4def-a63c-34f3bb14fc50","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":233,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"e1956668-e112-483e-977e-02ad2f61d9b5","block_type":"box","text":"material to their business models.","page_number":233,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"d2db54da-7a79-4ddd-af52-b4a82d816e18","block_type":"box","text":"19","page_number":233,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"29e26dcf-aa6a-4b6f-b3b1-6026a3150e74","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":233,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"0dc9eeb4-c46a-4de5-be73-f4af2d006fec","block_type":"box","text":"December 2025.","page_number":233,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"b4cb830b-4720-4687-a6ef-a405a9981911","block_type":"box","text":"20","page_number":233,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"a63b4a32-8793-4e88-9c66-ff1edf99b160","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":233,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"27805ca7-53ed-435e-b8cf-c874a8ed5935","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":233,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"50b8e6ec-1618-442a-851a-c5a657e78cb4","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":233,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"e0955288-957e-4a81-b39e-3c7938cb590b","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":233,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"372cc965-b62b-4f10-8c00-5a960e2f944c","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":233,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"c8a254fc-afc1-4d3c-bedb-8047027bd392","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Given for thcoming regulatory requirements in cer tain jurisdictions, some companies are voluntarily","page_number":234,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"de0dd3f8-5e95-440a-91fc-6caac0eac6eb","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":234,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"ec055e15-c4f7-4250-baf3-a998a19e1a72","block_type":"box","text":"with the different constituents in their value chain.","page_number":234,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"2e2ade64-a8e2-45a3-8773-73bba299d354","block_type":"box","text":"21","page_number":234,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"6fa11982-1887-4c0b-a857-edd3ac862963","block_type":"box","text":"•","page_number":234,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"f4f35542-6ec9-46cd-a772-9708443c618f","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":234,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"c18abbd9-f532-48f2-80f2-92e27b4f5a51","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":234,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"ebf74464-70e5-4281-bbd8-7a7f7a17a6c8","block_type":"box","text":"22","page_number":234,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"90083896-5eee-4197-928f-a47f8b991c94","block_type":"box","text":"The dedicated team looks for","page_number":234,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"00162af8-5754-41a4-820d-dcea36656050","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":234,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"b4acb01e-a117-4196-9f61-6c1d0f995cf1","block_type":"box","text":"related to the low-carbon transition.","page_number":234,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"89e81bcf-228e-457c-bec9-260ca5ae5493","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":234,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"46a61d01-4ee2-490f-82ac-c924db4923e9","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally suppor ts non-executive directors standing for","page_number":234,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"d8369920-6af3-4dd7-b6d0-df104e134e79","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":234,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"1bbbfed1-2202-42de-8800-d07d3eaca9f5","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":234,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"aab90118-bd24-4271-bd9b-43ab41ba87dd","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":234,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"55ef9d27-d03a-4dd1-a6a0-61cbc7e1bc42","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":234,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"7df53011-d2c7-47d2-a2f2-b370bfa21f64","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":234,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"d260f090-8934-4f73-a2eb-efc9c456db98","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. In cer tain markets, the","page_number":234,"box":{"x":69,"y":659,"width":808,"height":11}},{"id":"a96523d4-3c9c-46b8-b5ef-bfeab6a71842","block_type":"box","text":"team may withhold suppor t for the discharge of the supervisory board or equivalent and/or board repor ts.","page_number":234,"box":{"x":68,"y":675,"width":758,"height":11}},{"id":"2368468e-d1df-42de-8fc8-841d156055d3","block_type":"box","text":"23","page_number":234,"box":{"x":828,"y":675,"width":9,"height":4}},{"id":"ca33802f-0fc0-4539-acf3-3e9f09593521","block_type":"box","text":"21","page_number":234,"box":{"x":69,"y":704,"width":9,"height":5}},{"id":"9dcfb507-44d6-443b-985e-2e430f142ee0","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":234,"box":{"x":84,"y":704,"width":825,"height":11}},{"id":"cdcf604f-7ca7-4759-8404-2ac7d9c1e23e","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":234,"box":{"x":70,"y":719,"width":835,"height":11}},{"id":"f6ba27de-a4c3-4b9b-ba38-36b8ffe5db9e","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":234,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"76125bb4-8e91-45fd-bf20-42a15c9b0a75","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":234,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"1dd5dbe7-46f7-477d-8711-f622e5d1b3f1","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":234,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"5b062d1e-c5c3-415c-b738-8dde04be4f0e","block_type":"box","text":"Website accessed in December 2025.","page_number":234,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"b3f08745-2b4e-4b33-a17d-b2b2e5d3ca9b","block_type":"box","text":"22","page_number":234,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"fccdfeb6-a239-48f9-8fb1-b4b337282525","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":234,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"91a174f1-d922-4e21-b382-ebc56b9f242c","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":234,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"177c65ac-b3be-4a89-8d01-154fc9a7b90e","block_type":"box","text":"23","page_number":234,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"3346a439-b517-4bfa-825a-32dcc40ecc6e","block_type":"box","text":"Board repor t votes are generally advisory and relate to repor ts issued by the board of directors that may contain","page_number":234,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"b451aecf-3bf1-4300-8ae0-2a60c86666b6","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":234,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"71353823-2db8-4c7d-8fdf-866c08dc6055","block_type":"box","text":"BlackRock Investment Stewardship","page_number":234,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8407cac5-766d-4186-a804-9b666bd7d209","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":234,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"0015dcf0-17e1-46e9-a9f2-b3b1a807f064","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":234,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ae9928d-080f-4ea7-8279-b72243c331bb","block_type":"box","text":"Where the dedicated team has not suppor ted director elections over climate concerns in a prior year, and the","page_number":235,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"653d38ba-e1f3-4a7f-a793-50a8e70fdaa4","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":235,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"323eb96d-f41d-44ee-b589-0a76d3987023","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":235,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"ec4ae38f-a7dc-45cf-b199-cb44b4047af8","block_type":"box","text":"24","page_number":235,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"31296dfb-7b67-4221-91a7-aa650cb3078b","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":235,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"a5eb08cd-11d4-45df-aadb-d72e4073655f","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":235,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"b8590884-280f-4a82-ba81-392b42b0071d","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":235,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"9028e071-d414-483f-a422-a077cfe20d88","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":235,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"964b9688-4f47-49cd-a4ad-9c7743281de3","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":235,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"b7e1d77b-5bfa-4c44-848a-60343472b15c","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":235,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"dd7fea26-faa6-414d-ba2c-5ca71cff97eb","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":235,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"d8184049-a700-4c22-b5f8-dad422e041a5","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":235,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"7721e19c-c76f-43e8-83c2-272a4f9d9a48","block_type":"box","text":"transition plan and targets.","page_number":235,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"102d3a7f-f0be-41a9-8f17-0ae809b431f6","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":235,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"c891e4be-1aa3-46dd-afae-cc24aabc0ae3","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":235,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"db109ea7-7747-4a55-9884-0895ecc06206","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":235,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"517d6a8a-4230-4afe-8681-2e950306c08e","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":235,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"71222b61-ef22-477e-a6c8-344d942dd658","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":235,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"c2b283f4-ae5e-4658-9171-cbe60f1f0536","block_type":"box","text":"company’s individual circumstances. When the dedicated team votes in suppor t of a proposal, it is not necessarily","page_number":235,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"426c7e97-3c2d-455f-9ad7-0fcfbc9461d1","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or suppor ting statement of the proponent.","page_number":235,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"1c882750-26d8-4109-84c2-55d0b2a7c67a","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":235,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"04ff58f6-ead7-48e3-a9c9-c5e6dbe02862","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":235,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"dbf0433e-c5fe-475b-8154-252935da1208","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":235,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"5e16d51f-8e41-4f93-9e3d-44dbb2fc1cce","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":235,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"0634f55e-13c4-4207-bc54-237929f09b97","block_type":"box","text":"•","page_number":235,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"05cfaf71-8b5a-4f98-987a-45d1d5b882d9","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":235,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"c35e3ae7-786b-4a86-ad07-d5fd2d6c1def","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":235,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"efbd2bae-967b-487c-8fd4-8c645ba811d4","block_type":"box","text":"•","page_number":235,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"5a71bb80-e313-4609-8479-1decda0b1617","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":235,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"4f138f8e-4df9-4a82-aed4-bc8719bae43d","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":235,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"979c0c4b-7c52-40b1-8194-fc352f40b86e","block_type":"box","text":"•","page_number":235,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"70c4db7c-cef4-4207-934f-24890cea026e","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":235,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"b7199f20-080f-4577-a44b-83b5bfa8b101","block_type":"box","text":"•","page_number":235,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"635eabfb-9e27-4812-837d-f272bf824078","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":235,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"d26daf96-09b0-433e-8a5c-a6a9a436ff19","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":235,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"4f0bec4e-f47c-4017-a335-5bb5d53dde15","block_type":"box","text":"25","page_number":235,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"37aeb78f-fda7-4734-9670-8bdfc6b9a530","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":235,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"ab99efeb-7cb6-4165-92fd-90bfb2357013","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":235,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"c68c5cd3-66e3-4cee-ad66-e4e4b895d592","block_type":"box","text":"RELATED MATTERS","page_number":235,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"a041c63d-ccdb-4d11-b13e-6dacb0bee324","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":235,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"f9f326a0-a1cc-48f7-8522-9e80c6acc4d4","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":235,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"6b965172-ff26-473a-8001-4e8859953a5a","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":235,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"5151429b-5c52-44d0-ad30-3345cd9617f4","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":235,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"6a36fbad-ae61-422f-8fc3-99200863f8fb","block_type":"box","text":"Executive compensation","page_number":235,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"9124f048-1f02-4bd7-ae1f-d48840b4da1c","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":235,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"ed62ce7f-32f8-487d-8718-64d3aab3e5d6","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":235,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"d2255778-0c32-4ede-8854-3b13dd82323f","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":235,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"ca365e17-286a-49ef-ace0-8f7d4c21ed0f","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":235,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"3460e86b-0c0d-437f-8c0f-5353dd20a6d0","block_type":"box","text":"24","page_number":235,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"1a89df98-09be-41d4-af74-082b139fe01f","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":235,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"a84471c2-1e3d-4131-839c-0389735c7c5b","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":235,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"cc88c850-003c-4eeb-8ca2-dbfdd8d57f34","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":235,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"1f4dcdf7-436d-477c-88c7-7dd1232ba43c","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":235,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"cbf4e153-719d-4301-ba0b-cbc8614d7c01","block_type":"box","text":"25","page_number":235,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"0c0d3447-15f9-41ab-ab36-60d386046df2","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":235,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"eaa96c8d-fe4b-47eb-8593-558c95fa0c88","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":235,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"d9a5ac61-0657-4750-8724-f73c322a093d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":235,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8ae229ae-3d1b-4961-8b46-99fbb2821710","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":235,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"61c8ee1f-9177-4922-a8c5-261da43c7019","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":235,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0afbd7a2-e672-4440-9825-91a1157ee6a8","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":236,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"347006d9-932b-4c11-b366-e2ff289e6dd5","block_type":"box","text":"strategy and risk management.","page_number":236,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"53d0eb12-74ae-4d98-845d-9fe46c02f18f","block_type":"box","text":"Auditors and audit-related issues","page_number":236,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"488583ff-304a-423c-bb1e-0c0dd159000c","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":236,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"814f5237-1fd1-490d-88da-2a726c674343","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":236,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"fdfbe32d-68f8-4395-8da1-bc2faa30919b","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":236,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"a1c0dfcc-6c7a-4126-b6e9-5b89a9dc3e38","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":236,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"bf01e27d-f49b-480f-b467-998e69284a80","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":236,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"46e212cb-4792-42d0-9c33-c480dbcc97fe","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":236,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"a28af3ae-3719-4a6d-898c-e530dd5dd89a","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":236,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"981003da-0759-4fc2-8228-9435c54d4646","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":236,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"57a7682d-fba6-426e-b5a2-a9070b870595","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":236,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"7a0a14f3-b0cc-488a-92f0-25216f52bcd4","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":236,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"52eb0b85-898b-4ece-9ff1-21a9dd81121d","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":236,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"92b69464-1b38-4607-8296-71eb4ac62f48","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":236,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"0b7010d3-8a41-4446-8f81-cd0a3475aeaf","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":236,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"166a3f76-b25d-4875-b265-c333841a2092","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":236,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"a61ecb03-55f8-4922-820c-9b0f9b7821b0","block_type":"box","text":"stakeholders.","page_number":236,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"0247a482-2e20-4031-890a-48c310cfdfcc","block_type":"box","text":"26","page_number":236,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"733b22f5-f85f-4f58-a099-322d9d56d2e5","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":236,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"ea3e0596-82a7-4970-9e71-166183ccf0b0","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":236,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"a1907494-944f-4caf-83ce-6a5ad50fc8c5","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":236,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"2a365fa7-c66a-4e2f-9fe2-836dc74f4735","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":236,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"0c3c7ad2-533c-4f7d-bffe-164e414bcf12","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":236,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"bfd644a6-e854-450c-aa5c-e42f5fcfe8f6","block_type":"box","text":"26","page_number":236,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"fa6fa1a0-4b43-40f3-8764-8a1f0121ec1a","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":236,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"a7991a84-25a1-4afe-98c3-3a96505db03d","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":236,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"0ad6326b-62bf-4f6e-ba15-5f176e4d7409","block_type":"box","text":"BlackRock Investment Stewardship","page_number":236,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e980cc0a-dca6-481f-95b9-536e2f456e5a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":236,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"b7bc6805-f4ea-4791-9fb6-7924d890eb36","block_type":"box","text":"BNM1026U-6032130-19202020","page_number":236,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"193545d7-45b7-4823-96fd-951c981482fc","block_type":"box","text":"Appendix 1","page_number":237,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"a2d20437-6adc-46c0-9d57-02bd5c5db417","block_type":"box","text":"Terminology","page_number":237,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"33e15aa7-9615-4ca8-94a8-f735e377c27a","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":237,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"2906387e-65ab-4b00-9546-9442ce4339f8","block_type":"box","text":"Climate risk:","page_number":237,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"d595017c-d6d2-4639-bf5f-6d504c873a9f","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":237,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"712a9c50-bad6-4c8d-8d60-13b48021b490","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":237,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"164ba940-e001-4773-924b-2a19e9f6cc6f","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":237,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"b6d5d1d5-d368-409c-b359-8fc49241bea5","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":237,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"4e9710a2-bb00-431c-87a3-a437651233d7","block_type":"box","text":"The global economic shift toward lower","page_number":237,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"599eb6f4-eef0-484f-85c9-f98c26012916","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":237,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"1e3935d6-81d9-48f9-82a2-20859936c5c8","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":237,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"16b524ae-6137-41f1-9528-7d2cfc08d8cb","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":237,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"369d7fcf-42b7-4104-80f2-a1f9e3c43d08","block_type":"box","text":"Decarbonization:","page_number":237,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"43e758fa-206d-40ee-9056-c19821ca4e4a","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":237,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"2e8d444b-cbad-46bd-a448-a021d0107853","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":237,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"199cba4b-b4ca-4fc3-ad37-83e12335c5dd","block_type":"box","text":"individual consumers. 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